A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ)

Sector: Technology Industry: Software - Application CIK: 0001866030
Market Cap 191.69 Mn
P/B 3.65
P/E -8.37
P/S 40.46
ROIC (Qtr) -57.62
Div Yield % 0.00
Rev 1y % (Qtr) -3.02
Total Debt (Qtr) 1.50 Mn
Debt/Equity (Qtr) 0.03

About

A2Z Smart Technologies Corp., or AZ, is a technology company that operates in the retail industry, specializing in the development and commercialization of retail smart cart solutions, precision metal parts manufacturing, maintenance services, and the Fuel Tank Inertia Capsule System technology. The company is based in Israel and has a global reach, with a presence in several countries including the United States, France, Thailand, and Romania. A2Z Smart Technologies Corp.'s main business activities are focused on providing innovative solutions...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 31.29M provide 83.53x coverage of short-term debt 374637.68, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 59.36M provides 39.59x coverage of total debt 1.50M, indicating robust asset backing and low credit risk.
  • Short-term investments of 19.73M provide solid 5.37x coverage of other current liabilities 3.67M, indicating strong liquidity.
  • Tangible assets of 59.36M provide robust 16.17x coverage of other current liabilities 3.67M, indicating strong asset backing.
  • Short-term investments of 19.73M provide 52.66x coverage of short-term debt 374637.68, showing strong liquidity management.

Bear case

  • Operating cash flow of (12.45M) barely covers its investment activities of (20.61M), with a coverage ratio of 0.60, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (20.61M) provide weak support for R&D spending of 5.65M, which is -3.65x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of (12.95M) provides weak coverage of capital expenditures of 499275.36, with a -25.94 ratio suggesting additional external financing needs for growth initiatives.
  • The company's operating cash flow of (12.45M) shows concerning coverage of stock compensation expenses of 6.44M, with a -1.94 ratio indicating potential earnings quality issues.
  • Operating earnings of (22.57M) show weak coverage of depreciation charges of 470289.86, with a -48 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 234.56 Bn 28.15 5.46 10.73 Bn
2 CRM Salesforce, Inc. 204.28 Bn 32.96 5.39 11.14 Bn
3 SHOP Shopify Inc. 169.36 Bn 95.09 15.83 1.12 Bn
4 UBER Uber Technologies, Inc 167.13 Bn 10.04 3.37 12.19 Bn
5 INTU Intuit Inc. 140.92 Bn 175.06 33.55 6.78 Bn
6 ADBE Adobe Inc. 124.98 Bn 17.53 5.26 6.65 Bn
7 NOW ServiceNow, Inc. 121.03 Bn 69.24 9.11 2.40 Bn
8 ADP Automatic Data Processing Inc 100.13 Bn 23.64 4.72 4.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.66 2.50
EV to Cash from Ops. EV/CFO -7.93 12.27
EV to Debt EV to Debt 65.88 50.31
EV to EBIT EV/EBIT -4.38 10.96
EV to EBITDA EV/EBITDA -6.12 16.84
EV to Free Cash Flow [EV/FCF] EV/FCF -7.62 14.08
EV to Market Cap EV to Market Cap 0.52 -118.20
EV to Revenue EV/Rev 20.85 4.45
Price to Book Value [P/B] P/B 3.65 4.27
Price to Earnings [P/E] P/E -8.37 -133.65
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.97
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.54
Interest Coverage Int. cover (Qtr) -66.27 -51.80
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -646.17 -210.77
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,136.44 9,906.83
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.62
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -245.69 -265.85
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -57.33 55.76
EBIT Growth (1y) % EBIT 1y % (Qtr) -245.69 -227.83
EBT Growth (1y) % EBT 1y % (Qtr) -237.49 -88.00
EPS Growth (1y) % EPS 1y % (Qtr) -90.30 121.91
FCF Growth (1y) % FCF 1y % (Qtr) -65.70 -40.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 104.11 92.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.06 0.58
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 4.75 3.77
Current Ratio Curr Ratio (Qtr) 8.58 8.19
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.16
Interest Cover Ratio Int Coverage (Qtr) -66.27 -51.80
Times Interest Earned Times Interest Earned (Qtr) -66.27 -51.80
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -466.50 -105.77
EBIT Margin % EBIT Margin % (Qtr) -657.47 -131.65
EBT Margin % EBT Margin % (Qtr) -483.62 -122.72
Gross Margin % Gross Margin % (Qtr) 33.80 58.14
Net Profit Margin % Net Margin % (Qtr) -483.60 -127.70