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DroneShield Limited (AU:DRO)
ASX:DRO

DroneShield Limited (DRO) AI Stock Analysis

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AU

DroneShield Limited

(Sydney:DRO)

Rating:64Neutral
Price Target:
DroneShield Limited's strengths lie in its revenue growth and strong balance sheet, supported by low leverage. However, challenges in profitability and cash flow management weigh on its financial performance. The stock exhibits some positive technical momentum, but valuation concerns and lack of profitability present risks. Investors should consider these factors, especially the low volatility and potential for operational improvements.

DroneShield Limited (DRO) vs. iShares MSCI Australia ETF (EWA)

DroneShield Limited Business Overview & Revenue Model

Company DescriptionDroneShield Limited (DRO) is an Australian-based company specializing in the development and sale of advanced technologies for the detection and mitigation of drone threats. Operating within the defense and security sectors, DroneShield offers a range of solutions including drone detection systems, jamming devices, and comprehensive counter-drone technologies designed to protect military, governmental, and commercial clients from the risks posed by unauthorized drones.
How the Company Makes MoneyDroneShield Limited generates revenue primarily through the sale of its proprietary drone detection and countermeasure systems. The company's key revenue streams include direct sales of its hardware and software solutions to defense organizations, government agencies, and critical infrastructure operators globally. In addition to product sales, DroneShield also earns income from providing ongoing maintenance, support services, and software updates. Strategic partnerships and collaborations with defense contractors and technology firms enhance its market reach and contribute to its earnings. The company's ability to secure contracts and agreements with international defense and security agencies significantly impacts its financial performance.

DroneShield Limited Financial Statement Overview

Summary
DroneShield Limited demonstrates promising revenue growth and strong equity positioning, but profitability and cash flow management are areas that need improvement. The company's financial structure is stable with low leverage, providing a solid foundation for addressing operational inefficiencies and enhancing cash generation capabilities.
Income Statement
65
Positive
DroneShield Limited shows a strong revenue growth trend, increasing significantly over the years from 2019 to 2024. However, profitability is a concern with net income often negative and EBIT margins fluctuating. The company has managed to improve its gross profit margin over the years, but net profit margin remains under pressure, indicating challenges in cost management and operational efficiency.
Balance Sheet
72
Positive
The balance sheet is robust with a strong equity base and a low debt-to-equity ratio, indicating financial stability. The company has consistently maintained a high equity ratio, suggesting a low reliance on debt financing. This positions DroneShield Limited favorably for future growth despite historical losses.
Cash Flow
60
Neutral
Cash flows are volatile with negative free cash flow observed in recent years due to high capital expenditures. The company has managed to secure financing to bolster its cash position. However, the operating cash flow has been inconsistent, pointing to challenges in generating cash from its core operations.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
57.53M54.09M16.81M10.47M5.03M
Gross Profit
41.24M38.95M11.83M7.62M3.20M
EBIT
-17.12M2.59M-3.29M-6.73M-7.52M
EBITDA
-2.71M2.56M-2.36M-6.22M-6.89M
Net Income Common Stockholders
-1.32M9.33M-949.30K-5.31M-5.87M
Balance SheetCash, Cash Equivalents and Short-Term Investments
219.49M56.77M10.22M9.49M16.29M
Total Assets
355.88M97.05M25.21M18.34M23.13M
Total Debt
9.11M2.63M596.10K248.37K476.56K
Net Debt
-53.51M-54.07M-9.55M-9.17M-7.38M
Total Liabilities
44.29M22.54M6.21M2.76M3.54M
Stockholders Equity
311.59M74.51M19.00M15.58M19.59M
Cash FlowFree Cash Flow
-75.21M6.56M-2.58M-6.74M-5.42M
Operating Cash Flow
-58.04M9.48M-1.75M-6.27M-4.65M
Investing Cash Flow
-169.85M-1.95M-832.17K-467.45K-772.16K
Financing Cash Flow
231.89M39.11M3.06M-122.03K16.30M

DroneShield Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.17
Price Trends
50DMA
1.13
Positive
100DMA
0.92
Positive
200DMA
0.97
Positive
Market Momentum
MACD
0.02
Positive
RSI
46.45
Neutral
STOCH
14.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DRO, the sentiment is Positive. The current price of 1.17 is below the 20-day moving average (MA) of 1.28, above the 50-day MA of 1.13, and above the 200-day MA of 0.97, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.45 is Neutral, neither overbought nor oversold. The STOCH value of 14.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DRO.

