Drone Delivery Canada (FLT) AI Stock Analysis

• Market Cap: C$78.02M
• Dividend Yield: N/A
• Average Volume (3M): 282.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: 484.19%
• EPS Growth: -10.68%
• Country: CA
• Employees: 30
• Sector: Technology
• Sector Strength: 39
• Industry: Computer Hardware
• EPS (TTM): -0.05
• Shares Outstanding: 472,864,600
• 10 Day Avg. Volume: 287,591
• 30 Day Avg. Volume: 282,189
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.58
• Price to Cash Flow (P/CF): 7.60
• P/FCF Ratio: 10.00
• 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

Drone Delivery Canada is facing significant financial challenges with negative profitability, and cash flow issues weigh heavily on its stock score. Despite positive technical indicators suggesting short-term momentum and a promising outlook from recent corporate events, the stock appears overvalued given its current earnings potential. Improving financial performance and leveraging strategic partnerships are crucial for future growth.

Drone Delivery Canada Business Overview & Revenue Model

Company Description

Drone Delivery Canada Corp. designs, develops, and implements a commercial drone-based logistics platform in Canada and internationally. The company's logistics infrastructure solution is an integrated turnkey logistics platform, which include industrial-grade drones, automated DroneSpot depots, automated battery management systems, a detect and avoid radar system, and proprietary FLYTE software to integrate various components into a solution. It serves governments; commercial and industrial applications, such as emergency services, medical, last-mile delivery, mining, oil and gas, agriculture, parcel delivery, postal mail, and military/security; and indigenous and non-indigenous remote communities. The company was incorporated in 2011 and is headquartered in Vaughan, Canada.

How the Company Makes Money

Drone Delivery Canada generates revenue through a subscription-based model and service agreements with clients across different industries. The company charges fees for the deployment and operation of its drone delivery services, which can include one-time setup fees, recurring service fees, and per-delivery fees. Key revenue streams include contracts with healthcare providers for the delivery of medical supplies, partnerships with logistics companies to enhance last-mile delivery capabilities, and collaborations with government entities to serve remote and hard-to-reach areas. Additionally, the company may earn revenue from consulting services, training, and maintenance of its drone delivery systems. Strategic partnerships and ongoing advancements in drone technology further contribute to its earnings potential.

Drone Delivery Canada Financial Statement Overview

Summary

Drone Delivery Canada faces significant financial challenges, particularly in revenue generation and profitability. While the balance sheet remains relatively stable, the negative cash flows and profitability metrics pose risks. Improving operational efficiency and revenue growth are critical for enhancing the company's financial health.

Income Statement

Drone Delivery Canada exhibits a challenging revenue trajectory with a significant decline in the TTM period compared to the previous year. The gross profit margin is positive but modest, while the net profit margin is negative, indicating profitability challenges. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. The company needs to improve its revenue generation and cost management to enhance profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced leverage position. The equity ratio is reasonable, reflecting adequate equity financing relative to total assets. However, the negative net income affects the return on equity, which could concern investors. Overall, the balance sheet is stable but could improve with better profitability.

Cash Flow

The cash flow statement highlights negative operating cash flow, indicating cash outflows from core operations. Free cash flow is also negative, though the growth rate shows a slight improvement. The operating cash flow to net income ratio is unfavorable, suggesting cash flow issues. The company needs to enhance its cash flow generation to support operations and growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
14.12M	34.87M	826.45K	335.02K	265.26K	0.00
	Gross Profit
2.49M	11.14M	601.32K	-12.22K	112.56K	-393.28K
	EBIT
-9.95M	-9.06M	-13.97M	-14.93M	-14.13M	-15.52M
	EBITDA
-5.88M	-4.46M	-5.35M	-1.87M	-13.20M	-15.13M
	Net Income Common Stockholders
-11.97M	-9.46M	-13.50M	-14.94M	-14.24M	-15.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.27M	1.68M	15.30M	27.67M	23.46M	9.77M
	Total Assets
1.47M	26.88M	19.75M	32.96M	29.37M	17.71M
	Total Debt
0.00	18.73M	220.01K	410.60K	484.14K	620.10K
	Net Debt
-239.92K	17.05M	-15.08M	-27.26M	-22.98M	-9.15M
	Total Liabilities
58.74K	24.34M	1.23M	2.20M	2.27M	2.17M
	Stockholders Equity
1.42M	3.31M	18.52M	30.76M	27.10M	15.54M
Cash Flow		Free Cash Flow
-3.46M	-3.39M	-12.12M	-12.57M	-9.01M	-16.02M
	Operating Cash Flow
-3.08M	-1.65M	-11.94M	-11.89M	-8.35M	-13.71M
	Investing Cash Flow
352.43K	-2.03M	-176.99K	-687.37K	-658.24K	-3.64M
	Financing Cash Flow
-400.23K	1.68M	-256.06K	16.78M	22.70M	12.81M

Drone Delivery Canada Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FLT, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.18, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FLT.

