A2Z Smart Technologies (AZ) AI Stock Analysis

• Market Cap: $303.40M
• Dividend Yield: N/A
• Average Volume (3M): 485.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• 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: 41,848,637
• 10 Day Avg. Volume: 537,719
• 30 Day Avg. Volume: 485,230
• PEG Ratio: -0.10
• Price to Book (P/B): 10.17
• Price to Sales (P/S): 19.74
• P/FCF Ratio: -11.94
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 47.99
• Enterprise Value/Gross Profit: 149.16
• Enterprise Value/Ebitda: -10.38
• 1Y Price Target: $20.00
• Price Target Upside: 175.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: $6.00 ▼(-17.24% Downside)

A2Z Smart Technologies is facing significant financial and technical challenges. The company's persistent losses, negative cash flows, and reliance on external financing are major concerns. Technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation issues. These factors collectively result in a low overall stock score.

Positive Factors

Market Position Strengthening

The $41.2 million raised will enhance smart cart production, potentially strengthening market position and operational capabilities.

Asset Growth

Significant asset growth indicates ongoing investment in R&D and market expansion, supporting long-term strategic goals.

Strategic Focus

Selling A2ZMS allows A2Z Smart Technologies to focus resources on core business areas, potentially improving market positioning.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in sales growth and market penetration, affecting long-term financial stability.

Negative Cash Flow

Persistent negative cash flow strains liquidity and increases reliance on external funding, posing risks to financial health.

Increasing Losses

Rising operating losses highlight ongoing profitability challenges, impacting the company's ability to achieve sustainable growth.

A2Z Smart Technologies Business Overview & Revenue Model

Company Description

A2Z Smart Technologies (AZ) is a forward-thinking company specializing in the development and integration of innovative smart technology solutions across various sectors, including home automation, energy management, and industrial IoT. The company focuses on creating user-friendly devices and software that enhance efficiency, sustainability, and convenience for both consumers and businesses. Core offerings include smart home devices, energy monitoring systems, and bespoke IoT solutions tailored to specific industry needs.

How the Company Makes Money

A2Z Smart Technologies generates revenue through multiple channels, including direct sales of smart devices, subscription services for software platforms, and consulting services for IoT implementation. Key revenue streams include the sale of smart home products, such as smart thermostats and security systems, as well as monthly subscriptions for cloud-based services that enable users to monitor and control their devices remotely. Additionally, the company partners with construction firms and energy providers to integrate their technology into new developments and energy management systems, creating a steady income from B2B collaborations. These partnerships not only enhance revenue but also expand the company's market reach and brand visibility.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.07M	7.17M	11.38M	9.35M	2.69M	1.07M
Gross Profit	2.27M	1.43M	1.62M	1.83M	656.00K	215.00K
EBITDA	-32.67M	-18.16M	-16.97M	-16.17M	-39.74M	-5.62M
Net Income	-33.53M	-17.00M	-16.06M	-18.98M	-40.29M	-5.95M
Balance Sheet
Total Assets	46.10M	18.88M	8.52M	12.69M	14.13M	8.85M
Cash, Cash Equivalents and Short-Term Investments	36.03M	13.73M	2.34M	2.62M	8.47M	5.40M
Total Debt	2.17M	1.39M	1.99M	2.63M	918.00K	1.04M
Total Liabilities	14.57M	12.03M	10.83M	9.80M	3.22M	10.82M
Stockholders Equity	32.74M	13.91M	2.49M	5.29M	11.51M	-2.49M
Cash Flow
Free Cash Flow	-14.02M	-11.85M	-11.56M	-10.16M	-9.79M	-1.24M
Operating Cash Flow	-13.77M	-11.71M	-11.39M	-9.43M	-9.38M	-1.00M
Investing Cash Flow	-8.36M	-269.00K	-320.00K	-1.56M	-280.00K	-425.00K
Financing Cash Flow	49.05M	22.81M	10.89M	6.10M	12.36M	7.20M

A2Z Smart Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 7.25 is above the 20-day moving average (MA) of 7.15, below the 50-day MA of 7.98, and below the 200-day MA of 8.29, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 72.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AZ.

A2Z Smart Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRAK	―	$274.99M	44.72	14.48%	0.50%	10.53%	21.98%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
EGHT	―	$261.83M	―	-18.25%	―	-0.73%	67.98%
SMRT	―	$259.54M	―	-25.48%	―	-28.45%	-224.48%
OCFT	―	$299.65M	-3.01	-24.21%	―	-48.61%	-2291.48%
ALTS	―	$290.65M	―	-46.05%	―	926.05%	68.96%
AZ	―	$303.40M	―	-175.82%	―	-0.66%	-173.09%

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.