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TZ

ASX:TZL
Snowflake Description

Mediocre balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TZL
ASX
A$18M
Market Cap
  1. Home
  2. AU
  3. Tech
2017/12/16
Company description

TZ Limited, together with its subsidiaries, develops intelligent devices and smart device systems that enable the commercialization of hardware and software solutions for the management, control, and monitoring of business assets. More info.


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  • TZ is not covered by any analysts.
SHARE PRICE
3 Month History
TZL
Industry
5yr Volatility vs Market
Competitors

Sorry, no analysis for TZ's competitors could be found in our database.

Value

 Is TZ undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for TZ. This is due to cash flow or dividend data being unavailable. The share price is A$0.25.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TZ's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TZ's earnings available for a low price, and how does this compare to other companies in the same industry?
  • TZ is loss making, we can't compare it's value to the Global Electronic Equipment, Instruments and Components industry average.
  • TZ is loss making, we can't compare the value of its earnings to the AU market.
Price based on expected Growth
Does TZ's expected growth come at a high price?
  • Unable to calculate PEG ratio for TZ, we can't assess if it's growth is good value.
Price based on value of assets
What value do investors place on TZ's assets?
  • TZ is good value based on assets compared to the Global Electronic Equipment, Instruments and Components industry average.
X
Value checks
We assess TZ's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. TZ has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (0%).

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is TZ expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • TZ is not covered by any analysts.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.1%
Expected Electronic Equipment, Instruments and Components industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TZ expected to grow at an attractive rate?
  • Unable to compare TZ's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare TZ's earnings growth to the AU market average as no estimate data is available.
  • Unable to compare TZ's revenue growth to the AU market average as no estimate data is available.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Unable to determine if TZ is high growth as no earnings estimate data is available.
  • Unable to determine if TZ is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • No +3 year Return on Equity (ROE) data.

Improvement & Relative to industry
  • No +3 year Return on Equity (ROE) or industry average data.
  • No +3 year Return on Equity (ROE) data.
X
Future performance checks
We assess TZ's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the XX market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the XX market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TZ has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has TZ performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TZ's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TZ does not currently make a profit.
Earnings and Revenue History
TZ's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • TZ has negative negative earnings from operations, therefore its ROE is meaningless.
  • TZ had negative or no Return on Assets (ROA) last year.
  • Return based on revenue producing assets (ROCE) is negative or zero.
X
Past performance checks
We assess TZ's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TZ has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is TZ's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TZ's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TZ is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • TZ's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of TZ's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Total debt is covered by total short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
  • TZ's level of debt (54.6% of total debt) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (224.1% vs 54.6% today).
  • Total debt is not well covered by annual operating cash flow (-191.1%, less than 20% of total debt).
  • TZ is making a loss, therefore interest on debt is not well covered by earnings.
X
Financial health checks
We assess TZ's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by short term assets? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TZ has a total score of 3/6, see the detailed checks below.


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is TZ's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from TZ dividends.
If you bought A$2,000 of TZ shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Not paying a dividend.
  • Not paying a dividend.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Not paying a notable dividend.
  • Not paying a notable dividend.
Current Payout to shareholders
What portion of TZ's earnings are paid to the shareholders as a dividend.
  • Not paying a notable dividend.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years.
X
Income/ dividend checks
We assess TZ's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can TZ afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. TZ has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of TZ's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Wilson, image provided by Google.
John Wilson
COMPENSATION A$144,336
TENURE AS CEO 0.3 years
CEO Bio

