A2Z Smart Technologies (AZ) AI Stock Analysis

• Market Cap: $290.80M
• Dividend Yield: N/A
• Average Volume (3M): 467.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -1.36%
• EPS Growth: -35.79%
• Country: US
• Employees: 201
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.07
• Shares Outstanding: 42,827,663
• 10 Day Avg. Volume: 507,697
• 30 Day Avg. Volume: 467,147
• PEG Ratio: -0.10
• Price to Book (P/B): 10.17
• Price to Sales (P/S): 19.74
• P/FCF Ratio: -11.94
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 24.74
• Enterprise Value/Gross Profit: 91.27
• Enterprise Value/Ebitda: -7.67
• 1Y Price Target: $30.00
• Price Target Upside: 364.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $6.50 ▲(0.62% Upside)

The score is held down primarily by weak financial performance (declining revenue and ongoing losses), only partly offset by low leverage and improving free cash flow growth. Technicals are supportive (price above key moving averages and positive MACD) but look overextended (RSI/Stoch elevated), while valuation remains unattractive/unclear due to negative earnings and no dividend data.

Positive Factors

Low financial leverage

Extremely low debt and a high equity ratio provide durable financial flexibility, allowing the company to fund expansion, product development, and strategic hires without relying heavily on external debt. This reduces solvency risk and preserves options through growth cycles.

Improving free cash flow growth

Sustained FCF growth indicates improving cash generation capacity despite losses, which can fund R&D, platform development, and the retail media rollout. Durable cash improvement reduces financing pressure and supports strategic investments and capital allocation priorities.

Strategic pivot to retail media

Creating a Retail Media Division and hiring experienced industry executives represents a structural business-model expansion toward higher-margin, recurring monetization. If executed, this repositions the company from device-centric sales to platform and data-driven revenue streams.

Negative Factors

Declining revenue and persistent losses

Ongoing top-line contraction coupled with negative operating margins signals structural demand or execution issues that impair scale economics. Persistent declines and losses limit reinvestment capacity, strain unit economics, and make profitable growth and margin recovery harder over the medium term.

Negative returns and weak cash conversion

A very negative ROE and poor operating cash conversion indicate the company is not translating investment or accounting profits into shareholder value or cash. This structural inefficiency can erode investor confidence and constrain financing and strategic options until operational returns improve.

Nasdaq compliance deficiency

A formal Nasdaq deficiency for governance non‑compliance is a durable operational risk that can distract management, invite regulatory scrutiny, and threaten listing status if not remedied. Restoring compliance requires process fixes and could affect institutional investor support until resolved.

A2Z Smart Technologies Business Overview & Revenue Model

Company Description

A2Z Smart Technologies Corp. provides services in the field of advanced engineering capabilities to the military/security markets and governmental agencies in Israel. The company produces unmanned remote-controlled vehicles and energy power packs; products for the civilian and retail markets; and fuel tank intelligent containment system, a capsule that can be placed in a fuel tank to prevent gas tank explosions. It also offers retail automation solutions for large grocery stores and supermarkets, as well as offers maintenance and calibration services to external and in-house complex electronic systems and products. A2Z Smart Technologies is headquartered in Vancouver, Canada.

How the Company Makes Money

A2Z Smart Technologies generates revenue through multiple channels, including direct sales of smart devices, subscription services for software platforms, and consulting services for IoT implementation. Key revenue streams include the sale of smart home products, such as smart thermostats and security systems, as well as monthly subscriptions for cloud-based services that enable users to monitor and control their devices remotely. Additionally, the company partners with construction firms and energy providers to integrate their technology into new developments and energy management systems, creating a steady income from B2B collaborations. These partnerships not only enhance revenue but also expand the company's market reach and brand visibility.

A2Z Smart Technologies Financial Statement Overview

Summary

Financial statements point to ongoing strain: revenue declined (-7.46% TTM) and profitability is negative (net margin -4.84%, EBIT margin -5.20%). Balance sheet leverage is low (debt-to-equity 0.03) with a high equity ratio (88.59%), but very negative ROE (-83.39%) and weak operating cash conversion (operating cash flow to net income -1.89) keep the score pressured despite improving free cash flow growth (+27.49% TTM).

