ASX:EAX

Stock Analysis Report

Executive Summary

Energy Action Limited, together with its subsidiaries, provides electricity and gas procurement, contract management and environmental reporting, and sustainability services in Australia.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has Energy Action's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EAX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

EAX

-0.6%

AU Professional Services

0.7%

AU Market


1 Year Return

-24.2%

EAX

29.2%

AU Professional Services

15.5%

AU Market

Return vs Industry: EAX underperformed the Australian Professional Services industry which returned 29.2% over the past year.

Return vs Market: EAX underperformed the Australian Market which returned 15.5% over the past year.


Shareholder returns

EAXIndustryMarket
7 Day0%-0.6%0.7%
30 Day-7.4%0.4%0.8%
90 Day-16.7%5.4%6.1%
1 Year-24.2%-24.2%33.2%29.2%20.6%15.5%
3 Year-69.3%-71.3%58.6%45.1%38.1%19.7%
5 Year-85.1%-86.8%63.3%38.5%51.8%17.9%

Price Volatility Vs. Market

How volatile is Energy Action's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Energy Action undervalued compared to its fair value and its price relative to the market?

1.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: EAX (A$0.25) is trading above our estimate of fair value (A$0.07)

Significantly Below Fair Value: EAX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EAX is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: EAX is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EAX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EAX is good value based on its PB Ratio (1.1x) compared to the AU Professional Services industry average (1.9x).


Next Steps

Future Growth

How is Energy Action forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.5%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Energy Action has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Energy Action performed over the past 5 years?

-43.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EAX is currently unprofitable.

Growing Profit Margin: EAX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EAX is unprofitable, and losses have increased over the past 5 years at a rate of -43.7% per year.

Accelerating Growth: Unable to compare EAX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EAX is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (15.7%).


Return on Equity

High ROE: EAX has a negative Return on Equity (-212.39%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Energy Action's financial position?


Financial Position Analysis

Short Term Liabilities: EAX's short term assets (A$9.6M) exceed its short term liabilities (A$3.7M).

Long Term Liabilities: EAX's short term assets (A$9.6M) exceed its long term liabilities (A$6.8M).


Debt to Equity History and Analysis

Debt Level: EAX's debt to equity ratio (99.9%) is considered high.

Reducing Debt: EAX's debt to equity ratio has increased from 0.3% to 99.9% over the past 5 years.


Balance Sheet

Inventory Level: EAX has a low level of unsold assets or inventory.

Debt Coverage by Assets: EAX's debt is covered by short term assets (assets are 1.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EAX has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: EAX has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Energy Action's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EAX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EAX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EAX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EAX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EAX is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EAX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

John Huggart 0

1.1yrs

Tenure

AU$621,071

Compensation

Mr. John Huggart has been Chief Executive Officer at Energy Action Limited since January 01, 2019 and an Interim Chief Executive Officer since December 2018 until 2019 and was its General Manager of Consul ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD410.68K) is above average for companies of similar size in the Australian market ($USD253.04K).

Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
John Huggart
Chief Executive Officer1.1yrsAU$621.07kno data
Tracy Bucciarelli
Chief Financial Officer1yrsAU$597.88kno data
Amber Gillogly
Operations Director1.1yrsno datano data
Rebecca Seamons
General Manager of Marketing & Communications0yrsno datano data
Juan Rodriguez
Company Secretary0.3yrsno datano data

1.0yrs

Average Tenure

Experienced Management: EAX's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nitin Singhi
Independent Non-Executive Director4.5yrsAU$50.00k0.012% A$750.1
Chris Strickland
Independent Technical Advisory Board Member4yrsno datano data
Murray Bleach
Non-Executive Chairman4.3yrsAU$62.50k10.41% A$675.2k
Mark de Kock
Non-Executive Director4.5yrsAU$50.00k0.19% A$12.5k
Ronald Watts
Member of Technical Advisory Board4yrsAU$61.32k0.85% A$55.1k
Paul Meehan
Non-Executive Director17.1yrsAU$50.00k0.45% A$29.5k
Paul Bannister
Member of Technical Advisory Board4yrsno datano data
Lorraine Stephenson
Independent Technical Advisory Board Member4yrsno datano data

4.1yrs

Average Tenure

Experienced Board: EAX's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Energy Action Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Energy Action Limited
  • Ticker: EAX
  • Exchange: ASX
  • Founded: 2000
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: AU$6.489m
  • Shares outstanding: 25.95m
  • Website: https://www.energyaction.com.au

Number of Employees


Location

  • Energy Action Limited
  • 56 Station Street
  • Level 5
  • Parramatta
  • New South Wales
  • 2150
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EAXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2011
EAXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2011

Biography

Energy Action Limited, together with its subsidiaries, provides electricity and gas procurement, contract management and environmental reporting, and sustainability services in Australia. The company operates Australian Energy Exchange for electricity and gas procurement service through online, real time, and reverse auction platform for business customers. It also provides Energy Metrics, a contract management and environmental reporting platform that offers energy consumption monitoring and costing, energy emissions monitoring, contract administration, detailed technical reporting, desktop energy efficiency review, and additional reporting and monitoring services. In addition, the company offers projects and advisory services. It serves customers in businesses, governments, and nonprofit organizations. Energy Action Limited was founded in 2000 and is headquartered in Parramatta, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 10:38
End of Day Share Price2020/02/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.