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Energy Action Limited

EAX.AX
61
Specialty Business Services · Industrials
Price
A$0.37
+0.02 (+5.71%)
Market Cap
A$14.9M
Exchange
Australian Securities Exchange
Winston Score
61
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 13, 2026 · filings through Dec 31, 2025

Share count rising — dilution

+51.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 27.0M (2021) → 40.8M (2025)

Energy Action Limited is an Australian company that helps businesses manage their energy costs. It offers services like energy procurement, where it negotiates electricity and gas contracts on behalf of clients, as well as energy monitoring and reporting tools. Its main customers are medium to large businesses and government organizations across Australia that want to reduce what they spend on energy.

The company makes money by charging fees for its procurement and consulting services, as well as through software subscriptions for its energy management platform. It operates entirely within Australia and, despite its small size, holds a strong position in a niche market with relatively few direct competitors offering the same bundled procurement and analytics services. The key growth driver is rising corporate demand for energy cost management and sustainability reporting, but the main risk is that larger energy retailers or global software providers could move into this space and undercut its offering.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+47.2% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+487.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$424,384/ year

Declining (-37% vs prior year)

3.3% of revenue

In line with sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

35.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$3M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Energy Action Limited grew revenue 47% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
92.5%
Premium pricing power — 92.5% gross margin
Operating Margin
13.3%
Healthy — 13.3% operating margin
ROCE
8.5%
Below par — 8.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+33.3%
Fast-growing sales (+33.3% YoY)
EPS YoY
+80.8%
Earnings growing fast (+80.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Cash Conversion
8%
Weak — only 8% of profit becomes cash
FCF Margin
1.0%
Thin free cash flow (1.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.93
Moderate — manageable debt (0.93)
Interest Cover
9.68x
Comfortably covers interest (9.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
7.2x
Attractive valuation — P/E 7.2

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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