Norwood Systems Ltd (NOR) AI Stock Analysis

• Market Cap: AU$7.92M
• Dividend Yield: N/A
• Average Volume (3M): 499.77K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.20
• Revenue Growth: 66.48%
• EPS Growth: 77.19%
• Country: AU
• Employees: 3
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.00
• Shares Outstanding: 565,927,600
• 10 Day Avg. Volume: 568,530
• 30 Day Avg. Volume: 499,774
• PEG Ratio: 0.20
• Price to Book (P/B): -12.93
• Price to Sales (P/S): 5.08
• P/FCF Ratio: -14.78
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: AU$0.01 ▲(30.00% Upside)

Norwood Systems Ltd faces significant financial challenges, with negative profitability and solvency metrics being the most critical factors affecting its stock score. The technical analysis also indicates a bearish trend, further weighing down the score. The valuation is unattractive due to a negative P/E ratio and lack of dividends. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Norwood's services, suggesting effective market penetration and potential for future expansion.

Business Model

The subscription-based model provides a stable and predictable revenue stream, enhancing financial planning and long-term sustainability.

Market Position

Operating in growing sectors like VoIP and digital communications positions Norwood to capitalize on increasing demand for innovative communication solutions.

Negative Factors

Profitability Challenges

Persistent negative margins indicate ongoing challenges in cost management, which may hinder long-term financial health and competitiveness.

Solvency Issues

A negative equity position and reliance on debt financing raise concerns about Norwood's solvency and ability to sustain operations without restructuring.

Cash Flow Weakness

Deteriorating cash flow generation limits Norwood's ability to invest in growth opportunities and may necessitate external financing, impacting financial stability.

Norwood Systems Ltd Business Overview & Revenue Model

Company Description

Norwood 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 Money

Norwood 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 is experiencing significant revenue growth, but this is overshadowed by persistent profitability and solvency challenges. The negative margins and equity position, combined with declining cash flow metrics, suggest that the company faces substantial financial risks. Strategic improvements in cost management and capital structure are necessary to enhance financial stability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90M	1.90M	1.14M	964.20K	1.23M	1.05M
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 Assets	1.43M	1.43M	522.91K	752.59K	917.80K	327.84K
Cash, Cash Equivalents and Short-Term Investments	137.76K	137.76K	68.98K	380.14K	496.93K	58.47K
Total Debt	950.45K	950.45K	767.23K	790.01K	965.89K	535.40K
Total Liabilities	2.18M	2.18M	1.75M	1.85M	1.75M	1.48M
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 Flow	871.25K	871.25K	1.70M	1.10M	1.53M	309.63K

Norwood Systems Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 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:NOR, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.71 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NOR.

Norwood Systems Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SPA	44 Neutral	AU$11.51M	-1.63	―	―	12.24%	55.89%
FRX	44 Neutral	AU$34.88M	-9.17	-166.02%	―	-11.11%	-71.43%
5GG	43 Neutral	AU$9.10M	-1.94	-18.92%	―	8.20%	37.20%
HFY	42 Neutral	AU$4.09M	-6.25	-11.62%	―	-9.44%	83.16%
NOR	42 Neutral	AU$7.92M	-10.77	―	―	66.48%	77.19%
VN8	41 Neutral	AU$26.34M	-38.89	-3.77%	―	-7.05%	75.68%

Norwood Systems Ltd Corporate Events

Norwood Systems Announces Director’s Securities Interest Update

Norwood Systems Ltd has announced a change in the director’s interest in securities, specifically involving Mr. Paul Ostergaard. The changes include acquisitions and disposals of ordinary shares and performance rights, reflecting adjustments in Mr. Ostergaard’s investment portfolio. This update is part of the company’s regulatory compliance with ASX listing rules, ensuring transparency in the director’s financial interests.

Norwood Systems Initiates Trading Halt for Capital Raise Announcement

Norwood Systems Ltd has requested a trading halt on its securities pending the announcement of a capital raise. This halt will remain until the start of trading on December 8, 2025, unless an announcement is made earlier. The move indicates a strategic financial maneuver that could impact the company’s operations and market positioning, signaling potential growth or restructuring efforts.

Norwood Systems Ltd Successfully Passes All AGM Resolutions

Norwood Systems Ltd announced the successful passing of all resolutions at its Annual General Meeting, with all resolutions being approved by a poll. This outcome reflects strong shareholder support and positions the company favorably for future strategic initiatives, potentially impacting its operational and market strategies positively.

Norwood Systems Leverages AI to Transform Telecom Services

Norwood Systems Ltd, a key player in the telecommunications sector, is seizing opportunities in the evolving landscape by integrating AI with telecom services. This strategic move is expected to strengthen its market position and offer significant advantages to stakeholders, though the company acknowledges potential risks and uncertainties in achieving its future plans.

Norwood Systems Advances with Optus Milestone and New AI Product

Norwood Systems Ltd has made significant strides in its operations, receiving a milestone payment from Optus under its CogVoice Voicemail supply contract and completing a proof-of-concept for its OpenSpan Call Protect with a Tier-1 APAC communication service provider. These achievements demonstrate Norwood’s capability to execute complex projects and strengthen its market position. Additionally, the company is preparing to launch its MoCA agentic coding tool, which aims to enhance software development efficiency, marking a strategic expansion into non-telco markets.

Norwood Systems Announces 2025 Annual General Meeting Details

Norwood Systems Ltd has announced its Annual General Meeting (AGM) for shareholders, scheduled for November 28, 2025, at 4:00 PM AWST in Nedlands, WA. The company will not send physical copies of the meeting notice but will provide it electronically. Shareholders can attend the meeting in person or participate by voting online or by proxy. The company emphasizes the importance of shareholder participation in the meeting and provides multiple avenues for engagement, ensuring stakeholders are informed and involved in the decision-making process.

Norwood Systems Reports Positive Cash Flow and Industry Recognition

Norwood Systems Ltd reported a second consecutive quarter of positive operating cash flow, enabling debt reduction and highlighting strong project progress, particularly with Optus and Microsoft partnerships. The company achieved significant industry recognition with multiple awards, underscoring its strategic positioning and commitment to innovation. The ongoing development of products like OpenSpan and partnerships with major tech firms are expected to strengthen Norwood’s market presence and operational capabilities.

Norwood Systems Announces Director Resignation

Norwood Systems Limited announced the resignation of Dr. John Tarrant as a director, effective September 17, 2025. Dr. Tarrant held significant interests in the company, including over 112 million ordinary shares and options. His departure may impact the company’s strategic direction and stakeholder confidence, given his substantial shareholding and involvement in the company.

Norwood Systems Announces Leadership Transition with Chair’s Retirement

Norwood Systems Ltd announced the retirement of Dr. John Tarrant as Chair and Non-Executive Director, effective immediately. Dr. Tarrant’s tenure saw the company strengthen its commercial position, secure significant contracts, and build strategic partnerships, notably with Microsoft. His departure is seen as an opportunity for board renewal as Norwood continues its growth in the global market. CEO Paul Ostergaard praised Dr. Tarrant’s leadership, which has left the company in a strong position with a robust sales pipeline and strategic clarity.