Aeris Environmental Ltd (AEI) AI Stock Analysis

• Market Cap: AU$10.33M
• Dividend Yield: N/A
• Average Volume (3M): 141.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: 20.00%
• EPS Growth: 17.22%
• Country: AU
• Employees: 21
• Sector: Industrials
• Sector Strength: 70
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.01
• Shares Outstanding: 245,994,550
• 10 Day Avg. Volume: 198,157
• 30 Day Avg. Volume: 141,794
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.16
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

Aeris Environmental Ltd's overall stock score reflects significant financial and operational challenges. Key concerns include declining revenues, negative margins, and a stressed balance sheet, which heavily impact the score. The technical analysis also points to significant downward pressure on the stock with a bearish trend and oversold conditions. The poor valuation further highlights investor concerns about the company's future profitability and growth prospects.

Aeris Environmental Ltd Business Overview & Revenue Model

Company Description

Aeris Environmental Ltd (AEI) is a company specializing in the development and sale of products that improve indoor air quality and provide surface protection. The company's core offerings include proprietary technologies and cleaning products designed to prevent the spread of contaminants, improve energy efficiency, and extend the life of air conditioning and refrigeration systems. Aeris primarily operates within the environmental and industrial sectors, serving clients across various industries, including healthcare, commercial, and residential markets.

How the Company Makes Money

Aeris Environmental Ltd generates revenue through the sale of its proprietary cleaning and anti-microbial products, service contracts, and licensing agreements. Key revenue streams include direct sales of their chemical treatment products, such as coatings and cleaners for HVAC systems, as well as service contracts for ongoing maintenance and application of these products. Additionally, the company earns income from partnerships and licensing deals with companies that distribute Aeris' products or incorporate their technologies into their own product lines. These partnerships can expand the company's reach into new markets and industries, contributing significantly to its earnings.

Aeris Environmental Ltd Financial Statement Overview

Summary

Aeris Environmental Ltd faces significant financial hurdles with declining revenues, negative margins, and a stressed balance sheet. The company's financial health is compromised with ongoing losses and negative equity, posing substantial risks. While there is some cash on hand, the overall financial position remains precarious, necessitating strategic interventions to improve performance and stabilize operations.

Income Statement

Aeris Environmental Ltd has shown a declining trend in revenue and profitability over recent years. The gross profit margin has declined significantly from past years, indicating increased cost pressures. The net profit margin is negative, reflecting sustained losses. Both EBIT and EBITDA margins are also negative, signaling difficulties in operational efficiency and profitability.

Balance Sheet

The company's balance sheet presents significant concerns, with a negative stockholders' equity indicating financial distress. The debt-to-equity ratio is not applicable due to negative equity, but the total liabilities exceed total assets, highlighting solvency issues. Additionally, there is a marked decline in equity ratio, which is now negative, indicating potential financial instability.

Cash Flow

Cash flow analysis reveals ongoing challenges with persistently negative operating and free cash flows, although there is a slight reduction in cash outflows from the previous year. The operating cash flow to net income ratio is negative due to losses, further indicating cash management issues. Despite these challenges, the company maintains a positive cash position, providing some liquidity cushion.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.00M	3.05M	1.93M	2.68M	7.13M	14.63M
	Gross Profit
-162.64K	-183.69K	947.49K	1.21M	2.76M	8.00M
	EBIT
-2.95M	-2.98M	-3.98M	-7.33M	-5.93M	1.44M
	EBITDA
-3.16M	-2.98M	-3.86M	-7.31M	-5.80M	1.59M
	Net Income Common Stockholders
-3.20M	-2.97M	-3.65M	-7.13M	-5.87M	1.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.70M	989.79K	2.60M	5.30M	11.49M	12.95M
	Total Assets
3.34M	2.75M	4.67M	8.08M	16.55M	22.68M
	Total Debt
88.11K	916.91K	114.75K	318.34K	318.34K	390.06K
	Net Debt
-1.61M	-72.88K	-2.49M	-4.98M	-11.17M	-12.56M
	Total Liabilities
2.15M	2.78M	1.72M	1.48M	3.08M	3.37M
	Stockholders Equity
1.19M	-27.50K	2.95M	6.59M	13.47M	19.30M
Cash Flow		Free Cash Flow
-3.22M	-2.04M	-2.66M	-6.17M	-1.37M	-2.08M
	Operating Cash Flow
-3.20M	-1.99M	-2.58M	-6.11M	-1.28M	-2.05M
	Investing Cash Flow
-17.78K	-51.18K	-72.97K	-62.50K	-93.36K	-24.29K
	Financing Cash Flow
2.61M	433.83K	-64.67K	-61.47K	11.57M	11.57M

Aeris Environmental Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AEI, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 2.59 is Positive, neither overbought nor oversold. The STOCH value of 18.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AEI.

