DroneShield Limited
DroneShield Limited Fundamental Analysis
DroneShield Limited (DRSHF) shows weak financial fundamentals with a PE ratio of 921.52, profit margin of 1.62%, and ROE of 1.08%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 6.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DRSHF's fundamental strength across five key dimensions:
Efficiency Score
WeakDRSHF struggles to generate sufficient returns from assets.
Valuation Score
ModerateDRSHF shows balanced valuation metrics.
Growth Score
ModerateDRSHF shows steady but slowing expansion.
Financial Health Score
ExcellentDRSHF maintains a strong and stable balance sheet.
Profitability Score
ModerateDRSHF maintains healthy but balanced margins.
Key Financial Metrics
Is DRSHF Expensive or Cheap?
P/E Ratio
DRSHF trades at 921.52 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DRSHF's PEG of -12.63 indicates potential undervaluation.
Price to Book
The market values DroneShield Limited at 9.64 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 622.32 times EBITDA. This signals the market has high growth expectations.
How Well Does DRSHF Make Money?
Net Profit Margin
For every $100 in sales, DroneShield Limited keeps $1.62 as profit after all expenses.
Operating Margin
Core operations generate -1.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.08 in profit for every $100 of shareholder equity.
ROA
DroneShield Limited generates $0.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DroneShield Limited generates limited operating cash flow of $19.47M, signaling weaker underlying cash strength.
Free Cash Flow
DroneShield Limited generates weak or negative free cash flow of $4.55M, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
DRSHF converts 0.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
921.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How DRSHF Stacks Against Its Sector Peers
| Metric | DRSHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 921.52 | 35.87 | Worse (Expensive) |
| ROE | 1.08% | 1175.00% | Weak |
| Net Margin | 1.62% | -137082.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 5.78 | 4.81 | Strong Liquidity |
| ROA | 0.85% | -312683.00% (disorted) | Weak |
DRSHF outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DroneShield Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
414.30%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
94.60%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-265.41%
Industry Style: Growth, Innovation, High Beta
Declining