Total Telcom (TTZ) AI Stock Analysis

• Market Cap: C$8.72M
• Dividend Yield: N/A
• Average Volume (3M): 52.92K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.02
• Revenue Growth: 6.00%
• EPS Growth: -1.43%
• Country: CA
• Employees: 12
• Sector: General
• Sector Strength: N/A
• Industry: Communication Equipment
• EPS (TTM): <0.01
• Shares Outstanding: 26,423,016
• 10 Day Avg. Volume: 52,383
• 30 Day Avg. Volume: 52,922
• PEG Ratio: 0.96
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 2.58
• P/FCF Ratio: 15.43
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$0.40 ▲(52.31% Upside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is driven primarily by strong financial quality—low leverage, solid margins, and positive free cash flow—supported by an improving technical trend (positive MACD and bullish moving-average structure). The main constraint is valuation, with a ~20.71 P/E and no dividend yield, plus some historical variability in profitability and free-cash-flow consistency.

Positive Factors

Conservative balance sheet

TTZ's very low debt-to-equity (~0.06) and sizable equity position give it durable financial flexibility. This lowers refinancing risk, supports stable investment in fiber and network upgrades, and creates capacity for strategic capital allocation or opportunistic M&A without stressing cash flows.

Strong margins and cash generation

High gross and operating margins plus operating cash flow comfortably above net income indicate profitable, subscription-driven economics. Reliable cash generation funds maintenance capex and service expansion, supporting sustained reinvestment and reducing reliance on external financing over the medium term.

Consistent revenue growth

Mid-teens top-line growth reflects continued customer additions and service uptake in broadband and cloud offerings. Recurring subscription revenue underpins predictable cash flow, allows scale in fixed-cost network operations, and supports margin durability as revenues grow over months to quarters.

Negative Factors

Earnings volatility

Material swings in net margin versus prior years indicate variability in profitability drivers (pricing, costs, or mix). This undermines predictability of future earnings and complicates capital planning, as management may need to allocate cash conservatively amid fluctuating margins and returns.

Moderate FCF conversion and variability

FCF at roughly two-thirds of net income and uneven year-to-year growth suggest working-capital swings or variable reinvestment needs. Lower and inconsistent conversion reduces the portion of profits available for debt reduction, dividends, or growth capex without raising external capital.

Declining return on equity

A falling ROE trend signals that incremental capital is generating lower returns than in prior periods. Persistent moderation in ROE can limit shareholder value creation and suggests either increased capital intensity, margin compression, or slower operational leverage.

Total Telcom Business Overview & Revenue Model

Company Description

Total Telcom Inc., through its subsidiary, ROM Communications Inc., develops and provides remote asset monitoring and tracking products and services for commercial, industrial, and consumer applications in North America. The company's solutions enable companies and organizations to remotely monitor, track, and control their fixed and mobile assets with a Web browser from any Internet enabled PC. It offers Web to wireless technology, as well as proprietary 2nd generation hardware and software under the TextAnywhere, ROM Heater Controllers, ROMTraX, MotoTraX, TraX, DataTrax, WaterTraX, SiteTraX, CamTraX, and AlarmTrax brand names. These modules are wireless modems that utilize microcomputers integrated with sensors, GPS engines and various inputs and outputs and interfaced by the user through the Internet. Total Telcom Inc. is headquartered in Kelowna, Canada.

How the Company Makes Money

Total Telcom generates revenue primarily through subscription-based services, including monthly fees from broadband internet and voice plans. The company's key revenue streams include residential internet services, business communication solutions, and mobile data plans. Additionally, TTZ earns income from value-added services such as cloud storage, cybersecurity solutions, and technical support. Strategic partnerships with hardware manufacturers and software providers enhance their product offerings, allowing TTZ to bundle services and attract a wider customer base, further bolstering its revenue. Seasonal promotions and loyalty programs also play a role in customer retention, contributing to stable income growth.

Total Telcom Financial Statement Overview

Summary

Strong overall fundamentals supported by low leverage (debt-to-equity ~0.06), solid profitability (TTM gross margin ~57.8%, net margin ~16.3%), and healthy cash generation (operating cash flow ~2.28x net income; positive free cash flow). Offsetting this is reduced consistency versus prior peak years, with annual net margin and ROE down from earlier highs and uneven free-cash-flow growth.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 11.94%, and profitability remains solid with ~57.8% gross margin and ~16.3% net margin. Operating profitability is healthy (EBIT margin ~20.8%, EBITDA margin ~34.1%). The main weakness is earnings volatility versus prior years: annual net margin fell meaningfully from ~24.4% (2023) and ~35.0% (2021), indicating less consistent bottom-line performance despite decent top-line growth.

Balance Sheet

The balance sheet is conservatively levered, with low debt relative to equity in TTM (debt-to-equity ~0.06), providing flexibility and lowering financial risk. Equity is sizable versus assets, and returns on equity are positive (TTM ~7.0%). The trade-off is that ROE is moderate and below prior peaks (e.g., ~13.0% in 2023 and ~17.7% in 2021), suggesting profitability has not fully converted into higher shareholder returns recently.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow is strong (708,633) and comfortably covers net income (about 2.28x). Free cash flow is positive (527,509) and improved versus the most recent annual period (free cash flow growth ~3.97% in TTM), but conversion from earnings to free cash flow is only moderate (free cash flow is ~67.8% of net income). Free cash flow growth has also been uneven across years, pointing to variability in reinvestment needs or working-capital swings.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	2.51M	2.20M	1.97M	2.39M	1.66M	1.74M
Gross Profit	1.41M	1.34M	1.18M	1.48M	945.31K	955.82K
EBITDA	872.10K	738.28K	710.48K	1.00M	613.40K	349.96K
Net Income	447.58K	341.77K	291.53K	583.02K	292.60K	608.32K
Balance Sheet
Total Assets	5.93M	5.79M	5.53M	4.93M	4.33M	3.92M
Cash, Cash Equivalents and Short-Term Investments	3.41M	3.21M	2.79M	2.40M	1.95M	1.79M
Total Debt	525.80K	335.89K	399.70K	168.26K	252.75K	292.27K
Total Liabilities	460.07K	531.04K	638.06K	436.43K	492.94K	486.92K
Stockholders Equity	5.47M	5.26M	4.89M	4.49M	3.83M	3.43M
Cash Flow
Free Cash Flow	527.51K	368.29K	400.17K	505.92K	86.81K	362.66K
Operating Cash Flow	708.63K	669.91K	762.98K	798.67K	475.65K	659.62K
Investing Cash Flow	-460.68K	-570.63K	-1.16M	-834.57K	-348.85K	-293.92K
Financing Cash Flow	-70.05K	-70.17K	-80.83K	-77.00K	-12.26K	-8.73K

Total Telcom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.26
• 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 TSE:TTZ, the sentiment is Neutral. The current price of 0.26 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.31, and above the 200-day MA of 0.23, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 29.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TTZ.

Total Telcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTZ	76 Outperform	C$8.72M	14.81	8.45%	―	6.00%	-1.43%
VCM	64 Neutral	C$301.26M	565.37	-8.77%	2.14%	-11.70%	-199.55%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IMI	41 Neutral	C$20.38M	4.60	―	―	37.33%	-7.55%
YFI	40 Underperform	C$10.76M	-12.41	―	―	―	-716.67%
BYL	39 Underperform	C$41.21M	-9.88	―	―	―	―