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Duos Technologies Group (DUOT)
NASDAQ:DUOT
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Duos Technologies Group
(NASDAQ:DUOT)
Rating:53Neutral
Price Target:
$7.50
▼( -11.35% Downside)
Positive Factors
Business Expansion
Duos Technologies Group announced a major expansion into two new businesses: data centers and power, which are expected to drive strong revenue.
Financial Performance
Q3 revenue grew +112% (y-o-y) from improved contracts revenue.
Guidance
The company provided initial 2025 guidance for revenue of $28 – 30 million, which is a strong indicator of expected growth.
Negative Factors
Competition
The market opportunity for the Rail Inspection Portal business is substantial, with an estimated 10 million railcar scans in 2024.
Market Conditions
The backlog at Q4 was significantly increased to $51 million, up from $19 million, indicating a substantial pipeline of future work.
Duos Technologies Group (DUOT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$98.59M
Dividend YieldN/A
Average Volume (3M)130.46K
Price to Earnings (P/E)―
Beta (1Y)1.79
Revenue Growth89.27%
EPS Growth26.30%
CountryUS
Employees79
SectorTechnology
Sector Strength78
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.18
Shares Outstanding11,653,905
10 Day Avg. Volume152,238
30 Day Avg. Volume130,459
Financial Highlights & Ratios
PEG Ratio-0.65
Price to Book (P/B)17.84
Price to Sales (P/S)0.00
P/FCF Ratio-11.02
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit58.11
Enterprise Value/Ebitda-2.87
Forecast
1Y Price Target
$11.50Price Target Upside35.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Duos Technologies Group Business Overview & Revenue Model
Company DescriptionDuos Technologies Group (DUOT) is a technology company primarily operating in the rail, logistics, and transportation sectors. The company specializes in developing and deploying advanced intelligent technology solutions that enhance safety, security, and operational efficiency. Its core products include automated inspection systems, data management platforms, and artificial intelligence-driven analytics tools designed to optimize asset management and operational performance for its clients.
How the Company Makes MoneyDuos Technologies Group generates revenue by selling its advanced technology solutions and services to clients in the transportation and logistics sectors. The company earns money through the sale of its automated inspection systems, which help clients improve safety and efficiency by automating the inspection process of railcars and other transportation assets. Additionally, Duos Technologies offers data management and analytics services that provide clients with actionable insights to optimize their operations. The company may also engage in strategic partnerships and collaborations that contribute to its earnings by expanding its market reach and enhancing its product offerings.
Duos Technologies Group Financial Statement Overview
Summary
Duos Technologies Group faces substantial financial challenges with high leverage, negative profitability margins, and reliance on financing to sustain operations. Despite strong revenue growth, the persistent net losses and negative cash flows highlight the need for strategic improvements to enhance financial stability and profitability.Income Statement
Duos Technologies Group shows mixed performance with significant challenges. The TTM (Trailing-Twelve-Months) data indicates a negative gross profit margin of 15.1% and a severe net profit margin of -90.4%, highlighting profitability issues. The revenue growth rate is strong at 53.3% from 2024 to TTM 2025, but with high negative EBIT and EBITDA margins at -89.7% and -64.5% respectively, profitability remains a concern.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.52, indicating significant leverage, which poses financial risk. The return on equity (ROE) is deeply negative at -196.0%, reflecting poor returns for shareholders. Furthermore, the equity ratio of 15.1% suggests limited equity buffer relative to total assets, underscoring financial vulnerability.40
