TSXV:FLT

Stock Analysis Report

Drone Delivery Canada

Executive Summary

Drone Delivery Canada Corp., a development stage technology company, designs, develops, and implements commercial drone logistics platform in Canada.

Snowflake

Fundamentals

Excellent balance sheet and slightly overvalued.

Share Price & News

How has Drone Delivery Canada's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.4%

FLT

-0.8%

CA Aerospace & Defense

-0.2%

CA Market


1 Year Return

-55.9%

FLT

20.7%

CA Aerospace & Defense

1.1%

CA Market

Return vs Industry: FLT underperformed the Canadian Aerospace & Defense industry which returned 20.7% over the past year.

Return vs Market: FLT underperformed the Canadian Market which returned 1.1% over the past year.


Shareholder returns

FLTIndustryMarket
7 Day-3.4%-0.8%-0.2%
30 Day-31.9%-4.7%-3.3%
90 Day-34.4%-9.0%-1.6%
1 Year-55.9%-55.9%22.3%20.7%4.6%1.1%
3 Year138.3%138.3%60.0%53.4%13.1%3.1%
5 Yearn/a105.8%91.4%24.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Drone Delivery Canada undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: FLT (CA$0.72) is trading below our estimate of fair value (CA$4.1)

Significantly Undervalued: FLT is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FLT is overvalued based on its PB Ratio (6.1x) compared to the CA Aerospace & Defense industry average (3.5x).


Next Steps

Future Growth

How is Drone Delivery Canada forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.0%

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 Drone Delivery Canada 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 Drone Delivery Canada performed over the past 5 years?

-64.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FLT is unprofitable, and losses have increased over the past 5 years at a rate of -64.3% per year.

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

Earnings vs Industry: FLT is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (9.7%).


Return on Equity

High ROE: FLT has a negative Return on Equity (-83.95%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Drone Delivery Canada's financial position?


Financial Position Analysis

Short Term Liabilities: FLT's short term assets (CA$20.1M) exceeds its short term liabilities (CA$1.1M)

Long Term Liabilities: FLT's short term assets (20.1M) exceeds its long term liabilities (468.5K)


Debt to Equity History and Analysis

Debt Level: FLT is debt free.

Reducing Debt: FLT had no debt 5 years ago.


Balance Sheet

Inventory Level: FLT has a low level of unsold assets or inventory.

Debt Coverage by Assets: FLT's debt is not covered by short term assets (assets are -1.8072383255404E+17x 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: FLT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if FLT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Drone Delivery Canada's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate FLT'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 FLT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FLT'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 FLT's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Michael Zahra 0

0.3yrs

Tenure

0

Mr. Michael Zahra has been the Chief Executive Officer, President and Director at Drone Delivery Canada Inc. since June 10, 2019 and served as its Senior Vice President of Operations and Strategy from Janu ...


Management Age and Tenure

3.4yrs

Average Tenure

Experienced Management: FLT's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

47.5yo

Average Age

Experienced Board: FLT's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$21,60011 Jul 19
Michael Zahra
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares20,000
Max PriceCA$1.08
BuyCA$5,85019 Jun 19
Michael Della Fortuna
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceCA$1.17
BuyCA$120,00027 Mar 19
Anthony Di Benedetto
EntityIndividual
Role
Member of Advisory Board
Member of Advisory Board
Shares100,000
Max PriceCA$1.20

Ownership Breakdown


Management Team

  • Richard Buzbuzian (48yo)

    Head of Capital Markets & Member of Advisory Board

    • Tenure: 0.7yrs
    • Compensation: CA$622.00k
  • Rob Suttie (50yo)

    Chief Financial Officer

    • Tenure: 8yrs
    • Compensation: CA$64.85k
  • Michael Zahra

    CEO, President & Director

    • Tenure: 0.3yrs
  • Paul Di Benedetto

    CTO & Corporate Secretary

    • Tenure: 3.4yrs
    • Compensation: CA$622.00k
  • Greg Colacitti

    Vice President of Business Development

    • Tenure: 3.4yrs
    • Compensation: CA$550.00k

Board Members

  • Richard Buzbuzian (48yo)

    Head of Capital Markets & Member of Advisory Board

    • Tenure: 0.7yrs
    • Compensation: CA$622.00k
  • Rob Montemarano

    Director

    • Tenure: 7.6yrs
  • Chris Irwin (45yo)

    Director

    • Tenure: 3.4yrs
  • Deepak Chopra (56yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • Michael Zahra

    CEO, President & Director

    • Tenure: 0.3yrs
  • Tony Di Benedetto (47yo)

    Member of Advisory Board

    • Tenure: 0.3yrs
    • Compensation: CA$622.00k
  • Michael Della Fortuna

    Director

    • Tenure: 3.4yrs
  • Hugh Liu

    Member of Technical Advisory Board

    • Tenure: 0yrs
  • Sebastian Fischmeister

    Member of Technical Advisory Board

    • Tenure: 0yrs
  • Craig Steeves

    Member of Technical Advisory Board

    • Tenure: 0yrs

Company Information

Drone Delivery Canada Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Drone Delivery Canada Corp.
  • Ticker: FLT
  • Exchange: TSXV
  • Founded: 2011
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: CA$125.811m
  • Shares outstanding: 175.96m
  • Website: https://www.dronedeliverycanada.com

Number of Employees


Location

  • Drone Delivery Canada Corp.
  • 6175 Highway 7
  • Unit 10
  • Vaughan
  • Ontario
  • L4H 0P6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TAKO.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDJun 2016
ABBDB (Deutsche Boerse AG)YesNew Common SharesDEEURJun 2016
FLTTSXV (TSX Venture Exchange)YesNew Common SharesCACADJun 2016

Biography

Drone Delivery Canada Corp., a development stage technology company, designs, develops, and implements commercial drone logistics platform in Canada. The company offers drone delivery services consisting o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:28
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.