Ethernity Networks Ltd. (ENET) AI Stock Analysis

• Market Cap: £881.36K
• Dividend Yield: N/A
• Average Volume (3M): 129.49M
• Price to Earnings (P/E): ―
• Beta (1Y): -4.76
• Revenue Growth: -64.35%
• EPS Growth: 74.36%
• Country: UK
• Employees: 13
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 5,036,364,000
• 10 Day Avg. Volume: 76,098,243
• 30 Day Avg. Volume: 129,494,124
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: 0.00p ▼(-100.00% Downside)

Ethernity Networks Ltd. faces substantial financial difficulties, with declining revenues and persistent losses being the most significant concerns. Technical analysis suggests limited momentum, and valuation metrics are unattractive due to ongoing losses. While corporate events show positive strategic developments, they are not enough to offset the financial challenges.

Ethernity Networks Ltd. Business Overview & Revenue Model

Company Description

Ethernity Networks Ltd. (ENET) is a technology company operating in the telecommunications sector, specializing in the development and provision of data processing semiconductor solutions. The company focuses on programmable networking solutions that enable network equipment manufacturers and service providers to efficiently deliver high-speed data and advanced networking capabilities. Ethernity Networks leverages its proprietary technology to provide customizable and flexible solutions suited for a variety of network infrastructure needs.

How the Company Makes Money

Ethernity Networks generates revenue primarily through the sale of its semiconductor technology and solutions to network equipment manufacturers and service providers. The company's key revenue streams include licensing its proprietary networking technology, selling customized hardware platforms, and offering design and consulting services to integrate its solutions into customers' network infrastructures. Partnerships with major industry players and technology vendors also play a significant role in enhancing Ethernity's market reach and contributing to its revenue growth. The company's focus on innovation and addressing the evolving demands for higher bandwidth and efficient data processing in telecommunications networks is a critical factor in its revenue generation strategy.

Ethernity Networks Ltd. Financial Statement Overview

Summary

Ethernity Networks Ltd. is facing significant financial challenges characterized by declining revenues, persistent losses, and cash flow difficulties. High leverage and diminishing equity position further exacerbate risks. Despite a reasonable gross profit margin, the company is struggling with overall profitability and liquidity concerns.

Income Statement

Ethernity Networks Ltd. has experienced declining revenue and persistent net losses over the years. The revenue has dropped significantly from $3.78 million in 2023 to $1.38 million in 2024, marking a negative revenue growth rate. Despite a decent gross profit margin, the negative net profit and EBIT margins indicate ongoing challenges in profitability.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio, indicating significant leverage. Stockholders' equity has decreased significantly over the period, from $5.92 million in 2023 to $2.74 million in 2024, suggesting declining financial stability. However, the equity ratio remains moderately supportive, with a notable portion of assets financed by equity.

Cash Flow

Ethernity Networks Ltd. faces challenges with negative operating and free cash flows, indicating cash outflows exceed inflows. The free cash flow has deteriorated further, highlighting liquidity issues. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.96M	1.38M	3.78M	2.94M	2.64M	1.85M
Gross Profit	2.10M	1.27M	2.34M	1.60M	1.94M	1.58M
EBITDA	-2.71M	-4.11M	-4.67M	-6.33M	-7.89M	-4.95M
Net Income	-6.29M	-5.83M	-6.36M	-8.00M	-9.36M	-6.25M
Balance Sheet
Total Assets	7.63M	5.88M	9.68M	12.26M	19.41M	12.18M
Cash, Cash Equivalents and Short-Term Investments	580.71K	50.71K	1.99M	715.82K	7.06M	2.18M
Total Debt	559.14K	759.55K	1.20M	3.14M	3.66M	718.51K
Total Liabilities	4.97M	3.14M	3.76M	4.17M	6.46M	3.25M
Stockholders Equity	2.66M	2.74M	5.92M	5.58M	12.96M	8.93M
Cash Flow
Free Cash Flow	-463.83K	-3.26M	-1.64M	-7.83M	-5.58M	-3.78M
Operating Cash Flow	-463.21K	-3.16M	-1.50M	-7.57M	-5.39M	-3.59M
Investing Cash Flow	-621.00	-101.28K	-148.11K	-258.84K	-222.81K	2.37M
Financing Cash Flow	921.37K	1.33M	2.92M	1.87M	10.52M	2.44M

Ethernity Networks Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ENET, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 123.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ENET.

