Tamawood Limited (TWD) AI Stock Analysis

• Market Cap: AU$99.85M
• Dividend Yield: 7.81%
• Average Volume (3M): 7.72K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.29
• Revenue Growth: 18.74%
• EPS Growth: 0.86%
• Country: AU
• Employees: 108
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Residential Construction
• EPS (TTM): 0.07
• Shares Outstanding: 38,701,540
• 10 Day Avg. Volume: 10,507
• 30 Day Avg. Volume: 7,716
• 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: AU$3.00
• Price Target Upside: 17.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: AU$3.00 ▲(17.19% Upside)

Tamawood Limited's strong financial performance and attractive valuation are the primary drivers of its score. The company's robust revenue growth and solid balance sheet are complemented by a high dividend yield. However, technical indicators suggest a bearish trend, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, allowing the company to invest in growth opportunities without excessive risk.

Operational Efficiency

Improved gross profit margins demonstrate effective cost control, which can enhance profitability and competitive positioning over time.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth may hinder the company's ability to fund operations and investments, potentially impacting long-term growth.

Profitability Concerns

A modest net profit margin indicates potential inefficiencies, which could limit the company's ability to reinvest in growth and innovation.

Cash Conversion Efficiency

While cash generation is adequate, improving cash conversion efficiency is crucial for sustaining operations and funding future growth initiatives.

Tamawood Limited Business Overview & Revenue Model

Company Description

Tamawood Limited, together with its subsidiaries, provides contract home construction, home design, project management, and other associated services in Australia. The company is also involved in franchising and licensing operations, as well as sale of renewable energy certificates. Tamawood Limited was incorporated in 1989 and is based in Rocklea, Australia.

How the Company Makes Money

Tamawood Limited generates revenue through its core business of designing and constructing residential homes. The company earns money by providing comprehensive home building services that include custom home design, project management, and the actual construction of homes. A key revenue stream for Tamawood is the sale of house and land packages, where they combine home construction services with land sales. Additionally, Tamawood may engage in partnerships or collaborations with land developers and suppliers to optimize costs and enhance their service offerings, which can also contribute to its revenue. The company’s business model relies on maintaining a steady pipeline of construction projects and ensuring customer satisfaction to drive repeat business and referrals.

Tamawood Limited Financial Statement Overview

Summary

Tamawood Limited demonstrates robust revenue growth and operational efficiency, with a solid balance sheet characterized by low leverage and strong equity. While cash flow generation faces some challenges, the company's overall financial health is stable, with opportunities for enhancing profitability and cash flow management.

Income Statement

Tamawood Limited shows a strong revenue growth rate of 12.3% in the latest year, indicating positive sales momentum. The gross profit margin improved to 23.9%, reflecting better cost management. However, the net profit margin is relatively modest at 5.8%, suggesting room for improvement in profitability. EBIT and EBITDA margins are stable, supporting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is low at 0.07, indicating conservative leverage and financial stability. Return on equity stands at 17.0%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a strong capital structure. Overall, the balance sheet reflects a solid financial position with manageable debt levels.

Cash Flow

Operating cash flow to net income ratio is 0.64, indicating adequate cash generation relative to earnings. However, free cash flow growth is negative at -12.2%, which could signal challenges in cash generation. The free cash flow to net income ratio is strong, suggesting efficient cash conversion from profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	100.58M	100.34M	84.51M	76.46M	88.71M	97.37M
Gross Profit	19.71M	23.98M	20.87M	5.00M	8.59M	12.77M
EBITDA	9.46M	8.82M	8.42M	1.92M	5.67M	9.89M
Net Income	5.79M	5.79M	5.54M	2.11M	2.89M	6.46M
Balance Sheet
Total Assets	53.03M	53.03M	48.15M	46.67M	50.69M	38.40M
Cash, Cash Equivalents and Short-Term Investments	3.44M	3.44M	6.11M	5.23M	5.24M	3.81M
Total Debt	2.51M	2.51M	2.87M	3.63M	5.00M	4.43M
Total Liabilities	18.85M	18.85M	14.93M	14.46M	17.66M	18.81M
Stockholders Equity	34.04M	34.04M	33.07M	32.07M	32.88M	19.44M
Cash Flow
Free Cash Flow	3.40M	3.40M	5.96M	3.89M	6.26M	-745.00K
Operating Cash Flow	3.71M	3.71M	6.02M	3.96M	6.31M	-327.00K
Investing Cash Flow	-308.00K	-308.00K	-64.00K	-52.00K	29.00K	-410.00K
Financing Cash Flow	-6.07M	-6.07M	-5.08M	-3.92M	-4.91M	-3.62M

