tiprankstipranks
Transmetro Corp. Ltd. (AU:TCO)
ASX:TCO
Australian Market
Want to see AU:TCO full AI Analyst Report?

Transmetro Corp. Ltd. (TCO) AI Stock Analysis

0 Followers

Top Page

AU:TCO

Transmetro Corp. Ltd.

(Sydney:TCO)

Select Model
Select Model
Select Model
Neutral 69 (OpenAI - Gpt-5.6Sol)
Rating:69Neutral
Price Target:
AU$3.00
â–²(27.66% Upside)
Action:Downgraded
Date:09/06/26
The score is driven primarily by improving financial strength (higher margins, strong cash generation, and sharply lower leverage). Valuation is supportive with a low P/E and modest dividend yield. These positives are tempered by weak technical momentum and a recent revenue decline that raises near-term demand/volume uncertainty.
Positive Factors
Cash generation
Consistent and growing free cash flow provides durable funding for capital maintenance, dividends, and debt reduction. FCF close to reported earnings signals earnings quality and liquidity flexibility, enabling the company to invest in operations or weather slow demand without relying on external financing.
Negative Factors
Cyclicality and margin volatility
The travel and lodging exposure creates earnings sensitivity to economic cycles and demand shocks. Historical swings in profitability imply margins can deteriorate quickly in downturns, complicating multi-year planning, capital allocation and potentially forcing defensive actions that reduce long-term growth momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent and growing free cash flow provides durable funding for capital maintenance, dividends, and debt reduction. FCF close to reported earnings signals earnings quality and liquidity flexibility, enabling the company to invest in operations or weather slow demand without relying on external financing.
Read all positive factors

Transmetro Corp. Ltd. (TCO) vs. iShares MSCI Australia ETF (EWA)

Transmetro Corp. Ltd. Business Overview & Revenue Model

Company Description
Transmetro Corporation Limited, along with its various subsidiaries, oversees and runs a diverse collection of hospitality establishments throughout Australia. This portfolio includes hotels, inns, serviced apartment complexes, and themed pubs. Th...

Transmetro Corp. Ltd. Financial Statement Overview

Summary
Strong profitability and recovery since 2021, with net margin improving to ~17.2% in 2026 and healthy operating/EBITDA margins. Balance sheet risk has fallen materially (debt-to-equity ~0.19 in 2026) and free cash flow is robust and closely aligned with earnings (~91% of net income). Main caution is the top line: 2026 revenue declined (~-1.3%) after several growth years.
Income Statement
74
Positive
Balance Sheet
81
Very Positive
Cash Flow
78
Positive
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue26.14M24.64M21.83M20.63M15.36M
Gross Profit13.16M16.40M21.27M11.55M7.52M
EBITDA9.27M8.34M6.19M6.25M6.81M
Net Income4.49M3.00M1.76M2.26M3.33M
Balance Sheet
Total Assets41.17M40.64M41.48M42.84M31.28M
Cash, Cash Equivalents and Short-Term Investments13.94M10.14M7.07M5.94M4.06M
Total Debt5.73M9.20M12.28M14.93M5.11M
Total Liabilities11.20M14.36M17.52M20.50M11.19M
Stockholders Equity29.97M26.28M23.96M22.35M20.09M
Cash Flow
Free Cash Flow7.88M7.04M3.84M5.14M5.79M
Operating Cash Flow8.69M7.54M4.40M5.56M6.04M
Investing Cash Flow-548.00K-10.00K-463.91K-668.07K-258.97K
Financing Cash Flow-4.35M-4.45M-2.80M-3.02M-2.72M

Transmetro Corp. Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.35
Price Trends
50DMA
2.62
Negative
100DMA
2.70
Negative
200DMA
2.68
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
38.41
Neutral
STOCH
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TCO, the sentiment is Negative. The current price of 2.35 is below the 20-day moving average (MA) of 2.62, below the 50-day MA of 2.62, and below the 200-day MA of 2.68, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.41 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:TCO.

Transmetro Corp. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$34.80M7.6515.18%2.31%9.95%49.87%
68
Neutral
AU$121.13M14.297.99%4.40%2.72%12.33%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
59
Neutral
AU$5.57B23.0211.13%3.80%19.43%9.19%
52
Neutral
AU$538.20M-0.80-68.06%12.23%-2.61%-1584.86%
51
Neutral
AU$129.86M20.191.22%4.83%0.28%-47.51%
45
Neutral
AU$31.86M-2.53-18.29%5.36%-17.25%74.53%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:TCO
Transmetro Corp. Ltd.
2.60
0.60
29.87%
AU:BAP
Bapcor Ltd
0.79
-1.72
-68.68%
AU:MXI
MaxiPARTS Limited
2.18
-0.19
-8.09%
AU:PWR
Peter Warren Automotive Holdings Ltd
0.75
-0.96
-56.23%
AU:APE
Eagers Automotive Limited
19.72
-5.19
-20.84%
AU:NTD
National Tyre & Wheel Ltd.
0.19
-0.13
-40.63%

Transmetro Corp. Ltd. Corporate Events

Transmetro boosts profit nearly 50% and lifts dividend as asset backing grows
Aug 27, 2026
Transmetro reported a solid improvement in financial performance for the year ended 30 June 2026, with total revenue rising 10.4% to $27.47 million, driven by higher sales and interest income. Net profit from continuing operations attributable to ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 06, 2026