Deveron UAS (FARM) AI Stock Analysis

• Market Cap: C$8.31M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -18.97%
• EPS Growth: -55.19%
• Country: CA
• Employees: 218
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 213,444,890
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.25
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 3.58
• 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: 40 Underperform
• Price Target: ―

Deveron UAS faces significant challenges, including high leverage, negative profitability, and recent revenue declines, impacting its financial performance. Technical indicators suggest limited momentum, while valuation metrics reflect the company's struggles. Corporate events underscore operational and regulatory hurdles, leading to a cautious outlook on the stock.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term business expansion.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt more effectively.

Cost Optimization

Cost optimization efforts improve operational efficiency, which can lead to better profitability and competitive positioning in the long term.

Negative Factors

High Leverage

High leverage increases financial risk, limiting the company's ability to invest in growth and potentially impacting its long-term stability.

Negative Profitability

Ongoing losses highlight challenges in achieving profitability, which can hinder the company's ability to sustain operations and fund future growth.

Regulatory Challenges

Regulatory issues can lead to increased scrutiny and compliance costs, potentially affecting the company's operations and market reputation.

Deveron UAS Business Overview & Revenue Model

Company Description

Deveron Corp., an agriculture technology company, provides drone data services to the farming sector in the United States and Canada. It offers data acquisition services and data analytics based on digital recommendations and data interpretations. The company provides data collection services, including data collection for soil sampling, drone data, etc. It also offers remote sensing and precision agriculture data aggregation and analytic services. The company was formerly known as Deveron UAS Corp. and changed its name to Deveron Corp. in September 2020. Deveron Corp. was incorporated in 2011 and is headquartered in Toronto, Canada.

How the Company Makes Money

Deveron UAS generates revenue primarily through its data collection and analysis services offered to farmers and agricultural businesses. The company charges fees for its aerial data collection services, which involve deploying drones to capture detailed imagery of agricultural fields. Additionally, Deveron UAS provides data processing and analytics services, generating further revenue by offering insights and customized reports that assist clients in making informed decisions about their farming operations. Key revenue streams include service contracts with individual farmers, agricultural cooperatives, and partnerships with agribusinesses that integrate Deveron's data solutions into their products or services. The company may also benefit from partnerships with technology providers or agricultural equipment manufacturers that enhance its service offerings or expand its market reach.

Deveron UAS Financial Statement Overview

Summary

Deveron UAS has demonstrated strong revenue growth but struggles with profitability and financial stability. The company relies heavily on debt, with negative equity posing risks. Despite improvements in cash flow, financial health remains vulnerable, requiring strategic measures to improve profitability and strengthen the balance sheet.

Income Statement

The company has shown significant revenue growth over the years, with a notable increase in total revenue from 2020 to TTM (2024). However, profitability metrics are concerning, with consistent negative EBIT and net income, indicating operational inefficiencies and challenges in achieving profitability. The gross profit margin remains relatively stable but is overshadowed by the substantial negative net profit margin.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to significant negative stockholders' equity, posing a risk of financial instability. Total liabilities have increased, reflecting potential liquidity challenges. The equity ratio is negative, highlighting a high reliance on debt financing, which could impact future growth and financial flexibility.

Cash Flow

Cash flow analysis shows improvement in free cash flow in TTM (2024) compared to previous years. However, the operating cash flow to net income ratio is weak due to persistent negative net income. While free cash flow has turned positive recently, the overall cash generation remains a concern, limiting the company's ability to fund operations internally.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	31.43M	35.32M	28.92M	8.60M	2.87M	2.06M
Gross Profit	20.15M	23.61M	19.95M	5.83M	2.24M	1.21M
EBITDA	-41.21M	-43.16M	24.12K	-3.99M	-1.56M	-1.76M
Net Income	-51.68M	-57.48M	-9.09M	-5.18M	-1.76M	-1.94M
Balance Sheet
Total Assets	55.14M	56.86M	116.73M	22.77M	9.37M	3.86M
Cash, Cash Equivalents and Short-Term Investments	2.17M	1.19M	5.82M	6.87M	6.22M	1.28M
Total Debt	44.54M	45.85M	48.97M	1.95M	391.25K	287.79K
Total Liabilities	69.80M	74.70M	72.72M	6.46M	1.11M	736.34K
Stockholders Equity	-40.82M	-43.56M	19.29M	14.68M	8.26M	3.12M
Cash Flow
Free Cash Flow	1.04M	3.04M	-15.49M	-4.73M	-1.85M	-1.72M
Operating Cash Flow	1.48M	4.50M	-10.00M	-4.22M	-1.68M	-1.59M
Investing Cash Flow	-122.21K	-1.48M	-43.45M	-4.40M	-382.62K	-126.60K
Financing Cash Flow	-1.01M	-4.78M	52.41M	9.27M	7.00M	72.75K

Deveron UAS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Neutral
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FARM, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FARM.

