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IODM Ltd. (AU:IOD)
ASX:IOD
Australian Market

IODM Ltd. (IOD) AI Stock Analysis

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AU

IODM Ltd.

(Sydney:IOD)

Rating:33Underperform
Price Target:
IODM Ltd. faces significant financial and operational challenges, with negative profitability and cash flow issues. The technical analysis suggests weak momentum, and valuation metrics highlight ongoing financial struggles. These factors underscore the need for strategic improvements to enhance financial health and market performance.

IODM Ltd. (IOD) vs. iShares MSCI Australia ETF (EWA)

IODM Ltd. Business Overview & Revenue Model

Company DescriptionIODM Limited provides cloud based software as a service in Australia, New Zealand, and the United Kingdom. It develops an automated debtor management solution that offers accounts receivable monitoring and collection management tool through a central cloud based platform for businesses. The company was incorporated in 2002 and is headquartered in Melbourne, Australia.
How the Company Makes MoneyIODM Ltd. makes money primarily through subscription fees charged to businesses that use its software platform. The company offers its accounts receivable management solution on a Software-as-a-Service (SaaS) model, where clients pay regular fees based on their usage, which can vary depending on the number of users or the volume of invoices processed. Additionally, IODM may generate revenue from setup fees, premium features, or customization services. Strategic partnerships with financial institutions or other software providers may also contribute to expanding the company's market reach and customer base, thus influencing its revenue growth.

IODM Ltd. Financial Statement Overview

Summary
IODM Ltd. shows revenue growth but struggles with significant losses and financial instability. Negative margins and cash flow indicate operational and financial challenges. The negative equity suggests potential solvency concerns, requiring strategic changes for improvement.
Income Statement
30
Negative
The company exhibits consistent revenue growth over the years, with current revenue at 1,907,901. However, the net profit margin remains negative due to substantial net losses, impacting overall profitability. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Despite growth potential, profitability remains a significant challenge.
Balance Sheet
25
Negative
The balance sheet indicates financial instability with negative stockholders' equity of -840,613, suggesting liabilities exceed assets. The debt-to-equity ratio cannot be computed due to negative equity, highlighting financial risk. The equity ratio is also negative, reflecting weak financial health and potential liquidity issues.
Cash Flow
20
Very Negative
The company has negative free cash flow (-2,442,258) and operating cash flow, which raises concerns about its ability to generate cash from operations. The negative free cash flow to net income ratio suggests challenges in converting earnings into cash, further compounded by negative cash flow growth.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
2.92M1.91M1.14M803.30K859.49K645.54K
Gross Profit
-1.56K-296.42K-862.27K-826.22K-658.65K-562.28K
EBIT
-2.49M-3.78M-2.81M-2.81M-2.48M-2.70M
EBITDA
-2.91M-2.95M-2.22M-2.22M-2.11M-2.51M
Net Income Common Stockholders
-3.10M-3.11M-2.40M-2.40M-2.20M-2.42M
Balance SheetCash, Cash Equivalents and Short-Term Investments
461.12K282.71K1.78M1.19M651.13K738.76K
Total Assets
1.35M929.66K2.52M2.00M876.87K982.11K
Total Debt
320.90K709.30K571.95K726.47K9.50K107.78K
Net Debt
-140.22K426.59K-1.21M-464.50K-641.62K-630.98K
Total Liabilities
1.30M1.77M1.17M1.20M438.98K465.59K
Stockholders Equity
46.98K-840.61K1.34M799.05K437.89K516.52K
Cash FlowFree Cash Flow
-1.50M-2.44M-2.08M-1.79M-1.64M-1.62M
Operating Cash Flow
-3.06M-2.44M-2.08M-1.79M-1.64M-1.62M
Investing Cash Flow
0.000.00-1.0043.40K-111.10K0.00
Financing Cash Flow
2.69M949.34K2.67M2.28M1.66M2.22M

IODM Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.13
Price Trends
50DMA
0.15
Negative
100DMA
0.15
Negative
200DMA
0.16
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
39.28
Neutral
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IOD, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.15, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IOD.

