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Norwood Systems Ltd (AU:NOR)
ASX:NOR
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Norwood Systems Ltd (NOR) AI Stock Analysis

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AU:NOR

Norwood Systems Ltd

(Sydney:NOR)

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Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
AU$0.00
▼(-100.00% Downside)
Norwood Systems Ltd's overall stock score is primarily impacted by its financial performance, which highlights significant risks due to negative profitability and solvency issues. Technical analysis shows positive momentum, but valuation concerns due to negative earnings and lack of dividends further weigh down the score.

Norwood Systems Ltd (NOR) vs. iShares MSCI Australia ETF (EWA)

Norwood Systems Ltd Business Overview & Revenue Model

Company DescriptionNorwood Systems Ltd (NOR) is a technology company specializing in telecommunications and mobile solutions. The company primarily focuses on providing innovative software and applications that enhance communication services for businesses and consumers. Norwood Systems operates in sectors such as VoIP (Voice over Internet Protocol), mobile applications, and digital communications, with core products that include cloud-based communication platforms and mobile calling solutions designed to optimize and reduce costs associated with traditional telephony.
How the Company Makes MoneyNorwood Systems generates revenue through a subscription-based model, offering various tiers of its communication services to both businesses and individual users. Key revenue streams include monthly or annual subscriptions for their VoIP services, premium features within their mobile applications, and usage-based billing for additional call minutes or data. Additionally, Norwood Systems has established partnerships with telecom providers and technology platforms, allowing them to expand their market reach and integrate their services into existing networks, further enhancing their revenue potential.

Norwood Systems Ltd Financial Statement Overview

Summary
Norwood Systems Ltd shows significant revenue growth but faces severe profitability and solvency challenges. Negative profit margins and equity, along with declining cash flow metrics, indicate substantial financial risks.
Income Statement
15
Very Negative
Norwood Systems Ltd has shown a significant revenue growth rate of 100.57% in the most recent year, indicating potential for expansion. However, the company struggles with negative profitability metrics, including a gross profit margin of -38.89% and a net profit margin of -31.53%. These negative margins highlight ongoing challenges in cost management and profitability.
Balance Sheet
10
Very Negative
The balance sheet reveals a concerning financial structure with a negative stockholders' equity and a high debt-to-equity ratio of -1.27. This indicates a reliance on debt financing and potential solvency issues. The return on equity is positive at 80.29%, but this is due to negative equity, which is not a sustainable financial position.
Cash Flow
20
Very Negative
Cash flow analysis shows a negative free cash flow growth rate of -58.86%, indicating deteriorating cash generation capabilities. The operating cash flow to net income ratio is -0.31, suggesting inefficiencies in converting net income into cash. However, the free cash flow to net income ratio is 1.0, indicating that the company is generating enough cash to cover its net losses.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.90M1.90M1.14M964.20K1.23M1.05M
Gross Profit-739.75K-739.75K-1.44M-1.30M-453.76K-632.00K
EBITDA-219.07K-219.07K-2.44M-1.74M-902.00K-1.41M
Net Income-599.72K-599.72K-2.58M-1.89M-1.08M-871.00K
Balance Sheet
Total Assets1.43M1.43M522.91K752.59K917.80K327.84K
Cash, Cash Equivalents and Short-Term Investments137.76K137.76K68.98K380.14K496.93K58.47K
Total Debt950.45K950.45K767.23K790.01K965.89K535.40K
Total Liabilities2.18M2.18M1.75M1.85M1.75M1.48M
Stockholders Equity-746.91K-746.91K-1.23M-1.10M-835.13K-1.15M
Cash Flow
Free Cash Flow-653.22K-653.22K-2.01M-1.22M-1.09M-403.88K
Operating Cash Flow-653.22K-653.22K-2.00M-1.18M-1.09M-402.94K
Investing Cash Flow-149.24K-149.24K-2.67K-39.78K-3.03K-939.00
Financing Cash Flow871.25K871.25K1.70M1.10M1.53M309.63K

Norwood Systems Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.02
Price Trends
50DMA
0.02
Positive
100DMA
0.02
Positive
200DMA
0.02
Negative
Market Momentum
MACD
<0.01
Negative
RSI
57.25
Neutral
STOCH
70.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NOR, the sentiment is Positive. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.25 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NOR.

Norwood Systems Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
49
Neutral
€13.21M12.24%55.89%
48
Neutral
€11.35M66.48%77.19%
42
Neutral
AU$11.00M-166.02%-11.11%-71.43%
42
Neutral
AU$10.83M-18.92%8.20%37.20%
42
Neutral
AU$4.09M-11.62%-9.44%83.16%
41
Neutral
AU$26.34M-3.77%-7.05%75.68%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NOR
Norwood Systems Ltd
0.02
>-0.01
-29.03%
AU:SPA
SPACETALK Limited
0.18
-0.04
-16.67%
AU:5GG
Pentanet Ltd
0.02
-0.02
-50.00%
AU:FRX
Flexiroam Ltd
0.01
0.00
0.00%
AU:VN8
Vonex Limited
0.04
0.00
0.00%
AU:HFY
Hubify Ltd.
0.01
0.00
0.00%

Norwood Systems Ltd Corporate Events

Norwood Systems Extends Cash Drawdown Facility to Support Growth
Jul 31, 2025

Norwood Systems Ltd has announced an eleventh variation to its cash drawdown facility, extending the repayment date to 31st August 2025, with an interest rate of 7.95% and an extension fee of 1.75%. This facility, initially set up in April 2024, has been crucial in providing the working capital needed for Norwood to secure significant contracts, such as with Optus, and to support its growth strategy, avoiding unnecessary dilution and focusing on sustainable, cash-flow-driven growth.

