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D-Box Tech Inc. A J (TSE:DBO)
TSX:DBO

D-Box Tech Inc. A (DBO) AI Stock Analysis

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D-Box Tech Inc. A

(TSX:DBO)

75Outperform
D-Box Tech Inc. A demonstrates strong financial performance and an attractive valuation, suggesting potential for stock appreciation. The company's recent operational expansion and record revenue growth further underscore its positive outlook. However, technical indicators present a mixed short-term picture, signaling cautious optimism.

D-Box Tech Inc. A (DBO) vs. S&P 500 (SPY)

D-Box Tech Inc. A Business Overview & Revenue Model

Company DescriptionD-Box Tech Inc. A (DBO) is a company specializing in the design, manufacture, and commercialization of cutting-edge haptic technology systems. These systems are primarily used to create immersive experiences in various sectors such as entertainment, simulation, and training environments. The company's core products include motion systems that are integrated into seats and platforms, enhancing the user experience by synchronizing motion with audio-visual content.
How the Company Makes MoneyD-Box Tech Inc. A generates revenue through the sale and licensing of its haptic technology systems. The company sells its products directly to original equipment manufacturers (OEMs) and through distribution partners, catering to industries like cinema, gaming, and professional simulation. Additionally, D-Box enters into licensing agreements, allowing content creators and producers to integrate its motion codes into their media, thereby enhancing the end-user experience. Key revenue streams include product sales, licensing fees, and partnerships with major cinema chains, gaming companies, and simulation training providers.

D-Box Tech Inc. A Financial Statement Overview

Summary
D-Box Tech Inc. A demonstrates robust financial health with improvements in revenue, profitability, and cash flow generation. The company's balance sheet reflects moderate leverage, providing a stable financial base.
Income Statement
85
Very Positive
D-Box Tech Inc. A has shown impressive revenue growth with a TTM revenue of $44.36M, a significant increase from $39.60M in the previous year, reflecting a growth rate of 12%. The gross profit margin stands at a robust 50.34% in TTM. The company has also improved its profitability with a TTM net profit margin of 8.93%, compared to 2.76% in the previous year. EBIT and EBITDA margins have shown positive trends, at 4.94% and 13.35% respectively, indicating enhanced operational efficiency.
Balance Sheet
75
Positive
The balance sheet of D-Box Tech Inc. A shows a healthy equity position, with an equity ratio of 56.95% in the TTM, reflecting strong shareholder equity relative to total assets. The debt-to-equity ratio is 0.33, indicating moderate leverage. Return on equity (ROE) has improved to 25.24%, signaling effective use of equity capital. However, the company's reliance on debt financing could pose risks in volatile market conditions.
Cash Flow
80
Positive
D-Box Tech Inc. A's cash flow position is strong, with a free cash flow growth rate of 135.47% in the TTM, reflecting efficient capital management. The operating cash flow to net income ratio is 1.46, indicating solid cash generation relative to net income. The free cash flow to net income ratio is 1.27, showcasing effective cash conversion. Despite strong cash flows, attention must be given to sustaining this trajectory amidst fluctuating market conditions.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
39.60M34.12M21.31M11.08M25.89M
Gross Profit
18.66M16.21M11.15M4.11M13.94M
EBIT
1.25M-672.00K-1.24M-5.66M-2.36M
EBITDA
3.42M1.81M510.00K-3.40M-2.85M
Net Income Common Stockholders
1.09M-937.00K-1.87M-6.19M-6.25M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.13M3.12M3.94M9.13M4.12M
Total Assets
20.94M26.72M22.35M23.74M26.87M
Total Debt
2.78M5.58M5.29M5.97M5.08M
Net Debt
-138.00K2.46M1.35M-3.16M969.00K
Total Liabilities
8.81M15.83M10.52M10.21M12.52M
Stockholders Equity
12.13M10.89M11.83M13.53M14.35M
Cash FlowFree Cash Flow
2.13M-1.13M-4.70M-794.00K-4.32M
Operating Cash Flow
3.13M255.00K-3.32M-314.00K-3.02M
Investing Cash Flow
-388.00K-1.27M-1.12M-425.00K-1.25M
Financing Cash Flow
-2.93M206.00K-744.00K5.71M-1.28M

D-Box Tech Inc. A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.18
Price Trends
50DMA
0.16
Positive
100DMA
0.16
Positive
200DMA
0.13
Positive
Market Momentum
MACD
<0.01
Negative
RSI
65.25
Neutral
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DBO, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.16, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DBO.

