eEnergy Group (EAAS) AI Stock Analysis

• Market Cap: £16.65M
• Dividend Yield: N/A
• Average Volume (3M): 932.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: 20.98%
• EPS Growth: 17.29%
• Country: UK
• Employees: 131
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 387,224,640
• 10 Day Avg. Volume: 947,305
• 30 Day Avg. Volume: 932,157
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.54
• Price to Sales (P/S): 0.75
• P/FCF Ratio: -1.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: 4.00p ▼(-6.98% Downside)

The overall stock score is primarily impacted by poor financial performance and weak technical indicators. While recent corporate events are positive, they do not offset the significant financial and operational challenges the company faces. The negative P/E ratio and lack of dividend yield further weigh down the valuation.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for eEnergy's services, suggesting effective market penetration and potential for future expansion.

Business Model

The EAAS model offers a recurring revenue stream, reducing upfront costs for clients and aligning with sustainability trends, enhancing long-term business stability.

Industry Position

As a leader in the EAAS sector, eEnergy benefits from first-mover advantages and strong brand recognition, supporting long-term competitive positioning.

Negative Factors

Financial Performance

Ongoing financial struggles with negative profitability and cash flow issues may hinder investment capacity and operational flexibility, impacting long-term growth.

Balance Sheet Health

High leverage and low equity ratio indicate financial vulnerability, potentially limiting the company's ability to withstand economic downturns or invest in growth opportunities.

Cash Flow Management

Negative cash flows highlight inefficiencies in cash management, which could constrain operational activities and strategic investments, affecting long-term viability.

eEnergy Group Business Overview & Revenue Model

Company Description

eEnergy Group plc, together with its subsidiaries, operates as an integrated energy services company in the United Kingdom and Ireland. It offers LED lighting solutions to education and commercial clients; and energy consultancy, procurement, analytics, and efficiency services. The company is based in London, the United Kingdom.

How the Company Makes Money

eEnergy Group generates revenue primarily through its energy-as-a-service (EAAS) model, which allows clients to pay for energy management services rather than upfront capital expenditures. Key revenue streams include subscription fees for ongoing energy management services, performance-based savings, and consulting fees for energy efficiency assessments. Additionally, the company may benefit from partnerships with energy providers and technology firms, creating synergies that enhance its service offerings and expand its customer base. By leveraging data analytics and IoT technology, eEnergy Group can also monetize insights and reporting services, further contributing to its earnings.

eEnergy Group Financial Statement Overview

Summary

eEnergy Group faces substantial financial headwinds. Despite revenue growth, the company is unprofitable with negative EBIT, EBITDA, and net income. High leverage and weak cash flows present significant risks, necessitating improvements in operational efficiency and financial health.

Income Statement

eEnergy Group's income statement shows a negative trajectory with declining margins and profitability. The company has experienced a significant revenue growth from 2023 to 2024, yet it remains unprofitable with negative EBIT, EBITDA, and net income. The gross profit margin stands at approximately 34.65% for 2024, while the net profit margin is negative. The EBIT and EBITDA margins are also deeply negative, indicating operational challenges.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 0.89 for 2024. The equity ratio is low at approximately 17.96%, reflecting reliance on debt financing. Return on equity is negative due to net losses. Although there is a reduction in total liabilities, the decrease in stockholders' equity over the year is concerning.

