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DEFSEC Technologies
(DFSC)
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Rating:49Neutral
Price Target:
C$3.00
▲(69.49% Upside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by persistent, very large losses and significant cash burn, which elevate funding and dilution risk despite improving revenue growth and stronger gross margins. Technicals are mixed (short-term strength but weaker longer-term trend and negative MACD), while valuation provides limited support due to negative earnings and no dividend.
Positive Factors
Revenue Growth
Strong TTM revenue growth indicates improving commercial traction and provides a larger base from which operating leverage could develop if expansion continues across the business.
Negative Factors
Persistent Operating Losses
Losses remain exceptionally large relative to revenue, showing that the current cost base is far above the company’s scale. Sustained deficits could delay self-funded growth and require continued external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Strong TTM revenue growth indicates improving commercial traction and provides a larger base from which operating leverage could develop if expansion continues across the business.
Read all positive factors
DEFSEC Technologies (DFSC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$11.15M
Dividend YieldN/A
Average Volume (3M)5.36K
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth82.19%
EPS Growth90.16%
CountryCA
Employees45
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-6.38
Shares Outstanding2,666,632
10 Day Avg. Volume3,706
30 Day Avg. Volume5,359
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.39
Price to Sales (P/S)0.61
P/FCF Ratio-0.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
DEFSEC Technologies Business Overview & Revenue Model
Company Description
DEFSEC Technologies Inc. is dedicated to designing and commercializing cutting-edge tactical systems for the security and personal protection markets. The company's portfolio features DEFSEC Lightning, an advanced military digitization technology....
DEFSEC Technologies Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
58
Neutral
Cash Flow
19
Very Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Dec 2023 | Dec 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.52M | 4.94M | 1.50M | 1.23M | 721.52K | 1.28M |
| Gross Profit | 1.90M | 664.32K | 486.50K | -191.38K | 184.78K | 476.92K |
| EBITDA | -8.25M | -8.29M | -5.91M | -7.63M | -9.73M | -9.06M |
| Net Income | -9.10M | -9.63M | -7.44M | -9.31M | -10.52M | -9.32M |
Balance Sheet | ||||||
| Total Assets | 10.45M | 12.92M | 5.62M | 11.76M | 7.32M | 8.72M |
| Cash, Cash Equivalents and Short-Term Investments | 3.53M | 6.73M | 256.83K | 5.41M | 170.54K | 2.69M |
| Total Debt | 1.29M | 1.30M | 302.22K | 429.52K | 2.55M | 361.16K |
| Total Liabilities | 5.34M | 5.12M | 4.25M | 7.82M | 8.33M | 2.59M |
| Stockholders Equity | 5.11M | 7.80M | 1.37M | 3.94M | -1.00M | 6.12M |
Cash Flow | ||||||
| Free Cash Flow | -8.03M | -8.10M | -9.17M | -15.38M | -5.62M | -7.30M |
| Operating Cash Flow | -7.82M | -7.96M | -9.06M | -14.08M | -4.26M | -6.26M |
| Investing Cash Flow | -223.86K | -180.41K | -111.15K | -1.44M | -1.11M | -1.07M |
| Financing Cash Flow | 9.02M | 14.60M | 4.02M | 20.76M | 2.85M | 6.94M |
DEFSEC Technologies Technical Analysis
Positive
1.77
Price Trends
3.31
Positive
3.75
Positive
3.65
Positive
Market Momentum
-0.11
Negative
72.19
Negative
55.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DFSC, the sentiment is Positive. The current price of 1.77 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 3.31, and below the 200-day MA of 3.65, indicating a bullish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 72.19 is Negative, neither overbought nor oversold. The STOCH value of 55.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DFSC.
DEFSEC Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$606.18M | 42.67 | 15.33% | ― | 11.09% | 4.67% | |
67 Neutral | C$11.62B | 42.03 | 5.47% | ― | 5.38% | -31.14% | |
67 Neutral | C$2.44B | 38.54 | 7.11% | 0.57% | 15.36% | 57.18% | |
65 Neutral | C$7.92B | 60.36 | 6.60% | ― | 38.30% | -13.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | C$11.15M | -0.46 | -142.44% | ― | 82.19% | 90.16% | |
49 Neutral | C$252.24M | -6.09 | -27.52% | ― | 26.30% | 55.00% |
* Industrials Sector Average
TSE:DFSC
DEFSEC Technologies
2.96
-2.54
-46.18%
TSE:CAE
CAE
37.68
-0.70
-1.82%
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25.60
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115.85%
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40.47
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TSE:MDA
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DEFSEC Technologies Corporate Events
Business Operations and StrategyPrivate Placements and Financing
DEFSEC Technologies Raises CAD$5.54 Million in Tactical Systems-Focused Private Placement
Positive
Aug 17, 2026
DEFSEC Technologies Inc. has arranged a private placement of 1,951,219 common shares or pre-funded warrants at CAD$2.84 each, bundled with an equal number of common share purchase warrants exercisable at CAD$3.30 for 60 months. The financing, led ...
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.