DroneShield Limited (DRO) AI Stock Analysis

• Market Cap: AU$3.26B
• Dividend Yield: N/A
• Average Volume (3M): 14.27M
• Price to Earnings (P/E): 460.5
• Beta (1Y): 0.84
• Revenue Growth: 61.31%
• EPS Growth: -34.15%
• Country: AU
• Employees: 60
• Sector: Industrials
• Sector Strength: 72
• Industry: Computer Hardware
• EPS (TTM): <0.01
• Shares Outstanding: 874,718,900
• 10 Day Avg. Volume: 13,770,044
• 30 Day Avg. Volume: 14,269,859
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$3.63
• Price Target Upside: -2.62% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: AU$3.50 ▼(-6.17% Downside)

DroneShield Limited's overall stock score is driven by strong revenue growth and a robust project pipeline, as highlighted in the earnings call. However, the high P/E ratio and challenges in profitability and cash flow management weigh down the score. Technical indicators suggest mixed momentum, with short-term bearish signals but a longer-term uptrend.

DroneShield Limited Business Overview & Revenue Model

Company Description

DroneShield Limited engages in the development, commercialization, and sale of hardware and software technology for drone detection and security worldwide. Its products include DroneGun Tactical, a countermeasure against a range of drone models; DroneGun MkIII, a compact, lightweight, and UAS countermeasure solution; DroneSim, a critical tool in the simulation, training, and testing of drone detection equipment and processes; DroneSentry-X, a cross-vehicle compatible, automated 360° detect and defeat device; and DroneSentry that integrates company's suite of sensors and countermeasures in a unified platform deployable in permanent or temporary installations. The company also offers DroneSentry-C2, a Command-and-Control (C2) system with functionality, including graphic user interface; and RfPatrol, a passive/non-emitting wearable UAS detection device that offers real situational awareness without distraction or complex operation. Its products are used by defense agencies; airports and other civil defense users; utilities, such as power plants, electricity grids, and gas pipelines; ports and other critical infrastructure asset owners; intelligence and national security agencies; prisons; stadiums and other public event venues and organizers; media production sites; real estate owners, including hotels, commercial offices, and manufacturing plants; and ultra-high net worth individuals and government officials. The company sells its products through third party distributors, as well as direct relationships with various customers. DroneShield Limited was founded in 2014 and is based in Sydney, Australia.

How the Company Makes Money

DroneShield Limited generates revenue through the sale of its advanced drone detection and countermeasure systems. The company's revenue model primarily involves the direct sale of hardware and software solutions to government and defense agencies, critical infrastructure facilities, and commercial entities concerned with drone threats. Key revenue streams include the sale of stationary and portable detection devices, counter-drone equipment, and comprehensive security solutions that integrate with existing security systems. Additionally, DroneShield engages in partnerships and collaborations with defense contractors and technology companies to enhance its product offerings and expand its market reach. Service contracts, including maintenance and support, also contribute to its earnings, providing ongoing revenue opportunities beyond initial sales.

DroneShield Limited Financial Statement Overview

Summary

DroneShield Limited shows strong revenue growth and a robust balance sheet with low leverage. However, profitability and cash flow management remain areas for improvement, with negative net income and volatile cash flows.

Income Statement

DroneShield Limited shows a strong revenue growth trend, increasing significantly over the years from 2019 to 2024. However, profitability is a concern with net income often negative and EBIT margins fluctuating. The company has managed to improve its gross profit margin over the years, but net profit margin remains under pressure, indicating challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet is robust with a strong equity base and a low debt-to-equity ratio, indicating financial stability. The company has consistently maintained a high equity ratio, suggesting a low reliance on debt financing. This positions DroneShield Limited favorably for future growth despite historical losses.