Cash Flow

The cash flow statement indicates significant challenges, with a negative operating cash flow and free cash flow for 2024. The free cash flow to net income ratio and operating cash flow to net income ratio are negative, highlighting cash inefficiencies. A considerable amount of cash was generated from investing activities, but overall cash management remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.10M	25.06M	22.03M	33.16M	10.46M	13.60M
Gross Profit	11.54M	8.68M	2.11M	17.68M	3.58M	5.54M
EBITDA	-2.75M	-7.88M	-2.57M	2.94M	-2.15M	582.00K
Net Income	-4.24M	-8.18M	-16.01M	608.00K	-1.43M	28.00K
Balance Sheet
Total Assets	27.59M	29.54M	56.40M	56.07M	49.69M	21.12M
Cash, Cash Equivalents and Short-Term Investments	4.00M	4.50M	597.00K	1.35M	1.82M	3.47M
Total Debt	1.27M	4.72M	8.60M	8.57M	5.91M	2.54M
Total Liabilities	23.52M	24.23M	32.60M	32.01M	27.14M	11.25M
Stockholders Equity	4.07M	5.31M	23.89M	24.15M	22.63M	9.87M
Cash Flow
Free Cash Flow	29.00K	-16.73M	-1.78M	-2.75M	-7.12M	-456.00K
Operating Cash Flow	46.00K	-16.70M	-1.59M	-1.55M	-6.43M	-105.00K
Investing Cash Flow	-2.27M	22.84M	-1.73M	-1.19M	-7.77M	-1.01M
Financing Cash Flow	-637.00K	-4.46M	3.55M	1.94M	12.64M	2.65M

eEnergy Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EAAS, the sentiment is Negative. The current price of 4.3 is below the 20-day moving average (MA) of 4.44, below the 50-day MA of 4.87, and below the 200-day MA of 4.71, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 60.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:EAAS.

eEnergy Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CWR	63 Neutral	£455.93M	-12.05	-23.26%	―	12.58%	12.39%
DIA	63 Neutral	£132.04M	24.55	15.77%	―	-5.73%	―
AFC	51 Neutral	£117.45M	-4.50	-86.37%	―	732.03%	12.60%
IKA	51 Neutral	£74.14M	-10.82	-31.45%	―	265.67%	-16.50%
EAAS	38 Underperform	£16.65M	-4.32	-36.75%	―	20.98%	17.29%

eEnergy Group Corporate Events

eEnergy Group Announces Board Change as John Hornby Steps Down

eEnergy Group plc announced the resignation of John Hornby from his role as Non-Executive Director, as he steps down to focus on his CEO role at Luceco plc. The company is actively seeking a replacement and will update stakeholders in due course. This change in the board is part of eEnergy’s ongoing efforts to maintain strong leadership as it continues to lead in the energy services sector, particularly in education, where it has made significant strides in decarbonization and cost savings.

eEnergy Group Awards Share Options to Strengthen Management Alignment

eEnergy Group has announced the award of 5,650,000 nil cost share options to incentivize and retain key management personnel, with 2,000,000 options allocated to CFO John Gahan and the remainder to four other employees. This move is designed to align the management team with long-term shareholder value creation and is structured to qualify for the tax-advantaged Enterprise Management Incentive scheme. The options will vest in December 2027, contingent on the company’s share price performance, reflecting the company’s strategic focus on enhancing its operational efficiency and market positioning.

eEnergy Group Expands Solar PV Project to 82 Schools

eEnergy Group has expanded its solar PV supplier agreement to potentially cover up to 82 schools, up from the initially planned 47, across the East and West Midlands and parts of London. This expansion includes additional installations of LED lighting, EV charging, and battery systems as part of the Great British Energy Solar Partnership. To support this rapid deployment, eEnergy has secured a £1.5 million unsecured loan from Harwood Holdco Limited and granted warrants for new ordinary shares. The project is expected to be completed by March 2026, with significant revenue recognition anticipated in FY26. The company is on track to meet its financial targets, with a record order book positioning it for further growth.

eEnergy Group Secures Landmark EV Charging Project with NHS Trust

eEnergy Group has secured its largest EV charging project to date, awarded by the Herefordshire and Worcestershire Health and Care NHS Trust. The £333,000 project involves installing 48 EV chargers across 10 sites, enhancing the Trust’s sustainable transport strategy. This project not only strengthens eEnergy’s position as a trusted partner for the NHS but also underscores its role in public sector decarbonization. The company’s support in securing government funding for this initiative further highlights its expertise and commitment to expanding clean energy infrastructure.