DEFSEC Technologies AI Stock Analysis
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DEFSEC Technologies (DFSC) AI Stock Analysis
DEFSEC Technologies
(TSXV:DFSC)
The overall score is very low, driven primarily by severe financial distress. The company is burning cash rapidly with deeply negative margins, and the stock is in a persistent downtrend across all timeframes. The lack of profitability and negative cash flow are the most significant risks, outweighing the positive revenue growth. Technicals confirm extreme bearish momentum with no valuation floor to provide support.
DEFSEC Technologies (DFSC) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 1.16M
- Dividend Yield
- ―
- Average Volume (3M)
- 6,253
- Price to Earnings (P/E)
- -0.1
- Beta (1Y)
- 1.27
- Revenue Growth
- 82.19%
- EPS Growth
- 90.16%
- Country
- Canada
- Employees
- 45
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Aerospace & Defense
DEFSEC Technologies Business Overview & Revenue Model
Company Description
DEFSEC Technologies Inc. is dedicated to designing and commercializing cutting-edge tactical systems for the security and personal protection markets. The company's portfolio features DEFSEC Lightning, an advanced military digitization technology. It...
DEFSEC Technologies Financial Statement Overview
Summary
Financial performance is critically weak. While revenue grew 21%, the company is deeply unprofitable with a -118% operating margin and -121% net margin. Cash flow is severely negative (-$7.82M operating cash flow), indicating a high cash burn rate. The balance sheet has low leverage (D/E 0.25), but equity is eroding rapidly due to losses, making this a high-risk financial profile.
Income Statement
18Very NegativeBalance Sheet
32NegativeCash Flow
12Very Negative| Breakdown | TTM | Sep 2025 | Sep 2024 | Dec 2023 | Dec 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.52M | 4.94M | 1.50M | 1.23M | 721.52K | 1.28M |
| Gross Profit | 1.90M | 664.32K | 486.50K | -191.38K | 184.78K | 476.92K |
| EBITDA | -8.25M | -8.29M | -5.91M | -7.63M | -9.73M | -9.06M |
| Net Income | -9.10M | -9.63M | -7.44M | -9.31M | -10.52M | -9.32M |
Balance Sheet | ||||||
| Total Assets | 10.45M | 12.92M | 5.62M | 11.76M | 7.32M | 8.72M |
| Cash, Cash Equivalents and Short-Term Investments | 3.53M | 6.73M | 256.83K | 5.41M | 170.54K | 2.69M |
| Total Debt | 1.29M | 1.30M | 302.22K | 429.52K | 2.55M | 361.16K |
| Total Liabilities | 5.34M | 5.12M | 4.25M | 7.82M | 8.33M | 2.59M |
| Stockholders Equity | 5.11M | 7.80M | 1.37M | 3.94M | -1.00M | 6.12M |
Cash Flow | ||||||
| Free Cash Flow | -8.03M | -8.10M | -9.17M | -15.38M | -5.62M | -7.30M |
| Operating Cash Flow | -7.82M | -7.96M | -9.06M | -14.08M | -4.26M | -6.26M |
| Investing Cash Flow | -223.86K | -180.41K | -111.15K | -1.44M | -1.11M | -1.07M |
| Financing Cash Flow | 9.02M | 14.60M | 4.02M | 20.76M | 2.85M | 6.94M |
DEFSEC Technologies Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DFSC, the sentiment is Negative. The current price of 0.64 is below the 20-day moving average (MA) of 0.89, below the 50-day MA of 1.33, and below the 200-day MA of 2.90, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 25.67 is Positive, neither overbought nor oversold. The STOCH value of 19.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DFSC.
DEFSEC Technologies Risk Analysis
DEFSEC Technologies disclosed 63 risk factors in its most recent earnings report. DEFSEC Technologies reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksDEFSEC Technologies Peers Comparison
Overall Rating
TSE:FTG79Outperform
TSE:CAE66Neutral
TSE:MAL65Neutral
TSE:MDA52Neutral
TSE:DPRO42Neutral- TSE:DFSC38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:FTG | 79Outperform | CAD 799.76M | 35.70 | 21.62% | ― | 17.40% | 56.91% |
| TSE:CAE | 66Neutral | CAD 12.75B | 47.00 | 5.09% | ― | 2.54% | -37.94% |
| TSE:MAL | 65Neutral | CAD 1.95B | 29.01 | 7.85% | 0.58% | 16.14% | 49.57% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| TSE:MDA | 52Neutral | CAD 6.69B | 50.92 | 5.52% | ― | 32.36% | -8.42% |
| TSE:DPRO | 42Neutral | CAD 158.53M | -3.46 | -29.09% | ― | 20.25% | 54.72% |
| TSE:DFSC | 38Underperform | CAD 2.94M | -0.10 | -143.89% | ― | 82.19% | 90.16% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:DFSC | DEFSEC Technologies Inc. | 0.64 | -3.77 | -85.49% | |
| TSE:CAE | CAE Inc | 39.78 | 3.41 | 9.38% | |
| TSE:FTG | Firan Tech | 31.77 | 21.36 | 205.19% | |
| TSE:MAL | Magellan Aerospace | 34.23 | 16.86 | 97.08% | |
| TSE:DPRO | Draganfly Inc | 4.05 | -4.97 | -55.10% | |
| TSE:MDA | MDA Space Ltd. | 41.25 | 19.81 | 92.40% |
DEFSEC Technologies Corporate Events
DEFSEC Receives ATF Classification Clearing Pro-1 Path to U.S. Civilian Market
PositiveDEFSEC Technologies develops next-generation tactical systems for military and security forces, including real-time battlefield digitization, countermeasures against electronic detection, lasers and drones, and less-lethal products for law enforcemen...
DEFSEC Technologies Raises CAD$5.54 Million in Tactical Systems-Focused Private Placement
PositiveDEFSEC Technologies Inc. has arranged a private placement of 1,951,219 common shares or pre-funded warrants at CAD$2.84 each, bundled with an equal number of common share purchase warrants exercisable at CAD$3.30 for 60 months. The financing, led by...
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.
Date of analysis: Oct 14, 2026