ASX:DRO

Stock Analysis Report

Executive Summary

DroneShield Limited engages in the development and commercialization of hardware and software technology for drone detection and security worldwide.

Snowflake

Fundamentals

Imperfect 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


Market Performance


7 Day Return

11.8%

DRO

1.0%

AU Aerospace & Defense

0.4%

AU Market


1 Year Return

145.2%

DRO

110.5%

AU Aerospace & Defense

9.8%

AU Market

Return vs Industry: DRO exceeded the Australian Aerospace & Defense industry which returned 110.5% over the past year.

Return vs Market: DRO exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

DROIndustryMarket
7 Day11.8%1.0%0.4%
30 Day-5.0%3.9%-1.1%
90 Day145.2%20.5%-0.6%
1 Year145.2%145.2%114.3%110.5%16.1%9.8%
3 Year100.0%100.0%184.4%170.4%36.1%17.9%
5 Yearn/a267.3%234.4%49.4%15.7%

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?

54.39x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Undervalued: 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 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

Low 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 (54.4x) compared to the AU Aerospace & Defense industry average (4.5x).


Next Steps

Future Growth

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

12.9%

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?

-31.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DRO is unprofitable, and losses have increased over the past 5 years at a rate of -31.6% 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 (16.5%).


Return on Equity

High ROE: DRO has a negative Return on Equity (-402.1%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: DRO is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: DRO is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is DroneShield's financial position?


Financial Position Analysis

Short Term Liabilities: DRO's short term assets (A$3.1M) exceeds its short term liabilities (A$2.7M)

Long Term Liabilities: DRO has no long term liabilities


Debt to Equity History and Analysis

Debt Level: DRO's debt to equity ratio (41.5%) is considered high

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


Balance Sheet

Inventory Level: DRO has a high level of physical assets or inventory.

Debt Coverage by Assets: DRO's debt is covered by short term assets (assets are 5.608950x debt).


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 less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: DRO has less than a year of cash runway if free cash flow continues to reduce at historical rates of -16.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of DroneShield's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Oleg Vornik 0

2.8yrs

Tenure

AU$636,943

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Oleg's total compensation ($USD436.05K) is about average for companies of similar size in the Australian market ($USD256.55K).

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


Management Age and Tenure

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 Age and Tenure

2.8yrs

Average Tenure

Experienced Board: DRO's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: DRO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$127,12425 Sep 19
Regal Funds Management Pty Limited
EntityCompany
Shares314,741
Max PriceAU$0.40
BuyAU$2,522,46225 Sep 19
Regal Funds Management Pty Limited
EntityCompany
Shares6,551,853
Max PriceAU$0.39
SellAU$527,48424 Sep 19
Regal Funds Management Pty Limited
EntityCompany
Shares1,340,010
Max PriceAU$0.40
SellAU$3,639,63719 Sep 19
Bergen Asset Management, LLC
EntityCompany
Shares9,267,858
Max PriceAU$0.40
SellAU$7,72913 Sep 19
Regal Funds Management Pty Limited
EntityCompany
Shares24,932
Max PriceAU$0.31
BuyAU$5,249,97513 Sep 19
Regal Funds Management Pty Limited
EntityCompany
Shares17,500,000
Max PriceAU$0.30
BuyAU$1,177,13108 Aug 19
Charles Goode
EntityIndividual
Shares8,434,417
Max PriceAU$0.26
SellAU$188,11326 Jul 19
Brian Hearing
EntityIndividual
Shares1,075,450
Max PriceAU$0.17
SellAU$304,43015 Jul 19
Brian Hearing
EntityIndividual
Shares2,052,969
Max PriceAU$0.15
SellAU$2,170,19012 Jul 19
Eagle's View Capital Management, LLC
EntityCompany
Shares14,385,096
Max PriceAU$0.15
SellAU$270,89231 May 19
Brian Hearing
EntityIndividual
Shares2,027,310
Max PriceAU$0.13
SellAU$173,59124 Feb 19
Brian Hearing
EntityIndividual
Shares1,293,681
Max PriceAU$0.13
SellAU$70,11022 Feb 19
Bergen Asset Management, LLC
EntityCompany
Shares467,939
Max PriceAU$0.15
SellAU$261,26513 Nov 18
Brian Hearing
EntityIndividual
Shares1,565,603
Max PriceAU$0.17

Ownership Breakdown


Management Team

  • Oleg Vornik

    CEO, MD & Director

    • Tenure: 2.8yrs
    • Compensation: AU$636.94k
  • John Franklin

    Chief Scientist

    • Tenure: 0yrs
  • Dean Jagger

    Company Secretary

    • Tenure: 1.5yrs
  • Angus Bean

    Global Chief Technology Officer

    • Tenure: 0.9yrs
  • Carla Balanco

    Chief Financial Officer

    • Tenure: 0yrs
  • James Gatley

    Chief Operating Officer

    • Tenure: 0yrs
  • Dan Stamm

    Chief Commercial Officer of DroneShield LLC

    • Tenure: 0yrs

Board Members

  • Jay Cohen (72yo)

    Member of Advisory Board

    • Tenure: 0yrs
    • Compensation: AU$39.51k
  • Peter James (69yo)

    Independent Non-Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: AU$305.62k
  • Brad Buswell

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$164.75k
  • Robert Clisdell

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$86.52k
  • Samantha Ravich

    Member of Advisory Board

    • Tenure: 0yrs
    • Compensation: AU$30.00k
  • Oleg Vornik

    CEO, MD & Director

    • Tenure: 2.8yrs
    • Compensation: AU$636.94k

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$95.803m
  • Shares outstanding: 252.11m
  • 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 and commercialization of hardware and software technology for drone detection and security worldwide. The company’s drone security solutions protect people, o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:40
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.