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Zoom2u Technologies Ltd. (AU:Z2U)
ASX:Z2U
Australian Market

Zoom2u Technologies Ltd. (Z2U) AI Stock Analysis

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AU

Zoom2u Technologies Ltd.

(Sydney:Z2U)

28Underperform
Zoom2u Technologies Ltd. faces considerable financial challenges, including high leverage and negative cash flows, which severely impact its financial health. The technical outlook is weak, with bearish trends across major indicators. The valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors suggest caution for potential investors, with significant risks outweighing potential returns.

Zoom2u Technologies Ltd. (Z2U) vs. S&P 500 (SPY)

Zoom2u Technologies Ltd. Business Overview & Revenue Model

Company DescriptionZoom2u Technologies Limited provides delivery solutions in Australia and internationally. The company operates Zoom2u, a delivery platform that connects with local independent couriers for same day delivery; and Locate2u, which offers a suite of products, including delivery booking management, route optimization, driver tracking, and location sharing. It serves consumers, small and medium-sized enterprises, corporates, retailers, and e-commerce businesses. Zoom2u Technologies Limited was founded in 2014 and is based in Pyrmont, Australia.
How the Company Makes MoneyZoom2u Technologies Ltd. generates revenue primarily through its delivery service platform by charging businesses a fee for facilitating deliveries through its network. The company's revenue model includes transaction fees per delivery, subscription plans for businesses requiring frequent deliveries, and additional charges for premium services like express or specialized deliveries. Strategic partnerships with key logistics and e-commerce companies enhance its service offerings and expand its customer base, contributing significantly to its earnings. The company may also explore additional revenue streams through technological integrations and value-added services that improve operational efficiencies for its clients.

Zoom2u Technologies Ltd. Financial Statement Overview

Summary
Zoom2u Technologies Ltd. demonstrates revenue growth potential but faces significant profitability and cash flow challenges. High debt levels and negative equity raise concerns about financial stability. The company needs to address its operational inefficiencies and strengthen its balance sheet to improve its overall financial health.
Income Statement
Zoom2u Technologies Ltd. has shown a consistent increase in revenue over the years, with a notable revenue growth of 23.56% in the latest year. However, the company is struggling with profitability, as indicated by negative net income and gross profit margins. The EBIT and EBITDA margins are also negative, reflecting operational challenges in achieving profitability.
Balance Sheet
25
The balance sheet reveals high financial leverage with a debt-to-equity ratio that indicates significant reliance on debt financing. The equity ratio is low, pointing to a small proportion of assets financed by equity. The company's return on equity is negative due to persistent net losses, highlighting challenges in generating returns for shareholders.
Cash Flow
Cash flow statements show negative free cash flow year-over-year, with worsening free cash flow growth. The operating cash flow remains negative, and the ratio of operating cash flow to net income is unfavorable, indicating cash flow challenges despite revenue growth.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
5.72M4.63M4.63M2.84M2.31M
Gross Profit
-27.83K-2.50M4.44M422.29K255.92K
EBIT
-2.06M-5.30M-4.79M-1.21M-821.59K
EBITDA
-768.71K-4.22M-4.50M-963.54K-765.41K
Net Income Common Stockholders
-3.06M-5.56M-4.90M-1.08M-905.42K
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.05M3.85M4.26M2.45M753.68K
Total Assets
5.83M7.91M6.92M3.46M1.84M
Total Debt
3.63M3.40M26.88K2.25M119.74K
Net Debt
1.58M-453.06K-4.23M-192.91K-633.94K
Total Liabilities
5.35M4.60M1.57M3.75M938.24K
Stockholders Equity
481.50K3.31M5.36M-290.09K897.33K
Cash FlowFree Cash Flow
-1.84M-6.07M-5.56M-427.55K-653.30K
Operating Cash Flow
-818.66K-3.86M-3.82M-367.38K-595.62K
Investing Cash Flow
-1.02M-2.17M-1.73M-60.17K-57.68K
Financing Cash Flow
36.02K5.63M7.37M2.12M1.14M

Zoom2u Technologies Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.05
Price Trends
50DMA
0.06
Negative
100DMA
0.07
Negative
200DMA
0.07
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
11.66
Positive
STOCH
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:Z2U, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 11.66 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:Z2U.

Zoom2u Technologies Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCLX
75
Outperform
AU$140.15M8.8112.68%6.18%6.34%8.63%
60
Neutral
$10.83B10.47-6.71%2.99%7.73%-12.97%
AUZ2U
28
Underperform
-309.13%11.53%45.19%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:Z2U
Zoom2u Technologies Ltd.
0.05
-0.03
-37.50%
CTMLF
Corporate Travel Management Limited
7.48
-2.52
-25.20%
FGETF
Flight Centre Travel Group Limited
8.33
-4.87
-36.89%
QUBSF
Qantas Airways Limited
6.18
2.16
53.73%
REECF
Reece Limited
16.75
-0.96
-5.42%
AU:CLX
CTI Logistics Limited
1.72
0.40
30.30%

Zoom2u Technologies Ltd. Corporate Events

Zoom2u Technologies Announces Director’s Increased Shareholding
May 5, 2025

Zoom2u Technologies Limited has announced a change in the director’s interest, specifically involving Drew Kelton. The company reported that Mr. Kelton has acquired 285,714 ordinary shares and 142,857 options through an investment placement, which was subject to shareholder approval at an extraordinary general meeting. This change reflects an increase in Mr. Kelton’s holdings, potentially signaling confidence in the company’s future prospects.

