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Norwood Systems Ltd (AU:NOR)
ASX:NOR

Norwood Systems Ltd (NOR) AI Stock Analysis

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AU

Norwood Systems Ltd

(Sydney:NOR)

Rating:42Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The overall stock score is significantly influenced by the company's poor financial performance, which poses the greatest risk. This is compounded by weak technical indicators and a negative valuation profile, underscoring the stock's challenges.

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

Norwood Systems Ltd Business Overview & Revenue Model

Company DescriptionNorwood 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 MoneyNorwood Systems Ltd makes money primarily through its suite of telecommunications services that cater to both businesses and individual users. The company's primary revenue streams include subscription fees for its communication services, such as voice calls and messaging, which are provided via its cloud-based platforms. Norwood Systems also generates income from its partnerships with telecom operators and enterprises, who integrate its technology to enhance their service offerings. Additionally, the company may earn revenue through licensing its proprietary technology and software solutions to other businesses in the telecommunications sector.

Norwood Systems Ltd Financial Statement Overview

Summary
Norwood Systems Ltd faces significant financial challenges, characterized by persistent losses, high leverage, and negative cash flows. The company's financial position is precarious with negative equity and reliance on financing for liquidity, warranting the lowest score in financial performance.
Income Statement
20
Very Negative
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
15
Very Negative
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
25
Negative
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
948.28K1.14M964.20K1.23M1.05M870.01K
Gross Profit
-1.62M-1.23M-1.30M-454.00K-632.00K-893.00K
EBIT
-2.61M-3.13M-2.36M-1.43M-1.83M-2.44M
EBITDA
-2.06M-2.44M-1.74M-902.00K-751.00K-1.74M
Net Income Common Stockholders
-2.21M-2.58M-1.89M-1.08M-871.00K-1.89M
Balance SheetCash, Cash Equivalents and Short-Term Investments
219.40K68.98K380.14K496.93K58.47K152.73K
Total Assets
419.69K522.91K752.59K917.80K327.84K554.34K
Total Debt
914.79K767.23K765.53K950.88K535.40K546.79K
Net Debt
695.40K698.25K385.39K453.95K476.93K394.06K
Total Liabilities
1.89M1.75M1.85M1.75M1.48M1.29M
Stockholders Equity
-1.47M-1.23M-1.10M-835.13K-1.15M-733.18K
Cash FlowFree Cash Flow
-1.59M-2.01M-1.22M-1.09M-403.88K-1.34M
Operating Cash Flow
-1.59M-2.00M-1.18M-1.09M-402.94K-1.33M
Investing Cash Flow
0.00-2.67K-39.78K-3.03K-939.00-11.69K
Financing Cash Flow
1.05M1.70M1.10M1.53M309.63K1.09M

Norwood Systems Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.02
Price Trends
50DMA
0.02
Negative
100DMA
0.02
Negative
200DMA
0.03
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
43.97
Neutral
STOCH
41.67
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 0.02 is above the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.97 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$14.75B5.86-3.99%6.11%2.67%-30.24%
AUNOR
42
Neutral
€8.77M
-15.67%
$6.32B280.66-0.95%
$35.90B32.7411.34%3.80%
DE9SL
€819.49M-1.05%
AUMAQ
AU$1.65B44.748.93%
AUSPK
AU$3.98B21.4212.57%10.10%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NOR
Norwood Systems Ltd
0.02
-0.03
-62.00%
TPGTF
TPG Telecom Limited
3.41
0.43
14.43%
TTRAF
Telstra Corporation Limited
3.40
1.19
53.85%
DE:9SL
Superloop Ltd.
1.60
0.67
72.04%
AU:MAQ
Macquarie Telecom Group Limited
61.61
-27.12
-30.56%
AU:SPK
Spark New Zealand Limited
2.16
-1.18
-35.33%

Norwood Systems Ltd Corporate Events

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.

Norwood Systems Secures Major Contract with Optus, Expands Global Reach
Apr 30, 2025

Norwood Systems Ltd has secured a significant five-year contract with Optus, valued at $2.98 million, to replace its national voicemail platform with Norwood’s CogVoice solution. This achievement, along with meeting early project milestones and receiving associated cash inflows, has strengthened Norwood’s financial position. The company is also expanding its pipeline with Tier-1 operators globally, leveraging strategic partnerships with Microsoft and AWS to drive further growth. Showcasing its OpenSpan application at MWC Barcelona in collaboration with Microsoft has bolstered Norwood’s reputation as a leading innovator in the telco AI space.

