DUG Technology Ltd (AU:DUG)
ASX:DUG
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DUG Technology Ltd
(Sydney:DUG)
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Rating:46Neutral
Price Target:
AU$2.50
▲(26.26% Upside)
Action:Upgraded
Date:01/29/26
The score is held down primarily by weak financial performance (negative margins and sharp free-cash-flow deterioration) and bearish technical conditions (below key moving averages with negative MACD). Valuation provides limited support because the company is loss-making (negative P/E) and there is no dividend yield data.
Positive Factors
Usage-based HPC revenue model
A usage-based, contractable computing-as-a-service model creates recurring, scalable revenue tied to customer workloads. This aligns DUG with long-term structural demand for HPC capacity, enabling revenue growth as clients increase data processing while improving utilization-driven unit economics over time.
Negative Factors
Negative profitability
Persistent negative net margins and declining operating margins indicate the company is not yet converting revenue into sustainable profits. Over months this constrains retained earnings, weakens return metrics, and may force cost restructuring or external financing to support growth investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Usage-based HPC revenue model
A usage-based, contractable computing-as-a-service model creates recurring, scalable revenue tied to customer workloads. This aligns DUG with long-term structural demand for HPC capacity, enabling revenue growth as clients increase data processing while improving utilization-driven unit economics over time.
Read all positive factors
DUG Technology Ltd (DUG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$319.76M
Dividend YieldN/A
Average Volume (3M)386.82K
Price to Earnings (P/E)142.0
Beta (1Y)1.52
Revenue Growth17.94%
EPS GrowthN/A
CountryAU
Employees237
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.01
Shares Outstanding135,493,180
10 Day Avg. Volume322,626
30 Day Avg. Volume386,822
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)2.44
Price to Sales (P/S)1.85
P/FCF Ratio-40.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.09Price Target Upside55.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.04
Revenue Forecast (FY)AU$85.20M
DUG Technology Ltd Business Overview & Revenue Model
Company Description
Dug Technology Ltd, a technology company, provides hardware and software solutions for the technology and resource sectors in Australia, Malaysia, the United States, and the United Kingdom. The company offers high-performance computing as a servic...
How the Company Makes Money
DUG makes money mainly by charging customers for (1) seismic data processing and imaging services and (2) access to high-performance computing capacity used to run data-intensive workloads. In its seismic business, DUG earns service revenue by pro...
DUG Technology Ltd Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.94M | 62.58M | 65.50M | 50.95M | 33.66M | 38.45M |
| Gross Profit | 31.02M | 62.58M | 37.55M | 11.41M | -1.06M | 9.21M |
| EBITDA | 22.98M | 11.52M | 15.55M | 14.23M | 1.86M | -2.57M |
| Net Income | 1.62M | -3.89M | 2.77M | 5.00M | -9.27M | -15.83M |
Balance Sheet | ||||||
| Total Assets | 105.74M | 91.45M | 80.09M | 47.07M | 39.07M | 55.96M |
| Cash, Cash Equivalents and Short-Term Investments | 14.30M | 16.41M | 9.38M | 7.99M | 2.66M | 10.02M |
| Total Debt | 54.33M | 33.81M | 35.05M | 15.52M | 16.87M | 33.52M |
| Total Liabilities | 56.83M | 44.17M | 50.07M | 26.16M | 25.18M | 2.70M |
| Stockholders Equity | 49.47M | 47.32M | 29.55M | 21.00M | 13.95M | 11.43M |
Cash Flow | ||||||
| Free Cash Flow | 11.10M | -2.82M | -19.21M | 17.04M | -2.13M | -9.04M |
| Operating Cash Flow | 15.32M | 5.58M | 12.11M | 20.12M | -615.57K | -2.83M |
| Investing Cash Flow | -4.65M | -8.40M | -30.41M | -3.01M | -1.50M | -6.00M |
| Financing Cash Flow | -14.49M | 9.80M | 19.84M | -4.86M | -5.24M | 6.77M |
DUG Technology Ltd Technical Analysis
Positive
1.98
Price Trends
2.15
Positive
2.06
Positive
2.13
Positive
Market Momentum
0.06
Negative
59.48
Neutral
79.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DUG, the sentiment is Positive. The current price of 1.98 is below the 20-day moving average (MA) of 2.31, below the 50-day MA of 2.15, and below the 200-day MA of 2.13, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.48 is Neutral, neither overbought nor oversold. The STOCH value of 79.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DUG.
DUG Technology Ltd Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | AU$1.36B | 28.52 | 58.17% | 3.02% | 17.39% | 10.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | AU$165.43M | 189.15 | 0.40% | ― | 24.26% | -94.15% | |
58 Neutral | AU$38.22M | 10.51 | 4.70% | 4.66% | -1.81% | -61.23% | |
56 Neutral | AU$60.17M | 35.92 | 5.67% | ― | 13.98% | 90.00% | |
52 Neutral | AU$310.90M | -6.91 | -26.36% | ― | 0.60% | 4.13% | |
46 Neutral | AU$319.76M | 142.05 | -10.10% | ― | 17.94% | ― |
* Technology Sector Average
AU:DUG
DUG Technology Ltd
2.39
1.14
91.20%
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DUG Technology Ltd Corporate Events
DUG Technology Surges in Q3 as Software and HPC Drive Margin Expansion
Apr 30, 2026
DUG Technology reported a strong third quarter for FY26, with total revenue up 35% year-on-year to US$22.4 million and EBITDA rising 49%, while nine-month results have already exceeded the prior full-year. Growth was driven by its services busines...
JPMorgan Chase Ceases to Be Substantial Holder in DUG Technology
Apr 19, 2026
JPMorgan Chase Co. and its affiliates have notified DUG Technology Ltd that they have ceased to be a substantial shareholder in the company as of 15 April 2026. The change stems from transactions including rehypothecation of client securities und...
DUG Technology Cuts U.S. Legal Exposure With US$1.5m Settlement
Mar 18, 2026
DUG Technology’s U.S. subsidiary, DownUnder GeoSolutions (America) LLC, has settled a legal dispute with a supplier in the Southern District of Texas over a contested invoice under an energy management services agreement. Under the settlemen...
DUG Director David Monk Increases Indirect Shareholding via On-Market Trades
Mar 10, 2026
DUG Technology has disclosed a change in the indirect shareholding of director David Monk, in line with ASX requirements on director interests. Monk holds his stake via Citicorp Nominees on behalf of Fidelity Investments, reflecting a beneficial o...
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.