Zoom2u Technologies Director Increases Stake
May 5, 2025

Zoom2u Technologies Ltd. has announced a change in the director’s interest notice involving Michael Rosenbaum. The change involves the acquisition of 142,857 ordinary shares and 71,428 options, increasing his holdings in the company. This investment is part of a placement announced earlier, subject to shareholder approval, and reflects a strategic move to strengthen his position within the company.

Zoom2u Technologies Director Increases Stake
May 5, 2025

Zoom2u Technologies Limited has announced a change in the director’s interest, specifically for Director Michael Gayst. The change involves the acquisition of 285,714 ordinary shares and 142,857 options, valued at $20,000, through an investment in a placement announced earlier in March 2025, pending shareholder approval. This development reflects an increase in the director’s stake in the company, potentially signaling confidence in the company’s future prospects.

Zoom2u Technologies Announces Director’s Increased Stake
May 5, 2025

Zoom2u Technologies Ltd. has announced a change in the director’s interest, with Steve Orenstein acquiring 1,428,571 ordinary shares and 714,286 options through an investment in a placement. This change, subject to shareholder approval, reflects strategic financial maneuvers aimed at strengthening the company’s market position and potentially increasing shareholder value.

Zoom2u Technologies Expands Market Presence with New Securities Quotation
May 1, 2025

Zoom2u Technologies Ltd. announced the quotation of 2,142,856 fully paid ordinary securities on the ASX, marking a significant step in its financial strategy. This move is expected to enhance the company’s market presence and provide additional capital for growth, potentially benefiting stakeholders by increasing liquidity and investment opportunities.

Zoom2u Technologies Issues Unquoted Securities to Bolster Financial Structure
May 1, 2025

Zoom2u Technologies Ltd. announced the issuance of 1,071,428 unquoted securities, set to expire on September 10, 2026, with an exercise price of $0.09. This issuance is part of a previously announced transaction, and these securities are not intended to be quoted on the ASX, indicating a strategic move to enhance the company’s financial structure and potentially support future growth initiatives.

Zoom2u Technologies Strengthens Market Position with New Share Issuance
May 1, 2025

Zoom2u Technologies Ltd has issued over two million fully paid ordinary shares and over one million free options to directors as part of a placement approved at an Extraordinary General Meeting. This move, compliant with the Corporations Act, signifies the company’s strategic efforts to strengthen its financial position and enhance its market operations, potentially impacting its stakeholders positively by increasing operational capabilities.

Zoom2u Technologies Passes Key Resolutions at Extraordinary General Meeting
May 1, 2025

Zoom2u Technologies Limited announced the successful passage of all resolutions at its 2025 Extraordinary General Meeting, including the issuance of shares and options to key executives and a change of company name. These decisions, confirmed by a poll, reflect strategic moves to strengthen leadership and potentially rebrand, indicating an ongoing evolution in its market positioning.

Zoom2u Technologies to Release Q3 FY25 Report and Host Investor Webinar
Apr 15, 2025

Zoom2u Technologies Ltd. announced the upcoming release of its Q3 FY25 Quarterly Activities Report and an investor webinar scheduled for April 30, 2025. The webinar will feature presentations by the company’s CEO and CFO, providing a business update and allowing investors to engage through a Q&A session. This initiative reflects Zoom2u’s commitment to transparency and stakeholder engagement, potentially impacting its market positioning by keeping investors informed and involved.

Zoom2u Technologies Announces Cessation of Securities
Apr 3, 2025

Zoom2u Technologies Ltd. announced the cessation of 493,895 securities due to the lapse of conditional rights, as the conditions were not met by the deadline of March 31, 2025. This cessation may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s strategic adjustments in its securities management.

Zoom2u Technologies Announces Cessation of Securities
Apr 3, 2025

Zoom2u Technologies Ltd. has announced the cessation of 250,000 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s operational strategies and financial health.

Zoom2u Technologies Announces Virtual Extraordinary General Meeting
Mar 31, 2025

Zoom2u Technologies Limited has announced an upcoming Extraordinary General Meeting (EGM) to be held virtually on May 1, 2025. Shareholders are encouraged to participate and vote on resolutions either during the meeting or by proxy if unable to attend. The company emphasizes the importance of shareholder engagement and offers options for submitting questions and updating communication preferences to support environmental initiatives.

