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DUG Technology Ltd (AU:DUG)
ASX:DUG
Australian Market
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DUG Technology Ltd (DUG) AI Stock Analysis

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AU:DUG

DUG Technology Ltd

(Sydney:DUG)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
Price Target:
AU$2.00
▼(-26.74% Downside)
The overall stock score of 56 reflects significant financial challenges, including negative profitability and cash flow issues, which are partially offset by strong technical indicators suggesting bullish momentum. However, the poor valuation due to a negative P/E ratio and lack of dividend yield weighs heavily on the score.
Positive Factors
Business Model Strength
DUG's focus on high-performance computing and tailored solutions for complex data analysis positions it well in sectors requiring significant computational resources, offering a durable competitive advantage.
Strategic Partnerships
Strategic partnerships help DUG enhance its service offerings and expand its client base, providing a stable revenue stream and strengthening its market position over the long term.
Gross Profit Margin
A strong gross profit margin indicates effective cost management and pricing power, which can support profitability as the company addresses other financial challenges.
Negative Factors
Declining Revenue Growth
Declining revenue growth suggests challenges in market expansion or product adoption, which could impact long-term financial stability and market competitiveness.
Negative Profitability Margins
Negative profitability margins reflect operational inefficiencies and could hinder the company's ability to reinvest in growth opportunities, impacting long-term sustainability.
Cash Flow Challenges
Significant decline in free cash flow suggests liquidity issues, which may limit the company's ability to fund operations and strategic initiatives, affecting future growth prospects.

DUG Technology Ltd (DUG) vs. iShares MSCI Australia ETF (EWA)

DUG Technology Ltd Business Overview & Revenue Model

Company DescriptionDug 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 service solution; data center cooling solutions; DUG Insight, a 2D/3D/pre-stack visualization and interpretation package; and DUG McCloud, a cloud solution for compute as a service, professional services, and software. It also provides data services, including on-demand support for data loading, quality control, and management; and geoscience services, such as seismic processing, DUG deblend, full waveform inversion, depth and least-squares imaging, petrophysical processing and interpretation, quantitative interpretation, and regional velocity model services. The company was incorporated in 2003 and is headquartered in West Perth, Australia.
How the Company Makes MoneyDUG Technology Ltd generates revenue through a combination of software licensing, cloud computing services, and data processing solutions. The company offers its proprietary software products on a subscription basis, allowing clients to access powerful data analysis tools. Additionally, DUG earns income by providing scalable cloud-based high-performance computing services, which are essential for clients in industries that require significant computational resources. DUG also engages in strategic partnerships with organizations in various sectors, enhancing its service offerings and expanding its client base.

DUG Technology Ltd Financial Statement Overview

Summary
The company exhibits strong revenue growth and gross profit margins. However, decreased net profit margins and negative free cash flow indicate challenges in profitability and capital expenditure management. The high debt-to-equity ratio also poses a financial risk.
Income Statement
45
Neutral
The company has shown a significant improvement in revenue from the previous periods, with a revenue growth rate of 28.55% from 2023 to 2024. The gross profit margin is a strong 57.34%, indicating effective cost management. However, the net profit margin has decreased to 4.23%, suggesting higher expenses or lower operational efficiency. Despite the decrease in EBIT and EBITDA margins to 14.21% and 23.74% respectively, they remain relatively healthy, indicating stable operational profitability.
Balance Sheet
55
Neutral
The company has a high debt-to-equity ratio of 1.19, which could pose a risk if earnings do not cover interest expenses. However, the return on equity is a modest 9.37%, showing the company is generating returns from its equity base. The equity ratio of 36.89% suggests a moderate level of financial leverage, but there is room for improvement in balance sheet stability.
Cash Flow
40
Negative
The free cash flow has decreased significantly, leading to a negative free cash flow of -19.21 million. The operating cash flow to net income ratio of 4.37 indicates strong cash generation relative to net income, but the free cash flow to net income ratio is negative, highlighting challenges in managing capital expenditures.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue64.26M62.58M65.50M50.95M33.66M38.45M
Gross Profit35.22M62.58M37.55M11.41M-1.06M9.21M
EBITDA7.63M11.52M15.55M14.23M1.86M-2.57M
Net Income-2.00M-3.89M2.77M5.00M-9.27M-15.83M
Balance Sheet
Total Assets96.52M91.45M80.09M47.07M39.07M55.96M
Cash, Cash Equivalents and Short-Term Investments17.29M16.41M9.38M7.99M2.66M10.02M
Total Debt37.08M33.81M35.05M15.52M16.87M33.52M
Total Liabilities48.87M44.17M50.07M26.16M25.18M2.70M
Stockholders Equity47.08M47.32M29.55M21.00M13.95M11.43M
Cash Flow
Free Cash Flow-21.41M-2.82M-19.21M17.04M-2.13M-9.04M
Operating Cash Flow3.74M5.58M12.11M20.12M-615.57K-2.83M
Investing Cash Flow-25.23M-8.40M-30.41M-3.01M-1.50M-6.00M
Financing Cash Flow28.08M9.80M19.84M-4.86M-5.24M6.77M

