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Traffic Technologies Ltd (AU:TTI)
:TTI
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Traffic Technologies Ltd (TTI) AI Stock Analysis

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AU:TTI

Traffic Technologies Ltd

(Sydney:TTI)

Rating:45Neutral
Price Target:
Traffic Technologies Ltd faces substantial financial challenges, with significant risks stemming from its negative equity and inconsistent profitability. While the technical outlook is neutral due to missing data, the valuation metrics are unappealing, given the negative P/E ratio and absence of dividends. These factors combine to result in a low overall stock score, highlighting the company's precarious financial situation.

Traffic Technologies Ltd (TTI) vs. iShares MSCI Australia ETF (EWA)

Traffic Technologies Ltd Business Overview & Revenue Model

Company DescriptionTraffic Technologies Ltd (TTI) is a company operating primarily in the infrastructure sector, specializing in the provision of traffic management solutions and products. The company offers a comprehensive range of services and products including traffic lights, traffic signs, and intelligent transport systems that are designed to improve road safety and efficiency. TTI caters to both public and private sector clients, providing solutions that help manage traffic flow and enhance the safety of road users.
How the Company Makes MoneyTraffic Technologies Ltd makes money through the sale and installation of traffic management products such as traffic lights, signs, and electronic systems. The company also generates revenue through maintenance contracts, providing ongoing support and servicing for their installed products. Additionally, TTI may engage in partnerships with government bodies and private organizations to deliver large-scale infrastructure projects, further contributing to their earnings. The company's diverse offerings and strategic partnerships in the traffic management sector allow it to tap into multiple revenue streams, ensuring a stable income flow.

Traffic Technologies Ltd Financial Statement Overview

Summary
Traffic Technologies Ltd is encountering considerable financial hurdles, with persistent profitability issues, a precarious balance sheet, and fluctuating cash flows. While there is some positive cash flow, the overall financial health is undermined by high liabilities and equity deficits, posing a risk to long-term stability.
Income Statement
40
Negative
Traffic Technologies Ltd has faced significant challenges in maintaining profitability, with consistent net losses over the years. The gross profit margin has fluctuated, and the latest figures show a negative EBIT and EBITDA margin, indicating operational difficulties. Revenue growth has been inconsistent, with a sharp decline in the most recent period.
Balance Sheet
35
Negative
The company's financial structure is concerning, with a negative stockholders' equity indicating more liabilities than assets. The debt-to-equity ratio is not applicable due to negative equity, presenting a solvency risk. Stability is further threatened by declining equity over recent periods.
Cash Flow
60
Neutral
While operating cash flow remains positive, providing some liquidity cushion, the free cash flow has shown volatility. The company managed to increase free cash flow recently, although this is driven by cost-cutting rather than revenue growth, which could be unsustainable long-term.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue31.86M58.05M53.75M52.33M44.52M
Gross Profit11.73M3.06M4.76M5.12M2.89M
EBITDA-10.88M-3.91M3.94M4.53M-9.15M
Net Income-15.28M-7.89M-488.00K201.00K-13.98M
Balance Sheet
Total Assets21.03M35.91M42.14M37.39M33.11M
Cash, Cash Equivalents and Short-Term Investments455.00K1.18M1.01M2.60M3.64M
Total Debt11.18M13.32M13.02M14.97M12.76M
Total Liabilities28.61M29.45M27.76M29.05M25.97M
Stockholders Equity-7.59M6.46M14.39M8.34M7.14M
Cash Flow
Free Cash Flow2.44M1.10M-2.93M-1.21M3.21M
Operating Cash Flow4.08M3.41M-568.00K862.00K5.25M
Investing Cash Flow-1.54M-1.58M-3.10M-2.78M-2.08M
Financing Cash Flow-3.26M-1.66M2.08M883.00K-2.64M

Traffic Technologies Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
AU$1.04B20.755.35%4.56%22.28%50.12%
67
Neutral
£2.83B10.494.69%212.98%2.73%-20.56%
67
Neutral
AU$11.73M13.819.53%11.60%
58
Neutral
AU$3.89M-34.84%-13.84%27.42%
45
Neutral
AU$3.77M
-56.22%-40.40%
41
Neutral
AU$9.84M-203.38%20.00%17.22%
39
Underperform
AU$4.44M-244.13%7.28%31.75%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:TTI
Traffic Technologies Ltd
0.01
0.00
0.00%
AU:SRH
Saferoads Holdings Limited
0.09
0.06
200.00%
AU:SSH
SSH Group Ltd.
0.14
0.07
100.00%
AU:AEI
Aeris Environmental Ltd
0.04
-0.02
-33.33%
AU:SP3
Spectur Ltd.
0.01
-0.01
-50.00%
AU:KLS
Kelsian Group Limited
3.84
-0.94
-19.67%

Traffic Technologies Ltd Corporate Events

Traffic Technologies Ltd. Enters Voluntary Administration
Apr 23, 2025

Traffic Technologies Ltd. has entered voluntary administration with the appointment of Glenn J. Franklin and Jason G. Stone from PKF Melbourne as administrators. The company’s securities have been suspended on the ASX during this process, and investigations into the company’s financial position are underway, with further communication to creditors expected.

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: Apr 08, 2025