Tamawood Limited (TWD) AI Stock Analysis

• Market Cap: AU$104.43M
• Dividend Yield: 7.41%
• Average Volume (3M): 11.47K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.22
• Revenue Growth: 7.28%
• EPS Growth: 19.51%
• Country: AU
• Employees: 108
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Residential Construction
• EPS (TTM): 0.15
• Shares Outstanding: 38,676,025
• 10 Day Avg. Volume: 2,367
• 30 Day Avg. Volume: 11,466
• PEG Ratio: 0.11
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.82
• 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

• Rating: 68 Neutral
• Price Target: AU$3.00 ▲(11.11%Upside)

Tamawood Limited's strong financial performance, characterized by improved profitability and cash flow, is the primary strength, contributing significantly to the score. The valuation is favorable with a high dividend yield, providing potential for income-focused investors. However, mixed technical analysis and uncertain short-term momentum present some risks to the stock's immediate performance.

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 makes money through its core business of designing and building residential homes. The company's primary revenue stream comes from the sale of house and land packages, where they offer a complete solution for homebuyers, including design, construction, and land acquisition. Additional revenue is generated from service fees associated with project management and consultancy services provided during the construction process. Tamawood also partners with land developers to secure prime locations for its projects, enhancing the value proposition of its offerings. The company's focus on efficient construction processes and sustainable building practices helps maintain profitability while meeting customer demand for quality and energy-efficient homes.

Tamawood Limited Financial Statement Overview

Summary

Tamawood Limited exhibits a strong financial position with improved profitability and cash flow performance in 2024. Efficient cost management and operational efficiency are evident in the income statement, while a low debt-to-equity ratio and stable equity ratio highlight financial stability. Despite some revenue fluctuations, the company's financial health appears solid, with positive growth trends in cash flow and profitability metrics.

Income Statement

Tamawood Limited shows a strong gross profit margin of 25.44% for 2024, indicating efficient cost management. The net profit margin improved significantly to 6.49% in 2024, reflecting enhanced profitability. Revenue growth from 2023 to 2024 was 11.63%, suggesting positive business momentum. However, the decline in revenue from 2022 to 2023 by 13.79% highlights potential market challenges. The EBIT and EBITDA margins improved substantially in 2024, indicating better operational efficiency compared to previous years.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.09 in 2024, suggesting prudent financial management. The return on equity (ROE) improved to 16.75% in 2024, indicating effective use of equity capital. The equity ratio is stable at 68.68%, showing a solid equity base. However, fluctuations in total assets and liabilities over the years indicate potential volatility in asset management.

Cash Flow

Tamawood Limited demonstrated strong free cash flow growth of 53.03% from 2023 to 2024, showcasing improved operational efficiency. The operating cash flow to net income ratio of 1.09 in 2024 indicates healthy cash generation relative to profits. The free cash flow to net income ratio of 1.08 further highlights robust cash flow conversion. Overall, the cash flow statements reflect solid cash management practices.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
89.35M	84.51M	76.46M	88.71M	97.37M	91.45M
	Gross Profit
23.83M	20.87M	5.00M	8.59M	12.77M	10.93M
	EBIT
14.29M	7.41M	798.00K	4.45M	8.66M	7.06M
	EBITDA
8.48M	8.42M	1.92M	5.67M	9.89M	8.28M
	Net Income Common Stockholders
5.68M	5.54M	2.11M	2.89M	6.46M	4.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.23M	6.11M	5.23M	5.24M	3.81M	8.16M
	Total Assets
32.13M	48.15M	46.67M	50.69M	38.40M	31.86M
	Total Debt
4.73M	2.87M	3.63M	5.00M	4.43M	4.88M
	Net Debt
-3.50M	-3.25M	-1.60M	-245.00K	622.00K	-3.28M
	Total Liabilities
14.52M	14.93M	14.46M	17.66M	18.81M	15.52M
	Stockholders Equity
17.46M	33.07M	32.07M	32.88M	19.44M	16.19M
Cash Flow		Free Cash Flow
3.88M	5.96M	3.89M	6.26M	-745.00K	4.63M
	Operating Cash Flow
4.10M	6.02M	3.96M	6.31M	-327.00K	4.70M
	Investing Cash Flow
-238.00K	-64.00K	-52.00K	29.00K	-410.00K	-54.00K
	Financing Cash Flow
-5.55M	-5.08M	-3.92M	-4.91M	-3.62M	-793.00K

Tamawood Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.7 is below the 20-day moving average (MA) of 2.83, below the 50-day MA of 2.77, and above the 200-day MA of 2.66, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.54 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, 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
TWD	68 Neutral	AU$104.43M	17.92	17.29%	7.41%	7.28%	19.51%
Sector *	63 Neutral	$6.96B	11.51	2.80%	3.85%	2.70%	-24.43%
BRKWF		$3.20B	―	-1.34%	2.54%	―	―
FRCEF		$1.98B	―	-1.32%	―	―	―
JHIUF		$11.44B	26.55	21.09%	―	―	―
0W7		€204.29M	16.64	14.64%	1.42%	―	―

Tamawood Limited Corporate Events

Tamawood Director Increases Stake via Dividend Reinvestment

Tamawood Limited has announced a change in the director’s interest, as Lev Mizikovsky has increased his indirect holdings by acquiring 914,078 ordinary shares through a dividend reinvestment plan. This acquisition, valued at approximately $2.47 million, reflects a strategic move within the company’s leadership, potentially impacting its market positioning and signaling confidence in its financial health.

Tamawood Limited Announces Quotation of New Securities

Tamawood Limited has announced the quotation of 951,318 ordinary fully paid securities on the Australian Securities Exchange as of June 6, 2025. This move is part of a dividend or distribution plan, which could potentially enhance the company’s liquidity and provide additional value to its shareholders.

Tamawood Limited Announces Dividend Distribution for Shareholders

Tamawood Limited has announced a new dividend distribution for its shareholders, with a payment of AUD 0.11 per fully paid ordinary share. This dividend relates to the six-month financial period ending December 31, 2024, and is scheduled for payment on June 6, 2025. The announcement reflects the company’s continued commitment to providing returns to its investors, potentially enhancing its attractiveness in the market.

Tamawood Announces Interim Dividend Amidst Weather Challenges

Tamawood Limited has announced an interim fully franked dividend of 11 cents, to be paid on June 6, 2025, despite facing challenges from adverse weather conditions like ex-Tropical Cyclone Alfred. The company remains debt-free, and while the dividend will extend its negative retained earnings, the board is optimistic about future corrections due to strong sales performance and anticipates continued participation in its Dividend Reinvestment Plan.

Tamawood Director Increases Shareholding

Tamawood Limited announced a change in the director’s interest, with Lev Mizikovsky acquiring 21,000 additional ordinary shares through an on-market trade. This change reflects a slight increase in the director’s indirect holdings, potentially indicating confidence in the company’s future prospects.