# Electro Optic Systems Holdings (EOS.AU)

Canonical: https://gigainvestors.com/s/EOS.AU

Analysis as of: 2026-10-16T07:42:56.282Z. Financial observations: FY2000–FY2025.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 8.54 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 7

- Operating margin variation: 1.57×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.14×

- FY2017: -0.37×

- FY2018: 0.08×

- FY2019: 0.14×

- FY2020: -0.11×

- FY2021: 0.07×

- FY2022: -0.38×

- FY2023: -0.04×

- FY2024: -0.07×

- FY2025: -0.39×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 40.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: -4.7%

- ROIC, second-lowest year: -27.5%

- Typical minus recent gross margin: 40.3 pp

- Typical gross margin (annual median): 33.1%

- Recent gross margin (lower of latest and 3-year median): -7.2%

- Years with nonpositive capital: 1

- Capital spending / revenue: 7.4%

- ROIC including acquisitions, ten-year median: -10.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -36.3%

- FY2017: -27.5%

- FY2018: 11.3%

- FY2019: 12.7%

- FY2020: -5.6%

- FY2021: 2.9%

- FY2022: -13.9%

- FY2023: -3.0%

- FY2024: -3.9%

- FY2025: -25.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD -200M

- Net income, five-year total: AUD -161M

- Return on incremental invested capital: -31.0%

- Working capital / revenue, annual change: 0.8 pp

- Working capital / revenue, change between three-year averages: -15.8 pp

- Working capital / revenue, final three-year average: 43.2%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: AUD -32M

- FY2022: AUD -128M

- FY2023: AUD -29M

- FY2024: AUD -27M

- FY2025: AUD 15M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -27.5% vs -3.9%

- Per-share earnings: -0.02 to -0.11 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 13.0%

- Ordinary dilution, 5-year annual growth: 5.2%

- Market cap gain: AUD 1.7B

- Cumulative retained earnings: AUD -162M

- Diluted shares, 10-year annual growth: 13.0%

- Diluted shares, 5-year annual growth: 5.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: AUD -0.09

- Per-share value, starting three-year median: AUD -0.02

- Per-share value, ending three-year median: AUD -0.11

- Average buyback yield: 0.9%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 54M

- Cumulative net income, 10 years: AUD -162M

- ROIC, first three-year median: -27.5%

- ROIC, last three-year median: -3.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: AUD -0.02

- FY2017: AUD -0.14

- FY2018: AUD 0.17

- FY2019: AUD 0.16

- FY2020: AUD -0.16

- FY2021: AUD -0.09

- FY2022: AUD -0.67

- FY2023: AUD -0.19

- FY2024: AUD -0.11

- FY2025: AUD 0.10

### accounting: fail

- Sloan accruals exceed 10%

- latest-year receivables to sales index (DSRI) exceeds 1.465

- earnings not backed by cash

- Sloan accruals: 11.4%

- Receivables to sales index (DSRI): 3.17×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -1.30×

- Accounting red flags: 2

- Goodwill and intangibles / equity: 0.10×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 10.5%

- FY2017: 34.8%

- FY2018: 24.0%

- FY2019: 17.1%

- FY2020: 19.4%

- FY2021: -2.7%

- FY2022: -14.0%

- FY2023: -37.2%

- FY2024: 2.9%

- FY2025: 11.4%

## Holders

## Price story

Down 24% since Sep 2026 · sales -27.2%

Story as of 2026-10-16T10:00:12.557Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -27.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: AUD 26M 

