Transmetro Corp. Ltd. (TCO) AI Stock Analysis

• Market Cap: AU$33.46M
• Dividend Yield: 4.31%
• Average Volume (3M): 2.00
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.03
• Revenue Growth: 8.92%
• EPS Growth: 70.32%
• Country: AU
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 0.09
• Shares Outstanding: 13,382,778
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 2
• PEG Ratio: 0.18
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 3.54
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: AU$2.50 ▲(6.38% Upside)

Transmetro Corp. Ltd. shows strong financial performance with robust revenue growth and improved profit margins, contributing significantly to the score. The valuation is attractive with a low P/E ratio and high dividend yield. However, technical indicators suggest the stock is overbought, which could lead to a price correction. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Consistent revenue growth

Sustained top-line growth near 19% demonstrates durable demand for Transmetro's integrated transport and logistics services. Over several quarters, this supports scale advantages, reinforces long-term municipal and commercial contract wins, and underpins reinvestment capacity and strategic expansion.

Robust gross and improving net margins

High gross margins indicate meaningful pricing power or favorable service mix in fleet and logistics operations, while improved net margins point to better cost control. These margin levels provide a durable profitability buffer, enabling reinvestment in technology and sustaining cash flows through industry cycles.

Improved leverage and solid ROE

A low debt-to-equity ratio materially reduces financial risk and increases flexibility to fund capital expenditure or bid on long-term contracts. Combined with a mid-teens ROE, the capital structure supports sustained investment in fleet, software and sustainability initiatives without overleveraging the business.

Negative Factors

Suboptimal free cash flow conversion

FCF to net income below 1.0 means not all reported earnings convert to free cash. Over the medium term this can constrain the firm's ability to self-fund capex, reduce debt or raise dividends, making working-capital and capex discipline critical to preserve financial flexibility.

Operational efficiency headroom

An EBIT margin with room to improve implies operations could be further optimized (fleet utilization, routing, maintenance). Until efficiency gains are realized, margins remain exposed to cost inflation and fuel or labor pressures, which could erode durable cash generation if unmanaged.

Limited investor communications

Absence of earnings calls or guidance reduces visibility into management's execution, strategic priorities and forward-looking assumptions. Over months this limited transparency can increase uncertainty for investors and makes it harder to assess operational progress or the durability of growth initiatives.

Transmetro Corp. Ltd. Business Overview & Revenue Model

Company Description

Transmetro Corporation Limited, together with its subsidiaries, owns and operates hotels, inns, serviced apartments, and theme pubs in Australia. The company operates hotels under the Metro Hotels name; and apartments under the Metro Apartments. It serves business and leisure travelers. Transmetro Corporation Limited was founded in 1976 and is based in Ultimo, Australia.

How the Company Makes Money

Transmetro Corp. Ltd. generates revenue through multiple streams, primarily by providing transportation services to municipalities, businesses, and individuals. Key revenue streams include long-term contracts with governments for public transit services, freight shipping fees from commercial clients, and consulting fees for logistics optimization projects. Additionally, TCO capitalizes on partnerships with technology firms to develop proprietary software solutions that enhance fleet management and route planning, creating an additional income source through licensing and subscription models. The company's focus on sustainability also opens avenues for grants and incentives from government initiatives promoting green transportation solutions, further contributing to its earnings.

Transmetro Corp. Ltd. Financial Statement Overview

Summary

Transmetro Corp. Ltd. is experiencing strong revenue growth and improved profit margins. The balance sheet shows a better leverage position and stable capital structure, while cash flow generation is strengthening. However, there is room for improvement in operational efficiency and cash flow conversion.

Income Statement

Transmetro Corp. Ltd. has shown a strong revenue growth rate of 19.19% in the latest period, indicating a positive trajectory in sales. The gross profit margin is healthy at 66.59%, and the net profit margin has improved to 12.16%, reflecting enhanced profitability. However, the EBIT margin of 17.23% suggests room for operational efficiency improvements. Overall, the income statement reflects a solid performance with potential for further margin enhancements.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.35, indicating a more balanced leverage position compared to previous years. Return on equity stands at 11.40%, showing a decent return for shareholders. The equity ratio is stable, suggesting a solid capital structure. While the balance sheet shows improvement, maintaining this trajectory will be crucial to mitigate financial risks.

Cash Flow

Transmetro Corp. Ltd. has achieved a free cash flow growth rate of 14.09%, demonstrating improved cash generation capabilities. The operating cash flow to net income ratio of 1.15 indicates strong cash conversion. However, the free cash flow to net income ratio of 0.93 suggests that not all earnings are translating into free cash flow, highlighting an area for potential improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.64M	24.64M	21.83M	20.63M	15.36M	12.70M
Gross Profit	16.40M	16.40M	21.27M	11.55M	7.52M	1.53M
EBITDA	8.34M	8.34M	6.19M	6.25M	6.81M	87.47K
Net Income	3.00M	3.00M	1.76M	2.26M	3.33M	-4.41M
Balance Sheet
Total Assets	40.64M	40.64M	41.48M	42.84M	31.28M	27.59M
Cash, Cash Equivalents and Short-Term Investments	10.14M	10.14M	7.07M	5.94M	4.06M	1.00M
Total Debt	9.20M	9.20M	12.28M	14.93M	5.11M	5.98M
Total Liabilities	14.36M	14.36M	17.52M	20.50M	11.19M	10.83M
Stockholders Equity	26.28M	26.28M	23.96M	22.35M	20.09M	16.76M
Cash Flow
Free Cash Flow	7.04M	7.04M	3.84M	5.14M	5.79M	1.87M
Operating Cash Flow	7.54M	7.54M	4.40M	5.56M	6.04M	1.94M
Investing Cash Flow	-10.00K	-10.00K	-463.91K	-668.07K	-258.97K	-71.78K
Financing Cash Flow	-4.45M	-4.45M	-2.80M	-3.02M	-2.72M	-1.59M

Transmetro Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TCO, the sentiment is Positive. The current price of 2.35 is below the 20-day moving average (MA) of 2.38, above the 50-day MA of 2.27, and above the 200-day MA of 2.06, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 48.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:TCO.

Transmetro Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFD	66 Neutral	AU$39.60M	-1.91	-37.06%	―	18.84%	-1657.69%
TCO	66 Neutral	AU$33.46M	11.17	11.92%	4.31%	8.92%	70.32%
ABV	63 Neutral	AU$53.71M	29.35	18.17%	―	25.15%	2.22%
RPM	63 Neutral	AU$15.53M	3.28	8.25%	―	-5.17%	-19.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NTD	48 Neutral	AU$38.57M	-0.78	-44.12%	―	0.89%	-2641.38%

Transmetro Corp. Ltd. Corporate Events

Transmetro Corporation’s 2025 AGM Resolutions Passed with Strong Support

Transmetro Corporation Limited, a company listed on the Australian Stock Exchange, held its 2025 Annual General Meeting where key resolutions were passed. The meeting saw the adoption of the Remuneration Report, the re-election of Alan Notley as Director, and the approval of Non-Executive Directors’ fees, all with significant majority votes. These outcomes reflect strong shareholder support and are likely to influence the company’s governance and operational strategies positively.

The most recent analyst rating on (AU:TCO) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Transmetro Corp. Ltd. stock, see the AU:TCO Stock Forecast page.