EROAD Limited

ERD.AX

Software - Infrastructure · Technology

Price

A$0.81

+0.00 (+0.00%)

Market Cap

A$151.4M

Exchange

Australian Securities Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Good

Valuation

Data not available

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Share count rising — dilution

+62.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 115.1M (2022) → 187.2M (2026)

Winston Score History

The full picture

EROAD is a technology company that makes software and hardware for tracking trucks and other commercial vehicles. It sells GPS tracking devices, compliance tools, and fleet management software to trucking companies, logistics businesses, and government fleets. The company is best known in New Zealand, where it built one of the first electronic road user charging systems used by heavy vehicles.

EROAD earns most of its revenue through recurring subscription fees that customers pay monthly or annually to use its platform. It operates mainly in New Zealand, Australia, and North America, with a combined customer base of tens of thousands of vehicles under management. The company faces strong competition from larger global fleet telematics providers, and its current negative operating margins suggest it is spending more than it earns — the key challenge ahead is scaling its North American business fast enough to reach profitability before its financial position becomes strained.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-3.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-689.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

NZ$27M/ year

→ Flat (+4% vs prior year)

14.2% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

45.2%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Runway

~15 months

NZ$40M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Adequate runway but may need to raise capital within 2 years

Revenue declining

EROAD Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

-15.9%

Thin — -15.9% gross margin

Profit after running costs

Operating Margin

-24.8%

Losing money on operations — -24.8%

Return on the money invested

ROCE

-11.9%

Weak — -11.9% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-1.2%

Shrinking sales (-1.2% YoY)

Profit growth

EPS YoY

<−1,000%

Earnings shrinking (<−1,000% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

2.6%

Thin free cash flow (2.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.15

Conservative — low debt load (0.15)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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