TZ Limited (TZL) AI Stock Analysis

• Market Cap: AU$15.43M
• Dividend Yield: N/A
• Average Volume (3M): 154.23K
• Price to Earnings (P/E): 182.5
• Beta (1Y): -0.86
• Revenue Growth: -14.87%
• EPS Growth: 39.44%
• Country: AU
• Employees: 8
• Sector: Industrials
• Sector Strength: 83
• Industry: Security & Protection Services
• EPS (TTM): >-0.01
• Shares Outstanding: 280,614,100
• 10 Day Avg. Volume: 29,100
• 30 Day Avg. Volume: 154,227
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.93
• 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: 44 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

The overall stock score reflects significant financial risks due to high leverage and negative equity despite some improvements in profitability and cash flow. The technical analysis presents a neutral to bearish outlook, while the lack of profitability and dividends negatively impacts the valuation score.

TZ Limited Business Overview & Revenue Model

Company Description

TZ Limited, together with its subsidiaries, develops intelligent devices and smart device systems that enable the commercialization of hardware and software solutions for the management, control, and monitoring of business assets. The company offers corporate personnel storage, corporate asset management, custody chain, and distribution and postal logistics solutions. It provides workplace, parcel, and data center products. The company also offers associated value-added services. It operates in Australia, the United States, Europe, the Middle East, Africa, and Singapore. TZ Limited was incorporated in 1996 and is based in The Rocks, Australia.

How the Company Makes Money

TZ Limited generates revenue through the sale and licensing of its intelligent locking systems and software solutions. The company offers its products to a diverse range of industries, providing both hardware and software components that integrate seamlessly into clients' existing operations. Key revenue streams include direct sales of smart lockers and related equipment, subscription fees for software and service platforms, and maintenance and support contracts. Significant partnerships with logistics companies and commercial enterprises further enhance TZL's market penetration and revenue potential, allowing for collaborative development and deployment of tailored security solutions.

TZ Limited Financial Statement Overview

Summary

TZ Limited's financial performance shows signs of recovery in profitability and cash flow, despite ongoing challenges with high debt levels and negative equity. The income statement reveals improved revenue and gross profit margins, while cash flow indicates better management. However, the balance sheet's negative equity and high leverage pose significant financial risks.

Income Statement

TZ Limited shows a slight improvement in revenue but struggles with profitability. The gross profit margin has improved significantly from negative to positive, reaching 50.3% in 2024, indicating better cost management. However, the net profit margin remains low at 0.7%, reflecting ongoing challenges in converting sales into net income. The EBIT and EBITDA margins are low, though they have improved from negative values, highlighting some recovery but still a need for stronger operational efficiency.

Balance Sheet

The company's balance sheet reveals high leverage with a debt-to-equity ratio that is negative due to negative equity, posing a significant risk. The equity ratio is also negative, indicating insolvency concerns. While total debt has decreased from 2020, the negative stockholders' equity suggests the company is still heavily reliant on debt financing. Return on equity is not calculable due to negative equity, emphasizing financial instability.

Cash Flow

Cash flow analysis shows a positive shift with an improvement in both operating cash flow and free cash flow in 2024. The operating cash flow to net income ratio is healthy at 10.6, suggesting strong cash generation relative to net income. Additionally, free cash flow has turned positive, indicating better cash management and potential for reinvestment or debt reduction. However, previous years show a volatile pattern that poses potential risks to sustained cash flow stability.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
11.18M	13.94M	13.81M	20.40M	16.38M	12.85M
	Gross Profit
2.96M	7.00M	-2.83M	-145.47K	26.09K	-2.22M
	EBIT
-484.28K	80.70K	-5.57M	-2.83M	-1.99M	-5.33M
	EBITDA
-88.20K	1.11M	-4.87M	-760.39K	142.39K	-3.74M
	Net Income Common Stockholders
-1.12M	99.35K	-5.99M	-2.00M	-1.66M	-5.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
560.97K	1.05M	862.95K	2.05M	373.93K	1.04M
	Total Assets
5.65M	6.95M	7.18M	12.83M	9.24M	8.03M
	Total Debt
3.88M	4.47M	3.87M	2.91M	5.32M	11.89M
	Net Debt
3.32M	3.42M	3.01M	854.92K	4.95M	10.85M
	Total Liabilities
9.65M	10.49M	10.90M	10.94M	10.75M	17.38M
	Stockholders Equity
-3.99M	-3.54M	-3.72M	1.89M	-1.51M	-9.35M
Cash Flow		Free Cash Flow
-639.98K	547.43K	-3.11M	-1.83M	-3.01M	-4.89M
	Operating Cash Flow
-352.10K	1.06M	-2.92M	-1.63M	-2.60M	-3.81M
	Investing Cash Flow
-507.71K	-507.70K	-190.66K	-207.40K	-419.57K	-1.08M
	Financing Cash Flow
-277.68K	-490.62K	1.93M	3.50M	2.37M	5.41M

TZ Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TZL, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and above the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 27.27 is Positive, neither overbought nor oversold. The STOCH value of 34.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:TZL.

