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SPACETALK Limited (AU:SPA)
:SPA

SPACETALK Limited (SPA) AI Stock Analysis

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AU

SPACETALK Limited

(Frankfurt:SPA)

Rating:39Underperform
Price Target:
AU$0.00
▼(-100.00%Downside)
The most significant factor influencing SPACETALK Limited's low stock score is its poor financial performance, characterized by declining revenues, negative profitability, and weak balance sheet. Technical indicators also suggest a bearish trend, and the valuation is unattractive with a negative P/E ratio. These factors collectively indicate high risk and low investor appeal.

SPACETALK Limited (SPA) vs. iShares MSCI Australia ETF (EWA)

SPACETALK Limited Business Overview & Revenue Model

Company DescriptionSPACETALK Limited (SPA) is a technology company specializing in the development and distribution of wearables and communication devices designed for children, families, and seniors. The company's core products include smartwatches equipped with GPS tracking, mobile communication capabilities, and safety features that enable parents to stay connected with their children. SPACETALK's offerings also extend to software solutions that complement their hardware, ensuring a seamless experience for users.
How the Company Makes MoneySPACETALK Limited generates revenue primarily through the sale of its wearable devices and associated software services. The company earns money by selling smartwatches directly to consumers via online platforms and retail partnerships. Additionally, SPACETALK offers subscription-based services that provide enhanced features and connectivity for its devices, creating a recurring revenue stream. The company may also engage in strategic partnerships with telecom providers or other technology firms to expand its market reach and offer bundled services, which contribute to its overall earnings.

SPACETALK Limited Financial Statement Overview

Summary
SPACETALK Limited is facing significant financial challenges with declining revenues and persistent losses. The balance sheet is weak with negative equity, and cash flows are negative, raising concerns about sustainability. The company needs strategic changes to improve its financial health.
Income Statement
45
Neutral
The income statement shows declining revenues and profitability. Revenue has decreased from $20.7M in 2022 to $17.5M in 2024, with TTM revenue at $23.4M. Gross profit margin has declined significantly from 60% in 2022 to 34% in the latest TTM period. The company has consistently reported negative EBIT and net income, indicating operational challenges.
Balance Sheet
30
Negative
The balance sheet reveals a weak financial position with negative stockholders' equity of -$2M in the latest TTM period. The debt-to-equity ratio is not meaningful due to negative equity, indicating high financial risk. Total assets have decreased significantly, and the company is highly leveraged.
Cash Flow
40
Negative
Cash flow analysis shows negative operating and free cash flows, indicating cash burn issues. The operating cash flow to net income ratio is negative, reflecting operational inefficiencies. Despite negative cash flow, the company has increased financing activities to support operations.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue23.38M17.50M13.35M20.70M15.11M10.49M
Gross Profit8.00M8.64M-757.26K12.42M9.35M7.44M
EBITDA-4.01M-4.21M-8.42M-925.01K730.40K-2.69M
Net Income-3.25M-6.24M-14.68M-6.30M-1.78M-4.27M
Balance Sheet
Total Assets11.77M7.86M10.97M22.19M16.01M10.74M
Cash, Cash Equivalents and Short-Term Investments2.42M1.77M3.03M5.58M4.19M3.17M
Total Debt5.14M5.21M5.33M3.19M1.83M135.64K
Total Liabilities13.82M11.72M12.08M9.70M6.66M2.43M
Stockholders Equity-2.06M-3.86M-1.11M12.49M9.35M8.31M
Cash Flow
Free Cash Flow-2.31M-2.90M-5.12M-8.91M-4.23M-2.21M
Operating Cash Flow-2.30M-2.87M-3.46M-5.57M-1.18M937.33K
Investing Cash Flow-1.35M-1.43M-1.67M-3.35M-3.05M-3.14M
Financing Cash Flow2.91M3.05M2.50M10.58M5.26M3.74M

SPACETALK Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.16
Price Trends
50DMA
0.17
Negative
100DMA
0.19
Negative
200DMA
0.19
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
52.45
Neutral
STOCH
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SPA, the sentiment is Neutral. The current price of 0.16 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SPA.

