Nexion Group Ltd. (NNG) AI Stock Analysis

• Market Cap: AU$4.05M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.55
• Revenue Growth: -50.39%
• EPS Growth: -74.68%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Infrastructure
• EPS (TTM): -0.01
• Shares Outstanding: 202,307,860
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.12
• Price to Book (P/B): -1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.13
• 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

• Rating: 35 Underperform
• Price Target: ―

Nexion Group Ltd. is under significant financial strain with negative earnings, weak balance sheet, and poor cash flow generation. Its technical analysis indicates potential overbought conditions without any upward price momentum. The valuation metrics are discouraging due to ongoing losses and lack of dividend yield. These factors collectively result in a low overall stock score.

Nexion Group Ltd. Business Overview & Revenue Model

Company Description

NEXION Group Ltd operates as an information technology service provider primarily in Australia. It provides global network, compute, security, and data storage solutions as-a-service integrated with public cloud services to form the NEXION OneCloud, a hybrid cloud solution. The company sells its OneCloud capacity and technology management services to enterprise customers. It offers enterprise ICT managed services. The company was incorporated in 2018 and is based in Perth, Australia.

How the Company Makes Money

Nexion Group Ltd. generates revenue through a multi-faceted approach centered around its cloud and IT services. The primary revenue streams include subscription-based services for cloud infrastructure, which provide recurring income as clients pay for access to computing resources and storage. Additionally, the company earns from network connectivity solutions, where businesses pay for secure and reliable internet and intranet services. Managed IT services, which include IT support, maintenance, and consulting, represent another significant income stream. These services are often provided on a contract basis, ensuring steady revenue flow. Partnerships with technology providers and strategic alliances also play a crucial role in expanding the company’s service offerings and reaching new markets, further contributing to its earnings.

Nexion Group Ltd. Financial Statement Overview

Summary

Nexion Group Ltd. is facing significant financial challenges across all metrics. Revenue and profitability are declining, the balance sheet is weak with negative equity, and cash flows are under strain. The company needs to improve its operational efficiency and financial stability to enhance its financial health and reduce risks associated with its current trajectory.

Income Statement

Nexion Group Ltd. has experienced declining revenue over the past year, with a negative revenue growth rate and persistent losses at the net income level. Margins are severely challenged, with both EBIT and EBITDA margins in negative territory, indicating significant operational inefficiencies. The company struggles to cover its costs, impacting its overall profitability.

Balance Sheet

The balance sheet reveals a precarious financial position, with negative stockholders' equity indicating insolvency. The debt-to-equity ratio is not meaningful due to negative equity, but the high level of total liabilities compared to assets suggests over-leverage. This financial instability poses a significant risk to the company's operations.

Cash Flow

Cash flows are under pressure, with negative operating and free cash flow figures indicating challenges in generating cash from core operations. While there is a slight improvement in free cash flow year-over-year, it remains negative, highlighting the company's difficulty in sustaining cash flow without external financing.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	6.42M	7.94M	6.75M	2.18M	3.80M
Gross Profit	1.82M	-434.48K	2.98M	445.38K	-412.86K
EBITDA	-1.15M	-2.91M	-5.27M	-3.72M	-962.09K
Net Income	-1.92M	-3.48M	-6.57M	-4.14M	-1.23M
Balance Sheet
Total Assets	1.01M	3.51M	6.35M	7.72M	10.78M
Cash, Cash Equivalents and Short-Term Investments	71.91K	321.19K	1.28M	4.85M	7.57M
Total Debt	2.05M	1.74M	2.25M	1.99M	1.90M
Total Liabilities	4.33M	4.97M	5.05M	2.96M	2.93M
Stockholders Equity	-3.32M	-1.46M	1.30M	4.76M	7.85M
Cash Flow
Free Cash Flow	-568.83K	-2.30M	-3.30M	-3.19M	-9.72K
Operating Cash Flow	-556.83K	-2.25M	-3.26M	-3.18M	4.19K
Investing Cash Flow	-9.69K	107.83K	-1.80M	-365.79K	-13.92K
Financing Cash Flow	317.24K	1.22M	1.47M	8.30M	63.43K

Nexion Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Neutral
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NNG, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NNG.

