Connexion Telematics Limited (CXZ) AI Stock Analysis

• Market Cap: €20.28M
• Dividend Yield: N/A
• Average Volume (3M): 663.72K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.42
• Revenue Growth: 14.40%
• EPS Growth: 2.70%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 811,039,500
• 10 Day Avg. Volume: 1,055,162
• 30 Day Avg. Volume: 663,721
• PEG Ratio: -1.65
• Price to Book (P/B): 6.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.00
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ―

Connexion Telematics Limited scores 67, reflecting its stable financial health with zero debt and strong cash flow. The declining profitability margins and ROE are concerns, but its strong balance sheet provides a buffer. The technical indicators suggest a cautious outlook with potential downward momentum. The attractive valuation due to a low P/E ratio offers potential upside for investors.

Connexion Telematics Limited Business Overview & Revenue Model

Company Description

Connexion Telematics Limited (CXZ) is a technology company specializing in the development and commercialization of telematics software solutions for the automotive industry. The company primarily focuses on providing software as a service (SaaS) platforms that offer fleet and vehicle management solutions, including real-time tracking and analytics, which enhance operational efficiency and safety for businesses managing vehicle fleets.

How the Company Makes Money

Connexion Telematics Limited generates revenue through the subscription fees for its SaaS platforms, which are used by automotive companies and fleet operators to manage their vehicles. The company's key revenue streams include recurring subscription payments for access to its telematics software, as well as potential additional fees for premium features or services. Connexion Telematics may also engage in strategic partnerships with automotive manufacturers or fleet service providers to expand its market reach and enhance its product offerings, thereby contributing to its earnings.

Connexion Telematics Limited Financial Statement Overview

Summary

Connexion Telematics Limited demonstrates a stable financial position with a robust balance sheet, zero debt, and strong cash flow. However, net profit margin and ROE have declined, posing concerns about profitability and shareholder returns. Despite revenue volatility, the company maintains financial stability with high equity ratios and efficient cash management.

Income Statement

Connexion Telematics Limited shows a mixed performance in its income statement. The gross profit margin is strong, consistently above 75% over the years, indicating effective cost management. However, the net profit margin has decreased from 26.5% in 2020 to 19.1% in 2024, suggesting rising expenses or competitive pressures affecting profitability. Revenue growth has been volatile, with a decline from 2020 to 2021 and a slight decline again in the TTM period. EBIT and EBITDA margins remain healthy, but the recent decline in EBIT margin from 30.9% in 2023 to 22.2% in 2024 raises concerns about operational efficiency.

Balance Sheet

The balance sheet of Connexion Telematics Limited is robust with zero debt, leading to a favorable debt-to-equity ratio. The equity ratio is consistently high, reflecting a strong capital structure with equity financing. The ROE has decreased from 66.5% in 2020 to 30.0% in 2024, indicating a decline in shareholder profitability. Despite this, the company maintains a solid equity base and liquidity position, with substantial cash reserves.

Cash Flow

Cash flow analysis reveals a strong operating cash flow relative to net income, demonstrating efficient cash generation. Free cash flow has consistently grown, with a substantial increase from 2022 to 2023, though a slower growth rate in the latest period. The positive free cash flow to net income ratio highlights the company's ability to convert earnings into cash, supporting future investments or shareholder returns.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	9.84M	9.86M	5.25M	5.93M	8.20M
Gross Profit	7.68M	7.90M	3.57M	2.11M	3.29M
EBITDA	2.18M	3.38M	500.08K	728.74K	2.26M
Net Income	1.88M	2.62M	200.16K	684.74K	3.20M
Balance Sheet
Total Assets	8.05M	9.26M	6.03M	5.72M	5.75M
Cash, Cash Equivalents and Short-Term Investments	5.00M	5.19M	3.89M	3.10M	2.44M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.77M	1.36M	338.13K	543.88K	933.29K
Stockholders Equity	6.28M	7.91M	5.69M	5.18M	4.81M
Cash Flow
Free Cash Flow	2.44M	1.69M	964.52K	939.91K	1.49M
Operating Cash Flow	2.49M	1.69M	964.52K	1.10M	1.50M
Investing Cash Flow	-1.48M	-1.74M	-2.26M	-164.94K	-11.71K
Financing Cash Flow	-1.24M	-695.57K	-95.35K	-228.78K	―

Connexion Telematics Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CXZ, the sentiment is Positive. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.42 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CXZ.

