DUG Technology Ltd (DUG) AI Stock Analysis

• Market Cap: AU$288.43M
• Dividend Yield: N/A
• Average Volume (3M): 386.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -3.10%
• EPS Growth: -236.41%
• Country: AU
• Employees: 237
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 135,411,990
• 10 Day Avg. Volume: 322,626
• 30 Day Avg. Volume: 386,822
• PEG Ratio: 0.13
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 1.85
• P/FCF Ratio: -40.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$3.01
• Price Target Upside: 41.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Neutral
• Price Target: AU$2.00 ▼(-6.10% Downside)

DUG Technology Ltd's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and negative profitability margins. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold RSI levels. Valuation concerns are highlighted by a negative P/E ratio and lack of dividend yield, suggesting potential profitability issues.

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 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 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 from consulting services, where it leverages its expertise in seismic processing and geophysical data analysis for energy companies. Key revenue streams also include software licensing and maintenance fees from proprietary tools developed for the petroleum industry. Strategic partnerships with major players in the oil and gas sector further enhance DUG's market presence and contribute to its earnings by enabling access to larger projects and clients.

DUG Technology Ltd Financial Statement Overview

Summary

DUG Technology Ltd faces several financial challenges, including declining revenue growth, negative profitability margins, and cash flow constraints. While the debt levels are manageable, the company needs to address its operational inefficiencies and improve cash flow management to enhance financial stability.

Income Statement

DUG Technology Ltd has experienced fluctuating revenue growth with a recent decline of 2.6%. The company has a strong gross profit margin of 100% in the latest year, but net profit margin is negative at -6.22%, indicating profitability challenges. EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.71, suggesting manageable leverage. However, the company has faced equity fluctuations, and the return on equity has been negative, indicating challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow, with a growth rate of -86.82%. The operating cash flow to net income ratio is low at 0.26, and the free cash flow to net income ratio is negative, indicating cash flow challenges and potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.26M	62.58M	65.50M	50.95M	33.66M	38.45M
Gross Profit	35.22M	62.58M	37.55M	11.41M	-1.06M	9.21M
EBITDA	7.63M	11.52M	15.55M	14.23M	1.86M	-2.57M
Net Income	-2.00M	-3.89M	2.77M	5.00M	-9.27M	-15.83M
Balance Sheet
Total Assets	96.52M	91.45M	80.09M	47.07M	39.07M	55.96M
Cash, Cash Equivalents and Short-Term Investments	17.29M	16.41M	9.38M	7.99M	2.66M	10.02M
Total Debt	37.08M	33.81M	35.05M	15.52M	16.87M	33.52M
Total Liabilities	48.87M	44.17M	50.07M	26.16M	25.18M	2.70M
Stockholders Equity	47.08M	47.32M	29.55M	21.00M	13.95M	11.43M
Cash Flow
Free Cash Flow	-21.41M	-2.82M	-19.21M	17.04M	-2.13M	-9.04M
Operating Cash Flow	3.74M	5.58M	12.11M	20.12M	-615.57K	-2.83M
Investing Cash Flow	-25.23M	-8.40M	-30.41M	-3.01M	-1.50M	-6.00M
Financing Cash Flow	28.08M	9.80M	19.84M	-4.86M	-5.24M	6.77M

DUG Technology Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.13 is above the 20-day moving average (MA) of 2.04, below the 50-day MA of 2.23, and above the 200-day MA of 1.67, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.66 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTL	75 Outperform	AU$1.43B	29.60	60.59%	3.05%	5.82%	11.11%
COS	66 Neutral	AU$81.44M	10.22	10.79%	4.85%	14.59%	-11.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ATA	60 Neutral	AU$242.40M	25.00	4.81%	―	23.53%	-23.98%
KYP	57 Neutral	AU$135.65M	118.52	4.26%	―	11.90%	42.11%
DUG	40 Neutral	AU$288.43M	-43.53	-10.10%	―	-3.10%	-236.41%
APX	39 Underperform	AU$199.21M	-6.23	-24.40%	―	-9.02%	80.67%

DUG Technology Ltd Corporate Events

DUG Technology Ltd Announces Quotation of New Securities on ASX

DUG Technology Ltd has announced the quotation of 34,627 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of November 24, 2025. This move is part of the company’s strategy to enhance its market presence and potentially increase liquidity, which could have positive implications for its stakeholders and strengthen its industry positioning.

