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DroneShield Limited (AU:DRO)
ASX:DRO

DroneShield Limited (DRO) AI Stock Analysis

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AU

DroneShield Limited

(Sydney:DRO)

Rating:64Neutral
Price Target:
AU$2.50
â–²(5.04%Upside)
The overall stock score is primarily driven by strong technical momentum and a solid financial structure. However, this is offset by poor valuation metrics and profitability concerns. The financial stability provides a foundation for future improvements, but current valuation and cash flow challenges need to be addressed.

DroneShield Limited (DRO) vs. iShares MSCI Australia ETF (EWA)

DroneShield Limited Business Overview & Revenue Model

Company DescriptionDroneShield 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 MoneyDroneShield Limited generates revenue primarily through the sale of its proprietary drone detection and countermeasure systems. The company's key revenue streams include direct sales of its hardware and software solutions to defense organizations, government agencies, and critical infrastructure operators globally. In addition to product sales, DroneShield also earns income from providing ongoing maintenance, support services, and software updates. Strategic partnerships and collaborations with defense contractors and technology firms enhance its market reach and contribute to its earnings. The company's ability to secure contracts and agreements with international defense and security agencies significantly impacts its financial performance.

DroneShield Limited Financial Statement Overview

Summary
DroneShield Limited demonstrates promising revenue growth and strong equity positioning, but profitability and cash flow management are areas that need improvement. The robust balance sheet provides financial stability, counterbalancing the volatility in cash flows and ongoing profitability challenges.
Income Statement
65
Positive
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
72
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue57.53M54.09M16.81M10.47M5.03M
Gross Profit41.24M38.95M11.83M7.62M3.20M
EBITDA-2.71M2.56M-2.36M-6.22M-6.89M
Net Income-1.32M9.33M-949.30K-5.31M-5.87M
Balance Sheet
Total Assets355.88M97.05M25.21M18.34M23.13M
Cash, Cash Equivalents and Short-Term Investments219.49M56.77M10.22M9.49M16.29M
Total Debt9.11M2.63M596.10K248.37K476.56K
Total Liabilities44.29M22.54M6.21M2.76M3.54M
Stockholders Equity311.59M74.51M19.00M15.58M19.59M
Cash Flow
Free Cash Flow-75.21M6.56M-2.58M-6.74M-5.42M
Operating Cash Flow-58.04M9.48M-1.75M-6.27M-4.65M
Investing Cash Flow-169.85M-1.95M-832.17K-467.45K-772.16K
Financing Cash Flow231.89M39.11M3.06M-122.03K16.30M

DroneShield Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.38
Price Trends
50DMA
1.45
Positive
100DMA
1.15
Positive
200DMA
1.02
Positive
Market Momentum
MACD
0.23
Negative
RSI
78.26
Negative
STOCH
87.05
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 2.38 is above the 20-day moving average (MA) of 1.76, above the 50-day MA of 1.45, and above the 200-day MA of 1.02, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 78.26 is Negative, neither overbought nor oversold. The STOCH value of 87.05 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUDRO
64
Neutral
$1.87B65.04-0.70%―6.36%-115.00%
63
Neutral
$33.22B5.99-11.76%1.92%5.54%-19.87%
AUDWG
42
Neutral
AU$10.22M―-434.90%―72.45%47.70%
AUASV
AU$25.14M87.505.39%―――
AUAMX
44
Neutral
AU$19.47M―-24.21%―-11.35%-49.13%
AUTAL
AU$18.93M―-68.64%―――
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DRO
DroneShield Limited
2.38
0.70
41.67%
AU:DWG
IXUP Ltd.
0.09
-0.23
-71.88%
AU:ASV
Asset Vision
0.04
0.02
100.00%
AU:AMX
Aerometrex Ltd.
0.21
-0.23
-52.27%
AU:TAL
HSC Technology Group Ltd.
0.06
-0.04
-40.00%