IODM Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$11.51B10.19-6.93%2.94%7.57%-9.20%
AUIOD
33
Underperform
AU$80.15M-2298.41%63.21%-13.33%
DEWN6
€7.73B48.758.51%2.32%
$20.54B50.9337.91%0.89%
$5.44B1,053.441.71%1.91%
DE6MM
€93.36M-71.41%5.44%
DE30M
€713.75M23.208.55%5.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:IOD
IODM Ltd.
0.13
-0.07
-35.00%
DE:WN6
CAR Group
20.20
0.44
2.23%
RPGRF
REA Group Ltd
157.57
37.63
31.37%
SKLTF
Seek Limited
13.80
-0.62
-4.30%
DE:6MM
Southern Cross Media Group Limited
0.37
-0.05
-11.90%
DE:30M
Myer Holdings Limited
0.39
0.03
8.33%

IODM Ltd. Corporate Events

IODM Ltd. Reports Strong Q3 FY25 Performance with Significant Growth in Education Sector
Apr 30, 2025

IODM Ltd. reported a significant increase in cash receipts for Q3 FY25, with an 18% rise compared to the previous corresponding period, and a 26% increase year-to-date. The UK Education segment was a major contributor, achieving an 84% increase in cash receipts and expanding its university client base. The company also formalized revenue share agreements in the USA and Canada, indicating strong market traction. These developments suggest a positive impact on IODM’s financial performance and market positioning, with potential growth in educational institution engagement.

IODM Ltd. Expands into North America with Strong Revenue Growth
Mar 14, 2025

IODM Ltd. has signed a significant agreement in North America, marking a major expansion into one of the largest markets globally. The company’s revenue for the first half of 2025 increased by 60% compared to the previous year, with notable growth in the UK education sector where revenue rose by 110%. This expansion and revenue growth highlight IODM Ltd.’s strategic positioning to capitalize on global opportunities, particularly in education, as it continues to execute agreements to broaden its market reach.

IODM Ltd. Issues New Shares, Strengthening Market Position
Mar 11, 2025

IODM Ltd., an Australian company listed on the ASX, has issued 3,163,014 ordinary fully paid shares at a price of 16 cents each without a disclosure document, in accordance with the Corporations Act. This strategic move, compliant with relevant legal provisions, indicates IODM’s confidence in its operational transparency and regulatory adherence, potentially strengthening its market position and offering stakeholders reassurance about its governance practices.

IODM Ltd. Applies for Quotation of New Securities on ASX
Mar 11, 2025

IODM Ltd. has announced the application for the quotation of 3,163,014 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of a previously announced transaction, potentially impacting the company’s market presence and offering stakeholders an opportunity to engage with its financial activities.

IODM Ltd. Announces Proposed Issue of Securities
Mar 11, 2025

IODM Ltd. has announced a proposed issue of 3,163,014 ordinary fully paid securities, with the expected issue date set for March 4, 2025. This move is part of a placement or other type of issue, and the company has submitted the necessary information to the ASX for potential quotation of these securities. The announcement highlights the company’s ongoing efforts to manage its capital and potentially enhance its market presence.

IODM Limited Achieves Record Revenue with Strong Growth in Education Sector
Feb 28, 2025

IODM Limited reported a 60% increase in revenue for the first half of fiscal year 2025, driven by significant growth in the UK education sector. The company onboarded several educational institutions in the UK, North America, and France, expanding its global footprint. The reorganization of its sales divisions and strategic partnerships have bolstered its market position, particularly in the education sector, leading to a stronger pipeline and faster conversion times for its IODM Connect platform.

IODM Ltd. Reports Revenue Growth Amidst Operational Changes
Feb 28, 2025

IODM Ltd. reported a 23% increase in revenues from continuing operations for the half-year ending December 31, 2024, reaching AUD $1,858,000. Despite this growth, the company experienced a slight decrease in net loss by 0.69% to AUD $1,225,000. The company also announced the loss of control over its Singapore and Hong Kong entities, which may impact its international operations. Additionally, the audit opinion raised concerns about the company’s ability to continue as a going concern, which could have implications for stakeholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.