Income Statement

A2Z Smart Technologies has faced declining revenue with a negative growth rate of -7.46% in the TTM period. The company struggles with profitability, as evidenced by a negative net profit margin of -4.84% and a negative EBIT margin of -5.20%. Despite a relatively stable gross profit margin of 31.40%, the overall income statement reflects significant challenges in achieving profitability.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.03, indicating low leverage, which is a positive aspect. However, the return on equity is negative at -83.39%, highlighting inefficiencies in generating returns for shareholders. The equity ratio stands at 88.59%, suggesting a strong equity base relative to total assets, but the negative ROE remains a concern.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 27.49% in the TTM period, indicating some improvement. However, the operating cash flow to net income ratio is negative at -1.89, reflecting challenges in converting income into cash. The free cash flow to net income ratio is slightly positive at 1.04, suggesting some ability to generate cash relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.54M	7.17M	11.38M	9.35M	2.69M	1.07M
Gross Profit	1.77M	1.99M	1.99M	1.83M	656.00K	215.00K
EBITDA	-21.10M	-18.35M	-16.97M	-17.46M	-39.81M	-5.70M
Net Income	-31.62M	-17.00M	-16.06M	-16.56M	-39.16M	-5.95M
Balance Sheet
Total Assets	81.92M	18.88M	8.52M	12.69M	14.13M	8.85M
Cash, Cash Equivalents and Short-Term Investments	70.41M	13.73M	2.34M	2.62M	8.53M	5.40M
Total Debt	2.07M	1.39M	1.99M	2.63M	918.00K	1.04M
Total Liabilities	10.65M	12.03M	10.83M	9.80M	3.22M	10.82M
Stockholders Equity	72.56M	13.91M	2.49M	5.29M	11.51M	-2.49M
Cash Flow
Free Cash Flow	-17.63M	-11.85M	-11.56M	-10.16M	-9.79M	-1.24M
Operating Cash Flow	-16.93M	-11.71M	-11.39M	-9.43M	-9.38M	-1.00M
Investing Cash Flow	-28.59M	-140.00K	-320.00K	-1.56M	-280.00K	-425.00K
Financing Cash Flow	87.21M	22.81M	10.89M	6.10M	12.36M	7.20M

A2Z Smart Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZ, the sentiment is Negative. The current price of 6.46 is below the 20-day moving average (MA) of 7.45, below the 50-day MA of 6.66, and below the 200-day MA of 8.13, indicating a bearish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 40.54 is Neutral, neither overbought nor oversold. The STOCH value of 17.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AZ.

A2Z Smart Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRAK	72 Outperform	$194.22M	29.45	14.60%	0.57%	11.05%	18.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALTS	51 Neutral	$265.02M	-3.09	-46.05%	―	926.05%	68.96%
SMRT	51 Neutral	$306.51M	-4.65	-25.48%	―	-24.30%	-181.62%
AZ	47 Neutral	$290.80M	-6.64	-78.92%	―	-1.36%	-35.79%
EGHT	46 Neutral	$230.14M	-38.22	-4.88%	―	0.25%	92.10%

A2Z Smart Technologies Corporate Events

A2Z Cust2Mate Receives Nasdaq Deficiency Notice Over Delayed Annual Meeting

On January 16, 2026, A2Z Cust2Mate Solutions Corp. disclosed that it received a Nasdaq deficiency notification dated January 13, 2026, after failing to hold an annual shareholders’ meeting within 12 months of its fiscal year-end, putting the company out of compliance with Nasdaq Listing Rules 5620(a) and 5810(c)(2)(G). The company plans to consult with Nasdaq and submit, within 45 days, a compliance plan that includes an annual meeting currently anticipated for March 31, 2026; if Nasdaq accepts the plan, A2Z could receive an extension of up to 180 days from its fiscal year-end, through June 29, 2026, to regain compliance, and the notice does not immediately affect the listing or trading of its securities.

The most recent analyst rating on (AZ) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on A2Z Smart Technologies stock, see the AZ Stock Forecast page.

A2Z Cust2Mate Announces Leadership Transition as Founder Chairman Steps Down

On January 2, 2026, A2Z Cust2Mate Solutions Corp. reported that founder and longtime Chairman Bentsur Joseph stepped down from his roles as director and chairman of the company and its subsidiaries, effective December 31, 2025, marking a significant leadership transition at the smart retail technology firm. Chief Executive Officer Gadi Graus has been appointed interim chairman while the company launches a structured search for a seasoned chairperson with experience leading large global businesses, signaling an intent to accelerate its next phase of international expansion, market penetration, and growth, while maintaining strategic continuity under existing management.

The most recent analyst rating on (AZ) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on A2Z Smart Technologies stock, see the AZ Stock Forecast page.

A2Z Smart Technologies Reports Increased Assets Amid Operating Loss

A2Z Cust2Mate Solutions Corp. released its unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2025. The financial report shows a significant increase in total assets from $18.9 million at the end of 2024 to $81.9 million by September 2025, indicating substantial growth. However, the company reported an operating loss of $4.1 million for the three months ended September 30, 2025, compared to a loss of $2.6 million in the same period of the previous year, reflecting increased expenses in research, development, and administration.

The most recent analyst rating on (AZ) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on A2Z Smart Technologies stock, see the AZ Stock Forecast page.