Tamawood Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TWD, the sentiment is Negative. The current price of 2.56 is below the 20-day moving average (MA) of 2.70, below the 50-day MA of 2.68, and below the 200-day MA of 2.68, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 33.32 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:TWD.

Tamawood Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATP	81 Outperform	AU$78.48M	3.49	34.61%	18.89%	6.15%	-32.02%
ABY	68 Neutral	AU$100.53M	132.10	1.90%	―	1.58%	-65.09%
TWD	67 Neutral	AU$99.85M	16.84	17.24%	7.81%	18.74%	0.86%
JYC	67 Neutral	AU$159.08M	21.63	21.22%	5.27%	1.82%	-18.84%
GLB	62 Neutral	AU$109.74M	11.43	12.77%	7.27%	-7.21%	-14.55%
Sector *	61 Neutral	$18.08B	12.82	-2.51%	3.03%	1.45%	-15.68%
SIO	51 Neutral	AU$53.99M	53.57	7.35%	―	0.33%	-75.00%

Tamawood Limited Corporate Events

Tamawood Limited Strengthens Governance and Diversity Initiatives

Tamawood Limited has outlined its corporate governance structure, emphasizing the roles of its Board of Directors and various committees in guiding the company’s strategic direction and ensuring effective oversight. The company also highlights its commitment to diversity, with a significant portion of its workforce being female, and aims to maintain a diverse and inclusive workplace. These initiatives are designed to enhance the company’s operations and align with shareholder interests.

Tamawood Limited Releases 2025 Corporate Governance Statement

Tamawood Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website and in their annual report. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting its commitment to transparency and accountability. This announcement reinforces Tamawood’s dedication to maintaining robust governance practices, which is crucial for its operations and stakeholder trust.

Tamawood Limited Releases 2025 Annual Report Highlighting Financial Performance

Tamawood Limited has released its annual report for the year ending June 30, 2025, detailing its financial performance and strategic initiatives. This report provides insights into the company’s operational efficiencies, financial health, and its strategic positioning within the competitive construction industry, which may have implications for investors and stakeholders.

Tamawood Limited Reports Strong Revenue Growth and Maintains Financial Stability

Tamawood Limited reported an 18.5% increase in revenue to $100.865 million for the year ending June 30, 2025, with a net profit attributable to members rising by 4.47% to $5.785 million. The company declared a total dividend of 20 cents per security, fully franked, and highlighted the reinstatement of its dividend reinvestment plan. Despite a slight decrease in net tangible assets per security, Tamawood remains financially robust with a strong cash position, supporting its strategic operations and providing confidence to stakeholders.

Tamawood Limited Announces Quotation of New Securities

Tamawood Limited has announced the quotation of 10,817 ordinary fully paid securities on the Australian Securities Exchange (ASX). These securities have been issued under an employee incentive scheme and are not subject to transfer restrictions, indicating a move to potentially enhance employee engagement and align interests with company performance.

Tamawood Limited Issues Shares to Boost Home Sales

Tamawood Limited has announced the issuance of 14,700 ordinary fully paid shares as an incentive for customers purchasing a house from the company. This move is likely aimed at boosting sales and enhancing customer engagement, potentially strengthening Tamawood’s market position and offering benefits to stakeholders through increased share liquidity.