DroneShield Limited Corporate Events

DroneShield Issues Unquoted Securities to Boost Employee Incentives
Jun 27, 2025

DroneShield Limited has announced the issuance of 915,000 unquoted securities under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize its workforce, potentially enhancing employee engagement and aligning their interests with corporate goals.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Limited Issues New Securities to Boost Market Presence
Jun 27, 2025

DroneShield Limited has announced the issuance of 80,000 ordinary fully paid securities, which will be quoted on the Australian Securities Exchange (ASX) under the code DRO. This move is part of the company’s strategic financial operations, potentially enhancing its market presence and providing additional capital for growth and development in the drone defense sector.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

MUFG Acquires Substantial Interest in DroneShield Limited
Jun 27, 2025

Mitsubishi UFJ Financial Group (MUFG) has informed First Sentier Investors Holdings Pty Limited that it holds a substantial interest in DroneShield Limited through its subsidiary, First Sentier Investors. This announcement highlights MUFG’s strategic investment in DroneShield, potentially impacting the company’s market dynamics and stakeholder interests by increasing its voting power and influence within the company.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Substantial Holder Voting Power Update
Jun 26, 2025

DroneShield Limited has experienced a change in the voting power of its substantial holder, Regal Funds Management Pty Limited and its associates. The notice indicates a decrease in their voting power from 9.38% to 8.37%, reflecting a shift in the control over the company’s ordinary shares, which may influence the company’s governance and strategic decisions.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Limited Reports Record Q1 2025 Revenue and Strong Growth
Jun 24, 2025

DroneShield Limited reported a strong start to 2025, achieving a record quarterly revenue of A$33.5 million, marking a 102% increase from the previous year. The company has a robust pipeline valued at A$2.41 billion and has secured A$161 million in revenues year-to-date, demonstrating significant growth and positioning it well for future expansion and investment in its counter-drone technology.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

State Street Global Advisors Ceases Substantial Holding in DroneShield
Jun 18, 2025

DroneShield Limited has announced that State Street Global Advisors Europe Limited and its subsidiaries have ceased to be substantial holders in the company as of June 16, 2025. This change in substantial holding may affect the company’s shareholder structure and could have implications for its market positioning and investor relations.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Limited Announces Quotation of New Securities on ASX
Jun 13, 2025

DroneShield Limited has announced the quotation of 200,000 fully paid ordinary securities on the Australian Securities Exchange (ASX), following the exercise of options or conversion of other convertible securities. This move is likely to enhance the company’s capital base, potentially supporting its growth and operational capabilities in the counter-drone technology market.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Limited Announces New Substantial Holder
Jun 12, 2025

DroneShield Limited has announced a significant change in its shareholder structure with the emergence of a new substantial holder. This development involves State Street Corporation and its subsidiaries, who have acquired a notable voting power in DroneShield Limited. This change in shareholding could potentially impact the company’s strategic direction and influence its market positioning, reflecting a shift in investor confidence and interest in the company’s operations.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Announces Director’s Interest Change Amid Strategic Alignments
May 30, 2025

DroneShield Limited has announced a change in the director’s interest, specifically involving Oleg Vornik. The change involves an off-market transfer of existing performance options to a different holding entity and the issuance of new performance options following shareholder approval at the recent Annual General Meeting. This adjustment in director’s interests reflects strategic decisions made by the company to align its leadership’s incentives with performance milestones, potentially impacting its operational focus and stakeholder confidence.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Limited Announces Cessation of Securities
May 30, 2025

DroneShield Limited has announced the cessation of 25,000 securities due to the lapse of conditional rights, as the conditions for these securities were not met or became incapable of being satisfied. This announcement reflects a routine adjustment in the company’s issued capital, which may have implications for stakeholders regarding the company’s financial structuring and market positioning.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Limited Issues New Unquoted Securities
May 30, 2025

