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Energy Action Limited

EAX.AX
68
Specialty Business Services · Industrials
Price
A$0.37
+0.02 (+5.71%)
Market Cap
A$14.9M
Exchange
Australian Securities Exchange
Winston Score
68
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Dec 31, 2025
How the score breaks down
Quality
Exceptional
Growth
Strong
Cash Flow
Weak
Stability
Strong
Valuation
Good

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)

Winston Score History

The full picture

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.

Growth Profile

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

Revenue Growth

+20.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-1.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

A$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 Runway

~9 years

A$4M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

A$4M cash & investments at current burn rate

Growth context

Energy Action Limited is growing revenue at 20% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

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

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Quality

Profit per sale
Gross Margin
92.5%
Premium pricing power — 92.5% gross margin
Profit after running costs
Operating Margin
13.3%
Healthy — 13.3% operating margin
Return on the money invested
ROCE
31.3%
Exceptional — 31.3% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

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

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

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
8%
Weak — only 8% of profit becomes cash
Spare cash per sale
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

What it owes vs what it owns
Debt / Equity
0.93
Moderate — manageable debt (0.93)
Covers its interest
Interest Cover
9.68x
Comfortably covers interest (9.7x)

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

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Valuation

Price vs profit
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.

Cheaper or dearer next year
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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