ESGL Holdings (ESGL) AI Stock Analysis

• Market Cap: $74.73M
• Dividend Yield: N/A
• Average Volume (3M): 22.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 72
• Sector: Industrials
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 40,614,418
• 10 Day Avg. Volume: 15,399
• 30 Day Avg. Volume: 22,215
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 20.85
• 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

ESGL Holdings shows strong revenue growth, but profitability challenges and high leverage pose risks. While cash flow is a strength, technical indicators suggest bearish momentum, which could pressure the stock further. The lack of valuation metrics adds uncertainty, contributing to a lower overall score.

ESGL Holdings Business Overview & Revenue Model

Company Description

ESGL Holdings (ESGL) is a company operating within the sustainable and green energy sector, focusing on providing innovative solutions and services aimed at enhancing energy efficiency and reducing environmental impact. The company specializes in the development and implementation of cutting-edge technologies that support clean energy initiatives and promote sustainability in various industries.

How the Company Makes Money

ESGL Holdings generates revenue primarily through the sale of its energy-efficient technologies and solutions. The company offers a range of products and services designed to help businesses reduce their carbon footprint and improve energy efficiency. Key revenue streams include the licensing of proprietary technology, project management services for energy optimization, and consulting services that provide strategic guidance on implementing sustainable practices. Additionally, ESGL may engage in partnerships with other technology firms, government agencies, or industry leaders to expand its market reach and enhance its service offerings, contributing to its overall earnings.

ESGL Holdings Financial Statement Overview

Summary

ESGL Holdings is experiencing robust revenue growth but faces challenges in achieving profitability, with substantial operational losses affecting its income statement. The balance sheet shows a manageable but high level of debt, which could pose risks if not addressed. However, the company's cash flow position is strong, providing some stability in financial operations. Continued focus on improving profitability and managing leverage will be crucial for future growth.

Income Statement

ESGL Holdings has shown a significant revenue growth rate of approximately 23.5% from 2022 to 2023. However, the company is struggling with profitability, evidenced by a negative net profit margin of -154.1% in 2023 and EBIT and EBITDA margins also in the negative territory. The gross profit margin remains healthy at 69.1%, indicating efficient cost management in direct costs, but the overall profitability is hampered by high operational and non-operational expenses.

Balance Sheet

The balance sheet reveals a moderate equity position with an equity ratio of 31.3%. The company has a high debt-to-equity ratio of 0.99, which indicates significant leverage. Return on equity is negative, reflecting the net losses incurred. While the company maintains a positive equity position, the high leverage and negative ROE present risks.

Cash Flow

ESGL Holdings has demonstrated strong cash flow management with a positive operating cash flow to net income ratio, indicating that cash flows are better than earnings. The free cash flow has improved significantly, showing a growth rate of 530.1% from 2022 to 2023. This improvement in cash flow provides a buffer against operational losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
869.00K	6.16M	4.99M	3.96M	2.65M
	Gross Profit
675.74K	4.26M	3.21M	2.64M	1.26M
	EBIT
-2.06M	-94.39M	-2.10M	-590.52K	-1.25M
	EBITDA
-752.90K	-92.10M	171.00K	1.48M	169.79K
	Net Income Common Stockholders
-1.43M	-94.98M	-2.39M	-668.58K	-1.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.93K	366.76K	252.40K	137.01K	232.77K
	Total Assets
65.36K	25.63M	25.63M	16.99M	16.27M
	Total Debt
0.00	7.95M	8.06M	8.50M	8.94M
	Net Debt
-14.93K	7.58M	7.80M	8.36M	8.71M
	Total Liabilities
51.61K	17.61M	12.50M	11.14M	10.61M
	Stockholders Equity
13.75K	8.02M	13.12M	5.85M	5.67M
Cash Flow		Free Cash Flow
-911.74K	2.87M	456.04K	857.47K	-2.15M
	Operating Cash Flow
-58.69K	4.91M	1.97M	2.49M	357.36K
	Investing Cash Flow
31.07M	-2.02M	-1.48M	-1.64M	-2.51M
	Financing Cash Flow
-31.07M	-2.76M	-370.25K	-953.30K	2.31M

ESGL Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESGL, the sentiment is Positive. The current price of 1.84 is below the 20-day moving average (MA) of 1.93, above the 50-day MA of 1.70, and above the 200-day MA of 1.54, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 64.19 is Neutral, neither overbought nor oversold. The STOCH value of 78.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESGL.

ESGL Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WM	80 Outperform	$91.86B	33.42	36.24%	1.35%	8.01%	20.17%
CLH	77 Outperform	$11.49B	28.56	16.69%	―	8.89%	6.76%
RSG	76 Outperform	$76.10B	36.30	18.54%	0.92%	6.13%	16.44%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
ESGL	46 Neutral	$74.73M	―	-1184.17%	―	―	―