Negative
Cash Flow
The cash flow analysis highlights significant challenges with free cash flow and operating cash flow both negative. The free cash flow growth rate shows deterioration, and while the financing activities provide cash inflows, the operating cash flow to net income ratio remains negative. This indicates reliance on external financing amidst operating losses.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 11.16M | 7.28M | 7.47M | 15.01M | 8.26M | 8.04M | Gross Profit |
| 1.69M | 469.21K | 1.31M | 4.75M | -2.56M | 2.79M | EBIT |
| -10.01M | -10.98M | -11.45M | -6.87M | -7.46M | -6.63M | EBITDA |
| -7.20M | -7.92M | -10.37M | -6.27M | -5.44M | -6.14M | Net Income Common Stockholders |
| -10.09M | -10.76M | -11.24M | -6.86M | -6.97M | -6.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.80M | 6.27M | 2.44M | 1.12M | 893.72K | 3.97M | Total Assets |
| 34.09M | 34.96M | 12.84M | 13.09M | 9.48M | 6.41M | Total Debt |
| 7.85M | 8.53M | 5.05M | 5.34M | 5.21M | 1.85M | Net Debt |
| 4.05M | 2.27M | 2.61M | 4.22M | 4.32M | -2.12M | Total Liabilities |
| 28.94M | 32.70M | 7.48M | 9.04M | 8.70M | 4.52M | Stockholders Equity |
| 5.15M | 2.26M | 5.37M | 4.05M | 781.49K | 1.88M |
| Cash Flow | Free Cash Flow | ||||
| -8.53M | -5.32M | -9.84M | -8.52M | -7.13M | -4.52M | Operating Cash Flow |
| -6.13M | -3.49M | -8.75M | -7.87M | -6.58M | -4.23M | Investing Cash Flow |
| -2.41M | -1.84M | -1.09M | -644.89K | -552.94K | -287.33K | Financing Cash Flow |
| 9.36M | 9.15M | 11.16M | 8.75M | 4.06M | 8.43M |
Duos Technologies Group Technical Analysis
Positive
8.46
Price Trends
6.24
Positive
6.27
Positive
4.99
Positive
Market Momentum
0.45
Negative
65.98
Neutral
43.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DUOT, the sentiment is Positive. The current price of 8.46 is above the 20-day moving average (MA) of 7.24, above the 50-day MA of 6.24, and above the 200-day MA of 4.99, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 65.98 is Neutral, neither overbought nor oversold. The STOCH value of 43.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DUOT.
Duos Technologies Group Risk Analysis
Duos Technologies Group disclosed 21 risk factors in its most recent earnings report. Duos Technologies Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Duos Technologies Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $55.48M | ― | -10.79% | ― | 3.21% | -550.35% | |
61 Neutral | $11.28B | 10.16 | -6.88% | 2.97% | 7.41% | -8.93% | |
53 Neutral | $98.59M | ― | -189.13% | ― | 89.27% | 26.30% | |
52 Neutral | $62.46M | ― | -170.91% | ― | -70.08% | -330.51% | |
37 Underperform | $61.52M | ― | -19.87% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
DUOT
Duos Technologies Group
8.46
6.32
295.33%
PHUN
Phunware
3.05
-3.78
-55.34%
INLX
Intellinetics
12.86
6.28
95.44%
SURG
SurgePays
3.06
-0.77
-20.10%
Duos Technologies Group Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 14.63%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
Duos Technologies showed significant growth and expansion in its Power and Edge Data Center businesses, resulting in a strong revenue increase and improved gross margin. However, challenges remain in the rail industry, and the company continues to operate at a net loss despite reductions. The overall sentiment leans positive due to the strong performance in the AMA and Edge Data Center segments, alongside a promising revenue pipeline.Q1-2025 Updates
Positive Updates
Significant Increase in Contracted Megawatts
Duos Technologies has successfully contracted 570 megawatts with APR Energy’s gas turbine fleet, an increase of 180 megawatts since the last report. They expect to contract an additional 160 megawatts in the coming weeks, bringing the total to approximately 730 megawatts.
Expansion of Edge Data Centers
Duos Technologies has customer commitments for an additional 8 Edge Data Centers and plans to deploy 15 by the end of the year. The deployment of Edge Data Centers is expected to generate more than $3 million in annual recurring revenue starting in 2026.