Deveron UAS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPOT	74 Outperform	C$47.89M	2.31	39.00%	―	37.95%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DCSI	49 Neutral	C$5.97M	-1.12	―	―	33.92%	-402.25%
PBIT	45 Neutral	C$10.54M	-3.11	-540.25%	―	-33.97%	59.10%
DM	41 Neutral	C$6.75M	-0.73	-58.58%	―	-56.02%	91.71%
VIS	41 Neutral	C$5.17M	-4.35	-3428.85%	―	-15.33%	47.13%
FARM	40 Underperform	C$8.31M	-0.12	―	―	-18.97%	-55.19%

Deveron UAS Corporate Events

Deveron Shareholders Approve Asset Sale, Name Change and Wind-Up Plan

Deveron Corp. shareholders have overwhelmingly approved a sweeping set of restructuring measures at a special meeting, including the sale of substantially all of the company’s assets under a share and asset purchase agreement, a corporate name change to Finis Holdings Inc., delisting its shares from the TSX Venture Exchange, applying to cease being a reporting issuer, and a voluntary winding up of the company at a time to be set by the board. The resolutions, each supported by roughly 98% of shareholders and minority shareholders, clear the way for Deveron to effectively exit the public markets and wind down its current corporate structure, with completion of the asset sale still subject to customary closing conditions and anticipated around mid-January 2026.

Deveron Details OSC-Requested Clarifications and Governance Changes Around Aqua Capital Deal

Deveron Corp. has issued additional disclosure at the request of Ontario Securities Commission staff regarding its proposed transaction with Aqua Capital and related matters ahead of a December 30 shareholder meeting to vote on the deal and associated resolutions. The company outlined the timeline from an initial 2024 letter of intent from Aqua Capital through the formation of a special committee in February 2025, the shift from a financing proposal to an M&A negotiation, board-level disagreements that prompted multiple director resignations, and the eventual concentration of board oversight in a single remaining director before adding one independent director. Deveron also confirmed that regulators view the amendment of its convertible debentures and the proposed transaction as connected transactions under minority protection rules, leading to the exclusion of 20,538,287 common shares, including those held by director Chris Irwin, from the minority approval calculation, a development that could influence voting dynamics and outcomes for shareholders on the proposed sale and winding-up resolutions.

Deveron Corp. Sells Assets to Rock River to Address Liquidity Challenges

Deveron Corp. has entered into an agreement to sell all its assets, including its majority stake in A&L Canada Laboratories East, Inc., to affiliates of Rock River Laboratory Inc. This decision comes as a strategic move to address liquidity issues and maturing debt. The transaction, valued at US$36.4 million, will involve a combination of cash, secured seller notes, and equity in Rock River. Aqua Capital will provide equity for the transaction and remain the controlling shareholder of Rock River. The sale is expected to help Deveron settle its outstanding debts and provide a return of capital to its shareholders, while also involving adjustments for working capital and foreign exchange fluctuations.

Deveron Corp. Announces Board Reshuffle with New Director Appointment

Deveron Corp. announced the resignation of directors Roger Dent, Greg Patterson, and Ron Patterson, while appointing Chris Irwin as a new director. Irwin, a seasoned securities and corporate law practitioner, is expected to bring valuable expertise to the company’s board. This leadership change may influence Deveron’s strategic direction and operations, potentially impacting its market positioning and stakeholder relationships.

Deveron Corp. Faces Financial Filing Delays Amid Hardships

Deveron Corp. has announced that it will not meet the deadline for filing its audited consolidated financial statements for the fiscal year ending June 30, 2025, due to financial difficulties. This delay highlights the company’s current financial challenges, which may impact its operations and stakeholder confidence.

Deveron Corp. Amends Forbearance Agreement to Address Liquidity Needs

Deveron Corp. has entered into an amended forbearance agreement with Toronto Dominion Bank concerning a $25 million loan. This amendment allows the company to continue its strategic review process to explore alternatives for addressing its short-term liquidity needs. The agreement provides temporary relief from certain defaults under the original credit agreement, potentially impacting Deveron’s operational stability and strategic positioning in the agriculture technology sector.