DUG Technology Ltd Announces 2025 AGM Results

DUG Technology Ltd announced the results of its 2025 Annual General Meeting, with all resolutions decided by a poll. This announcement reflects the company’s ongoing commitment to transparency and governance, potentially impacting its stakeholders positively by reinforcing trust and confidence in its operations.

DUG Technology Ltd Announces Quotation of New Securities on ASX

DUG Technology Ltd has announced the quotation of 29,138 fully paid ordinary securities on the Australian Securities Exchange (ASX), effective November 17, 2025. This move is part of the company’s strategic financial maneuvers, potentially enhancing its market presence and liquidity, which could have implications for stakeholders by increasing the company’s visibility and investment appeal.

DUG Technology Ltd Announces Quotation of New Securities

DUG Technology Ltd has announced the quotation of 110,291 ordinary fully paid securities on the ASX, effective November 10, 2025. This move is part of their strategic financial operations, potentially impacting their market positioning and offering opportunities for stakeholders to engage with the company’s growth trajectory.

DUG Technology Ltd Announces Quotation of New Securities on ASX

DUG Technology Ltd has announced the quotation of 80,654 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of November 3, 2025. This move is part of the company’s strategy to enhance its market presence and potentially increase its capital base, reflecting its ongoing efforts to strengthen its financial position and expand its operational capabilities.

DUG Technology Reports Strong FY26-Q1 Performance and International Expansion

DUG Technology Ltd reported a strong start to FY26-Q1 with a 19% increase in total revenue, driven by significant growth in services and HPC revenues. The company achieved its first revenue in Brazil and continued expansion in the Middle East, marking important milestones in its international strategy. A record SaaS and HPCaaS contract was signed, although revenue from this contract will be recognized in future quarters. These developments underscore DUG’s successful international expansion and position it for continued growth.

DUG Technology Ltd Announces 2025 Annual General Meeting

DUG Technology Ltd has announced its 2025 Annual General Meeting scheduled for November 20, 2025, in West Perth, Australia. The meeting will provide shareholders with an opportunity to engage with the company’s strategic direction and operational updates. This announcement reinforces DUG’s commitment to transparency and stakeholder engagement, potentially impacting its market positioning and investor relations.

DUG Technology Ltd Issues New Securities on ASX

DUG Technology Ltd has announced the issuance of 62,935 fully paid ordinary securities, which are set to be quoted on the ASX. This move is part of the company’s strategy to enhance its market presence and potentially increase its capital base, which could have implications for its operational capabilities and market positioning.

DUG Technology Ltd Announces Quotation of New Securities on ASX

DUG Technology Ltd has announced the quotation of 436,738 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of September 22, 2025. This move is part of the company’s strategy to enhance its market presence and provide liquidity to its stakeholders, potentially impacting its operational capacity and industry positioning positively.

DUG Technology Announces 2025 AGM Date and Director Nomination Deadline

DUG Technology Ltd has announced the date for its 2025 Annual General Meeting, which will be held on November 20, 2025, in West Perth, Australia. The company has also set October 1, 2025, as the deadline for director nominations. This announcement is part of DUG’s ongoing efforts to engage with stakeholders and maintain transparent governance practices.

DUG Technology Announces Vesting of Long-Term Incentive Plan Options

DUG Technology Ltd announced the vesting of 867,243 zero-exercise price options (ZEPOs) issued under its Omnibus Long Term Incentive Plan to senior executives, following the achievement of specific vesting conditions. These conditions included a three-year vesting period and share price performance metrics. Additionally, 730,050 ZEPOs were vested for key individuals outside the senior executive team to promote talent retention. This development reflects DUG’s commitment to rewarding its workforce and retaining talent, potentially strengthening its market position and operational stability.