- FY2017: AUD 23M 

- FY2018: AUD 87M 

- FY2019: AUD 165M 

- FY2020: AUD 180M 

- FY2021: AUD 212M 

- FY2022: AUD 138M 

- FY2023: AUD 219M 

- FY2024: AUD 177M 

- FY2025: AUD 128M 

### Gross margin · FY2024

gross margin 47.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 58.2% 

- FY2017: 52.0% 

- FY2018: 50.4% 

- FY2019: 22.6% 

- FY2020: 0.8% 

- FY2021: 14.9% 

- FY2023: 43.6% 

- FY2024: 47.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are AUD 128.5 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:56.282Z); FY2025: revenue 128458000; grossProfit -9190000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EOS.AU: Electro Optic Systems Holdings Limited engages in the development, manufacture, and sale of telescopes and dome enclosures, laser satellite tracking systems, remote weapon systems, and high laser weapon. It operates through Defense Systems and Space Systems segments. The company develops, manufactures, and markets fire control, surveillance, weapon systems, and high energy laser to military customers. It also provides passive optical and laser sensing equipment; optical, microwave and on-the-move radio and satellite products; and laser-based surveillance systems with space tracking capability. In addition, the company offers counter-drone, firepower, force protection, and UGV and marine lethality systems, as well as high energy laser weapon; optical tracking systems, space control, space domain awareness, satellite laser ranging, space sustainability, and precision optics. It operates in Australia, the United States, Singapore, the United Arab Emirates, the United Kingdom, New Zealand, the Netherlands, North America, Germany, and rest of Europe. Electro Optic Systems Holdings Limited was founded in 1983 and is based in Symonston, Australia.

### Why customers stay

It lost 4.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:56.282Z); FY2023: grossProfit / revenue = 43.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:56.282Z); FY2024: grossProfit / revenue = 47.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:56.282Z); FY2025: grossProfit / revenue = -7.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:56.282Z); 10-year return on capital observations [[2016,-0.36339478751809645],[2017,-0.27470357538693696],[2018,0.11297137295997828],[2019,0.12675938567079348],[2020,-0.05634448124622004],[2021,0.02858497221771621],[2022,-0.13904890723522498],[2023,-0.030386947303792246],[2024,-0.038644852619468165],[2025,-0.25775580208710536]]; median -0.0474946669328441. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:56.282Z); FY2018: growth capex 1755284.8568585163; upkeep 1433628.1431414837; owner earnings 14501820.856858516. Growth capex / owner earnings = 0.12103892843417445.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:56.282Z); FY2019: growth capex 467440; upkeep 4132401; owner earnings 15635451. Growth capex / owner earnings = 0.029896163532475015.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:56.282Z); FY2025: growth capex 0; upkeep 20043000; owner earnings 15445800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:56.282Z); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 6.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EOS.AU SharesStats.PercentInsiders = 6.1370000000000005 percentage points; cache date 2026-10-16.

### What the price says

The price is 12.8 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:56.282Z); Closing price 8.54 AUD; reporting-to-trading FX 1; FY2025 annual sales per share 0.6657507225886632; price multiple 12.82762407946566. FY2025 cash earnings/share 0.08004991912500564. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 1.12 per share

