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Draganfly (TSE:DPRO)
:DPRO
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Draganfly
(NASDAQ:DPRO)
48Neutral
Positive Factors
Financial Performance
DPRO shares have increased 65.0% since reporting 3Q24 operating results, showing strong performance compared to the Russell 2000 index.
Market Opportunity
The U.S. government is considering the ban of drones from partially state-backed China-based company DJI, which could unlock considerable demand for qualified competitors like DPRO.
Strategic Partnerships
DPRO announced a partnership with a Fortune 50 oil and gas company to use its drone-in-a-box solution for inspecting tens of thousands of sites.
Negative Factors
Competition
High levels of industry competition from peers with much greater resources pose a risk to the company.
Revenue Performance
3Q revenue was below expectations, with revenue of $1.9M, down 11.8% year-over-year, as the company prepares for an upswing in demand for domestic drones.
Draganfly (DPRO) vs. S&P 500 (SPY)
Market Cap
$20.14M
Dividend YieldN/A
Average Volume (3M)3.85K
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth-15.66%
EPS Growth77.35%
CountryCA
Employees55
SectorIndustrials
Sector Strength65
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-4.53
Shares Outstanding5,427,795
10 Day Avg. Volume3,935
30 Day Avg. Volume3,849
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.11
Price to Cash Flow (P/CF)-1.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$10.02Price Target Upside165.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Draganfly Business Overview & Revenue Model
Company DescriptionDraganfly Inc. (DPRO) is a pioneering technology company dedicated to the development and production of advanced drone systems and solutions. Operating in the sectors of aerospace, defense, public safety, and agriculture, Draganfly offers a diverse range of products and services, including unmanned aerial vehicles (UAVs), drone software, and AI-enabled data collection and analysis tools. The company's innovations are utilized for various applications such as aerial surveying, mapping, search and rescue missions, and agricultural monitoring.
How the Company Makes MoneyDraganfly generates revenue through multiple streams, primarily focusing on the sale and leasing of its proprietary drone systems and related software solutions to both commercial and governmental clients. Additionally, the company provides custom engineering services and technical support, which contribute to its earnings. Draganfly's strategic partnerships with industry leaders and government agencies further bolster its revenue by facilitating the development of specialized drone applications and enhancing its market reach. The company also capitalizes on subscription-based models for its software and data analytics services, providing a recurring revenue stream.
Draganfly Financial Statement Overview
Summary
Draganfly's financial performance faces challenges with declining revenues and persistent losses. Despite a modest improvement in equity position, operational inefficiencies and cash flow deficits remain significant issues.Income Statement
The income statement shows a declining revenue trend with a decrease from $6.55M in 2023 to $5.86M in TTM (Trailing-Twelve-Months). Gross profit margin also fell significantly, while the net profit margin remains negative, indicating persistent losses. The EBIT and EBITDA margins reflect operational inefficiencies, and the company has yet to achieve profitability.35
Negative
Balance Sheet
The balance sheet reveals moderate debt levels with a debt-to-equity ratio of 0.12 in TTM. However, the equity ratio has improved to 51.1%, suggesting a stronger equity base relative to assets compared to previous periods. Despite these improvements, the company’s low return on equity and declining asset base pose concerns.45
Neutral
Cash Flow
The cash flow statement indicates negative free cash flow, although there is a minor improvement from the previous year. Operating cash flow remains negative, highlighting ongoing cash burn in operations. The operating cash flow to net income ratio suggests cash flow challenges, with heavy reliance on financing activities for liquidity.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.86M | 6.55M | 7.61M | 7.05M | 4.36M | 1.38M | Gross Profit |
| 1.14M | 2.06M | 790.67K | 2.64M | 1.76M | 1.16M | EBIT |
| -13.80M | -22.39M | -26.15M | -22.30M | -7.12M | -3.34M | EBITDA |
| -13.38M | -21.85M | -26.88M | -18.97M | -7.87M | -3.29M | Net Income Common Stockholders |
| -13.34M | -23.61M | -29.16M | -13.16M | -9.39M | -11.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 101.79K | 3.09M | 7.89M | 23.08M | 1.98M | 2.43M | Total Assets |
| 504.82K | 8.33M | 14.64M | 42.11M | 7.10M | 3.22M | Total Debt |
| 2.05M | 875.08K | 465.21K | 582.44K | 256.04K | 136.07K | Net Debt |
| 1.95M | -2.22M | -7.43M | -22.49M | -1.73M | -2.29M | Total Liabilities |
| 4.64M | 7.92M | 3.60M | 7.19M | 3.25M | 1.03M | Stockholders Equity |
| -4.13M | 407.72K | 11.04M | 34.93M | 3.85M | 2.19M |
| Cash Flow | Free Cash Flow | ||||
| -9.41M | -19.26M | -16.43M | -22.22M | -5.16M | -3.98M | Operating Cash Flow |
| -9.26M | -18.77M | -16.35M | -22.00M | -5.14M | -3.89M | Investing Cash Flow |
| -30.68K | -379.58K | 768.65K | -3.31M | 516.42K | -27.75K | Financing Cash Flow |
| 10.83M | 14.45M | -48.10K | 46.27M | 4.17M | 6.27M |
Draganfly Technical Analysis
Negative
3.78
Price Trends
4.16
Negative
4.57
Negative
3.12
Positive
Market Momentum
0.03
Negative
45.83
Neutral
30.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DPRO, the sentiment is Negative. The current price of 3.78 is below the 20-day moving average (MA) of 3.80, below the 50-day MA of 4.16, and above the 200-day MA of 3.12, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 45.83 is Neutral, neither overbought nor oversold. The STOCH value of 30.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DPRO.