Cash Flow

Cash flows are volatile with negative free cash flow observed in recent years due to high capital expenditures. The company has managed to secure financing to bolster its cash position. However, the operating cash flow has been inconsistent, pointing to challenges in generating cash from its core operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.53M	54.09M	16.81M	10.47M	5.03M
Gross Profit	41.24M	38.95M	11.83M	7.62M	3.20M
EBITDA	-2.71M	2.56M	-2.36M	-6.22M	-6.89M
Net Income	-1.32M	9.33M	-949.30K	-5.31M	-5.87M
Balance Sheet
Total Assets	355.88M	97.05M	25.21M	18.34M	23.13M
Cash, Cash Equivalents and Short-Term Investments	219.49M	56.77M	10.22M	9.49M	16.29M
Total Debt	9.11M	2.63M	596.10K	248.37K	476.56K
Total Liabilities	44.29M	22.54M	6.21M	2.76M	3.54M
Stockholders Equity	311.59M	74.51M	19.00M	15.58M	19.59M
Cash Flow
Free Cash Flow	-75.21M	6.56M	-2.58M	-6.74M	-5.42M
Operating Cash Flow	-58.04M	9.48M	-1.75M	-6.27M	-4.65M
Investing Cash Flow	-169.85M	-1.95M	-832.17K	-467.45K	-772.16K
Financing Cash Flow	231.89M	39.11M	3.06M	-122.03K	16.30M

DroneShield Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DRO, the sentiment is Positive. The current price of 3.73 is above the 20-day moving average (MA) of 3.27, above the 50-day MA of 3.49, and above the 200-day MA of 1.78, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.17 is Neutral, neither overbought nor oversold. The STOCH value of 88.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DRO.

DroneShield Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRO	62 Neutral	AU$3.26B	460.49	2.19%	―	61.31%	-34.15%
DWG	48 Neutral	AU$7.67M	-0.38	―	―	8.64%	-19.82%
AMX	45 Neutral	AU$19.00M	-2.89	―	―	-3.43%	-40.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

DroneShield Limited Corporate Events

DroneShield Surpasses 4,000 Systems Sold with $7.9 Million U.S. Defense Contracts

DroneShield Limited has announced surpassing 4,000 systems sold globally, with new contracts totaling $7.9 million for handheld systems to be delivered to the U.S. Department of Defense. This milestone underscores DroneShield’s position as a trusted provider in the counter-drone industry, reflecting sustained end-user confidence and the effectiveness of its solutions. The company reported a record revenue of $72.3 million for the first half of 2025, indicating rapidly rising demand for its products. DroneShield’s production capabilities are supported by a robust Australian supply chain, and the company plans to expand its manufacturing to the U.S. and Europe by 2026 to further boost sales in those regions.

The most recent analyst rating on (AU:DRO) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Misses Out on Major Defence Contract

DroneShield Limited announced that it was not selected by the Australian Department of Defence as the Systems Integration Partner for Project LAND 156, a contract valued at $45.9 million. This decision, disclosed in response to an ASX inquiry, may impact DroneShield’s market positioning and investor perceptions, as the project represents a significant opportunity in the counter-drone sector.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$3.70 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Limited Announces Change in Substantial Holding

DroneShield Limited has announced a change in substantial holding, as State Street Corporation and its subsidiaries have ceased to be substantial holders as of August 29, 2025. This change in holding could impact DroneShield’s shareholder structure and influence within the market, potentially affecting its strategic decisions and stakeholder interests.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$3.70 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Misses LAND 156 SIP Contract but Sees Strong Demand

DroneShield Limited announced that it was not selected as the Systems Integration Partner for the Australian Department of Defence’s LAND 156 project, a contract awarded to Leidos Australia. Despite this, DroneShield has previously secured contracts under the initial phase of the program and remains optimistic about future opportunities within the $1.3 billion project. The company continues to experience strong demand for its counterdrone technology, evidenced by record revenues and profits, and a significant sale to a European customer. DroneShield’s technology is actively used by Ukrainian forces and over 30 militaries and law enforcement agencies globally, highlighting its effectiveness in high-threat environments.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$3.70 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Reports Record Revenue and Expands Project Pipeline in 2025

DroneShield Limited has reported a significant increase in its financial performance for the first half of 2025, with a 210% rise in revenue compared to the previous year, marking its highest revenue period to date. The company has also seen substantial growth in its project pipeline and workforce, positioning itself strongly for future expansion and continued investment in research and development to address evolving drone threats.

The most recent analyst rating on (AU:DRO) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Achieves Record Revenue and Expands Global Reach

DroneShield Limited reported record-breaking financial results for the first half of 2025, with a 210% increase in revenue to $72.3 million and a profit after tax of $2.1 million. The company is experiencing strong momentum into the second half of the year, driven by a significant contract and growing demand for its counterdrone solutions. DroneShield is expanding its production capacity and workforce to support its growth, with plans to scale manufacturing to $2.4 billion annually by 2026. The company’s strategic focus on AI-driven technology and global market expansion positions it for continued leadership in the counterdrone sector.

The most recent analyst rating on (AU:DRO) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.