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EchoIQ Limited (AU:EIQ)
ASX:EIQ
Australian Market

EchoIQ Limited (EIQ) AI Stock Analysis

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AU

EchoIQ Limited

(Sydney:EIQ)

Rating:39Underperform
Price Target:
EchoIQ Limited's stock score reflects significant financial challenges, with declining revenues and persistent losses posing substantial risks. The technical analysis indicates a bearish short-term trend, and the negative P/E ratio highlights profitability issues. The absence of earnings call and corporate events data limits further analysis, but the current indicators suggest caution for potential investors.

EchoIQ Limited (EIQ) vs. iShares MSCI Australia ETF (EWA)

EchoIQ Limited Business Overview & Revenue Model

Company DescriptionEcho IQ Limited provides cardiac diagnostics support solution in Australia. The company offers artificial intelligence-assisted diagnostics technology that enhance the diagnosis of structural heart disease, as well as Aortic Stenosis. It primarily serves physicians, health systems, and patients. The company was formerly known as Houston We Have Limited and changed its name to EchoIQ Limited in December 2021. Echo IQ Limited is based in Sydney, Australia.
How the Company Makes MoneyEchoIQ Limited generates revenue primarily through the licensing of its AI-driven software solutions to businesses. The company offers subscription-based models that provide clients with continuous access to its platforms and regular updates. Additionally, EchoIQ engages in strategic partnerships with industry leaders to integrate its technology into broader service offerings, expanding its reach and client base. The company also provides consultancy and customization services, allowing clients to optimize the software for specific needs, which serves as an additional revenue stream.

EchoIQ Limited Financial Statement Overview

Summary
EchoIQ Limited is facing serious financial challenges, with declining revenues, persistent losses, and negative cash flows. Although the absence of debt reduces financial risk, the company's diminishing asset base and consistent operating losses are significant concerns for future growth.
Income Statement
25
Negative
EchoIQ Limited has been experiencing declining revenue and consistent negative profitability metrics. The gross profit margin is negative, indicating cost issues relative to revenue. There is also a significant decline in net income and EBIT over the years, pointing to financial instability and operational inefficiencies. Revenue growth rate is negative, showing a shrinking top line, which is concerning for a growth-oriented software company.
Balance Sheet
40
Negative
The balance sheet shows a strong equity position relative to total assets, indicating good financial health in terms of equity financing. However, the company has been consistently operating at a loss, which could erode equity over time. The absence of debt is a positive, reducing financial risk, but the decline in total assets suggests a contraction in the company's financial base.
Cash Flow
30
Negative
The cash flow analysis reveals persistent negative operating cash flow, which is a major concern for sustainability, especially in the absence of significant financing activities. The free cash flow is also negative, indicating that the company is not generating sufficient cash from its core operations to support growth or investment. This could be a red flag in terms of liquidity and operational efficiency.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
129.91K44.50K107.33K251.10K441.98K679.87K
Gross Profit
-3.69M-2.88M-7.01M-3.19M-1.75M-1.10M
EBIT
-8.16M-5.92M-8.27M-6.53M-3.76M-2.85M
EBITDA
-8.18M-4.81M-7.07M-5.85M-3.14M-2.54M
Net Income Common Stockholders
-8.87M-5.41M-8.27M-5.99M-2.99M-2.68M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.35M2.12M3.28M2.41M3.81M3.48M
Total Assets
10.63M8.26M10.38M10.23M10.93M4.15M
Total Debt
0.000.000.000.0043.83K43.83K
Net Debt
-5.35M-2.12M-3.28M-2.41M-3.77M-3.43M
Total Liabilities
628.02K1.49M3.00M2.21M1.10M1.03M
Stockholders Equity
10.00M6.77M7.38M8.02M9.84M3.12M
Cash FlowFree Cash Flow
-5.30M-3.92M-5.28M-2.95M-2.43M-1.19M
Operating Cash Flow
-5.30M-3.92M-4.94M-2.58M-1.43M-1.10M
Investing Cash Flow
-2.90K0.00-59.81K-367.33K-1.00M-342.80K
Financing Cash Flow
8.88M2.77M5.88M1.55M2.77M4.21M

EchoIQ Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.22
Price Trends
50DMA
0.28
Negative
100DMA
0.28
Negative
200DMA
0.25
Negative
Market Momentum
MACD
-0.02
Positive
RSI
36.57
Neutral
STOCH
25.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EIQ, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.28, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.57 is Neutral, neither overbought nor oversold. The STOCH value of 25.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:EIQ.