Norwood Systems Expands Market Presence with New Securities Quotation
Apr 28, 2025

Norwood Systems Ltd has announced the application for quotation of 2,666,666 ordinary fully paid securities on the ASX, with issue dates on April 17 and April 28, 2025. This move is part of previously announced transactions and is expected to impact the company’s market presence by increasing its available securities, potentially attracting more investors and enhancing its financial flexibility.

Norwood Systems Achieves Key Milestones and Reports Strong Financial Performance
Apr 13, 2025

Norwood Systems Ltd has successfully achieved the first two milestones of a new telecommunications contract, showcasing its capability to deliver advanced AI-driven voice technology solutions on schedule. The company also reported strong customer receipts of approximately AUD $734,000, bolstering its cash position and reinforcing confidence in its business trajectory.

Norwood Systems Announces Director’s Change in Securities Interest
Apr 8, 2025

Norwood Systems Ltd announced a change in the director’s interest notice, specifically regarding Mr. Paul Ostergaard. The notice details the acquisition and disposal of 260,000 ordinary shares at a value of $0.023 per share. This update reflects a shift in the director’s securities holdings, which could influence stakeholders’ perceptions of the company’s market activities.

Norwood Systems Director Increases Shareholding
Apr 2, 2025

Norwood Systems Ltd announced a change in the director’s interest, with Mr. Paul Ostergaard acquiring 84,819 ordinary shares at $0.027 per share. This acquisition reflects a strategic move that could impact the company’s market positioning and stakeholder interests, highlighting potential growth and confidence in the company’s future prospects.

Norwood Systems Completes Share Issuance to Bolster Capital
Mar 31, 2025

Norwood Systems Ltd has completed the issuance of 10,000,000 fully paid ordinary shares following the conversion of Convertible Notes at $0.03 each, as part of its capital management strategy. This move, executed without disclosure to investors under Part 6D.2 of the Corporations Act, signifies the company’s compliance with relevant legal provisions and its ongoing commitment to transparency, potentially impacting its market positioning by strengthening its financial base.

Norwood Systems Secures Improved Loan Terms Following Optus Contract
Mar 27, 2025

Norwood Systems Ltd has announced a significant improvement in the terms of its cash drawdown facility, following a $2.98 million contract with Optus. The revised terms, including a reduced interest rate and waived extension fee, reflect a reassessment of the loan’s risk by Balmain Resources Pty Ltd. This financial adjustment strengthens Norwood’s position, allowing the company to pursue further growth opportunities and enhance shareholder value, with expectations of increased revenue and cash flow throughout 2025.

Norwood Systems Ltd Announces Quotation of New Securities on ASX
Mar 25, 2025

Norwood Systems Ltd has announced the quotation of 10 million ordinary fully paid securities on the Australian Securities Exchange (ASX), effective from March 24, 2025. This move is part of a previously announced transaction and is expected to enhance the company’s market presence and provide additional capital for its operations, potentially impacting its industry positioning and offering new opportunities for stakeholders.

Norwood Systems Secures Major Voicemail Platform Contract with Optus
Mar 17, 2025

Norwood Systems Ltd has secured a five-year contract valued at approximately $2.98 million with Optus to replace its existing voicemail system with Norwood’s AI-powered CogVoice Voicemail platform. This strategic partnership not only enhances Optus’ voicemail functionality and user experience but also positions Norwood as a competitive supplier in the telecommunications industry, with potential for future premium services.

Norwood Systems Extends Loan Agreement, Enhancing Financial Flexibility
Mar 14, 2025

Norwood Systems Ltd has announced an eighth deed of variation to its loan agreement with Balmain Resources Pty Ltd, extending the repayment date of its cash drawdown facility to March 31, 2025, with a new principal amount of $763,590.47. The Board considers the transaction favorable compared to market rates, indicating continued support from Dr. John Tarrant, enhancing Norwood’s financial flexibility and stability.

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.