- 2016-11: AUD 1.40 per share

- 2016-12: AUD 1.73 per share

- 2017-01: AUD 1.78 per share

- 2017-02: AUD 1.93 per share

- 2017-03: AUD 2.59 per share

- 2017-04: AUD 3.30 per share

- 2017-05: AUD 3.04 per share

- 2017-06: AUD 3.04 per share

- 2017-07: AUD 2.95 per share

- 2017-08: AUD 2.80 per share

- 2017-09: AUD 2.72 per share

- 2017-10: AUD 2.30 per share

- 2017-11: AUD 2.56 per share

- 2017-12: AUD 2.45 per share

- 2018-01: AUD 2.91 per share

- 2018-02: AUD 2.90 per share

- 2018-03: AUD 3.17 per share

- 2018-04: AUD 3.10 per share

- 2018-05: AUD 3.05 per share

- 2018-06: AUD 2.93 per share

- 2018-07: AUD 2.81 per share

- 2018-08: AUD 3.04 per share

- 2018-09: AUD 3.15 per share

- 2018-10: AUD 2.85 per share

- 2018-11: AUD 2.70 per share

- 2018-12: AUD 2.45 per share

- 2019-01: AUD 2.45 per share

- 2019-02: AUD 2.63 per share

- 2019-03: AUD 2.81 per share

- 2019-04: AUD 2.76 per share

- 2019-05: AUD 3.86 per share

- 2019-06: AUD 4.20 per share

- 2019-07: AUD 4.08 per share

- 2019-08: AUD 4.69 per share

- 2019-09: AUD 7.75 per share

- 2019-10: AUD 7.03 per share

- 2019-11: AUD 6.85 per share

- 2019-12: AUD 7.42 per share

- 2020-01: AUD 10.53 per share

- 2020-02: AUD 7.30 per share

- 2020-03: AUD 4.20 per share

- 2020-04: AUD 4.70 per share

- 2020-05: AUD 5.68 per share

- 2020-06: AUD 4.68 per share

- 2020-07: AUD 5.54 per share

- 2020-08: AUD 5.57 per share

- 2020-09: AUD 5.45 per share

- 2020-10: AUD 5.50 per share

- 2020-11: AUD 6.68 per share

- 2020-12: AUD 5.91 per share

- 2021-01: AUD 5.21 per share

- 2021-02: AUD 4.46 per share

- 2021-03: AUD 5.20 per share

- 2021-04: AUD 4.62 per share

- 2021-05: AUD 4.10 per share

- 2021-06: AUD 4.31 per share

- 2021-07: AUD 4.12 per share

- 2021-08: AUD 3.52 per share

- 2021-09: AUD 3.43 per share

- 2021-10: AUD 3.19 per share

- 2021-11: AUD 2.47 per share

- 2021-12: AUD 2.34 per share

- 2022-01: AUD 2.08 per share

- 2022-02: AUD 1.84 per share

- 2022-03: AUD 2.87 per share

- 2022-04: AUD 2.22 per share

- 2022-05: AUD 2.02 per share

- 2022-06: AUD 1.04 per share

- 2022-07: AUD 0.91 per share

- 2022-08: AUD 0.72 per share

- 2022-09: AUD 0.53 per share

- 2022-10: AUD 0.51 per share

- 2022-11: AUD 0.66 per share

- 2022-12: AUD 0.49 per share

- 2023-01: AUD 0.62 per share

- 2023-02: AUD 0.56 per share

- 2023-03: AUD 0.46 per share

- 2023-04: AUD 0.59 per share

- 2023-05: AUD 0.82 per share

- 2023-06: AUD 0.77 per share

- 2023-07: AUD 1.20 per share

- 2023-08: AUD 0.89 per share

- 2023-09: AUD 0.98 per share

- 2023-10: AUD 0.89 per share

- 2023-11: AUD 0.87 per share

- 2023-12: AUD 1.04 per share

- 2024-01: AUD 1.18 per share

- 2024-02: AUD 1.83 per share

- 2024-03: AUD 1.66 per share

- 2024-04: AUD 1.76 per share

- 2024-05: AUD 1.28 per share

- 2024-06: AUD 1.56 per share

- 2024-07: AUD 1.85 per share

- 2024-08: AUD 1.52 per share

- 2024-09: AUD 1.42 per share

- 2024-10: AUD 1.44 per share

- 2024-11: AUD 1.23 per share

- 2024-12: AUD 1.30 per share

- 2025-01: AUD 1.21 per share

- 2025-02: AUD 1.10 per share

- 2025-03: AUD 1.31 per share

- 2025-04: AUD 1.23 per share

- 2025-05: AUD 1.85 per share

- 2025-06: AUD 2.85 per share

- 2025-07: AUD 3.21 per share

- 2025-08: AUD 5.80 per share

- 2025-09: AUD 10.22 per share

- 2025-10: AUD 6.21 per share

- 2025-11: AUD 4.55 per share

- 2025-12: AUD 9.44 per share

- 2026-01: AUD 8.68 per share

- 2026-02: AUD 8.98 per share

- 2026-03: AUD 8.01 per share

- 2026-04: AUD 9.06 per share

- 2026-05: AUD 11.13 per share

- 2026-06: AUD 10.30 per share

- 2026-07: AUD 6.69 per share

- 2026-08: AUD 9.82 per share

- 2026-09: AUD 11.26 per share

- 2026-10: AUD 9.12 per share

## Annual estimated value (AUD per share)

- FY2019: low AUD 2.54 per share, central AUD 3.34 per share, high AUD 3.81 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.