D-Box Tech Inc. A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSCTZ
79
Outperform
C$39.76M16.7227.72%16.47%44.10%
TSDBO
75
Outperform
C$35.51M8.9429.18%11.37%1018.75%
TSGSI
62
Neutral
C$40.77M144.83-12.44%-4.94%-145.86%
60
Neutral
$10.83B10.47-6.71%2.99%7.73%-12.97%
TSYNV
49
Neutral
C$33.56M-74.06%29.15%4.91%
35
Underperform
$35.79M222.10%-56.11%21.51%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DBO
D-Box Tech Inc. A
0.18
0.10
125.00%
TSE:CTZ
NamSys
1.47
0.63
75.00%
TSE:YNV
Ynvisible Interactive Inc
0.26
0.14
116.67%
TSE:GSI
Gatekeeper Systems
0.43
-0.27
-38.57%
TSE:HAPB
Hapbee Technologies
0.12
0.02
20.00%

D-Box Tech Inc. A Earnings Call Summary

Earnings Call Date:Feb 12, 2025
(Q2-2025)
|
% Change Since: 28.57%|
Next Earnings Date:May 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive sentiment, emphasizing record-breaking performance, significant revenue and profitability growth, and strategic advancements. While there were some challenges, such as exiting the direct-to-consumer market and board member changes, the highlights significantly outweighed the lowlights.
Q2-2025 Updates
Positive Updates
Record-Breaking Quarter
This quarter marked the best performance in D-BOX's history with growth in every segment, highlighting the effectiveness of the company's strategy.
Significant Revenue Growth
Overall revenue growth of 12% was achieved despite a soft environment and a $1 million impact from exiting the direct-to-consumer hardware market.
EBITDA and Net Income Surge
EBITDA more than tripled, and net income multiplied more than four times, demonstrating significant improvements in profitability.
Commercial Market Expansion
Theatrical and sim racing segments grew by 21%, and simulation and training grew by 3%.
New Board Members with Enhanced Expertise
The appointment of new independent directors has brought fresh perspectives and additional expertise in governance, strategy, finance, marketing, and operations.
Improved Cash Flow from Operations
Generated $3 million year-to-date, providing greater flexibility through recent debt restructuring.
Negative Updates
Exit from Direct-to-Consumer Hardware Market
The decision to exit the direct-to-consumer hardware market resulted in a $1 million impact, though it was part of a strategic pivot to focus on higher-margin segments.
Board Member Resignation
Zrinka Dekic had to step down due to a new appointment, requiring a search for a replacement.
Company Guidance
During the Q2 2025 earnings call for D-BOX (DBO.TO), significant metrics were highlighted, demonstrating the company's exceptional performance. Notably, EBITDA more than tripled, and net income multiplied more than four times compared to prior periods. Year-to-date EBITDA reached 15%, marking a 4% year-over-year increase. Revenues grew by 12%, with theatrical and sim racing segments rising by 21% and simulation and training increasing by 3%, despite exiting the direct-to-consumer hardware market. This growth occurred within a challenging environment and was bolstered by successful box office releases. Additionally, the company generated $3 million year-to-date cash flow from operations, showcasing robust cash generation. The discussion also touched on strategic priorities, including the refreshed board's potential impact, cost discipline, and the exploration of capital allocation strategies to maintain a strong balance sheet and support growth.

D-Box Tech Inc. A Corporate Events

Executive/Board Changes
D-BOX Technologies Announces Board Resignation
Neutral
Apr 17, 2025

D-BOX Technologies Inc. announced the resignation of Marie-Claude Boisvert from its Board of Directors due to personal reasons. The company expressed gratitude for her contributions and is currently evaluating its board composition to determine the best path forward. This change may impact the company’s governance and strategic direction as they seek a suitable replacement.

Spark’s Take on TSE:DBO Stock

According to Spark, TipRanks’ AI Analyst, TSE:DBO is a Outperform.

D-Box Tech Inc. A earns a strong overall score due to robust financial performance and positive corporate developments. Financial health and strategic expansions are key strengths, while technical indicators suggest moderate upward momentum. Valuation appears attractive, enhancing investment appeal.

To see Spark’s full report on TSE:DBO stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
D-BOX Technologies Expands Haptic Experience in Argentina
Positive
Feb 19, 2025

D-BOX Technologies Inc. has announced the expansion of its haptic technology in collaboration with Cinemark Argentina and Hoyts Argentina, increasing its presence in 14 more auditoriums, bringing the total to 32 in Argentina. This expansion underscores the growing demand for premium cinematic experiences and reinforces D-BOX’s commitment to enhancing theatrical entertainment worldwide. By integrating its immersive technology into more locations, D-BOX aims to redefine audience engagement with films, offering deeper and more dynamic connections with on-screen action.

Business Operations and StrategyFinancial Disclosures
D-BOX Technologies Achieves Record Q3 2025 Revenues and Strong Profit Growth
Positive
Feb 12, 2025

D-BOX Technologies reported record revenues of $13.3 million for the third quarter of fiscal 2025, marking a 65% increase over the previous year. The company’s financial performance was bolstered by significant growth in system sales within entertainment markets, such as theatrical and sim racing, and a notable rise in royalties driven by major theatrical customers and blockbuster releases. The company’s strategic focus on cost efficiency and operational optimization has resulted in a net profit of $1.5 million and reduced long-term debt by nearly $1 million. The favorable currency exchange rates also contributed positively to the results, though the company remains cautious about potential impacts from U.S.-Canada tariffs.

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.