DroneShield Limited has announced the issuance of 709,361 unquoted securities, which are options expiring on various dates at various prices. This move is part of the company’s strategy to enhance its financial flexibility and potentially strengthen its capital structure, reflecting its ongoing commitment to growth and market expansion.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Limited to Quote New Securities on ASX
May 30, 2025

DroneShield Limited has announced the application for the quotation of 248,695 ordinary fully paid securities on the Australian Securities Exchange (ASX), effective May 29, 2025. This move is part of the company’s strategic efforts to enhance its market presence and operational capabilities, potentially impacting its industry positioning by increasing its financial resources and shareholder base.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Secures Shareholder Approval for Strategic Resolutions
May 28, 2025

DroneShield Limited announced that all resolutions were passed at their Annual General Meeting, reflecting strong shareholder support for the company’s strategic direction. The resolutions included the election of directors and approval of remuneration and incentive plans, indicating continued confidence in the company’s leadership and growth potential.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

DroneShield Limited Reports Record Revenue and Strong Growth in 2025
May 27, 2025

DroneShield Limited has reported a robust start to 2025, achieving a record quarterly revenue of A$33.5 million, marking a 102% increase compared to the same period last year. The company’s strategic focus on software is evident with a 198% rise in SaaS revenue, contributing significantly to its goal of having over 50% of its revenue from software in five years. With a substantial project pipeline valued at A$2.34 billion and a strong cash balance of A$213.4 million, DroneShield is well-positioned for continued growth and expansion. The company has secured A$100.4 million in revenues year-to-date, surpassing its total revenue for 2024 in less than five months, indicating strong operational execution and market demand for its products.

The most recent analyst rating on (AU:DRO) stock is a Buy with a A$1.30 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
May 7, 2025

DroneShield Limited has announced a change in substantial holding, as State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of May 5, 2025. This change in substantial holding may impact the company’s shareholder composition and could influence its market dynamics, as State Street Corporation’s involvement with DroneShield Limited has altered.

JPMorgan Chase & Co. Ceases Substantial Holding in DroneShield
May 4, 2025

JPMorgan Chase & Co. and its affiliates have ceased to be substantial holders in DroneShield Limited as of April 30, 2025. This change in holdings, involving securities on loan and proprietary trading, may impact DroneShield’s shareholder composition and market perception, potentially influencing investor confidence and the company’s strategic decisions.

DroneShield Limited Announces Change in Substantial Shareholding
May 2, 2025

DroneShield Limited has announced a significant change in its substantial shareholders, with State Street Corporation and its subsidiaries acquiring a relevant interest in a large number of voting shares. This development could impact DroneShield’s market positioning and influence its strategic decisions, as the new substantial holder has the power to control the exercise of voting rights attached to these securities.

DroneShield Limited Announces Change in Substantial Holding
May 1, 2025

DroneShield Limited has announced a change in the substantial holding of its shares, as State Street Corporation and its subsidiaries have ceased to be substantial holders. This development may impact the company’s shareholder structure and could influence future decisions regarding voting interests and corporate governance.

DroneShield Updates Proxy Voting Form for AGM
May 1, 2025

DroneShield Limited has updated its proxy voting form for the upcoming Annual General Meeting on 28 May 2025. The update authorizes the Chair to vote undirected proxies on specific resolutions, and shareholders are requested to use the new form if their previous submission did not include voting directions. This adjustment ensures clarity and proper representation during the meeting, potentially impacting shareholder engagement and decision-making processes.

DroneShield Attracts Significant Institutional Investment
Apr 30, 2025

DroneShield Limited has announced the acquisition of a substantial holding by several financial institutions, including State Street Bank and Trust Company and The Macquarie Group. This development indicates a significant interest from major investors, potentially impacting the company’s market position and shareholder dynamics.