Nexion Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$33.80B	5.84	-11.67%	1.84%	5.28%	-18.34%
KNO	60 Neutral	AU$7.56M	47.78	-2.18%	―	-2.13%	81.58%
FCT	49 Neutral	AU$29.13M	―	-54.77%	―	-14.50%	-77.33%
WHK	46 Neutral	AU$9.64M	―		―	16.26%	62.58%
SEN	41 Neutral	AU$29.81M	―	-31.58%	―	22.29%	64.62%
NNG	35 Underperform	AU$4.05M	―		―	-50.39%	-74.68%
BEO	―	AU$15.34M	―	-262.86%	―	―	―

Nexion Group Ltd. Corporate Events

ASX Suspends Long-Term Non-Compliant Entities

The Australian Securities Exchange (ASX) has announced the suspension of several entities that have failed to meet reporting deadlines. These entities, including A1 Investments Resources Ltd and Advanced Health Intelligence Ltd, have been suspended for over three months and face removal from the official list if they do not comply with ASX’s requirements within specified deadlines. This announcement highlights the ASX’s commitment to maintaining transparency and accountability among listed entities, impacting stakeholders by potentially affecting the trading status and market perception of the involved companies.

NEXION Group Issues Convertible Notes to Fund Acquisition

NEXION Group Ltd announced the issuance of 700,000 convertible notes at $0.10 each, raising $70,000 to fund a proposed acquisition. These unsecured notes mature on 31 May 2026 with a 10% annual interest rate and are subject to shareholder approval for conversion into shares. The company expects to repay the notes in cash, impacting its financial strategy and potential acquisition plans.

NEXION Group Ltd Issues Convertible Notes to Fund Proposed Acquisition

NEXION Group Ltd has issued 800,000 convertible notes at $0.10 each to raise $80,000, intended to fund costs related to a proposed acquisition. These unsecured notes mature on 31 May 2026, with an interest rate of 10% per annum, and can be repaid in cash or converted into shares, subject to certain conditions. The company expects to repay the notes in full in cash, without issuing conversion securities.

NEXION Group Ltd Appoints John Bell as New CFO

NEXION Group Ltd has appointed John Bell as its new Chief Financial Officer, effective immediately. With over 20 years of experience in the financial sector, particularly in telecommunications and information technology, Mr. Bell brings extensive expertise in corporate transactions, including mergers and acquisitions, IPOs, and capital raisings. This strategic appointment is expected to strengthen NEXION’s financial operations and enhance its market positioning.

NEXION Group Ltd Signs LOI to Sell Data Centre to Carrier Connect

NEXION Group Ltd has signed a non-binding letter of intent to sell its subsidiary, Nexion W1 DC Pty Ltd, which owns its data centre, to Canadian company Carrier Connect Data Solutions Inc. for AUD $2.5 million. The proceeds from the sale will be used to repay debt, cover administrative expenses, and provide working capital, with the transaction expected to be net cash positive for Nexion. There are no proposed changes to the board or senior management as a result of this transaction.

NEXION Group Ltd Appoints New CFO to Strengthen Financial Strategies

NEXION Group Ltd has announced the appointment of Jan de Jager as the new Chief Financial Officer, effective from 11 May 2025. Jan brings over 25 years of experience in finance and business development roles across various international companies, which is expected to strengthen NEXION’s financial strategies. John Bell, the outgoing CFO, will remain as a director of the company, ensuring continuity in leadership.

NEXION Group Ltd Continues Voluntary Suspension Amid Significant Transaction Progress

NEXION Group Ltd has announced the continuation of its voluntary suspension from trading on the ASX, initially requested in April 2024. The suspension is expected to end by September 2025, following the release of a significant transaction announcement. The company reports satisfactory progress and achievements to date, indicating a potentially impactful development for its operations and industry positioning.