SPACETALK Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
AU$3.53B16.62-1.37%3.13%4.07%-17.03%
AUVN8
49
Neutral
AU$26.34M
-4.31%73.91%
AUNOR
45
Neutral
AU$10.32M
-15.67%
AU5GG
43
Neutral
AU$13.00M-26.35%5.54%-3.85%
AUHFY
43
Neutral
AU$5.11M-34.98%-23.34%-470.00%
AUFRX
42
Neutral
AU$9.43M
AUSPA
39
Underperform
AU$11.30M
42.58%79.00%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SPA
SPACETALK Limited
0.17
0.00
0.00%
AU:NOR
Norwood Systems Ltd
0.02
-0.02
-55.56%
AU:5GG
Pentanet Ltd
0.03
-0.02
-40.00%
AU:FRX
Flexiroam Ltd
0.01
-0.01
-50.00%
AU:VN8
Vonex Limited
0.04
0.01
33.33%
AU:HFY
Hubify Ltd.
0.01
0.00
0.00%

SPACETALK Limited Corporate Events

Spacetalk Secures Growth Capital Through Note Issuance
Jul 11, 2025

Spacetalk Limited has announced a financial arrangement involving the issuance of 3,000,000 converting notes to Thorney Investment Group and 1,000,000 notes to Pure Asset Management. The company plans to seek shareholder approval to convert these notes into shares to avoid them being classified as debt instruments. This move is part of Spacetalk’s strategy to secure $3 million in growth capital and reduce debt by $1 million, potentially impacting its financial stability and market positioning.

SPACETALK LTD Proposes New Securities Issue
Jul 11, 2025

SPACETALK LTD has announced a proposed issue of securities, specifically 1,000,000 converting notes, with a planned issue date of September 23, 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 could impact SPACETALK’s financial strategy and market positioning by potentially increasing its capital base, thus influencing stakeholders’ perceptions and investment decisions.

SPACETALK Limited Announces Proposed Issue of Securities
Jul 11, 2025

SPACETALK Limited has announced a proposed issue of 3,000,000 converting notes as part of a placement or other type of issue. This move is aimed at raising capital, potentially enhancing the company’s financial position and supporting its operational strategies. The issuance of securities is subject to approval and will be conducted in accordance with ASX Listing Rules, which may impact the company’s market positioning and offer new opportunities for stakeholders.

Spacetalk Secures $3 Million for Expansion and Debt Reduction
Jul 10, 2025

Spacetalk Ltd has secured $3 million in growth capital from its largest shareholder, Thorney Investment Group, and has arranged to convert $1 million of existing debt into equity. This funding will support the company’s international expansion, new product development, and general corporate expenses. The move reflects confidence in Spacetalk’s strategy and aims to protect existing shareholders from immediate dilution while enhancing the company’s market position.

Spacetalk Ltd Announces Director’s Interest Change
May 27, 2025

Spacetalk Ltd has announced a change in the director’s interest, specifically concerning Martin Pretty, who has acquired 100,606 ordinary shares and disposed of 88,245 performance rights. This transaction, which involved no cash consideration, reflects a strategic adjustment in the director’s holdings, potentially impacting investor perceptions and the company’s market positioning.

SPACETALK Limited Announces Quotation of New Securities on ASX
May 26, 2025

SPACETALK Limited has announced the quotation of 100,606 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of May 26, 2025. This move involves the issuance, transfer, or reclassification of securities resulting from options being exercised or other convertible securities being converted, potentially impacting the company’s market presence and shareholder value.

Spacetalk Ltd Releases 3QFY25 Financial Highlights and Strategic Update
May 20, 2025

Spacetalk Ltd, a company listed on the ASX under the ticker SPA, has released its financial performance highlights for the third quarter of the fiscal year 2025. The company has provided an update on its strategy and key growth milestones, which are crucial for stakeholders to understand the company’s future direction and potential impact on its market position.

