Norwood Systems Ltd (NOR) AI Stock Analysis

• Market Cap: €10.32M
• Dividend Yield: N/A
• Average Volume (3M): 185.53K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.73
• Revenue Growth: 66.48%
• EPS Growth: 78.95%
• Country: AU
• Employees: 3
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.00
• Shares Outstanding: 515,927,600
• 10 Day Avg. Volume: 318,871
• 30 Day Avg. Volume: 185,530
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

Norwood Systems Ltd's overall stock score reflects severe financial challenges, including negative profitability and high leverage, which heavily impact the company's outlook. While technical indicators are mixed, they provide limited positive signals against the backdrop of poor financial health. The valuation remains unattractive with a negative P/E ratio and no dividend yield.

Norwood Systems Ltd Business Overview & Revenue Model

Company Description

Norwood Systems Limited provides mobile voice, messaging, data, and cyber security services to consumers, enterprises, and carriers worldwide. The company offers World Voicemail, a visual voicemail app; SecondLine for business and personal communication from multiple numbers on a single phone; World Phone for putting a second phone and number on smartphone; World Message, an app-to-app messaging app; World Secure, a Wi-Fi security solution; and World Wi-Fi for finding and securely connecting to Wi-Fi hotspots; as well as Cognitive Voice services. The company was founded in 2011 and is based in Nedlands, Australia.

How the Company Makes Money

Norwood Systems Ltd generates revenue through a combination of subscription-based services and pay-as-you-go models. The company earns money by providing its communication solutions to both enterprise clients and individual users. Key revenue streams include subscription fees for its World Phone, World Message, and World Secure products. Additionally, Norwood Systems partners with telecommunications providers and other technology companies to broaden its service offerings and extend its market reach, which contributes to its earnings.

Norwood Systems Ltd Financial Statement Overview

Summary

Norwood Systems Ltd faces significant financial challenges with negative profit margins, high leverage, and negative cash flows. The precarious financial position is underscored by persistent losses and reliance on financing for liquidity.

Income Statement

Norwood Systems Ltd exhibits a challenging financial performance with consistently negative gross and net profit margins, indicating a lack of profitability. The revenue growth rate shows volatility, with a recent increase from 2023 to 2024. However, the EBIT and EBITDA margins are deeply negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet is highly leveraged, with a negative stockholders' equity indicating financial distress. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt relative to negative equity suggests significant leverage. The equity ratio is negative, further highlighting the company's financial instability and reliance on debt.

Cash Flow

Cash flows are under pressure, with negative free cash flow indicating an inability to generate sufficient cash from operations. The operating cash flow to net income ratio is negative, suggesting operational cash is insufficient to cover net losses. Financing activities are a primary source of cash, which may not be sustainable long-term.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.14M	964.20K	1.23M	1.05M	870.01K
Gross Profit	-1.44M	-1.30M	-453.76K	-632.00K	-893.00K
EBITDA	-2.44M	-1.74M	-902.00K	-1.41M	-1.74M
Net Income	-2.58M	-1.89M	-1.08M	-871.00K	-1.89M
Balance Sheet
Total Assets	522.91K	752.59K	917.80K	327.84K	554.34K
Cash, Cash Equivalents and Short-Term Investments	68.98K	380.14K	496.93K	58.47K	152.73K
Total Debt	767.23K	790.01K	965.89K	535.40K	546.79K
Total Liabilities	1.75M	1.85M	1.75M	1.48M	1.29M
Stockholders Equity	-1.23M	-1.10M	-835.13K	-1.15M	-733.18K
Cash Flow
Free Cash Flow	-2.01M	-1.22M	-1.09M	-403.88K	-1.34M
Operating Cash Flow	-2.00M	-1.18M	-1.09M	-402.94K	-1.33M
Investing Cash Flow	-2.67K	-39.78K	-3.03K	-939.00	-11.69K
Financing Cash Flow	1.70M	1.10M	1.53M	309.63K	1.09M

Norwood Systems Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 63.16 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VN8	49 Neutral	AU$27.09M	-40.00	―	―	-7.05%	75.68%
5GG	46 Neutral	AU$11.26M	-2.52	―	―	8.20%	37.20%
NOR	44 Neutral	€10.32M	―	―	―	66.48%	78.95%
SPA	44 Neutral	AU$9.91M	-2.10	―	―	12.24%	55.89%
HFY	43 Neutral	AU$4.09M	-5.63	―	―	-9.44%	83.16%
FRX	42 Neutral	AU$11.00M	-4.17	―	―	-11.11%	-71.43%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Norwood Systems Ltd Corporate Events

Norwood Systems Extends Cash Drawdown Facility to Support Growth

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

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

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

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

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

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

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

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

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

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

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

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.