Mr. John Wilson serves as Chief Executive Officer and Managing Director of TZ Limited since September 27, 2017. Mr. Wilson served as Chief Executive Officer and President of Telezygology, Inc., a subsidiary of TZ Ltd. Mr. Wilson is also engaged by the Queensland Government to support their business transformation program as a Business Expert and Chief Executive Officer Mentor. He served as an Interim Chief Executive Officer of TZI of TZ Ltd. since May 2010. He has extensive senior executive experience in strategic business development and managing new product creation and technology commercialization. Mr. Wilson served as Chief Executive Officer and Group Marketing Officer of TZ Ltd. Mr. Wilson co-founded Telezygology Inc., subsidiary of TZ Ltd., and served as its Chief Operating Officer. He served as Chief Operating Officer of TZ Ltd. until July 15, 2004. He served as Executive Director of TZ Ltd. until July 15, 2004. He co-founded and built an IP and technology company In the early 2000s, that today is recognised as a leader in its field. He served as a senior executive of a major multi-national corporation, John held several management and leadership roles across marketing, strategy development, technology management and business unit general management with direct P&L responsibility. He led regional business development and new systems innovation for James Hardie Building Products. During his employment with James Hardie, he gained experience in the field of strategic business development and product commercialization, managing product and systems development and commercialization for James Hardie's international business. Mr. Wilson has a Civil/Structural Engineering background having worked in both the public and private consulting sectors at the start of his career. He has been Director of TZ Limited since September 4, 2017. He serves as Non Executive Director at Snapsil Corporation. He was awarded Sydney's Young Engineer of the Year Award in 1987. Mr. Wilson has received skill development in the areas of Value Based Management and Innovation Management with training from graduate programs in Australia and in Europe. He holds Bachelor of Engineering from University of Technology and post graduate in International Marketing at Australian Graduate School of Management.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year.
  • John's compensation appears reasonable.
Management Team Tenure

Average tenure of the TZ management team in years:

2.3
Average Tenure
  • The tenure for the TZ management team is about average.
Management Team

Craig Sowden

TITLE
CFO & Company Secretary
COMPENSATION
A$170K
TENURE
1.2 yrs

William Leong

TITLE
Chief Operating Officer of Telezygology Inc
COMPENSATION
A$310K

John Wilson

TITLE
MD, CEO & Director
COMPENSATION
A$144K
TENURE
0.3 yrs

Adam Forsyth

TITLE
Chief Technology Officer
TENURE
0.3 yrs

Anthony White

TITLE
Head of Packaged Asset Delivery
TENURE
7.6 yrs
Board of Directors Tenure

Average tenure of the TZ board of directors in years:

3
Average Tenure
  • The tenure for the TZ board of directors is about average.
Board of Directors

Mark Bouris

TITLE
Non-Executive Chairman
COMPENSATION
A$451K
TENURE
8.5 yrs

John Wilson

TITLE
MD, CEO & Director
COMPENSATION
A$144K
TENURE
0.3 yrs

Graham Lenzner

TITLE
Non-Executive Director
TENURE
0.3 yrs
Recent Insider Trading
  • More shares have been bought than sold by TZ insiders in the past 3 months, but not in substantial volumes.
Who owns this company?
X
Management checks
We assess TZ's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TZ has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

Company News

Company Info

Map
Description

TZ Limited, together with its subsidiaries, develops intelligent devices and smart device systems that enable the commercialization of hardware and software solutions for the management, control, and monitoring of business assets. It offers packaged asset delivery system that provides storage and enclosure systems to secure, streamline, and audit the complete chain of custody of parcels and express deliveries; infrastructure protection system, which offers cabinet level locking solution that delivers physical security, environmental monitoring, authorized access control, and real-time compliance reporting for the data center market; and SMArt Device aircraft latching and fastening systems that enable remote control and monitoring of critical assets to meet the aerospace industry's needs for security, systems integration, and audit and compliance management, as well as industrial design solutions. The company operates in Australia, the United States, Singapore, and the United Kingdom. TZ Limited is based in Sydney, Australia.

Details
Name: TZ Limited
Ticker: TZL
Exchange: ASX
Founded:
Market Cap: A$17,639,426
Shares outstanding: 70,557,705
Website: http://www.tz.net
Address: TZ Limited
1 Chifley Square,
Level 11,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX TZL Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK TZLT.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
ASX TZLDD Npv Dfd 20/12/17(ex-Split) Australian Securities Exchange AU AUD 12. Dec 2017
Number of employees
Current staff
Staff numbers
0
TZ employees.
Industry
Industry: Electronic Equipment and Instruments
Sector: Tech