Ethernity Networks Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCC	59 Neutral	437.64M	-18.37	0.00%	2.05%	0.00%	0.00%
SPA	56 Neutral	52.31M	313.33	0.90%	―	3.30%	-85.85%
CRDL	50 Neutral	15.51M	-16.71	0.00%	―	17.06%	-78.26%
ENET	40 Underperform	£881.36K	―	-133.91%	―	-64.35%	74.36%
PEN	40 Underperform	9.51M	-2.18	-30.86%	―	-31.21%	-292.31%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Ethernity Networks Ltd. Corporate Events

Ethernity Networks Secures Shareholder Approval for Key Resolutions

Ethernity Networks Ltd announced that all resolutions proposed at their Extraordinary General Meeting were approved by shareholders. This includes increasing the company’s authorized share capital and disapplying pre-emption rights on equity issues for cash. The successful passage of these resolutions is expected to support Ethernity’s strategic initiatives, potentially enhancing its market position and operational capacity.

Ethernity Networks Announces EGM and Reports Business Progress

Ethernity Networks Ltd has announced an extraordinary general meeting (EGM) to seek shareholder approval for increasing its authorized share capital and disapplying pre-emption rights on equity issues for cash, which would support the company’s ASIC strategy and potential fundraising. The company also reported significant progress with existing and new customer engagements, including milestones with OEM customers and discussions for new product developments, indicating a strong market position in the evolving networking industry.

Ethernity Networks Achieves One Million Unit Shipment Milestone

Ethernity Networks Ltd has reached a significant milestone by shipping one million units of its Carrier Ethernet Switch and Traffic Manager engine IP to a longstanding customer. This achievement underscores the reliability and long-term value of Ethernity’s technology, reinforcing its position as a trusted provider in high-volume, mission-critical environments. The company plans to transition from an IP licensing model to an ASSP strategy, aiming to bring its advanced capabilities to the global market through its own silicon offerings.

Ethernity Networks Reaches One Million Unit Milestone with Carrier Ethernet Engine

Ethernity Networks Ltd has achieved a significant milestone by shipping one million units of its Carrier Ethernet Switch and Traffic Manager engine IP to a longstanding customer under a recurring royalty model. This accomplishment underscores the reliability and scalability of Ethernity’s technology, reinforcing its position as a trusted provider in high-volume, mission-critical environments. The company plans to transition from an IP licensing model to an ASSP strategy, aiming to bring its advanced capabilities to the global market through its own silicon offerings.

Ethernity Networks Reports 2024 Financial Results and Strategic Shift

Ethernity Networks Ltd announced a significant decrease in revenue for 2024, with a 63% drop compared to the previous year, but reported an increase in gross margin percentage to 92.1%. Despite financial challenges, the company successfully repaid all creditors and is focusing on its transformative ASIC business, targeting wireless backhaul and broadband access markets. The strategic shift to a system-based approach with its Universal Edge Platform (UEP) aims to accelerate market presence and revenue generation, positioning Ethernity as a leading semiconductor innovator.

Ethernity Networks Secures Key Patent for Advanced Routing Algorithm

Ethernity Networks Ltd has received a notice of allowance from the United States Patent and Trademark Office for its advanced Longest Prefix Match routing algorithm patent application. This patent strengthens Ethernity’s intellectual property portfolio and reinforces its position as a technology leader in data processing and access networking. The patent is expected to enhance the company’s planned Application-Specific Standard Product offering, providing a scalable and efficient approach to high-performance routing. This development positions Ethernity to deliver integrated and cost-effective silicon solutions for OEMs and service providers, addressing the evolving needs for advanced, scalable, and programmable access network platforms.

Ethernity Networks Advances PON Strategy for Market Growth

Ethernity Networks Ltd has announced progress in its Passive Optical Network (PON) strategy, which is crucial for Fiber-To-The-Premises (FTTP) deployments. The company aims to integrate PON functionality into its Application-Specific Standard Product (ASSP) solution, enhancing its market position and enabling early customer engagement. This strategy is expected to generate immediate revenue and foster long-term growth by transitioning from FPGA-based solutions to commercial ASSP. Recent discussions with PON vendors at the ANGA COM exhibition have shown promising interest, potentially leading to near-term orders and future adoption of Ethernity’s ASSP. The addition of PON functionality allows Ethernity to target various vertical markets, reinforcing its transformation into a semiconductor-focused business and strengthening its position in the broadband and access infrastructure markets.

Ray Keatley Acquires Significant Stake in Ethernity Networks

Ethernity Networks Ltd announced that Ray Keatley has acquired 155,000,000 ordinary shares, which represents 3.08% of the company’s total issued share capital. This acquisition could potentially impact the company’s shareholder structure and market perception, reflecting investor confidence in Ethernity’s strategic direction and technological offerings.

Ethernity Networks Completes Creditor Settlement Payments

Ethernity Networks Ltd has successfully completed all creditor payments under its settlement arrangement, as confirmed by a court-appointed manager. This marks a significant milestone in the company’s commitment to financial discipline and operational stability. The completion of these payments allows Ethernity to focus on its commercial strategy, including the development of its FPGA-based UEP solution for the Wireless and PON markets and its planned ASIC business.