Dragonfly Energy Holdings Corp (DFLI) AI Stock Analysis

• Market Cap: $3.78M
• Dividend Yield: N/A
• Average Volume (3M): 192.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -21.35%
• EPS Growth: -155.36%
• Country: US
• Employees: 139
• Sector: Industrials
• Sector Strength: 70
• Industry: Electrical Equipment & Parts
• EPS (TTM): -5.94
• Shares Outstanding: 7,589,642
• 10 Day Avg. Volume: 409,654
• 30 Day Avg. Volume: 192,439
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.20
• Price to Cash Flow (P/CF): 0.90
• P/FCF Ratio: 1.00
• 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: $3.50
• Price Target Upside: 600.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Dragonfly Energy Holdings Corp is facing substantial financial difficulties, with declining revenue and high leverage posing significant risks. Technical indicators reflect a bearish outlook with weak momentum. Although recent corporate actions and strategic initiatives show potential, the current financial instability and negative valuation metrics weigh heavily against the overall stock score.

Positive Factors

Funding and Capital

The company's largely undrawn $150M equity line of credit should mostly help provide adequate funding.

Strategic Partnerships

Dragonfly's top-line growth was driven by significant strides in expanding the customer base beyond the RV sector, leveraging strategic partnerships in trucking and industrial markets.

Technology Innovation

The company is uniquely positioned to positively alter battery manufacturing economics through dry deposition and offer true solid-state energy storage cells.

Negative Factors

Financial Performance

3Q24 results missed top-line expectations with net sales decreasing annually.

Market Conditions

Dragonfly’s fundamentals have again been negatively impacted by a slowly recovering RV market.

Revenue Performance

Revenue was below estimates.

Dragonfly Energy Holdings Corp Business Overview & Revenue Model

Company Description

Dragonfly Energy Holdings Corp (DFLI) is a company that operates in the energy sector, primarily focusing on the development and manufacturing of lithium-ion battery storage products. The company's core products include advanced deep-cycle batteries, which are designed to provide reliable power solutions for various applications such as recreational vehicles, marine, off-grid energy storage, and industrial uses.

How the Company Makes Money

Dragonfly Energy Holdings Corp generates revenue primarily through the sale of its lithium-ion battery products. The company targets consumers and businesses in industries that require reliable energy storage solutions, such as recreational vehicle manufacturers, marine equipment suppliers, and off-grid installations. Revenue is driven by direct sales to these customers, as well as through partnerships and distribution agreements with retailers and distributors. Additionally, Dragonfly Energy may engage in research and development collaborations that can contribute to its earnings by creating innovative products that meet evolving market demands.

Dragonfly Energy Holdings Corp Financial Statement Overview

Summary

Dragonfly Energy Holdings Corp is facing significant financial challenges with declining revenues, persistent net losses, high leverage, and negative equity. The financial structure indicates a precarious position requiring improvement in operational efficiency and cash management.

Income Statement

Dragonfly Energy Holdings Corp has faced challenges in maintaining profitability with negative net income reported in the TTM (Trailing-Twelve-Months) and previous annual periods. The TTM gross profit margin stands at 22.8%, showing some ability to cover costs of goods sold, but the net profit margin is deeply negative at -56.8%, highlighting significant operational inefficiencies. The company also experienced a revenue decline of 24.1% from 2022 to the TTM, indicating difficulties in sustaining revenue growth. EBIT and EBITDA margins are also negative, reflecting ongoing operational losses.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity in the TTM, indicating more liabilities than assets. The debt-to-equity ratio is not applicable due to negative equity, but the high total debt relative to assets suggests significant leverage. Return on equity is negative, impacted by the net losses, and the equity ratio is technically negative, further emphasizing financial instability. These metrics indicate a risky financial position with potential solvency issues.

Cash Flow

Cash flow analysis reveals a challenging situation with negative free cash flow in the TTM and prior periods, suggesting cash outflows from operations exceed cash inflows. The operating cash flow to net income ratio is approximately 0.20, showing poor cash conversion efficiency. Free cash flow growth is negative, highlighting ongoing liquidity pressures. These factors indicate a need for improved cash management to support ongoing operations.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
48.87M	64.39M	86.25M	78.00M	47.19M
	Gross Profit
11.12M	15.45M	24.00M	29.63M	20.61M
	EBIT
-21.93M	-27.43M	-13.54M	6.47M	8.75M
	EBITDA
-5.52M	3.41M	-32.83M	7.08M	8.94M
	Net Income Common Stockholders
-27.76M	-13.82M	-19.11M	4.34M	6.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.71M	12.71M	17.78M	25.59M	6.21M
	Total Assets
75.20M	75.20M	89.31M	76.25M	18.81M
	Total Debt
23.27M	23.31M	23.97M	44.70M	983.00K
	Net Debt
10.56M	10.59M	6.19M	19.12M	-5.22M
	Total Liabilities
47.29M	47.29M	77.97M	62.19M	10.25M
	Stockholders Equity
27.91M	27.91M	11.33M	14.06M	8.55M
Cash Flow		Free Cash Flow
-7.76M	-24.59M	-35.28M	-16.54M	5.23M
	Operating Cash Flow
-5.69M	-17.71M	-28.87M	-13.57M	6.64M
	Investing Cash Flow
-2.07M	-6.88M	-6.41M	-2.91M	-1.41M
	Financing Cash Flow
2.54M	19.52M	24.85M	38.91M	12.00K

Dragonfly Energy Holdings Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DFLI, the sentiment is Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 1.26, and below the 200-day MA of 3.76, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 18.75 is Positive, neither overbought nor oversold. The STOCH value of 8.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DFLI.

Dragonfly Energy Holdings Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
FLUX	56 Neutral	$28.17M	―	-385.84%	―	-5.96%	-50.28%
POLA	44 Neutral	$5.21M	―	-43.10%	―	-8.64%	46.67%
XPON	40 Underperform	$3.00M	―	-342.64%	―	-5.96%	20.41%
GWH	36 Underperform	$27.60M	―	-130.40%	―	-16.51%	0.19%
DFLI	30 Underperform	$3.78M	―	-438.89%	―	-21.35%	-155.36%
SDST	26 Underperform	$29.29M	―	-860.70%	―	―	-12310.81%

Dragonfly Energy Holdings Corp Corporate Events

Dragonfly Energy Announces Debt Restructuring and Capital Raise

On February 27, 2025, Dragonfly Energy Holdings Corp. announced a significant corporate debt restructuring and a capital raise aimed at enhancing its financial flexibility and liquidity. The company completed an amendment to its existing debt facility, which includes a waiver of quarterly liquidity covenants and an extension of the debt maturity date to October 7, 2027. Additionally, Dragonfly Energy raised $3.5 million through a registered direct offering and private placement of Series A Convertible Preferred Stock, with a second contingent tranche of $4.5 million. This strategic move is expected to strengthen the company’s financial position, allowing it to pursue strategic initiatives with greater flexibility, potentially impacting its market positioning and stakeholder interests.

Dragonfly Energy Appoints New Chief Operating Officer

Dragonfly Energy Holdings Corp has appointed Dr. Vickram Singh as the new Chief Operating Officer, effective February 4, 2025. Dr. Singh, previously the Senior Vice President of Technology, has a rich history within the company, having served in various research and development roles. His appointment comes with an employment agreement outlining a three-year term, an annual base salary of $350,000, a discretionary bonus, and long-term incentives. The agreement includes provisions for severance, confidentiality, and non-competition covenants, ensuring a structured leadership transition and continuity in operations. This strategic appointment is expected to enhance the company’s operational capabilities and strengthen its market position in the energy storage industry.