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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 40 (OpenAI - 4o)
Rating:40Neutral
Price Target:
AU$2.00
▼(-9.50% 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 (DUG) vs. iShares MSCI Australia ETF (EWA)

DUG Technology Ltd Business Overview & Revenue Model

Company DescriptionDUG Technology Ltd (DUG) is an Australian-based technology company specializing in high-performance computing (HPC) and cloud services tailored for the energy sector, particularly oil and gas. DUG provides advanced data analytics solutions, including seismic processing and interpretation, to help clients optimize their exploration and production activities. The company also offers its own HPC cloud platform, DUG McCloud, which delivers scalable computing power and storage solutions to meet the demanding needs of geoscience and engineering applications.
How the Company Makes MoneyDUG 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
45
Neutral
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
55
Neutral
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
40
Negative
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.
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
Neutral
Last Price2.21
Price Trends
50DMA
2.47
Negative
100DMA
1.93
Positive
200DMA
1.54
Positive
Market Momentum
MACD
-0.09
Positive
RSI
35.14
Neutral
STOCH
18.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DUG, the sentiment is Neutral. The current price of 2.21 is below the 20-day moving average (MA) of 2.50, below the 50-day MA of 2.47, and above the 200-day MA of 1.54, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 35.14 is Neutral, neither overbought nor oversold. The STOCH value of 18.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
75
Outperform
AU$1.40B28.9860.59%3.16%5.82%11.11%
65
Neutral
AU$87.35M10.9610.79%4.76%14.59%-11.13%
64
Neutral
AU$278.17M28.854.81%23.53%-23.98%
62
Neutral
AU$146.91M125.934.26%11.90%42.11%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
40
Neutral
AU$311.05M-47.23-10.10%-3.10%-236.41%
39
Underperform
AU$191.24M-24.40%-9.02%80.67%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DUG
DUG Technology Ltd
2.21
0.34
18.18%
AU:APX
Appen
0.69
-1.90
-73.55%
AU:KYP
CV Check Ltd
0.32
0.21
190.91%
AU:ATA
Atturra Limited
0.76
-0.36
-32.14%
AU:COS
Cosol Limited
0.45
-0.44
-49.44%
AU:DTL
Data#3 Limited.
8.89
1.49
20.14%

DUG Technology Ltd Corporate Events

DUG Technology Reports Strong FY26-Q1 Performance and International Expansion
Oct 28, 2025

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.

The most recent analyst rating on (AU:DUG) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

DUG Technology Ltd Announces 2025 Annual General Meeting
Oct 22, 2025

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.

The most recent analyst rating on (AU:DUG) stock is a Buy with a A$2.86 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 Issues New Securities on ASX
Sep 29, 2025

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.

The most recent analyst rating on (AU:DUG) stock is a Buy with a A$2.86 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 Quotation of New Securities on ASX
Sep 22, 2025

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.

The most recent analyst rating on (AU:DUG) stock is a Buy with a A$2.86 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 2025 AGM Date and Director Nomination Deadline
Sep 19, 2025

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.

The most recent analyst rating on (AU:DUG) stock is a Buy with a A$2.86 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 Vesting of Long-Term Incentive Plan Options
Sep 12, 2025

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.

The most recent analyst rating on (AU:DUG) stock is a Hold with a A$2.00 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 Multi-Year SaaS and HPCaaS Deal with PETRONAS
Sep 2, 2025

DUG Technology Ltd has signed a multi-year Software-as-a-Service and High Performance Computing as-a-Service agreement with PETRONAS DIGITAL SDN BHD, a subsidiary of Malaysia’s national energy company. This agreement, valued at a minimum of US$23.8 million, will provide PETRONAS with advanced computing and imaging capabilities, enhancing their subsurface processing workflows. The partnership with Cegal, a Norwegian technology company, will deliver managed services, with the project expected to be fully commissioned by early 2026. This deal positions DUG as a key player in providing innovative computing solutions to the energy sector, potentially expanding its market influence and stakeholder engagement.

The most recent analyst rating on (AU:DUG) stock is a Buy with a A$2.08 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

DUG Technology Unveils Advanced Imaging Technology and Expands Global Presence
Aug 22, 2025

DUG Technology Ltd has successfully launched its industry-leading Elastic Multi-Parameter Full Waveform Inversion (eMP-FWI) imaging technology, which has been validated and awarded multiple projects in fiscal year 2025. The company has built a strong foundation with a US$52.0 million order book and significant contributions from new global offices in Abu Dhabi and Brazil, enhancing its market momentum and positioning.

The most recent analyst rating on (AU:DUG) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

DUG Technology Releases 2025 Corporate Governance Statement
Aug 22, 2025

DUG Technology Ltd has released its corporate governance statement for the financial year ending June 30, 2025, which is available on its website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles, detailing the roles and responsibilities of the board and management, as well as the processes for appointing directors and senior executives. This announcement reaffirms DUG Technology’s commitment to transparency and accountability, potentially strengthening its position in the market and providing assurance to its stakeholders.

The most recent analyst rating on (AU:DUG) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

DUG Technology Ltd Reports FY25 Financial Results and Strategic Milestones
Aug 22, 2025

DUG Technology Ltd announced its FY25 financial results, highlighting a 42% increase in its services order book, driven by strong service project awards. Despite a 4% decline in overall revenue and a net loss after tax of US$4.4 million, the company reported a significant cash increase and successful capital raising. The launch of the Elastic Multi-Parameter Full Waveform Inversion Imaging and the first commercial deployment of DUG Nomad mark significant milestones, positioning the company for future growth.

The most recent analyst rating on (AU:DUG) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

DUG Technology Ltd Releases FY25 Annual Report Highlighting Financial and Operational Strategies
Aug 22, 2025

DUG Technology Ltd has released its FY25 Annual Report, highlighting its financial performance and operational strategies. The report provides insights into the company’s risk management practices and governance, which are crucial for stakeholders assessing DUG’s market positioning and future growth potential.

The most recent analyst rating on (AU:DUG) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

DUG Technology Ltd Reports Financial Loss Amid Revenue Decline
Aug 22, 2025

DUG Technology Ltd reported a decrease in revenue and total income for the financial year ending June 30, 2025, with revenue from ordinary activities falling by 4.5% and total income declining by 3.3%. The company also experienced a significant drop in profit after tax, resulting in a loss of $4.4 million compared to a profit in the previous year. Despite these financial challenges, the company’s EBITDA margin remained stable at 25%. No dividends were declared for the year, and the net tangible assets per share increased from $0.25 to $0.35, indicating a stronger asset base.

The most recent analyst rating on (AU:DUG) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on DUG Technology Ltd stock, see the AU:DUG Stock Forecast page.

DUG Technology to Release FY25 Financial Results
Aug 12, 2025

DUG Technology Ltd announced the upcoming release of its FY25 financial results, scheduled for 22 August 2025. Founder and Managing Director Matt Lamont will present the results via a webcast, highlighting the company’s performance and strategic direction. This announcement is significant for stakeholders as it provides insights into DUG’s financial health and future prospects, reinforcing its position in the geoscientific computing 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.

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: Oct 31, 2025