DEFSEC Technologies (DFSC) AI Stock Analysis

• Market Cap: C$5.90M
• Dividend Yield: N/A
• Average Volume (3M): 3.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 166.43%
• EPS Growth: 75.12%
• Country: CA
• Employees: 29
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -2.70
• Shares Outstanding: 1,993,626
• 10 Day Avg. Volume: 5,541
• 30 Day Avg. Volume: 3,947
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: C$5.50 ▲(124.49% Upside)

The overall stock score is primarily influenced by the company's financial performance, which is weak due to consistent losses and negative cash flows. Technical analysis provides a slightly more optimistic view with potential medium-term recovery, but valuation remains a significant concern due to negative earnings and lack of dividends. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for DEFSEC's cybersecurity solutions, suggesting a robust market position and potential for continued expansion.

Market Position

DEFSEC's leadership in cybersecurity for defense and government sectors provides a competitive edge, ensuring stable demand and long-term contracts.

Low Debt Levels

A low debt-to-equity ratio enhances financial stability, allowing DEFSEC to invest in growth opportunities without significant financial strain.

Negative Factors

Negative Cash Flows

Persistent negative cash flows indicate challenges in generating cash from operations, potentially limiting DEFSEC's ability to fund growth internally.

Profitability Challenges

Ongoing losses and negative profit margins highlight operational inefficiencies, which could hinder DEFSEC's ability to achieve sustainable profitability.

Dependence on Financing

Dependence on external financing suggests potential vulnerability to market conditions, affecting DEFSEC's financial flexibility and resilience.

DEFSEC Technologies Business Overview & Revenue Model

Company Description

KWESST Micro Systems Inc. develops and commercializes technology solutions for military, public safety agencies, and personal defense markets. It provides non-lethal systems with law enforcement and personal defense applications; modernized digitization of tactical forces for shared situational awareness and targeting; and counter-measures against threats, such as drones, lasers, and electronic detection. The company was incorporated in 2017 and is headquartered in Vancouver, Canada.

How the Company Makes Money

DEFSEC Technologies generates revenue through multiple streams, including the sale of proprietary cybersecurity software and hardware products, subscription-based services for ongoing support and updates, and consulting services that help organizations assess and improve their security measures. Additionally, the company may engage in long-term contracts with government and defense agencies, which provide a steady income source. Strategic partnerships with other technology firms and defense contractors also contribute to its revenue by enabling DFSC to integrate its solutions into larger systems and reach a broader market. The company's focus on innovation and adaptability to emerging threats further enhances its earning potential in a rapidly evolving industry.

DEFSEC Technologies Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

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Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
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DEFSEC Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.10, below the 50-day MA of 4.18, and below the 200-day MA of 6.55, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 42.42 is Neutral, neither overbought nor oversold. The STOCH value of 71.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DFSC.

DEFSEC Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTG	78 Outperform	C$337.32M	23.56	17.40%	―	15.09%	31.55%
MAL	72 Outperform	C$1.16B	25.94	5.64%	0.93%	8.84%	131.58%
MDA	70 Outperform	C$3.73B	34.16	8.88%	―	57.77%	57.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DPRO	52 Neutral	$307.28M	-5.13	-48.13%	―	26.74%	53.14%
DFSC	45 Neutral	C$5.90M	-0.08	-208.64%	―	166.43%	75.12%
SNA	42 Neutral	C$7.44M	-3.23	―	―	-45.86%	36.73%