Norwood Systems Achieves Record Quarter with Strategic Growth and Industry Recognition
Jul 21, 2025

Norwood Systems Ltd reported its strongest quarter yet, with record cash receipts of $1.24 million, a significant debt reduction, and successful capital raising. The company has made substantial progress with its Optus project and expanded its sales pipeline across four continents, aided by its partnership with Microsoft. Norwood’s innovative platforms, OpenSpan and Agent Dojo, continue to attract interest, and the company has received prestigious industry awards, highlighting its technological leadership and strategic positioning.

Norwood Systems Extends Loan Agreement to Fuel Growth
Jun 30, 2025

Norwood Systems Ltd has announced a tenth variation to its loan agreement with Balmain Resources Pty Ltd, extending the repayment date to 31st July 2025 while maintaining an interest rate of 7.95% and an extension fee of 1.75%. This financial arrangement has been crucial in providing Norwood with the necessary capital to secure significant contracts, such as the Optus contract, and to support its growth initiatives over the past year. The company has repaid $550,000, reducing the principal to $318,341.67, and aims to continue leveraging this facility to drive revenue and cash flow growth into FY 2026.

Norwood Systems Issues 3 Million Unquoted Securities
Jun 12, 2025

Norwood Systems Ltd has announced the issuance of 3,000,000 unquoted securities, specifically options expiring on December 31, 2026, with an exercise price of $0.03. This issuance is part of a previously announced transaction and is not intended to be quoted on the ASX, potentially impacting the company’s financial structure and offering new opportunities for stakeholders.

Norwood Systems Achieves Milestone and Reports Strong Financials
Jun 11, 2025

Norwood Systems Ltd has successfully achieved a significant milestone under a new telecommunications contract, demonstrating its ability to deliver advanced AI-driven voice technology solutions on schedule. Additionally, the company has reported strong customer receipts, totaling approximately AUD $455,000 over the past 30 days, which strengthens its cash position.

Norwood Systems Completes Share Allotment to Bolster Market Position
May 27, 2025

Norwood Systems Ltd has announced the completion of an allotment of 26,315,789 fully paid ordinary shares at $0.019 each, following a placement announced earlier. This move, conducted without disclosure under the Corporations Act, signifies the company’s compliance with relevant legal provisions and indicates no undisclosed information, potentially strengthening its financial position and market presence.

Norwood Systems Announces Change in Substantial Shareholder
May 21, 2025

Norwood Systems Ltd has announced a change in the substantial holding of its shares by Balmain Resources Pty Ltd. The voting power of Balmain Resources has decreased slightly from 25.90% to 24.22%, indicating a shift in the company’s shareholder structure. This change may impact Norwood Systems’ strategic decisions and influence its market positioning, as substantial shareholders often play a crucial role in corporate governance.

Norwood Systems Announces Quotation of New Securities on ASX
May 21, 2025

Norwood Systems Ltd has announced the quotation of 26,315,789 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of May 21, 2025. This move is part of a previously announced transaction, potentially impacting the company’s market presence and offering stakeholders new opportunities for investment.

Norwood Systems Announces Proposed Securities Issue
May 16, 2025

Norwood Systems Ltd has announced a proposed issue of securities, including 3,000,000 options exercisable at $0.03 per option, expiring on December 31, 2026, and 26,315,789 ordinary fully paid shares. This move is part of a placement or other type of issue, with the proposed issue date set for May 21, 2025. The announcement signifies a strategic effort to raise capital, potentially impacting the company’s market positioning and offering new opportunities for stakeholders.

Norwood Systems Secures $500,000 in Oversubscribed Capital Raising
May 16, 2025

Norwood Systems Ltd has successfully completed a $500,000 oversubscribed capital raising through a placement to sophisticated and professional investors. The funds will be used to expand market presence, accelerate product development, enhance customer experience, improve operational efficiency, partially repay debt, and support strategic partnership initiatives, positioning the company for further growth and strengthening its industry standing.

Norwood Systems Initiates Trading Halt for Capital Raise Announcement
May 13, 2025

Norwood Systems Ltd has requested a trading halt on its securities pending an announcement regarding a capital raise. This move is intended to provide the company with time to prepare and release details of the capital raise, which could have significant implications for its financial strategy and market positioning.

Norwood Systems Announces Director’s Interest Change
May 13, 2025

Norwood Systems Limited has announced a change in the director’s interest, specifically involving Mr. Paul Ostergaard. The change involves an acquisition of 50,000 ordinary shares at $0.02 per share through an indirect interest held by Netwealth Investments Limited on behalf of the Chill Cast Super Fund. This update reflects a minor adjustment in the director’s holdings and does not indicate any significant strategic shift for the company.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 14, 2025