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): 0.47
• Revenue Growth: -15.73%
• EPS Growth: -45.92%
• Country: CA
• Employees: 218
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Information Technology Services
• EPS (TTM): -0.33
• 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): 0.00
• 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

• 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.

Deveron UAS Business Overview & Revenue Model

Company Description

Deveron UAS (FARM) is a leading provider in the agricultural technology sector, specializing in the collection and analysis of aerial data to support precision farming. The company utilizes unmanned aerial systems (UAS) to gather high-resolution imagery and data from agricultural fields. This data is then processed and analyzed to provide actionable insights that help farmers optimize crop yields, reduce input costs, and improve overall farm management practices.

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	Jun 2024	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
	EBIT
-46.04M	-59.04M	-3.00	-4.74M	-1.77M	-1.80M
	EBITDA
-41.21M	-43.16M	24.12K	-3.99M	-1.56M	-1.76M
	Net Income Common Stockholders
-51.68M	-57.48M	-9.09M	-5.18M	-1.76M	-1.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.17M	1.19M	5.82M	6.87M	6.22M	1.28M
	Total Assets
55.14M	56.86M	116.73M	22.77M	9.37M	3.86M
	Total Debt
44.54M	45.85M	48.97M	1.95M	391.25K	287.79K
	Net Debt
42.37M	44.66M	43.15M	-4.92M	-5.83M	-990.11K
	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: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 equal to 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 neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 28.99 is Positive, 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
DRX	75 Outperform	C$247.59M	5.25	29.02%	0.45%	-19.66%	15.33%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
KWE	49 Neutral	$5.42M	―	-231.01%	―	121.88%	77.93%
NPK	47 Neutral	C$25.54M	―	-32.62%	―	-39.06%	-9.07%
VSBY	41 Neutral	$5.21M	―	260.66%	―	―	―
FARM	40 Underperform	C$8.31M	―		―	-15.73%	-45.92%

Deveron UAS Corporate Events

Deveron Corp. Secures Forbearance Agreement with TD Bank

Deveron Corp. has entered into a forbearance agreement with Toronto Dominion Bank concerning a $26 million loan, allowing the bank to refrain from exercising its rights due to certain defaults until September 30, 2025, or upon specific termination events. This agreement supports Deveron’s strategic review process to explore alternatives for meeting short-term liquidity needs, potentially impacting its operations and market positioning.

Spark’s Take on TSE:FARM Stock

According to Spark, TipRanks’ AI Analyst, TSE:FARM is a Underperform.

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.

To see Spark’s full report on TSE:FARM stock, click here.

Deveron Corp. Announces Director Resignation Amidst Strategic Focus

Deveron Corp. announced the resignation of Mr. Albert Contardi from its board of directors, effective immediately. The company expressed gratitude for his contributions and wished him success in future endeavors. This change in leadership comes as Deveron continues to focus on its core mission of enhancing agricultural productivity through technology-driven insights, potentially impacting its strategic direction and stakeholder relations.

Spark’s Take on TSE:FARM Stock

According to Spark, TipRanks’ AI Analyst, TSE:FARM is a Underperform.

Deveron UAS’s overall stock score is low due to significant financial challenges, including high debt levels and ongoing losses. Although revenue growth is a positive aspect, it is overshadowed by the company’s precarious financial health and lack of profitability. The stable technical indicators and poor valuation metrics further contribute to the overall low score.

To see Spark’s full report on TSE:FARM stock, click here.

Deveron Corp. Faces Revenue Decline Amid Market Challenges

Deveron Corp. reported a decrease in revenue and adjusted EBITDA for the second quarter of fiscal 2025, attributed to softer sales in its Canadian fertility and specialty tissue products, macroeconomic challenges in the North American agricultural sector, and the company’s exit from its unprofitable carbon business. Operating expenses were reduced by 22% due to cost optimization and headcount reductions, reflecting the company’s efforts to streamline operations amidst challenging market conditions.

Deveron Corp. Reports 2024 Financial Results, Records Impairment Charge

Deveron Corp. has released its audited financial results for the year ending June 2024 and the quarter ending September 2024. The company experienced a slight decline in revenue by 3.5% for the year, but saw a significant improvement in Adjusted EBITDA, which increased by 347%. However, the company recorded an impairment charge of $43,132,423, attributed mainly to goodwill from the acquisition of lab testing businesses. Additionally, Deveron’s financial performance was impacted by seasonal tissue volumes and the exit from the US carbon service business. The company is working with the Ontario Securities Commission to address a review of its continuous disclosure after being subjected to a cease trade order for more than 120 days.