Record Revenue Growth
Total revenues for Q1 2025 increased 363% to $4.95 million compared to $1.07 million in Q1 2024. The majority of this revenue was driven by Duos Energy's Asset Management Agreement with New APR.
Improved Gross Margin
Gross margin for Q1 2025 increased 1288% to $1.31 million compared to $90,000 in Q1 2024, primarily due to the performance of the AMA with New APR.
Reduction in Net Operating Loss
Net operating loss for Q1 2025 totaled $1.79 million, a decrease from a net operating loss of $2.76 million for Q1 2024, owing to increased revenues.
Strong Backlog and Pipeline
Current contracts and backlog represent more than $45 million in revenue, with $17.4 million projected to be recognized in 2025 and additional expected near-term awards and renewals.
Negative Updates
Challenges in Rail Industry
While Duos has not achieved the hoped-for success in the rail industry, they continue to develop world-class technologies and plan to introduce new products.
Increase in Operating Expenses
Operating expenses for Q1 2025 increased 9% to $3.1 million compared to $2.86 million for Q1 2024, largely due to non-cash stock-based compensation charges.
Continued Net Loss
Net loss for Q1 2025 totaled $2.08 million compared to a net loss of $2.75 million for Q1 2024, showing a 24% decrease but still indicating losses.
Company Guidance
During Duos Technologies' First Quarter 2025 earnings call, the company provided an optimistic outlook, highlighting significant progress across its business segments. The Power line of business saw a substantial increase in contracted gas turbine capacity, reaching 570 megawatts, with expectations to rise to 730 megawatts shortly. The Edge Data Center business, Duos Edge AI, secured commitments for an additional 8 centers, aiming for 15 deployments by year-end. Financially, Duos reported a 363% increase in total revenues to $4.95 million for Q1 2025, driven by the Asset Management Agreement with New APR Energy, which contributed $3.9 million. Gross margin surged 1288% to $1.31 million, primarily due to the performance of the AMA. The company reiterated its guidance for consolidated revenue between $28 million and $30 million for the year, with expectations to achieve positive adjusted EBITDA by year-end, despite a net loss reduction of 24% compared to Q1 2024.Duos Technologies Group Corporate Events
Executive/Board Changes
Duos Technologies Appoints James Nixon as Chairman
Neutral
May 19, 2025
On May 13, 2025, Duos Technologies Group announced the election of James Craig Nixon as the Chairman of the Board. The Board also appointed members to its committees, with Ned Mavrommatis, James Craig Nixon, and Frank A. Lonegro taking on roles in the Audit, Compensation, and Corporate Governance and Nominating Committees, potentially impacting the company’s governance and strategic direction.
The most recent analyst rating on (DUOT) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Duos Technologies Group stock, see the DUOT Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Duos Technologies Reports 363% Revenue Surge in Q1 2025
Positive
May 19, 2025
Duos Technologies Group reported a significant 363% increase in revenue for the first quarter of 2025, reaching approximately $5 million, primarily driven by its services and consulting business under the Asset Management Agreement with New APR Energy. The company also saw improvements in gross margin and a decrease in net loss, despite delays in deploying its high-speed Railcar Inspection Portals, and anticipates continued growth throughout 2025 with expected revenues between $28 million and $30 million.
The most recent analyst rating on (DUOT) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Duos Technologies Group stock, see the DUOT Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Duos Technologies Group Reports 2024 Financial Results
Neutral
Apr 2, 2025
Duos Technologies Group reported its financial results for the fourth quarter and full year of 2024, highlighting a transformative year with the addition of two new business lines and a significant contract with New APR Energy and Fortress Investment Group valued at up to $42 million. Despite a decrease in total revenue for Q4 2024 by 4% compared to Q4 2023, the company saw a 9% increase in recurring services and consulting revenue. The company also faced a net loss of $3.41 million for Q4 2024, attributed to higher interest costs related to acquisitions. However, Duos strengthened its balance sheet with increased cash equivalents and inventory, and anticipates continued growth in service revenue supported by a growing backlog and new technology systems expected in 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.