Connexion Telematics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXZ	67 Neutral	€20.28M	6.58	37.59%	―	14.40%	2.70%
Sector *	50 Neutral	AU$1.46B	1.74	-28.24%	3.27%	15.64%	-7.01%
SP3	41 Neutral	AU$4.01M	―	-244.13%	―	7.28%	31.75%
DUB	38 Underperform	AU$49.84M	―	-131.93%	―	15.31%	61.52%

Connexion Telematics Limited Corporate Events

Emirene Pty Ltd Acquires Substantial Stake in Connexion Mobility Ltd

Emirene Pty Ltd has become a substantial holder in Connexion Mobility Ltd, acquiring a 5.01% voting power through 40,903,590 fully paid ordinary shares. This acquisition marks a significant change in the shareholder structure of Connexion Mobility Ltd, potentially impacting its governance and strategic decisions.

Director’s Interest Update at Connexion Mobility Ltd

Connexion Mobility Ltd has announced a change in the director’s interest, specifically involving Aaryn Nania. The director, through Second Lagoon Pty Ltd ATF Second Lagoon Trust, acquired 917,148 ordinary fully paid shares via an on-market trade, increasing their total holdings to 59,834,608 shares. This change reflects a strategic adjustment in the director’s investment, potentially impacting the company’s governance and shareholder dynamics.

Substantial Holder Increases Stake in Connexion Mobility Ltd

Connexion Mobility Ltd has experienced a change in the interests of a substantial holder, Second Lagoon Pty Ltd, which has increased its voting power from 5.20% to 7.33% through purchases and conversions of ordinary shares. This change in substantial holding could potentially impact the company’s decision-making process and influence its strategic direction, reflecting a significant shift in shareholder dynamics.

Connexion Mobility Ltd Updates on Buy-Back Program

Connexion Mobility Ltd, trading under the ASX code CXZ, has announced an update regarding its ongoing on-market buy-back program. As of April 23, 2025, the company has repurchased a total of 33,875,187 ordinary fully paid securities, including 4,220,001 bought back on the previous day. This buy-back initiative may impact the company’s stock liquidity and shareholder value, reflecting a strategic move to optimize its capital structure.

Connexion Mobility Reports Mixed Financial Results for Q3 FY25

During the quarter ended March 31, 2025, Connexion Mobility reported a slight increase in revenue but faced a decrease in gross profit and net profit before tax. The company continues to focus on long-term shareholder value through strategic reinvestment in R&D and expanding customer relationships, despite a decrease in earnings per share. Connexion is actively pursuing growth through enhanced product offerings and diversification of revenue streams, including potential mergers and acquisitions.

Connexion Mobility to Release Q3 FY25 Update and Host Live Webinar

Connexion Mobility Ltd announced that it will release its Q3 FY25 Quarterly Update on April 17, 2025, and will host a live investor webinar on the same day. The webinar will feature presentations from the company’s Managing Director and Chief Financial Officer, who will discuss the company’s business activities and performance, followed by a live Q&A session. This announcement highlights Connexion’s commitment to transparency and engagement with its stakeholders, potentially impacting its market positioning and investor relations.

Connexion Mobility Ltd Announces Cessation of Securities

Connexion Mobility Ltd announced the cessation of 4,745,987 ordinary fully paid securities through an on-market buy-back, effective March 31, 2025. This move is part of the company’s capital management strategy, potentially impacting its market positioning by optimizing its capital structure and possibly increasing shareholder value.

Connexion Mobility Ltd Updates on Share Buy-Back Program

Connexion Mobility Ltd announced an update regarding its ongoing share buy-back program. The company has bought back a total of 28,621,174 securities as of the previous day, with one additional security bought back on the latest day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Connexion Mobility Ltd Updates on Securities Buy-Back

Connexion Mobility Ltd has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities, identified by the ASX security code CXZ. The company bought back a total of 4,745,987 securities on the previous day, adding to the cumulative total of 23,875,187 securities bought back before that day. This buy-back activity reflects the company’s strategic efforts to manage its capital structure and potentially enhance shareholder value.