Drone Delivery Canada Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$20.94B	10.43	-13.41%	2.52%	4.53%	-23.34%
FLT	44 Neutral	C$78.02M	―	-53.83%	―	484.19%	-10.68%
DMI	33 Underperform	C$3.37M	―	107.68%	―	―	―
UAV	27 Underperform	C$1.29M	―		―	―	15.84%

Drone Delivery Canada Corporate Events

Volatus Aerospace Achieves Milestone in Aerial Inspection Services

Volatus Aerospace has surpassed 75,000 flight hours in pipeline integrity monitoring, reinforcing its leadership in aerial inspection services. This achievement, driven by the company’s proprietary AIRS technology, highlights its commitment to supporting critical energy infrastructure and operational excellence in real-time monitoring of pipelines across North America. The company is also expanding its capabilities to include drone-based Beyond Visual Line of Sight operations, emphasizing automation, sustainability, and real-time intelligence for the energy, infrastructure, and logistics sectors.

Volatus Aerospace Partners with DroneUp to Enhance North American Cargo Services

Volatus Aerospace has announced a strategic partnership with DroneUp to enhance their cargo delivery capabilities across North America. This collaboration aims to streamline drone-based logistics services, improve safety and efficiency, and expand market reach into underserved areas by employing advanced drone technologies and regulatory approvals.

Volatus Aerospace Launches Pioneering ‘Surveillance as a Service’ Solution

Volatus Aerospace has launched its groundbreaking ‘Surveillance as a Service’ solution, offering unparalleled scalability and rapid deployment capabilities. The solution integrates cutting-edge drone technologies, enabling real-time situational awareness and decision support for applications such as border security and environmental protection. With a robust portfolio of air operator certificates and a reputation for safety and reliability, Volatus aims to capitalize on the projected growth of the global drone surveillance market, expected to reach USD 612.09 billion by 2032.

Volatus Aerospace Expands U.S. Power Utility Inspection Program

Volatus Aerospace announced the renewal and expansion of a significant U.S.-based power utility inspection program for 2025, marking a 17% increase in inspection requirements from a major client. This development highlights Volatus’ growing influence in the energy utilities sector, showcasing its capacity to deliver innovative aerial solutions and strengthen its market leadership. The appointment of Richard Nasmith as Senior Vice President of Business Development is expected to further drive the company’s strategic initiatives, leveraging his extensive experience in sales, marketing, and the electric utility sector to enhance growth and client partnerships.

Volatus Aerospace Wins Prestigious Environmental Award

Volatus Aerospace Inc. has been honored with the Energy Globe National Award in the Youth category for its innovative Science Experiential Aerial Research (SEAR) Program, highlighting its commitment to environmental sustainability. The program provides high school students with hands-on experience in drone technology and environmental monitoring, expanding from Canada to the United States.

Volatus Reports Growth and Strengthens Finances

Volatus Aerospace Corp. has announced its third-quarter financial results, highlighting a significant 44% growth in service revenue and a maintained gross margin of 34% following a strategic merger with Drone Delivery Canada. The company also improved its financial standing with a $15 million financing deal led by institutional investors. Despite reporting a comprehensive loss due to one-time merger costs, the company remains optimistic about regaining equipment sales in the next quarter.

Volatus Aerospace Boosts Drone Tech with DAIR Grant

Volatus Aerospace has secured a $75,000 grant from the DAIR Green Fund to develop a “detect and avoid” system, enhancing drone safety and scalability for beyond visual line of sight operations. This funding, supported by the Canadian government, will help Volatus advance its commercial drone technologies, reducing human intervention while expanding operational possibilities.

Volatus Aerospace Positions for Growth with New Leadership

Volatus Aerospace Inc. has made strategic leadership changes and completed the first phase of its post-merger integration, positioning itself for growth in the aerial solutions market. The company appointed Omar Mourad to its Board of Directors and promoted Greg Colacitti to Chief Operating Officer to drive commercialization and technological advancement. These developments aim to enhance Volatus’ ability to deliver comprehensive aerial solutions globally.