A2Z Smart Technologies (AZ) AI Stock Analysis

• Market Cap: $325.17M
• Dividend Yield: N/A
• Average Volume (3M): 167.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -11.75%
• EPS Growth: -22.88%
• Country: US
• Employees: 201
• Sector: Industrials
• Sector Strength: 95
• Industry: Aerospace & Defense
• EPS (TTM): -0.19
• Shares Outstanding: 35,039,734
• 10 Day Avg. Volume: 114,391
• 30 Day Avg. Volume: 167,384
• PEG Ratio: 0.32
• Price to Book (P/B): 27.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.00
• Price Target Upside: 115.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: ―

A2Z Smart Technologies is facing notable financial difficulties, highlighted by persistent losses and negative cash flows. While there is some improvement in equity and gross profit margin, the company's reliance on external financing poses a significant risk. Technically, the stock shows potential consolidation but lacks strong momentum indicators. The negative P/E ratio and absence of dividends further add to the valuation concerns. Overall, the stock carries significant risks that need to be addressed for future stability.

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 primarily through the sale and leasing of its smart technology solutions to businesses in the retail and other sectors. The company's key revenue streams include direct sales of its advanced smart shopping carts, which are equipped with features that enhance the shopping experience and operational efficiency for retailers. Additionally, AZ may earn recurring revenue through service contracts, maintenance agreements, and software licensing fees associated with its products. Strategic partnerships with major retailers and technology providers also play a significant role in expanding the company's market reach and driving sales growth.

A2Z Smart Technologies Financial Statement Overview

Summary

A2Z Smart Technologies faces significant financial challenges, with declining revenues and consistent losses impacting its income statement. The balance sheet shows moderate leverage but weak equity, while cash flow issues persist, indicating a reliance on external funding. The company needs to address profitability and cash generation to improve financial stability.

Income Statement

A2Z Smart Technologies has experienced declining revenue over the TTM period, down from $11.38M to $6.66M, marking a significant negative growth rate. The company also shows consistent negative EBIT and net income, indicating ongoing operational and profitability challenges. The gross profit margin improved slightly, but the net profit margin remains negative, reflecting persistent losses.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the company has a negative return on equity due to persistent net losses, and the equity ratio is relatively low, reflecting potential stability concerns. There is a notable amount of cash and short-term investments, providing some liquidity buffer.

Cash Flow

A2Z Smart Technologies reported negative free cash flow, albeit with a slight improvement over the previous period. The operating cash flow remains negative, highlighting ongoing cash generation issues. The company has positive financing cash flow, suggesting reliance on external funding, but the free cash flow to net income ratio is unfavorable, reflecting cash flow challenges.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
6.66M	11.38M	9.35M	2.69M	1.07M	1.31M
	Gross Profit
1.07M	1.62M	1.83M	656.00K	215.00K	523.00K
	EBIT
-14.60M	-18.07M	-17.48M	-9.16M	-2.68M	-527.00K
	EBITDA
-9.96M	-16.80M	-16.17M	-39.74M	-5.62M	-2.24M
	Net Income Common Stockholders
-9.33M	-16.06M	-18.98M	-40.29M	-5.95M	-2.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
189.03K	2.34M	2.62M	8.47M	5.40M	5.91M
	Total Assets
194.83K	8.52M	12.69M	14.13M	8.85M	10.01M
	Total Debt
0.00	1.99M	2.63M	918.00K	1.04M	415.00K
	Net Debt
-189.03K	-273.00K	14.00K	-7.55M	-4.35M	126.00K
	Total Liabilities
29.65K	10.83M	9.80M	3.22M	10.82M	1.47M
	Stockholders Equity
165.18K	2.49M	5.29M	11.51M	-2.49M	7.97M
Cash Flow		Free Cash Flow
-10.61M	-11.56M	-10.16M	-9.79M	-1.24M	-1.44M
	Operating Cash Flow
-10.52M	-11.39M	-9.43M	-9.38M	-1.00M	-1.41M
	Investing Cash Flow
-107.86K	-320.00K	-1.56M	-280.00K	-425.00K	-26.00K
	Financing Cash Flow
12.76M	10.89M	6.10M	12.36M	7.20M	1.67M

A2Z Smart Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.28
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 9.28 is above the 20-day moving average (MA) of 8.85, above the 50-day MA of 7.95, and above the 200-day MA of 5.85, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 61.45 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	74 Outperform	$272.15M	47.06	5.35%	3.66%	15.45%	-22.33%
BYRN	74 Outperform	$618.82M	44.94	28.88%	―	87.26%	―
Sector *	65 Neutral	$4.45B	12.15	5.28%	248.12%	4.08%	-12.23%
TATT	65 Neutral	$292.55M	22.68	12.30%	―	30.58%	83.94%
POWW	49 Neutral	$160.30M	―	-17.71%	―	-14.06%	-102.73%
AZ	47 Neutral	$325.17M	―	-134.43%	―	-11.75%	-22.88%
EVTL	25 Underperform	$430.63M	―	115.25%	―	―	23.26%