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$2.00
▼(-3.38% Downside)
Action:UpgradedDate: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
Recurring HPC-as-a-service revenue model
DUG’s core business sells on-demand and contracted HPC capacity, a usage-based model that can generate recurring, predictable revenue as clients run compute-heavy workflows. Over months this supports scalability, capacity planning and long-term customer lock-in through data and workflow continuity.
Negative Factors
Negative and declining profitability
Persistent negative margins and shrinking operating profitability reduce retained earnings and constrain the company’s ability to self-fund growth. Over 2–6 months this inhibits reinvestment in compute capacity and product development and may require external capital to restore sustainable margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring HPC-as-a-service revenue model
DUG’s core business sells on-demand and contracted HPC capacity, a usage-based model that can generate recurring, predictable revenue as clients run compute-heavy workflows. Over months this supports scalability, capacity planning and long-term customer lock-in through data and workflow continuity.
Read all positive factors
DUG Technology Ltd (DUG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$279.12M
Dividend YieldN/A
Average Volume (3M)386.82K
Price to Earnings (P/E)31.8
Beta (1Y)1.50
Revenue Growth-3.10%
EPS Growth-236.41%
CountryAU
Employees237
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.02
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$3.03Price Target Upside46.38% 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 generates revenue primarily through its cloud computing services, particularly via its DUG McCloud platform, which provides clients with access to powerful computing resources on a pay-as-you-go basis. Additionally, the company earns income fr...
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
2.07
Price Trends
1.97
Positive
2.03
Positive
1.95
Positive
Market Momentum
0.02
Positive
54.69
Neutral
55.04
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 2.07 is above the 20-day moving average (MA) of 2.04, above the 50-day MA of 1.97, and above the 200-day MA of 1.95, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 55.04 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | AU$1.05B | 15.07 | 58.17% | 3.02% | 5.82% | 11.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | AU$199.15M | -16.19 | 0.40% | ― | 23.53% | -23.98% | |
58 Neutral | AU$35.49M | -77.51 | 4.70% | 4.66% | 14.59% | -11.13% | |
56 Neutral | AU$416.77M | -6.25 | -22.95% | ― | -9.02% | 80.67% | |
56 Neutral | AU$63.45M | 38.88 | 5.67% | ― | 11.90% | 42.11% | |
46 Neutral | AU$279.12M | 31.82 | -10.10% | ― | -3.10% | -236.41% |
* Technology Sector Average
AU:DUG
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DUG Technology Ltd Corporate Events
DUG Technology Delivers Record Half-Year on EPIC Contract Ramp-Up
Feb 25, 2026
DUG Technology reported its strongest half-year performance on record for the first half of FY26, supported by the signing and commissioning of a major Malaysian SaaS and HPCaaS contract under its EPIC offering. The US$43.3 million, three-year dea...
DUG Technology Delivers Record Half-Year on Services Growth and EPIC Contract Ramp-Up
Feb 25, 2026
DUG Technology reported record half-year results for the six months to 31 December 2025, with total revenue rising 40% to US$40.4 million and normalised EBITDA surging 161% to US$13.6 million, driven by strong growth in its Services division and a...
DUG Technology Swings to Profit on Strong Half-Year Revenue Growth
Feb 25, 2026
DUG Technology Ltd reported strong growth for the half-year ended 31 December 2025, with revenue from ordinary activities rising 40% to US$40.4 million and other income up 47%. EBITDA more than doubled to US$11.5 million, while normalised EBITDA, ...
DUG Technology Faces Adverse U.S. Court Judgment in Supplier Dispute
Feb 25, 2026
DUG Technology has reported that a U.S. federal court has entered final judgment against its U.S. subsidiary, DownUnder GeoSolutions (America) LLC, in a dispute with a supplier over an energy management services agreement. A Texas jury found DUG U...
DUG Technology Seeks ASX Quotation for Additional Ordinary Shares
Feb 22, 2026
DUG Technology Ltd has applied for quotation of 11,935 additional ordinary fully paid shares on the Australian Securities Exchange, with an issue date of 23 February 2026. The new securities arise from the exercise or conversion of existing option...
DUG sets date for FY26-H1 results and investor webinar
Feb 4, 2026
DUG Technology will release its FY26 first-half financial results and Appendix 4D on 26 February 2026, accompanied by a management-hosted webinar to brief investors on performance and strategy, reinforcing its engagement with stakeholders. The sch...
DUG Technology Seeks ASX Quotation for 69,253 New Ordinary Shares
Jan 19, 2026
DUG Technology Ltd has lodged an application with the ASX for the quotation of 69,253 new ordinary fully paid shares, issued on 19 January 2026. The modest enlargement of its quoted share capital reflects the conversion or exercise of existing opt...
DUG Technology Increases Equity Incentives for Director Matthew Lamont
Jan 2, 2026
DUG Technology has disclosed a change in director Matthew Lamont’s indirect interests, with additional equity-based incentives issued through an associated entity, Lamont Geophysical Services Pty Ltd . The transaction, dated 31 December 2025...
DUG Technology Issues Long-Dated Unlisted Options Under Employee Incentive Scheme
Dec 31, 2025
DUG Technology Ltd has notified the ASX of the issue of 115,749 zero exercise price unlisted options expiring on 30 November 2040 under its employee incentive scheme, with the securities issued on 31 December 2025 and subject to transfer restricti...
DUG Technology Issues 830,110 Long-Dated Unlisted Employee Options
Dec 31, 2025
DUG Technology Ltd has issued 830,110 zero exercise price unlisted options expiring on 30 November 2039 under an employee incentive scheme, with the securities subject to transfer restrictions and not quoted on the ASX until those restrictions lap...
DUG Technology Grants 830,110 Zero-Price Options Under Long-Term Incentive Plan
Dec 31, 2025
DUG Technology Ltd has granted 830,110 unlisted zero exercise price options (ZEPOs) under its Omnibus Long Term Incentive Plan, last approved by shareholders in November 2023, as part of its executive and staff remuneration framework. Of these, 36...
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.