A2Z Smart Technologies (AZ) AI Stock Analysis

• Market Cap: $313.54M
• Dividend Yield: N/A
• Average Volume (3M): 290.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -0.66%
• EPS Growth: -173.09%
• Country: US
• Employees: 201
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.31
• Shares Outstanding: 36,205,500
• 10 Day Avg. Volume: 460,286
• 30 Day Avg. Volume: 290,850
• 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: 1.08
• Enterprise Value/Revenue: 47.36
• Enterprise Value/Gross Profit: 178.91
• Enterprise Value/Ebitda: -18.84
• 1Y Price Target: $14.75
• Price Target Upside: 70.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $9.50 ▲(9.70% Upside)

A2Z Smart Technologies' overall stock score is primarily impacted by its weak financial performance, characterized by persistent losses and negative cash flows. The technical analysis suggests a bearish trend, and the valuation is unattractive due to a negative P/E ratio. These factors collectively contribute to a low overall stock score, indicating significant risks and challenges for potential investors.

Positive Factors

Strategic Financing

The successful equity financing round provides A2Z Smart Technologies with the necessary capital to expand smart cart production, enhance marketing efforts, and support international growth, which could strengthen its market position and operational capabilities over the long term.

Retail Media Monetization

By securing rights to monetize retail media and data, A2Z Smart Technologies can create new revenue streams and enhance its value proposition to retailers and advertisers, potentially leading to sustainable growth and increased market competitiveness.

Major Purchase Order

The significant purchase order from a major supermarket chain underscores the growing adoption of A2Z's smart cart technology, which can drive long-term revenue growth and solidify its position as a leader in retail innovation.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates ongoing liquidity challenges, which could hinder A2Z's ability to invest in growth initiatives and maintain financial stability if external financing becomes scarce.

Decreasing Revenue

The significant decline in revenue raises concerns about A2Z's ability to maintain its market share and competitiveness, potentially impacting its long-term growth prospects and financial health.

Consistent Operating Losses

Ongoing operating losses highlight challenges in achieving profitability and operational efficiency, which could affect A2Z's long-term viability and ability to attract investment for future expansion.

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. 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. Overall, the financial health of the company requires careful monitoring and strategic adjustments to ensure long-term viability.

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: Positive
• Last Price: 8.66
• 50DMA: Negative
• 100DMA: Negative
• 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 8.66 is above the 20-day moving average (MA) of 8.62, below the 50-day MA of 9.55, and above the 200-day MA of 8.20, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 52.65 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	75 Outperform	377.66M	57.06	6.64%	2.63%	16.60%	6.58%
TATT	70 Outperform	532.12M	33.66	9.97%	―	25.96%	68.93%
BYRN	70 Outperform	481.55M	34.14	23.53%	―	73.56%	0.00%
POWW	49 Neutral	168.64M	-2.75	-58.93%	―	-11.01%	-279.70%
AZ	45 Neutral	$313.54M	―	-175.82%	―	-0.66%	-173.09%
EVTL	25 Underperform	564.56M	-0.50	0.00%	―	0.00%	0.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

A2Z Smart Technologies Corporate Events

A2Z Cust2Mate Announces $41.2 Million Public Offering to Boost Smart Cart Production

On September 16, 2025, A2Z Cust2Mate Solutions Corp. announced an underwritten public offering of 5,625,000 common shares at $8.00 each, expected to close on September 18, 2025. The company aims to raise approximately $41.2 million from this offering to fund the mass manufacturing of smart carts, marketing, sales, and working capital, potentially strengthening its market position and operational capabilities.

A2Z Cust2Mate Reports Increased Assets Amidst Rising Losses

A2Z Cust2Mate Solutions Corp. released its unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2025. The company reported a significant increase in total assets, rising from $18,878,000 at the end of 2024 to $46,098,000 by June 2025. Despite this growth, the company experienced an operating loss of $13,372,000 for the six months ended June 30, 2025, compared to a loss of $6,430,000 in the same period of 2024. This financial update highlights the company’s ongoing investment in research and development, as well as its efforts to expand its market presence, which are critical for stakeholders to consider.

A2Z Cust2Mate Sells Subsidiary A2ZMS for Strategic Realignment

On June 30, 2025, A2Z Cust2Mate Solutions Corp. finalized the sale of its wholly-owned subsidiary, A2ZMS Advanced Military Solutions Ltd., to a purchaser in Israel for 500,000 ILS. This transaction, approved by non-interested directors and supported by an independent valuation, reflects a strategic move that may impact the company’s focus and resources, potentially altering its market positioning and stakeholder interests.