EchoIQ Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.97B10.29-7.47%2.99%7.32%-8.06%
AUEIQ
39
Underperform
AU$135.49M-105.20%51.06%-19.12%
$13.79M-467.81%
$52.38M-9.88%
AURHT
61
Neutral
AU$17.93M140.00-3.11%89.13%69.57%
AUPYC
53
Neutral
AU$676.58M-112.97%-84.82%
AUIBX
39
Underperform
AU$2.21M
55.07%88.20%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:EIQ
EchoIQ Limited
0.22
0.04
22.22%
CDEXF
CardieX
0.36
0.00
0.00%
TDMMF
Mach7 Technologies Ltd.
0.24
-0.12
-33.33%
AU:PYC
PYC Therapeutics Limited
1.16
0.12
11.54%
AU:RHT
Resonance Health Ltd
0.04
-0.02
-33.33%
AU:IBX
Imagion Biosystems Ltd.
0.01
-0.08
-88.89%

EchoIQ Limited Corporate Events

Echo IQ Limited Releases Q1 2025 Report, Emphasizes AI in Cardiology
Apr 29, 2025

Echo IQ Limited released its quarterly report for the period ending 31 March 2025, highlighting its current corporate structure with 588,521,043 ordinary shares and a shareholder base of 3,465. The top 20 shareholders hold 42.37% of the company. The report underscores Echo IQ’s commitment to leveraging AI technology to improve cardiology outcomes, which positions the company as a significant player in the healthcare technology sector.

Echo IQ Expands US Market Reach with OTCQB Listing
Apr 16, 2025

Echo IQ Limited has announced its approval to trade on the OTCQB Venture Market in the United States under the ticker code ECHQF, starting 16 April 2025. This move is part of Echo IQ’s strategy to expand its presence in the US market, particularly focusing on the commercialisation of its EchoSolv technology for early detection of structural heart disease. The listing is expected to increase liquidity and provide access to new investor groups, supporting Echo IQ’s ongoing commercialisation efforts and strengthening its partnerships in US capital markets.

Echo IQ Partners with Mayo Clinic Platform for Heart Failure Solution Validation
Apr 2, 2025

Echo IQ has secured a collaboration agreement with the Mayo Clinic Platform to advance a validation study for its heart failure clinical decision support solution, EchoSolv HF. This partnership follows a positive engagement with the FDA, providing a clear path towards regulatory clearance. The validation study, which is the final requirement before FDA submission, will assess EchoSolv HF’s ability to detect various forms of heart failure. The collaboration also includes the potential for licensing EchoSolv HF to 30 Mayo Clinic Care Network sites. With heart failure being a significant health issue in the US, the successful deployment of EchoSolv HF could lead to improved patient outcomes and substantial market opportunities.

Echo IQ Expands US Presence with Strategic Partnerships
Mar 30, 2025

Echo IQ has announced strategic partnership and integration agreements with ScImage and MedAxiom to expand the distribution of its EchoSolv AS technology across 36 cardiology networks in the United States. This collaboration will enhance the detection rates of severe aortic stenosis, solidifying Echo IQ’s position as a leader in AI-driven cardiovascular disease detection and expanding its presence in the US market.

Echo IQ Releases Investor Webinar on US Strategy and Achievements
Mar 19, 2025

Echo IQ has announced the availability of a recording from its recent investor webinar, where CEO Dustin Haines discussed the US commercialization strategy for EchoSolv AS and highlighted key milestones achieved in early 2025. The webinar also covered the company’s clinical development pipeline and upcoming opportunities, providing stakeholders with insights into Echo IQ’s strategic direction and potential growth in the medical technology sector.

EchoIQ Limited Announces Director’s Interest Change
Mar 6, 2025

EchoIQ Limited has announced a change in the director’s interest, specifically for Mr. Ken Nelson. On March 4, 2025, Mr. Nelson acquired 4,000,000 unlisted options at a value of $0.25 each, as part of a director appointment agreement. This acquisition marks the first holding of such securities by Mr. Nelson, potentially impacting the company’s governance and strategic direction with his increased stake.

