A2Z Smart Technologies (AZ) AI Stock Analysis

• Market Cap: $332.45M
• Dividend Yield: N/A
• Average Volume (3M): 190.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -0.66%
• EPS Growth: -173.09%
• Country: US
• Employees: 201
• Sector: Technology
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): -0.31
• Shares Outstanding: 36,018,898
• 10 Day Avg. Volume: 168,138
• 30 Day Avg. Volume: 190,523
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 47.36
• Enterprise Value/Gross Profit: 178.91
• Enterprise Value/Ebitda: -18.84
• 1Y Price Target: $9.50
• Price Target Upside: 6.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $9.50 ▲(6.74% Upside)

A2Z Smart Technologies' overall stock score is primarily impacted by its weak financial performance and challenging valuation metrics. The company faces significant profitability and liquidity issues, relying heavily on external financing. Technical analysis indicates a bearish trend, with the stock trading below key moving averages and approaching oversold conditions. These factors combined suggest a cautious outlook for the stock.

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 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. While there have been 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	1.43M	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: Negative
• Last Price: 8.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 8.9 is below the 20-day moving average (MA) of 9.49, below the 50-day MA of 10.13, and above the 200-day MA of 8.04, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 39.19 is Neutral, neither overbought nor oversold. The STOCH value of 43.53 is Neutral, 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
TATT	75 Outperform	$476.96M	30.18	10.47%	―	25.96%	68.93%
PKE	75 Outperform	$381.83M	55.45	6.43%	2.65%	16.60%	6.58%
BYRN	68 Neutral	$451.35M	32.00	28.05%	―	73.56%	―
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
POWW	51 Neutral	$172.15M	―	-17.71%	―	-11.01%	-279.70%
AZ	45 Neutral	$332.45M	―	-175.82%	―	-0.66%	-173.09%
EVTL	25 Underperform	$485.32M	―	115.25%	―	―	―