DUG Technology Ltd (DUG) AI Stock Analysis

• Market Cap: AU$177.75M
• Dividend Yield: N/A
• Average Volume (3M): 244.19K
• Price to Earnings (P/E): 33.6
• Beta (1Y): 1.42
• Revenue Growth: 15.87%
• EPS Growth: -160.30%
• Country: AU
• Employees: 237
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): -0.05
• Shares Outstanding: 134,657,610
• 10 Day Avg. Volume: 130,820
• 30 Day Avg. Volume: 244,188
• PEG Ratio: -0.12
• Price to Book (P/B): 4.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.40
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 2.83
• Enterprise Value/Ebitda: 2.14
• 1Y Price Target: AU$2.39
• Price Target Upside: 81.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 54 Neutral
• Price Target: AU$1.50 ▲(13.64%Upside)

The most significant factors influencing DUG Technology Ltd's stock score are its financial performance and valuation concerns. Strong revenue growth and gross profit margins are positive, but high leverage and negative profitability weigh on the score. Technical analysis indicates neutral momentum, providing a slightly positive outlook.

Positive Factors

Financial Performance

The first revenue from BAC JV will flow through to the bottom-line, with potential for significant earnings due to BAC's scale.

Product Viability

The sale of DUG Nomad creates a reference point for future sales, validating the product's viability in the industry.

Negative Factors

Profit Decline

EBITDA declined 26% due to investments in new regions and increased headcount.

Revenue Decline

Revenue of $16.5m decreased by 6% compared to the previous corresponding period.

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 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 Money

DUG 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

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

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

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.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	64.26M	65.50M	50.95M	33.66M	38.45M	45.34M
Gross Profit	35.22M	37.55M	11.41M	-1.06M	9.21M	16.55M
EBITDA	7.63M	15.55M	14.23M	1.86M	-2.57M	7.67M
Net Income	-2.00M	2.77M	5.00M	-9.27M	-15.83M	-11.69M
Balance Sheet
Total Assets	96.52M	80.09M	47.07M	39.07M	55.96M	60.16M
Cash, Cash Equivalents and Short-Term Investments	17.29M	9.38M	7.99M	2.66M	10.02M	12.44M
Total Debt	37.08M	35.05M	15.52M	16.87M	33.52M	55.70M
Total Liabilities	48.87M	50.07M	26.16M	25.18M	2.70M	66.82M
Stockholders Equity	47.08M	29.55M	21.00M	13.95M	11.43M	-6.62M
Cash Flow
Free Cash Flow	-21.41M	-19.21M	17.04M	-2.13M	-9.04M	3.15M
Operating Cash Flow	3.74M	12.11M	20.12M	-615.57K	-2.83M	6.26M
Investing Cash Flow	-25.23M	-30.41M	-3.01M	-1.50M	-6.00M	-3.17M
Financing Cash Flow	28.08M	19.84M	-4.86M	-5.24M	6.77M	6.81M

DUG Technology Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DUG, the sentiment is Negative. The current price of 1.32 is below the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.29, and below the 200-day MA of 1.36, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 48.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DUG.

DUG Technology Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATA	73 Outperform	AU$320.60M	23.68	6.32%	―	32.40%	-2.97%
DTL	66 Neutral	AU$1.19B	26.77	58.96%	3.39%	-59.05%	6.76%
COS	65 Neutral	AU$113.74M	12.23	12.90%	3.82%	23.66%	-7.71%
KYP	63 Neutral	AU$108.02M	125.00	3.26%	―	5.37%	-45.95%
Sector *	63 Neutral	$34.70B	4.89	-11.39%	1.66%	5.53%	-19.00%
DUG	54 Neutral	AU$177.75M	33.61	-5.30%	―	15.87%	-160.30%
APPEF	―	$206.55M	―	-19.32%	―	―	―

DUG Technology Ltd Corporate Events

DUG Technology Addresses Administrative Oversight in Director’s Interest Notices

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

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

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

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.

DUG Technology Reports Strong Software Growth and Expands Market Presence

DUG Technology Ltd reported a total revenue of US$16.5 million for FY25-Q3, with a notable 23% growth in software revenue compared to the previous year. The company’s services pipeline strengthened with US$22.7 million in new projects, significantly boosting their order book. The introduction of the Elastic Multi-Parameter Full Waveform Inversion (MP-FWI) has been a milestone, with successful pilot projects exceeding expectations. Despite challenges in the HPC business unit, the company remains profitable by reducing costs. The recent Brazilian joint venture accelerates market entry, and the company continues to expand its software sales, particularly among independent oil and gas firms.