EROAD Limited

ERD.NZ

Software - Infrastructure · Technology

Price

NZ$1.00

-0.03 (-2.43%)

Market Cap

NZ$189.0M

Exchange

New Zealand Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+64.1% over 4y

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

Diluted shares outstanding: 114.1M (2022) → 187.2M (2026)

EROAD Limited is a New Zealand-based technology company that makes software and hardware for managing truck and vehicle fleets. Its main products include GPS tracking devices, electronic logbooks, and compliance tools that help trucking companies follow road rules and government regulations. EROAD serves commercial transport operators — mostly heavy freight companies — across New Zealand, Australia, and North America.

The company earns money through recurring subscription fees that fleet operators pay to use its connected devices and software platform. This subscription model gives EROAD predictable revenue, but the business is currently unprofitable, with negative operating margins. EROAD faces stiff competition from larger global telematics providers like Geotab and Samsara, which have more resources and broader customer bases. The key challenge ahead is scaling its North American operations fast enough to reach profitability before its cash position becomes a concern, while defending its strong market share in New Zealand.

Winston Score History

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

-2.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-681.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$27M/ year

↑ Rising (+33% vs prior year)

14.2% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

45.7%ownership

Insiders own a meaningful stake in the company

Cash Runway

~15 months

$40M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

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Quality

Gross Margin

-15.9%

Thin — -15.9% gross margin

Operating Margin

-24.8%

Losing money on operations — -24.8%

ROCE

-11.7%

Weak — -11.7% return on capital

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

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Growth

Sales YoY

-0.5%

Shrinking sales (-0.5% YoY)

EPS YoY

<−1,000%

Earnings shrinking (<−1,000% YoY)

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

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

2.7%

Thin free cash flow (2.7%)

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

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Stability

Debt / Equity

0.16

Conservative — low debt load (0.16)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

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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