Aeris Environmental Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VYS	66 Neutral	AU$210.98M	23.53	11.53%	―	4.36%	-15.00%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
EMV	48 Neutral	AU$166.76M	―	-58.61%	―	―	-74.88%
CF1	39 Underperform	AU$12.57M	―	-37.21%	―	-23.80%	-33.62%
COB	35 Underperform	$28.47M	―	-80.81%	―	―	-517.72%
AEI	33 Underperform	AU$10.33M	―	-203.38%	―	20.00%	17.22%
RAN	30 Underperform	AU$1.88M	―	-80.29%	―	4.38%	23.33%

Aeris Environmental Ltd Corporate Events

Aeris Environmental Director Updates Shareholdings

Aeris Environmental Ltd has announced a change in the director’s interest, specifically regarding Maurie Stang’s holdings. The update reveals that Stang has acquired 50,000 shares and disposed of 9,999 shares, resulting in a shift in both direct and indirect holdings. This change reflects a strategic adjustment in the director’s investment portfolio, potentially impacting the company’s stockholder dynamics and market perception.

Bernard Stang Increases Stake in Aeris Environmental Ltd

Aeris Environmental Ltd has announced a change in the substantial holding of its shares by Bernard Stang. Stang’s voting power in the company has increased from 8.36% to 9.66% following the acquisition of an additional 3.4 million shares. This change reflects a significant increase in Stang’s influence over the company’s decisions, potentially impacting the company’s strategic direction and stakeholder interests.

Aeris Environmental Ltd Reports Revenue Decline and Increased Losses in Half-Year Results

Aeris Environmental Ltd reported a 7.16% decrease in revenue from ordinary activities for the half-year ending December 31, 2024, compared to the same period in 2023. The company also experienced a 5.79% decline in net loss attributable to members, highlighting ongoing financial challenges. The report indicates no dividends were declared, and there was a decrease in net tangible assets per share, reflecting potential concerns for stakeholders about the company’s financial health and market positioning.

Aeris Environmental Expands into US Market with First Distributor Agreement

Aeris Environmental Ltd has announced a significant step in its expansion strategy with the signing of its first US distributor agreement with H4 Enterprises for the AerisTech Syncromesh solution. Although the initial order is small, the potential for growth is substantial, with the Syncromesh system offering valuable insights into building operations and energy efficiency, promising a quick return on investment. This agreement marks an important move into the North American market, aligning with Aeris’ mission to provide energy-efficient solutions in the built environment.

Aeris Environmental Secures First US Distributor for AerisTech

Aeris Environmental Ltd has signed its first distributor agreement in the US with H4 Enterprises for its AerisTech Syncromesh product, marking a significant milestone in its global expansion efforts. This agreement is expected to generate ongoing revenues and demonstrates the growing demand for Aeris’s IoT building optimization solutions, as H4 Enterprises will use the initial installation to showcase the system’s energy-saving potential and promote it to their existing customer base, including US Federal Government departments.

Aeris Environmental Ltd Revises Quarterly Cash Flow Report

Aeris Environmental Ltd has released a revised Appendix 4C, updating items 8.5 and 8.6 in their quarterly cash flow report. The report highlights a net cash outflow from operating activities of $1.348 million for the current quarter and $2.061 million year-to-date, reflecting ongoing expenses in research, product manufacturing, and administration. This financial adjustment indicates the company’s current financial positioning, which may impact its strategic decisions and stakeholder interests.

Aeris Environmental Ltd Strengthens Market Position with Promising Financial Performance and Strategic Partnerships

Aeris Environmental Ltd reported a revenue of $766,000 for the December 2024 quarter, with a gross margin of 61%, highlighting improved financial performance. The company is experiencing significant momentum with its AerisTech joint venture, expanding its capabilities in smart building solutions and enhancing its partnership portfolio. Aeris also achieved qualification as a supplier to Wilmar International, reflecting its growing consumables segment, particularly in China. The successful deployment of AerisTech’s Syncromesh technology in the convenience store sector underscores its potential to deliver cost savings and operational efficiencies, strengthening its position in the industry.