Want to see TSE:DFSC full AI Analyst Report?
Top Page
DEFSEC Technologies
(NASDAQ:DFSC)
Select Model
Select Model
Rating:42Neutral
Price Target:
C$3.50
▲(42.86% Upside)
Action:Reiterated
Date:07/01/26
The score is held down primarily by poor financial performance—large losses, very weak margins, and ongoing cash burn—despite improving revenue growth and gross margin. Technicals also lean negative with the stock below major moving averages, while valuation offers limited support given negative earnings and no dividend data.
Positive Factors
Accelerating revenue growth
Sustained top-line acceleration signals increasing market traction and demand for DEFSEC's offerings. Over 2-6 months this momentum improves the company's ability to scale fixed costs, deepen customer relationships, and justify ongoing product investment if growth persists and converts to higher recurring revenue.
Negative Factors
Persistent negative operating and free cash flow
Ongoing cash burn is a durable pressure point: it forces reliance on external financing, limits runway for R&D and commercialization, and constrains hiring and scaling. Absent consistent positive cash generation, the business remains capital dependent and vulnerable during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue growth
Sustained top-line acceleration signals increasing market traction and demand for DEFSEC's offerings. Over 2-6 months this momentum improves the company's ability to scale fixed costs, deepen customer relationships, and justify ongoing product investment if growth persists and converts to higher recurring revenue.
Read all positive factors
DEFSEC Technologies (DFSC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$9.31M
Dividend YieldN/A
Average Volume (3M)5.36K
Price to Earnings (P/E)―
Beta (1Y)0.60
Revenue Growth104.47%
EPS Growth90.11%
CountryCA
Employees43
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-8.79
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
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
14
Very Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Dec 2023 | Dec 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.22M | 4.94M | 1.50M | 1.23M | 721.52K | 1.28M |
| Gross Profit | 1.54M | 664.32K | 486.50K | -191.38K | 184.78K | 476.92K |
| EBITDA | -8.08M | -8.00M | -5.91M | -7.63M | -9.73M | -9.06M |
| Net Income | -8.82M | -9.63M | -7.44M | -9.31M | -10.52M | -9.32M |
Balance Sheet | ||||||
| Total Assets | 9.81M | 12.92M | 5.62M | 11.76M | 7.32M | 8.72M |
| Cash, Cash Equivalents and Short-Term Investments | 3.00M | 6.73M | 256.83K | 5.41M | 170.54K | 2.69M |
| Total Debt | 1.26M | 1.30M | 302.22K | 429.52K | 2.55M | 361.16K |
| Total Liabilities | 4.68M | 5.12M | 4.25M | 7.82M | 8.33M | 2.59M |
| Stockholders Equity | 5.12M | 7.80M | 1.37M | 3.94M | -1.00M | 6.12M |
Cash Flow | ||||||
| Free Cash Flow | -8.26M | -8.10M | -9.17M | -15.38M | -5.62M | -7.30M |
| Operating Cash Flow | -8.03M | -7.96M | -9.06M | -14.08M | -4.26M | -6.26M |
| Investing Cash Flow | -243.06K | -180.41K | -111.15K | -1.44M | -1.11M | -1.07M |
| Financing Cash Flow | 6.85M | 14.60M | 4.02M | 20.76M | 2.85M | 6.94M |
DEFSEC Technologies Technical Analysis
Negative
2.45
Price Trends
4.92
Negative
3.91
Negative
4.13
Negative
Market Momentum
-0.38
Positive
29.84
Positive
12.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DFSC, the sentiment is Negative. The current price of 2.45 is below the 20-day moving average (MA) of 4.78, below the 50-day MA of 4.92, and below the 200-day MA of 4.13, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 29.84 is Positive, neither overbought nor oversold. The STOCH value of 12.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | C$572.44M | 42.13 | 14.24% | ― | 15.55% | -0.75% | |
69 Neutral | C$8.20B | 67.85 | 7.24% | ― | 42.91% | 2.84% | |
66 Neutral | C$1.95B | 42.84 | 5.48% | 0.93% | 10.42% | 12.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | C$11.42B | 36.23 | 6.12% | ― | 4.38% | -23.21% | |
51 Neutral | C$283.21M | -5.56 | -29.13% | ― | 25.32% | 68.42% | |
42 Neutral | C$9.31M | -0.10 | -132.31% | ― | 104.47% | 90.11% |
* Industrials Sector Average
TSE:DFSC
DEFSEC Technologies
3.49
-9.40
-72.92%
TSE:CAE
CAE
35.51
-4.26
-10.71%
TSE:FTG
Firan Tech
22.74
11.20
97.05%
TSE:MAL
Magellan Aerospace
34.16
15.04
78.69%
TSE:DPRO
Draganfly
7.76
3.60
86.54%
TSE:MDA
MDA Space Ltd
58.60
22.37
61.74%
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.