DroneShield Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCDA
74
Outperform
AU$3.19B35.5919.85%1.53%15.59%19.34%
AUDRO
64
Neutral
$1.05B65.04-0.70%6.36%-115.00%
61
Neutral
$11.28B10.16-6.88%2.97%7.41%-8.93%
AUEOS
55
Neutral
$310.65M-16.26%-19.47%52.11%
AUAD1
46
Neutral
AU$7.76M-245.01%-17.50%66.33%
AUDTZ
28
Underperform
€34.25M-420.93%-100.00%20.77%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DRO
DroneShield Limited
1.17
0.19
19.39%
AU:CDA
Codan Limited
17.25
6.71
63.66%
AU:DTZ
Dotz Nano Limited
0.06
-0.09
-60.67%
AU:EOS
Electro Optic Systems Holdings Limited
1.64
0.24
16.79%
AU:AD1
AD1 Holdings Ltd
0.05
0.00
0.00%

DroneShield Limited Corporate Events

DroneShield Limited Announces Change in Substantial Holding
May 7, 2025

DroneShield Limited has announced a change in substantial holding, as State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of May 5, 2025. This change in substantial holding may impact the company’s shareholder composition and could influence its market dynamics, as State Street Corporation’s involvement with DroneShield Limited has altered.

JPMorgan Chase & Co. Ceases Substantial Holding in DroneShield
May 4, 2025

JPMorgan Chase & Co. and its affiliates have ceased to be substantial holders in DroneShield Limited as of April 30, 2025. This change in holdings, involving securities on loan and proprietary trading, may impact DroneShield’s shareholder composition and market perception, potentially influencing investor confidence and the company’s strategic decisions.

DroneShield Limited Announces Change in Substantial Shareholding
May 2, 2025

DroneShield Limited has announced a significant change in its substantial shareholders, with State Street Corporation and its subsidiaries acquiring a relevant interest in a large number of voting shares. This development could impact DroneShield’s market positioning and influence its strategic decisions, as the new substantial holder has the power to control the exercise of voting rights attached to these securities.

DroneShield Limited Announces Change in Substantial Holding
May 1, 2025

DroneShield Limited has announced a change in the substantial holding of its shares, as State Street Corporation and its subsidiaries have ceased to be substantial holders. This development may impact the company’s shareholder structure and could influence future decisions regarding voting interests and corporate governance.

DroneShield Updates Proxy Voting Form for AGM
May 1, 2025

DroneShield Limited has updated its proxy voting form for the upcoming Annual General Meeting on 28 May 2025. The update authorizes the Chair to vote undirected proxies on specific resolutions, and shareholders are requested to use the new form if their previous submission did not include voting directions. This adjustment ensures clarity and proper representation during the meeting, potentially impacting shareholder engagement and decision-making processes.

DroneShield Attracts Significant Institutional Investment
Apr 30, 2025

DroneShield Limited has announced the acquisition of a substantial holding by several financial institutions, including State Street Bank and Trust Company and The Macquarie Group. This development indicates a significant interest from major investors, potentially impacting the company’s market position and shareholder dynamics.

DroneShield Announces Hybrid Format for Upcoming AGM
Apr 28, 2025

DroneShield Limited has announced that its Annual General Meeting will be held in a hybrid format on 28 May 2025, allowing both physical and virtual attendance. This approach reflects the company’s commitment to accessibility and shareholder engagement, emphasizing the importance of shareholder participation in decision-making processes.

JPMorgan Acquires Significant Stake in DroneShield Limited
Apr 27, 2025

JPMorgan Chase & Co. and its affiliates have become a substantial holder in DroneShield Limited, acquiring a 5.31% voting power through various securities transactions. This acquisition highlights JPMorgan’s strategic interest in the defense and security sector, potentially impacting DroneShield’s market positioning and stakeholder dynamics by aligning with a significant financial entity.

DroneShield Limited Announces Cessation of Securities
Apr 24, 2025

DroneShield Limited has announced the cessation of 250,000 securities due to the lapse of conditional rights, as the conditions for these securities have not been met. This development may impact the company’s financial structure and investor relations, as it reflects the company’s ongoing adjustments to its securities and capital management strategy.

