Aztech Global Ltd. (8AZ) AI Stock Analysis

• Market Cap: S$490.09M
• Dividend Yield: 17.32%
• Average Volume (3M): 699.89K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.25
• Revenue Growth: -50.75%
• EPS Growth: -61.46%
• Country: SG
• Employees: 2,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.01
• Shares Outstanding: 773,825,560
• 10 Day Avg. Volume: 642,390
• 30 Day Avg. Volume: 699,886
• PEG Ratio: -0.26
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 4.95
• 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: S$0.62
• Price Target Upside: -3.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: S$1.00 ▲(56.25% Upside)

Aztech Global Ltd. scores well due to its strong valuation, with an attractive P/E ratio and high dividend yield. The company's financial performance is stable, supported by strong profitability and a solid balance sheet, though challenged by declining revenue and cash flow growth. Technical analysis shows a positive price trend, but momentum is weak, and there are potential overbought conditions.

Positive Factors

Strong Profit Margins

Healthy profit margins indicate efficient cost management and pricing power, contributing to sustained profitability and competitive advantage.

Solid Balance Sheet

A low debt-to-equity ratio suggests financial stability and flexibility, allowing for strategic investments and resilience in economic downturns.

Recognition for Management Quality

Recognition for management quality underscores effective leadership and strategic execution, enhancing investor confidence and long-term business prospects.

Negative Factors

Declining Revenue Growth

Significant revenue decline can indicate market challenges or competitive pressures, potentially impacting future growth and market position.

Free Cash Flow Decline

Declining free cash flow growth may limit the company's ability to invest in growth opportunities and return capital to shareholders, affecting long-term sustainability.

Negative Revenue Growth Impact

Negative revenue growth impacts overall financial health, requiring strategic adjustments to address market dynamics and sustain long-term viability.

Aztech Global Ltd. Business Overview & Revenue Model

Company Description

Aztech Global Ltd., together with its subsidiaries, engages in the research, development, engineering, and manufacturing of IoT devices, data-communication products, and LED lighting products in Singapore, North America, China, Europe, and internationally. It operates through two segments, Manufacturing, and Distribution and Trading. The company provides consumer electronics and consumer healthtech products, including smart security cameras, smart home and automation products, smart wearables, etc. It also offers LED lighting products for use in residential, commercial, and industrial applications; and designs and develops smart lighting systems. In addition, the company manufactures and sells electrical products, such as kitchen appliances, and other home and living products. Further, it provides original equipment manufacturer, original design manufacturer, joint development manufacturing, and contract manufacturing services to multinational corporations. The company was formerly known as Aztech Global Pte. Ltd. and changed its name to Aztech Global Ltd. in February 2021. Aztech Global Ltd. was founded in 1986 and is based in Singapore. Aztech Global Ltd. is a subsidiary of Azventure Investments Ltd.

How the Company Makes Money

Aztech Global Ltd. generates revenue primarily through the sale of its electronic products, which are distributed both directly to consumers and through partnerships with retailers and online marketplaces. The company also benefits from recurring revenue through subscription services associated with its IoT products, which provide additional features and connectivity options. Key partnerships with major telecommunication companies and technology distributors significantly bolster its market reach and sales volume. Moreover, Aztech engages in contract manufacturing for third-party brands, further diversifying its revenue streams and contributing to its overall earnings.

Aztech Global Ltd. Financial Statement Overview

Summary

Aztech Global Ltd. demonstrates strong profitability and operational efficiency with healthy profit margins and a robust return on equity. The balance sheet is solid with low leverage, enhancing financial stability. However, the significant decline in revenue and free cash flow growth poses challenges that need to be addressed to sustain long-term growth.

Income Statement

Aztech Global Ltd. has shown a decline in revenue growth with a significant drop of 29.44% in the latest year. Despite this, the company maintains a healthy gross profit margin of 22.78% and a net profit margin of 11.35%. The EBIT and EBITDA margins are also strong at 13.19% and 14.69% respectively, indicating efficient operational management. However, the negative revenue growth is a concern that impacts the overall score.

Balance Sheet

The company has a strong balance sheet with a low debt-to-equity ratio of 0.05, indicating low financial leverage and risk. The return on equity is robust at 20.80%, showcasing effective use of equity to generate profits. The equity ratio stands at 71.97%, reflecting a solid equity base relative to total assets. Overall, the balance sheet is stable and well-managed.

Cash Flow

Aztech Global Ltd. experienced a decline in free cash flow growth by 28.00%, which is concerning. However, the operating cash flow to net income ratio is strong at 0.97, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.97. Despite the decline in growth, the company maintains a solid cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	600.52M	621.61M	896.29M	820.24M	624.36M	484.27M
Gross Profit	118.50M	141.57M	148.86M	204.66M	155.47M	138.19M
EBITDA	70.52M	91.29M	133.56M	90.27M	95.85M	76.31M
Net Income	53.64M	70.53M	100.01M	67.19M	74.38M	55.73M
Balance Sheet
Total Assets	459.71M	471.21M	597.27M	541.39M	518.20M	300.25M
Cash, Cash Equivalents and Short-Term Investments	228.56M	311.26M	272.02M	226.22M	201.51M	11.46M
Total Debt	13.48M	17.13M	22.20M	8.45M	18.03M	37.37M
Total Liabilities	186.40M	132.12M	252.33M	257.39M	225.23M	258.63M
Stockholders Equity	273.31M	339.09M	344.94M	284.00M	292.97M	41.62M
Cash Flow
Free Cash Flow	52.79M	109.91M	86.72M	99.96M	37.11M	17.14M
Operating Cash Flow	53.72M	113.30M	90.99M	106.42M	41.90M	28.57M
Investing Cash Flow	-413.00K	29.05M	-13.70M	-34.45M	-4.10M	-10.70M
Financing Cash Flow	-41.72M	-83.08M	-43.48M	-75.36M	151.92M	-20.66M

Aztech Global Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.64
• 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 SG:8AZ, the sentiment is Neutral. The current price of 0.64 is above the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.66, and above the 200-day MA of 0.62, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:8AZ.

Aztech Global Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8AZ	72 Outperform	S$490.09M	12.26	12.72%	17.32%	-50.75%	-61.46%
BBW	69 Neutral	S$355.50M	12.55	70.97%	5.55%	32.76%	54.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
E28	61 Neutral	S$589.38M	15.15	9.11%	1.89%	11.57%	0.89%
JLB	61 Neutral	S$317.24M	32.58	7.60%	0.32%	47.45%	51.05%
MZH	56 Neutral	S$404.07M	31.00	3.50%	1.11%	22.66%	83.49%
AWX	52 Neutral	S$579.75M	42.53	2.87%	―	4.60%	―

Aztech Global Ltd. Corporate Events

Aztech Global Ltd. Updates Property Sale and Leaseback Agreement

Aztech Global Ltd. announced a second supplementary agreement regarding the sale and leaseback of a property by its wholly-owned subsidiary, Aztech DG. The agreement outlines a revised payment schedule from the purchaser, with completion now set for no later than 20 December 2025. This adjustment impacts the original completion date and aligns the leaseback agreement to commence on the new completion date.