Ethernity Networks Ltd. (ENET) AI Stock Analysis

• Market Cap: £654.73K
• Dividend Yield: N/A
• Average Volume (3M): 79.74M
• Price to Earnings (P/E): ―
• Beta (1Y): -6.26
• Revenue Growth: -54.10%
• EPS Growth: 85.53%
• Country: UK
• Employees: 13
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 5,036,364,000
• 10 Day Avg. Volume: 98,420,075
• 30 Day Avg. Volume: 79,744,935
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -0.16
• 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: 38 Underperform
• Price Target: 0.00p ▼(-100.00% Downside)

Ethernity Networks Ltd. is currently facing significant financial and operational challenges. The most impactful factors are the company's declining financial performance and negative valuation metrics. Technical analysis further indicates bearish sentiment, with the stock trading below key moving averages and showing oversold conditions. These factors collectively result in a low overall stock score.

Ethernity Networks Ltd. Business Overview & Revenue Model

Company Description

Ethernity Networks Ltd. (ENET) is a technology company specializing in advanced networking solutions, particularly in the sectors of telecommunications, data centers, and cloud computing. The company develops and manufactures proprietary network processing and equipment, focusing on enabling efficient, high-performance data transmission. Ethernity's core products include programmable network processors, Ethernet network appliances, and software solutions that enhance the performance and scalability of network infrastructures.

How the Company Makes Money

Ethernity Networks generates revenue primarily through the sale of its hardware products, which include network processors and appliances, as well as software licenses for its networking solutions. Additionally, the company engages in providing customized solutions and services for clients in the telecommunications and cloud sectors, allowing for tailored implementations of its technology. Strategic partnerships with telecom operators and technology vendors further bolster its revenue streams, as these collaborations can lead to joint projects and expanded market reach. Furthermore, Ethernity Networks may also benefit from ongoing maintenance and support contracts with existing customers, contributing to a recurring revenue model.

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. The high leverage and diminishing equity position pose additional 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.38M	3.78M	2.94M	2.64M	1.85M
Gross Profit	1.27M	2.34M	1.60M	1.94M	1.58M
EBITDA	-4.11M	-4.67M	-6.33M	-7.89M	-4.95M
Net Income	-5.83M	-6.36M	-8.00M	-9.36M	-6.25M
Balance Sheet
Total Assets	5.88M	9.68M	12.26M	19.41M	12.18M
Cash, Cash Equivalents and Short-Term Investments	50.71K	1.99M	715.82K	7.06M	2.18M
Total Debt	759.55K	1.20M	3.14M	3.66M	718.51K
Total Liabilities	3.14M	3.76M	6.68M	6.46M	3.25M
Stockholders Equity	2.74M	5.92M	5.58M	12.96M	8.93M
Cash Flow
Free Cash Flow	-3.26M	-1.64M	-7.83M	-5.58M	-3.78M
Operating Cash Flow	-3.16M	-1.50M	-7.57M	-5.39M	-3.59M
Investing Cash Flow	-101.28K	-148.11K	-258.84K	-222.81K	2.37M
Financing Cash Flow	1.33M	2.92M	1.87M	10.52M	2.44M

Ethernity Networks Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.01 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 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 0.05 is Positive, neither overbought nor oversold. The STOCH value of -22.50 is Positive, 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
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPA	―	£56.42M	1,683.33	0.15%	―	5.35%	-97.78%
NCC	―	£457.87M	-18.72	―	2.01%	―	―
CRDL	―	£14.37M	―	―	―	17.06%	-78.26%
PEN	―	£10.46M	-2.16	-52.41%	―	-31.21%	-292.31%
ENET	―	£654.73K	-0.06	-203.82%	―	-54.10%	85.53%

Ethernity Networks Ltd. Corporate Events

Ethernity Networks Announces Upcoming AGM

Ethernity Networks Ltd has announced the dispatch of its annual general meeting notice to shareholders, with the meeting scheduled for November 27, 2025, in Israel. This announcement underscores the company’s ongoing commitment to transparency and stakeholder engagement, which is crucial for maintaining its position in the competitive networking technology industry.

Ethernity Networks Reports Improved Interim Results and Strategic Shift in ASIC Plan

Ethernity Networks Ltd reported its interim results for the first half of 2025, showing a slight increase in revenue and a significant reduction in net comprehensive loss by 40% compared to the previous year. The company completed its deliveries under a major contract with a Tier 1 U.S. Aerospace vendor, contributing significantly to its revenue. Ethernity is shifting its ASIC plan from an OEM co-funded model to a semiconductor partnership model, which aims to de-risk the project and achieve near-term positive cash flow and profitability. This strategic shift could potentially enhance Ethernity’s financial stability and market positioning, though the company still faces immediate cash requirements to continue operations.

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.