EchoIQ Limited Issues Unquoted Equity Securities for Employee Incentive
Mar 6, 2025

EchoIQ Limited has announced the issuance of unquoted equity securities, including performance rights and options, as part of their employee incentive scheme. This move, involving a total of 14 million securities with various expiration dates and exercise prices, is aimed at enhancing employee engagement and aligning interests with the company’s long-term goals.

EchoIQ Limited Issues Unquoted Options as Part of Strategic Financial Maneuvers
Mar 6, 2025

EchoIQ Limited has announced the issuance of 1,500,000 unquoted options set to expire on March 4, 2028, with an exercise price of $0.35. This move is part of previously announced transactions and is not intended to be quoted on the ASX, reflecting the company’s strategic financial maneuvers to potentially enhance its capital structure.

EchoIQ Limited Issues Unquoted Securities
Mar 6, 2025

EchoIQ Limited has announced the issuance of 4,000,000 unquoted securities in the form of options expiring on March 4, 2030, with an exercise price of $0.25. This move is part of a previously announced transaction and is not intended to be quoted on the ASX, potentially impacting the company’s financial strategy and stakeholder interests.

EchoIQ Limited Announces Cessation of 3 Million Options
Mar 6, 2025

EchoIQ Limited has announced the cessation of certain securities, specifically 3,000,000 options that were set to expire on June 14, 2027. This cessation occurred because the conditions for these securities were not met or became incapable of being satisfied, impacting the company’s issued capital structure.

Echo IQ to Host Investor Webinar on US Strategy and Development Pipeline
Mar 5, 2025

Echo IQ announced an investor webinar scheduled for March 13, 2025, where CEO Dustin Haines will update on the US commercialization strategy for EchoSolv-AS and discuss the company’s clinical development pipeline. This event reflects Echo IQ’s ongoing efforts to strengthen its market position and engage stakeholders in its strategic initiatives.

Echo IQ Advances US Commercialization of EchoSolv-AS
Mar 5, 2025

Echo IQ has made significant strides in its US commercialization strategy for EchoSolv-AS, with its integration at Beth Israel Deaconess Medical Center, a flagship site, and plans to expand to 60 more sites. The company is advancing discussions with larger hospital groups and pursuing a CPT code for reimbursement, which is crucial for adoption in the US healthcare sector. Echo IQ has also appointed Sam Dribin as CTO to enhance US integrations and product development, and is planning a listing on the OTCQB to increase investor awareness.

EchoIQ Limited Announces Proposed Securities Issue
Mar 3, 2025

EchoIQ Limited has announced a proposed issue of securities, specifically 1,500,000 options expiring on March 4, 2028, with an exercise price of $0.35. This move is part of a placement or other type of issue, with the proposed issue date set for March 4, 2025. The announcement reflects the company’s strategic efforts to potentially enhance its financial position and market presence, although specific implications for stakeholders or industry positioning were not detailed.

EchoIQ Limited Releases Interim Financial Report for 2024
Feb 27, 2025

EchoIQ Limited has released its consolidated interim financial report for the period ending December 31, 2024. The report includes various financial statements and declarations, providing a comprehensive overview of the company’s financial position and performance. This release is crucial for stakeholders as it offers insights into the company’s financial health and operational efficiency, which can impact its industry positioning and future strategic decisions.

Echo IQ Limited Reports Revenue Surge Amidst Increased Losses
Feb 27, 2025

Echo IQ Limited reported a significant increase in revenues from ordinary activities, rising by 533.8% to $101,409 for the half-year ended December 31, 2024. Despite this revenue growth, the company experienced a substantial increase in its loss after tax, which rose by 125.4% to $6,215,645, compared to the previous period. This financial performance indicates a challenging period for the company, with no dividends declared, impacting stakeholders’ expectations.

Echo IQ Secures $1.26M R&D Tax Incentive
Feb 12, 2025

Echo IQ has received $1.26 million under the Australian Government’s R&D Tax Incentive Scheme for the fiscal year ending June 30, 2024. This funding recognizes the company’s investment in R&D for AI innovations and decision-support solutions for detecting structural heart disease, supporting its operational growth and industry positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.