ASX:DRO

Stock Analysis Report

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Executive Summary

DroneShield Limited engages in the development, commercialization, and sale of hardware and software technology for drone detection and security in the United States, the United Kingdom, Australia, and internationally. More Details


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

How has DroneShield's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DRO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.8%

DRO

-2.8%

AU Aerospace & Defense

0.01%

AU Market


1 Year Return

-50.7%

DRO

-18.7%

AU Aerospace & Defense

-5.7%

AU Market

Return vs Industry: DRO underperformed the Australian Aerospace & Defense industry which returned -17.5% over the past year.

Return vs Market: DRO underperformed the Australian Market which returned -5.6% over the past year.


Shareholder returns

DROIndustryMarket
7 Day-9.8%-2.8%0.01%
30 Day-11.9%3.0%5.4%
90 Day60.9%2.5%4.0%
1 Year-50.7%-50.7%-17.3%-18.7%-2.4%-5.7%
3 Year-19.6%-19.6%97.4%87.3%18.0%3.0%
5 Yearn/a114.4%94.2%42.1%13.2%

Price Volatility Vs. Market

How volatile is DroneShield's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DroneShield undervalued compared to its fair value and its price relative to the market?

6.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DRO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DRO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DRO is unprofitable, so we can't compare its PE Ratio to the AU Aerospace & Defense industry average.

PE vs Market: DRO is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DRO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DRO is overvalued based on its PB Ratio (6.7x) compared to the AU Aerospace & Defense industry average (2.3x).


Next Steps

Future Growth

How is DroneShield forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.4%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as DroneShield has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has DroneShield performed over the past 5 years?

-20.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRO is currently unprofitable.

Growing Profit Margin: DRO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DRO is unprofitable, and losses have increased over the past 5 years at a rate of 20.6% per year.

Accelerating Growth: Unable to compare DRO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DRO is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (-1.6%).


Return on Equity

High ROE: DRO has a negative Return on Equity (-89.57%), as it is currently unprofitable.


Next Steps

Financial Health

How is DroneShield's financial position?


Financial Position Analysis

Short Term Liabilities: DRO's short term assets (A$8.3M) exceed its short term liabilities (A$2.2M).

Long Term Liabilities: DRO's short term assets (A$8.3M) exceed its long term liabilities (A$385.3K).


Debt to Equity History and Analysis

Debt Level: DRO's debt to equity ratio (12%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DRO's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DRO has sufficient cash runway for 7 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: DRO is forecast to have sufficient cash runway for 6 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is DroneShield current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DRO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DRO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DRO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DRO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DRO's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Oleg Vornik

3.75yrs

Tenure

AU$1,101,293

Compensation

Mr. Oleg Vornik has been the Chief Executive Officer, Managing Director and Executive Director of DroneShield Limited since January 24, 2017. Mr. Vornik has been Chief Executive Officer, Managing Director ...


CEO Compensation Analysis

Compensation vs Market: Oleg's total compensation ($USD780.39K) is above average for companies of similar size in the Australian market ($USD277.02K).

Compensation vs Earnings: Oleg's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Oleg Vornik
CEO, MD & Executive Director3.75yrsAU$1.10m1.06%
A$ 762.2k
Carla Balanco
CFO & Company Secretary1.17yrsno datano data
James Gatley
Chief Operating Officerno datano datano data
Angus Bean
Chief Technology Officer1.92yrsno datano data
Matthew McCrann
Vice President of Sales1yrno datano data
Dan Stamm
Chief Commercial Officer of DroneShield LLCno datano datano data

1.5yrs

Average Tenure

Experienced Management: DRO's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Oleg Vornik
CEO, MD & Executive Director3.75yrsAU$1.10m1.06%
A$ 762.2k
Jay Cohen
Member of Advisory Boardno dataAU$39.51kno data
Peter James
Independent Non-Executive Chairman3.83yrsAU$480.77k0.86%
A$ 614.2k
Jethro Marks
Independent Non-Executive Director0.75yrno datano data

3.8yrs

Average Tenure

Experienced Board: DRO's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DRO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 54%.


Top Shareholders

Company Information

DroneShield Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DroneShield Limited
  • Ticker: DRO
  • Exchange: ASX
  • Founded: 2014
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: AU$71.817m
  • Shares outstanding: 388.20m
  • Website: https://www.droneshield.com

Location

  • DroneShield Limited
  • 126 Phillip Street
  • Level 5
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DROASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2016
DROCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2016
DRSH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2016
DRHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2016

Biography

DroneShield Limited engages in the development, commercialization, and sale of hardware and software technology for drone detection and security in the United States, the United Kingdom, Australia, and int ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 10:38
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.