Draganfly Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $8.05B | 13.60 | 4.04% | 3.11% | 3.70% | -14.19% | |
48 Neutral | $20.14M | ― | -572.74% | ― | -15.66% | 77.35% | |
47 Neutral | C$33.61M | ― | -151.65% | ― | ― | -56.27% | |
44 Neutral | $82.75M | ― | -53.83% | ― | 484.19% | -10.68% | |
27 Underperform | C$1.19M | ― | ― | ― | 15.84% |
* Industrials Sector Average
Performance Comparison
TSE:DPRO
Draganfly
3.46
3.15
1016.13%
TSE:FLT
Drone Delivery Canada
0.17
-0.06
-27.66%
TSE:UAV
Global UAV Technologies Ltd
0.51
0.37
264.29%
TSE:RPX
Red Pine Exploration
0.12
-0.12
-50.00%
Draganfly Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -13.50% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
Draganfly's earnings call reflected significant growth in certain areas, particularly in Q4 revenue and strategic partnerships, but was offset by ongoing comprehensive losses and margin decreases. The company has managed to secure notable board members and FAA waivers, indicating strong future potential, though financial challenges remain.Highlights
Q4 Revenue Surge
Q4 revenue increased by 76% year-over-year, indicating strong growth and an ability to meet market demand after increasing capacity.
FAA Waivers and Medical Delivery Program
Received FAA waivers to operate over moving vehicles in Boston for a medical delivery program with Mass Brigham General, showcasing leadership in drone delivery services.
NDAA-Compliant FlexForce FPV System
Successfully launched the NDAA-compliant FlexForce FPV system, which is now operational in theaters, highlighting improved product offerings.
Significant Board Appointments
Former Acting Secretary of Defense Chris Miller and former Chief of Staff of the White House Andy Card have joined the Board, enhancing leadership and governance.
Increase in Cash Balance
Cash balance increased to $6.25 million from $3.1 million, improving liquidity and financial stability.
Lowlights
Comprehensive Losses
Total comprehensive loss for the year was $14.06 million, although an improvement from last year's $23.7 million loss.
Gross Margin Decrease
Adjusted gross margin decreased from 36.5% to 30.9% year-over-year, attributed to inventory write-downs and changes in product sales mix.
Quarter-over-Quarter Revenue Decline
Q4 revenue decreased by 14% compared to Q3, mainly due to lower product sales.
Operational Capacity Constraints
Revenue growth was constrained earlier in the year due to capacity limits, which were only addressed towards the end of Q3.
Company Guidance
During the Draganfly earnings call for Q4 and the full year of 2024, the company provided several key financial metrics. The annual revenue was reported at $6.56 million, with a gross profit of $1.39 million, resulting in a gross margin of 21.3%, adjusted to just under 31% after accounting for noncash write-downs. The cash balance at the end of the year stood at $6.25 million. The company highlighted a 76% year-over-year increase in Q4 revenue, although annual revenue remained flat due to capacity constraints. The comprehensive loss for the year was $14.06 million, a significant improvement from the previous year's loss of $23.7 million. Draganfly also mentioned receiving FAA waivers for operations in Boston and introduced several new board members, including former high-profile government officials. The company expressed optimism about future growth and profitability within the next 18 to 24 months.Draganfly Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Draganfly Secures FAA Waiver for Urban Drone Operations
Positive
Jan 23, 2025
Draganfly Inc. announced that it has secured a Federal Aviation Administration (FAA) waiver permitting its drones to operate over people and moving vehicles in Boston, marking a significant advancement in UAV capabilities in urban settings. This regulatory milestone reinforces Draganfly’s reputation as an innovator in the UAV space, enabling critical applications such as public safety and infrastructure inspection, and strengthening its partnerships with defense, government, and commercial sectors.
Draganfly and Volatus Aerospace Collaborate on Innovative Drone Solutions for Energy Sector
Jan 16, 2025
Draganfly Inc. has announced a strategic partnership with Volatus Aerospace to integrate advanced Bathymetric LiDAR technology with Draganfly’s Heavy Lift Drone. This collaboration aims to meet the growing demand for precision data acquisition in the energy sector, particularly for oil and gas exploration. By combining their technologies, the companies intend to improve mapping of underwater environments, thereby enhancing operational efficiency and reducing costs for clients. The agreement also allows Volatus to operate as a reseller of Draganfly’s UAV platforms, expanding its product offerings and market reach.
Draganfly Advances Drone Delivery for Healthcare
Dec 18, 2024
Draganfly Inc. successfully completed initial proof-of-concept flights for a drone delivery project aimed at enhancing healthcare logistics for Mass General Brigham’s Home Hospital. The initiative seeks to demonstrate how drones can ensure timely access to critical medical supplies, reducing delays caused by traditional delivery methods. This project marks a significant step towards revolutionizing healthcare logistics, potentially providing faster and more reliable delivery of essential supplies.
Draganfly to Train Operators at ElevateUAV Event
Nov 7, 2024
Draganfly is set to participate in the ElevateUAV event, where it will provide specialized training on its advanced drone platforms, Flex FPV and Commander 3XL. This initiative highlights Draganfly’s dedication to equipping operators with the necessary skills to enhance UAV applications in critical sectors such as public safety and emergency response.
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.