DUG Technology Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.73
Price Trends
50DMA
1.75
Positive
100DMA
1.52
Positive
200DMA
1.36
Positive
Market Momentum
MACD
0.29
Negative
RSI
81.95
Negative
STOCH
87.80
Negative
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 2.73 is above the 20-day moving average (MA) of 2.31, above the 50-day MA of 1.75, and above the 200-day MA of 1.36, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 81.95 is Negative, neither overbought nor oversold. The STOCH value of 87.80 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
1.45B29.9257.26%3.02%5.82%11.11%
69
Neutral
115.56M13.7010.27%3.76%14.59%-11.13%
66
Neutral
286.51M29.4223.53%-23.98%
63
Neutral
133.95M114.8111.90%42.11%
56
Neutral
AU$368.81M33.61-10.10%-3.10%-236.41%
44
Neutral
228.43M-6.70-17.50%-9.02%80.67%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DUG
DUG Technology Ltd
2.73
0.28
11.43%
APPEF
Appen
0.54
-0.56
-50.91%
AU:KYP
CV Check Ltd
0.31
0.19
158.33%
AU:ATA
Atturra Limited
0.76
-0.23
-23.23%
AU:COS
Cosol Limited
0.64
-0.28
-30.43%
AU:DTL
Data#3 Limited.
9.32
1.84
24.60%

DUG Technology Ltd Corporate Events

DUG Technology Ltd Faces Legal Dispute Over Energy Agreement in Texas
Jul 29, 2025

DUG Technology Ltd is involved in a legal dispute in the United States District Court concerning a disputed supplier invoice related to an energy management services agreement in Texas. The trial is set to commence on October 6, 2025, with DUG counterclaiming for $3.1 million against the supplier’s $2.4 million claim. DUG remains confident in its defense and plans to vigorously contest the claim, keeping shareholders informed of any significant developments.

The most recent analyst rating on (AU:DUG) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

DUG Technology Addresses Administrative Oversight in Director’s Interest Notices
Jul 22, 2025

DUG Technology Ltd has issued amended Director’s Interest Notices due to an administrative oversight involving a discrepancy of 5,000 shares in previous filings. The company assures that its current disclosure policies are adequate and no changes are needed, maintaining compliance with ASX Listing Rules. This announcement reflects DUG’s commitment to transparency and adherence to regulatory standards, reinforcing its position in the industry.

The most recent analyst rating on (AU:DUG) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

DUG Technology Announces Change in Substantial Shareholder Interests
Jul 8, 2025

DUG Technology Ltd has announced a change in the interests of its substantial holder, Matthew Gordon Lamont, and associated entities. The voting power of the substantial holder has decreased from 18.24% to 15.89% due to an on-market sale of shares, which were used to repay a limited recourse loan. This change may impact the company’s shareholder structure and influence future corporate decisions.

The most recent analyst rating on (AU:DUG) stock is a Buy with a A$3.20 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

DUG Technology Ltd Announces Director’s Interest Change
Jul 2, 2025

DUG Technology Ltd has announced a change in the director’s interest notice, specifically involving Louise Bower. The company disclosed that 193,846 shares were disposed of through an on-market trade, with proceeds used to repay a loan associated with shares issued under the Long Term Incentive Plan. This adjustment reflects a strategic financial management decision, potentially impacting the company’s stock structure and stakeholder interests.

The most recent analyst rating on (AU:DUG) stock is a Buy with a A$3.20 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

DUG Technology Secures First Lease for DUG Nomad with Petronas Subsidiary
Jun 1, 2025

DUG Technology Ltd has secured its first commercial lease for the DUG Nomad product with BRB International, a subsidiary of Petronas. The three-year lease, valued at US$355,000, involves deploying the DUG Nomad 10 container at Petronas’ Research Centre in Malaysia to support BRB’s development of immersion cooling fluids. This marks a significant step in the commercialisation of DUG Nomad, which uses proprietary immersion cooling technology for high-density AI and HPC, offering rapid deployment and edge computing capabilities.

The most recent analyst rating on (AU:DUG) stock is a Buy with a A$3.20 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

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: Sep 06, 2025