Zoom2u Technologies Director Increases Shareholding
Mar 28, 2025

Zoom2u Technologies Ltd. has announced a change in the director’s interest, with Michael Rosenbaum acquiring an additional 34,470 fully paid ordinary shares through on-market trades. This change reflects a potential increase in confidence from the director in the company’s future prospects, which could positively influence stakeholder perceptions and market positioning.

Zoom2u Technologies Director Increases Shareholding
Mar 26, 2025

Zoom2u Technologies Ltd. has announced a change in the director’s interest, with Steve Orenstein acquiring an additional 170,000 fully paid ordinary shares through an on-market trade. This change reflects an increase in Orenstein’s stake in the company, potentially signaling confidence in the company’s future prospects and impacting stakeholder perceptions.

Zoom2u Technologies Announces Director Resignation
Mar 25, 2025

Zoom2u Technologies Ltd announced the resignation of Ms. Kara Nicholls as a Director, effective 31 March 2025. The company expressed gratitude for her contributions, particularly in governance and risk management, which have strengthened the company’s foundations. This change is expected to support the company’s continued growth and maturation in these areas.

Zoom2u Technologies Ltd. Announces New Substantial Shareholder
Mar 20, 2025

Zoom2u Technologies Ltd. has announced a significant change in its shareholder structure, with a new substantial holder acquiring a notable interest in the company. This development may impact the company’s voting power dynamics and could influence future strategic decisions, potentially affecting stakeholders and market positioning.

Zoom2u Technologies Strengthens Financial Position with New Share Issue
Mar 20, 2025

Zoom2u Technologies Ltd has issued 5,000,000 fully paid ordinary shares and 2,500,000 free options to investors, raising funds to strengthen its balance sheet and support the growth of its Locate2u business. This strategic move aims to enhance the company’s operational capacity and market positioning, potentially benefiting stakeholders by expanding its service offerings and improving financial stability.

Zoom2u Technologies Issues 2.5 Million Unquoted Securities
Mar 20, 2025

Zoom2u Technologies Ltd. announced the issuance of 2,500,000 unquoted securities as part of a previously disclosed transaction. This move is expected to bolster the company’s financial position and potentially enhance its market operations, reflecting a strategic effort to strengthen its industry standing.

Zoom2u Technologies Issues 5 Million New Securities
Mar 20, 2025

Zoom2u Technologies Ltd. announced the issuance of 5,000,000 ordinary fully paid securities, which will be quoted on the ASX under the code Z2U. This move is part of previously announced transactions and is expected to enhance the company’s market presence and potentially attract more investors, thereby strengthening its position in the logistics and delivery sector.

Zoom2u Technologies Announces Director’s Shareholding Change
Mar 20, 2025

Zoom2u Technologies Ltd. announced a change in the director’s interest notice involving Michael Gayst. The change involved a transfer of 265,048 fully paid ordinary shares to a Self Managed Super Fund, with the total value of the transaction being $15,902.88. This adjustment in shareholding reflects internal financial structuring and may have implications for the company’s governance and shareholder dynamics.

Zoom2u Technologies Announces Proposed Securities Issue to Bolster Growth
Mar 10, 2025

Zoom2u Technologies Ltd. has announced a proposed issue of securities, involving the issuance of 7,142,856 ordinary fully paid shares and 3,571,428 options in a 1:2 ratio to placement participants. This move is set to enhance the company’s capital structure and potentially strengthen its market position, offering new opportunities for growth and expansion in the logistics technology sector.

Zoom2u Technologies Secures $500,000 to Fuel Global Expansion
Mar 10, 2025

Zoom2u Technologies has successfully raised $500,000 through a placement of ordinary shares to wholesale investors, priced at $0.07 per share. The funds will be used to bolster the company’s balance sheet and provide additional working capital to expand the Locate2u business. The placement includes a premium over the last traded share price and offers free-attaching options for investors. The capital raised is intended to support the global growth of Locate2u, focusing on securing enterprise customers in Australia and expanding sales efforts to smaller and medium-sized businesses worldwide. This financial boost aims to continue the company’s growth trajectory and achieve sustainable profitability.

Zoom2u Technologies Reports Improved Financial Performance
Feb 27, 2025

Zoom2u Technologies Ltd. reported a significant reduction in its loss after tax for the half-year ended December 31, 2024, with a loss of $846,058 compared to $1,698,944 in the previous year. The company’s EBITDA improved to $45,027 from a loss of $385,342. Revenue from its SaaS product, Locate2u, grew by approximately 10%, while the Zoom2u business segment saw an 11% increase in revenue, driven by growth in 2u Enterprises, despite a slight decline in the courier platform’s revenue. These results indicate a positive trajectory in the company’s financial performance and market positioning.

Zoom2u Technologies Announces New Company Secretary
Feb 27, 2025

Zoom2u Technologies Limited has announced a change in its company secretary, with CFO and Executive Director Michael Gayst assuming the role effective immediately. This change follows the resignation of Ms. Gai Stephens, to whom the company expressed gratitude for her contributions. This appointment is expected to streamline communication with the ASX and potentially enhance operational efficiency.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.