DroneShield Limited Issues Unquoted Securities to Boost Employee Engagement
Apr 24, 2025

DroneShield Limited announced the issuance of 145,000 unquoted securities under an employee incentive scheme. This move is part of the company’s strategic initiatives to enhance employee engagement and align their interests with the company’s growth objectives, potentially impacting its operational dynamics and stakeholder relationships.

DroneShield Limited Announces Quotation of New Securities
Apr 24, 2025

DroneShield Limited has announced the application for quotation of 625,000 ordinary fully paid securities on the Australian Securities Exchange (ASX), with an issue date of April 24, 2025. This move could potentially enhance the company’s capital base, supporting its growth and strengthening its position in the competitive drone defense market.

DroneShield Reports Robust Growth in Q1 2025 Amid Rising C-UAS Demand
Apr 21, 2025

DroneShield Limited has reported significant growth in its first-quarter results for 2025, with revenues up by 102% and cash receipts increasing by 135% compared to the same period in 2024. This surge is attributed to the global rise in demand for counter-unmanned aerial systems, highlighting the company’s strengthened market position and potential for future revenue growth.

DroneShield Secures $32.2 Million Contracts in Asia Pacific
Apr 13, 2025

DroneShield Limited has secured a significant package of five contracts totaling $32.2 million from a military customer in the Asia Pacific region. These contracts, facilitated through an in-country reseller, involve the delivery of vehicle-mounted and fixed Counter-UxS systems, with completion and payment expected by Q3 2025. This development marks a substantial increase in order volume from this customer, reflecting DroneShield’s expanding role in the counterdrone industry as demand for their solutions grows across multiple regions.

Regal Funds Management Increases Stake in DroneShield Limited
Apr 8, 2025

Regal Funds Management Pty Ltd and its associates have increased their substantial holding in DroneShield Limited, as indicated in the recent notice of change of interests. This change in voting power reflects a strategic move by Regal Funds to potentially influence the company’s decision-making process, impacting its operations and market positioning.

DroneShield Announces Director’s Interest Change
Apr 4, 2025

DroneShield Limited has announced a change in the director’s interest notice for Peter James, involving an off-market transfer of securities. The change reflects a reallocation of shares held by various trusts associated with Mr. James, while his overall holdings remain unchanged. This notice is part of the company’s compliance with ASX listing rules, ensuring transparency in director dealings.

DroneShield Limited Announces Cessation of Securities
Mar 28, 2025

DroneShield Limited announced the cessation of 100,000 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could influence investor perceptions, although it does not directly affect the company’s operational capabilities or market positioning.

DroneShield Limited Issues Unquoted Securities to Boost Workforce Incentives
Mar 28, 2025

DroneShield Limited has announced the issuance of 260,000 unquoted securities under an employee incentive scheme. This move is part of the company’s strategy to enhance its operational capabilities and incentivize its workforce, potentially strengthening its position in the counter-drone technology market.

JPMorgan Chase Increases Stake in DroneShield Limited
Mar 13, 2025

JPMorgan Chase & Co. and its affiliates have increased their voting power in DroneShield Limited from 5.29% to 6.34%, reflecting a significant change in their substantial holding. This change indicates a growing interest and investment in DroneShield, potentially enhancing the company’s market position and influence among stakeholders.

DroneShield Announces Change in Substantial Holder Interests
Mar 12, 2025

DroneShield Limited has announced a change in the interests of a substantial holder, Regal Funds Management Pty Limited and its associates, in the company’s voting securities. The change reflects a shift in the voting power and control over the disposal of securities, which may impact the company’s governance and influence within the industry.

DroneShield Internalizes Company Secretary Function Amid Growth
Mar 11, 2025

DroneShield Limited has announced the internalization of its Company Secretary function as part of its growth strategy. Ms. Patricia Vanni from the Automic Group will step down as Joint Company Secretary, with Ms. Carla Balanco and Mr. Paul Cenoz continuing in their roles. This move reflects DroneShield’s ongoing development and may enhance its operational efficiency and governance.

DroneShield Sees Increase in Substantial Holding by Regal Funds Management
Mar 3, 2025

DroneShield Limited has announced a change in the substantial holding of its shares, with Regal Funds Management Pty Limited and its associates increasing their voting power from 5.69% to 7.22%. This change reflects a significant shift in shareholder dynamics, potentially impacting the company’s strategic decisions and market perception.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.