TZ Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEC	68 Neutral		14.66	6.98%	5.96%	24.52%	-29.98%
Sector *	66 Neutral	$4.46B	12.15	5.40%	4.71%	4.16%	-11.97%
3PL	45 Neutral	AU$180.12M	―	-28.12%	―	-0.33%	-671.76%
TZL	44 Neutral	AU$15.43M	182.50		―	-14.87%	39.44%

TZ Limited Corporate Events

TZ Limited Announces Successful Resolutions at Extraordinary General Meeting

TZ Limited announced the results of its Extraordinary General Meeting held on June 5, 2025, where all resolutions were successfully carried. The approval of financial assistance and the ratification of prior issues of shares and options indicate strong shareholder support, which may positively impact the company’s strategic initiatives and market confidence.

TZ Limited Secures Second Order for Microsoft Data Centres

TZ Limited has received a second purchase order from Wesco Anixter, acting on behalf of Microsoft, for 125 data centre cabinet security kits valued at approximately US$156,000. This order, intended for deployment in Microsoft’s EMEA data centres, brings the total value of orders to US$362,500. The ongoing demand for TZ’s solutions highlights the company’s strategic positioning in the market as global data centres upgrade to meet AI, cloud computing, and regulatory compliance needs.

TZ Limited Secures Major Order for Data Centre Cabinet Locking Solutions

TZ Limited has secured its first order for its Data Centre Cabinet Locking solution from Wesco/Anixter, acting as a procurement agent for Microsoft. This marks a significant step following a successful evaluation and pilot phase, with the initial order covering key regions including the US, Europe, and Asia. The company is experiencing double-digit growth in its DC Security sales, driven by the expanding data center market fueled by AI, cloud computing, and digital transformation. TZ is refocusing its sales efforts with a dedicated team targeting high-growth regions like Asia-Pacific to capitalize on this demand. The company’s solutions offer advantages such as modular kits for retrofits and integration with third-party systems, positioning TZ well to support major operators like NextDC and Macquarie Data Centres in their expansion plans.

TZ Limited Requests Trading Halt Pending Major Contract Announcement

TZ Limited, listed on the Australian Securities Exchange under the ticker TZL, has requested a trading halt on its securities. This halt is pending an announcement concerning a significant customer contract, which is expected to be released before the resumption of normal trading on May 12, 2025. The trading halt is intended to help the company manage its continuous disclosure obligations effectively.

TZ Limited Announces Virtual Extraordinary General Meeting

TZ Limited has announced an Extraordinary General Meeting (EGM) for its shareholders to be held virtually on June 5, 2025. The company has made the meeting materials available online and encourages shareholders to lodge their proxy forms in advance. This move highlights TZ Limited’s commitment to ensuring shareholder engagement and transparency in its operations.

TZ Limited Strengthens SaaS Revenue with Strategic Acquisition Amid US Market Challenges

TZ Limited has announced the acquisition of Keyvision Holdings Pty Ltd, aimed at enhancing its SaaS offerings and recurring revenue streams. Despite challenges in the US market due to tariff-related supply chain issues, the company is optimistic about recovering in the next quarter, supported by a strong sales pipeline and continued growth in recurring revenue. The acquisition was funded by a $4 million debt facility, which also facilitated partial repayment of existing debt. The company expects a stronger performance in the final quarter of FY25 and into FY26, driven by increased demand for its security products and successful project wins through Keyvision.

TZ Limited Gains New Substantial Holder

TZ Limited has announced that Mark NSLB Davis Super Pty Ltd has become a substantial holder in the company, acquiring a relevant interest in 22,730,291 fully paid ordinary shares, which represents an 8.1% voting power. This acquisition, valued at $946,090.36, reflects a significant investment in the company, potentially impacting its market positioning and shareholder dynamics.

TZ Limited Announces Cessation of Over 6 Million Securities

TZ Limited has announced the cessation of 6,002,347 securities due to the expiry of options or other convertible securities without exercise or conversion as of March 23, 2025. This development may impact the company’s capital structure and could have implications for stakeholders, as it reflects a change in the company’s issued capital.