Spacetalk Ltd Announces Director’s Shareholding Adjustment
Apr 30, 2025

Spacetalk Ltd has announced a change in the director’s interest, specifically involving Georg Johann Chmiel. The change involves an off-market transfer of 368,333 ordinary shares from Mr. Chmiel to Chmiel Super Pty Ltd ATF Chmiel Super Fund, where Mr. Chmiel is the sole beneficiary. This adjustment reflects the company’s recent capital consolidation, which was completed on a one-for-ten basis, impacting the overall securities held by Mr. Chmiel. This move may have implications for the company’s stock structure and could influence investor perception of the company’s financial strategies.

SPACETALK Director Increases Shareholding Amid Capital Consolidation
Apr 30, 2025

SPACETALK Limited has announced a change in the director’s interest notice, specifically regarding Simon Crowther, a director of the company. Mr. Crowther acquired 74,807 ordinary shares through an on-market purchase, increasing his holdings in the company. This change reflects a consolidation of the company’s issued capital, which was completed on November 27, 2024, on a one-for-ten basis. The acquisition of shares by a director may indicate confidence in the company’s future performance, potentially impacting investor sentiment and market perception.

SPACETALK Limited Issues Unquoted Equity Securities
Apr 16, 2025

SPACETALK Limited has announced the issuance of unquoted equity securities, specifically warrants, as part of transactions previously disclosed to the market. These securities are not intended to be quoted on the ASX, indicating strategic financial maneuvers that may impact the company’s capital structure and investor relations.

Spacetalk Ltd’s EGM Results: Warrant Issuance Approved
Apr 15, 2025

Spacetalk Ltd announced the results of its Extraordinary General Meeting, where a resolution to issue a warrant was carried with significant support. This decision reflects strong shareholder backing and may enhance the company’s financial flexibility, potentially impacting its market positioning positively.

Spacetalk Limited Announces Change in Substantial Holder Interests
Apr 14, 2025

Spacetalk Limited has announced a change in the interests of a substantial holder, TIGA Trading Pty Ltd, as per a Form 604 Notice. The notice indicates a shift in voting power from 27.36% to 29.61% due to a share consolidation and a recent placement, which could impact the company’s shareholder dynamics and market positioning.

Spacetalk Announces Change in Substantial Holder Interests
Apr 14, 2025

Spacetalk Limited, listed on the ASX under the ticker SPA, has announced a change in the interests of a substantial holder, Thorney Technologies Ltd. This change involves a share consolidation and a placement that has resulted in Thorney Technologies Ltd increasing its voting power from 27.36% to 29.61%. This adjustment in shareholding could potentially impact Spacetalk’s market dynamics and influence its strategic decisions, given Thorney’s increased stake in the company.

Spacetalk Ltd Expands Share Base to Bolster Growth
Apr 14, 2025

Spacetalk Ltd has issued 9,035,715 fully paid ordinary shares to institutional and wholesale investors without a disclosure document, in compliance with the Corporations Act. This strategic move aims to strengthen the company’s financial position and support its growth initiatives, potentially impacting its market presence and stakeholder interests positively.

Spacetalk Appoints New CFO Amidst Strong Financial Growth
Apr 13, 2025

Spacetalk Limited has announced the appointment of Innocent Ndoda as its new Chief Financial Officer, succeeding Gerhard Beukes. Ndoda, who brings extensive financial leadership experience from his previous roles, joins a leadership team with a proven track record of success. The company has recently reported significant financial growth, including a 12% increase in total revenue and a 96% rise in EBITDA for the half-year ending December 2024, indicating a strong strategic direction and a focus on sustainable profitability. This leadership change is expected to further strengthen Spacetalk’s financial position and support its growth trajectory.

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.Date of analysis: Jun 26, 2025