A2Z Smart Technologies (AZ) AI Stock Analysis

• Market Cap: $416.97M
• Dividend Yield: N/A
• Average Volume (3M): 268.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -11.75%
• EPS Growth: -22.88%
• Country: US
• Employees: 201
• Sector: Industrials
• Sector Strength: 93
• Industry: Aerospace & Defense
• EPS (TTM): -0.19
• Shares Outstanding: 35,039,734
• 10 Day Avg. Volume: 289,125
• 30 Day Avg. Volume: 268,928
• PEG Ratio: 0.61
• Price to Book (P/B): 11.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -33.95
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 12.59
• Enterprise Value/Gross Profit: 195.90
• Enterprise Value/Ebitda: -7.08
• 1Y Price Target: $11.00
• Price Target Upside: -7.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: $11.50 ▼(-3.36%Downside)

A2Z Smart Technologies shows positive technical momentum, with a strong upward trend in its stock price. However, significant financial challenges, including persistent losses and negative cash flow, weigh heavily on its overall score. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors indicate a need for caution despite the positive market momentum.

A2Z Smart Technologies Business Overview & Revenue Model

Company Description

A2Z Smart Technologies (AZ) is a technology company focused on providing innovative solutions across various sectors, including retail, logistics, and security. The company's core products and services include smart shopping carts designed to enhance the retail shopping experience, advanced security systems, and logistics optimization solutions. A2Z Smart Technologies aims to integrate cutting-edge technology to improve efficiency and customer satisfaction in its target industries.

How the Company Makes Money

A2Z Smart Technologies primarily generates revenue through the sale and lease of its smart shopping cart systems to retailers, enabling them to offer an enhanced shopping experience and improve operational efficiency. The company also earns income from its security and logistics solutions, which are tailored to meet the specific needs of businesses in these sectors. Additionally, A2Z Smart Technologies may benefit from strategic partnerships that help expand its market reach and drive sales growth.

A2Z Smart Technologies Financial Statement Overview

Summary

A2Z Smart Technologies faces significant financial challenges, with persistent losses and negative cash flows. Although there are improvements in equity and gross profit margin, the company struggles with profitability and liquidity. The reliance on external financing to cover operational deficits indicates potential risks if funding sources dry up.

Income Statement

A2Z Smart Technologies shows a decreasing trend in revenue, declining 37% from $11.38M in 2023 to $7.17M in 2024. The gross profit margin improved slightly to 27.7%, up from 14.3% the previous year. However, the company has been consistently operating at a loss with a negative net profit margin of -237%, indicating significant challenges in profitability. EBIT and EBITDA margins remain deeply negative, suggesting issues with operational efficiency.

Balance Sheet

The company has improved its equity position, with stockholders' equity increasing to $13.91M in 2024. Despite this, the debt-to-equity ratio stands at 0.10, reflecting a manageable level of leverage. The equity ratio improved to 73.7%, showing a stronger capital structure. However, the ongoing losses raise concerns about the sustainability of this financial improvement.

Cash Flow

Operating cash flow remains negative at -$11.71M, indicating a strain on liquidity. Free cash flow also remains negative, despite a 2.5% improvement from the previous year. The company relies heavily on financing activities to sustain operations, as reflected in the $22.81M financing cash flow, which poses a risk if external funding becomes unavailable.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.17M	11.38M	9.35M	2.69M	1.07M
Gross Profit	1.99M	1.62M	1.83M	656.00K	215.00K
EBITDA	-18.16M	-16.97M	-16.17M	-39.74M	-5.62M
Net Income	-17.00M	-16.06M	-18.98M	-40.29M	-5.95M
Balance Sheet
Total Assets	18.88M	8.52M	12.69M	14.13M	8.85M
Cash, Cash Equivalents and Short-Term Investments	13.73M	2.34M	2.62M	8.47M	5.40M
Total Debt	1.39M	1.99M	2.63M	918.00K	1.04M
Total Liabilities	12.03M	10.83M	9.80M	3.22M	10.82M
Stockholders Equity	13.91M	2.49M	5.29M	11.51M	-2.49M
Cash Flow
Free Cash Flow	-11.85M	-11.56M	-10.16M	-9.79M	-1.24M
Operating Cash Flow	-11.71M	-11.39M	-9.43M	-9.38M	-1.00M
Investing Cash Flow	-269.00K	-320.00K	-1.56M	-280.00K	-425.00K
Financing Cash Flow	22.81M	10.89M	6.10M	12.36M	7.20M

A2Z Smart Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZ, the sentiment is Positive. The current price of 11.9 is above the 20-day moving average (MA) of 10.42, above the 50-day MA of 9.49, and above the 200-day MA of 7.06, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 61.56 is Neutral, neither overbought nor oversold. The STOCH value of 76.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AZ.

A2Z Smart Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PKE	71 Outperform	$303.52M	52.49	6.43%	3.14%	16.60%	6.58%
BYRN	69 Neutral	$511.06M	35.70	28.05%	―	73.56%	―
TATT	68 Neutral	$374.80M	25.49	12.30%	―	30.58%	83.94%
Sector *	65 Neutral	$10.90B	15.41	5.26%	1.89%	3.11%	-26.85%
AZ	56 Neutral	$416.97M	―	-134.43%	―	-11.75%	-22.88%
POWW	50 Neutral	$135.85M	―	-17.71%	―	-11.01%	-279.70%
EVTL	25 Underperform	$483.39M	―	115.25%	―	―	23.26%