DroneShield Announces Hybrid Format for Upcoming AGM
Apr 28, 2025

DroneShield Limited has announced that its Annual General Meeting will be held in a hybrid format on 28 May 2025, allowing both physical and virtual attendance. This approach reflects the company’s commitment to accessibility and shareholder engagement, emphasizing the importance of shareholder participation in decision-making processes.

JPMorgan Acquires Significant Stake in DroneShield Limited
Apr 27, 2025

JPMorgan Chase & Co. and its affiliates have become a substantial holder in DroneShield Limited, acquiring a 5.31% voting power through various securities transactions. This acquisition highlights JPMorgan’s strategic interest in the defense and security sector, potentially impacting DroneShield’s market positioning and stakeholder dynamics by aligning with a significant financial entity.

DroneShield Limited Announces Cessation of Securities
Apr 24, 2025

DroneShield Limited has announced the cessation of 250,000 securities due to the lapse of conditional rights, as the conditions for these securities have not been met. This development may impact the company’s financial structure and investor relations, as it reflects the company’s ongoing adjustments to its securities and capital management strategy.

DroneShield Limited Issues Unquoted Securities to Boost Employee Engagement
Apr 24, 2025

DroneShield Limited announced the issuance of 145,000 unquoted securities under an employee incentive scheme. This move is part of the company’s strategic initiatives to enhance employee engagement and align their interests with the company’s growth objectives, potentially impacting its operational dynamics and stakeholder relationships.

DroneShield Limited Announces Quotation of New Securities
Apr 24, 2025

DroneShield Limited has announced the application for quotation of 625,000 ordinary fully paid securities on the Australian Securities Exchange (ASX), with an issue date of April 24, 2025. This move could potentially enhance the company’s capital base, supporting its growth and strengthening its position in the competitive drone defense market.

DroneShield Reports Robust Growth in Q1 2025 Amid Rising C-UAS Demand
Apr 21, 2025

DroneShield Limited has reported significant growth in its first-quarter results for 2025, with revenues up by 102% and cash receipts increasing by 135% compared to the same period in 2024. This surge is attributed to the global rise in demand for counter-unmanned aerial systems, highlighting the company’s strengthened market position and potential for future revenue growth.

DroneShield Secures $32.2 Million Contracts in Asia Pacific
Apr 13, 2025

DroneShield Limited has secured a significant package of five contracts totaling $32.2 million from a military customer in the Asia Pacific region. These contracts, facilitated through an in-country reseller, involve the delivery of vehicle-mounted and fixed Counter-UxS systems, with completion and payment expected by Q3 2025. This development marks a substantial increase in order volume from this customer, reflecting DroneShield’s expanding role in the counterdrone industry as demand for their solutions grows across multiple regions.

Regal Funds Management Increases Stake in DroneShield Limited
Apr 8, 2025

Regal Funds Management Pty Ltd and its associates have increased their substantial holding in DroneShield Limited, as indicated in the recent notice of change of interests. This change in voting power reflects a strategic move by Regal Funds to potentially influence the company’s decision-making process, impacting its operations and market positioning.

DroneShield Announces Director’s Interest Change
Apr 4, 2025

DroneShield Limited has announced a change in the director’s interest notice for Peter James, involving an off-market transfer of securities. The change reflects a reallocation of shares held by various trusts associated with Mr. James, while his overall holdings remain unchanged. This notice is part of the company’s compliance with ASX listing rules, ensuring transparency in director dealings.

DroneShield Limited Announces Cessation of Securities
Mar 28, 2025

DroneShield Limited announced the cessation of 100,000 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could influence investor perceptions, although it does not directly affect the company’s operational capabilities or market positioning.

DroneShield Limited Issues Unquoted Securities to Boost Workforce Incentives
Mar 28, 2025

DroneShield Limited has announced the issuance of 260,000 unquoted securities under an employee incentive scheme. This move is part of the company’s strategy to enhance its operational capabilities and incentivize its workforce, potentially strengthening its position in the counter-drone technology market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025