Last Updated: 17 Sep 2024
Executive Summary
Draganfly Inc. (DPRO) is a small-cap company operating in the aircraft manufacturing industry. The company has faced financial challenges in recent years, with negative earnings and a high debt-to-equity ratio. The latest stock price of $2.39 reflects the company's ongoing struggles.
Company Overview
Draganfly Inc. designs, develops, and manufactures unmanned aerial vehicles (UAVs) for commercial and government applications. The company's products include drones, aerial surveillance systems, and software solutions. Draganfly serves customers in various industries, including public safety, agriculture, and energy.
Fundamental Analysis
Financials: Draganfly has reported consistent losses in recent years. In the latest quarter (ending June 30, 2024), the company reported a net loss of $15.4 million, with revenue of $6.1 million. The company's EBITDA was negative $15.4 million.
Profitability: Draganfly's profit margins are negative, indicating that the company is struggling to generate profits from its operations. The company's operating margin TTM is -2.193%.
Valuation: Draganfly's stock is currently trading at a price-to-sales ratio of 1.408 and a price-to-book ratio of 12.97. These ratios suggest that the company's stock is undervalued compared to its peers.
Technical Analysis
Trend: Draganfly's stock has been in a downtrend for the past year. The stock is currently trading below its 50-day and 200-day moving averages.
Support and Resistance: The stock has support at $2.00 and resistance at $3.00.
Momentum: The stock's momentum is negative, as indicated by the MACD indicator.
Short Term Outlook
In the short term, Draganfly's stock is expected to continue its downtrend. The company's financial challenges and negative earnings are likely to weigh on the stock price.
Long Term Outlook
The long-term outlook for Draganfly is uncertain. The company needs to improve its financial performance and reduce its debt in order to attract investors. If the company can successfully execute its turnaround plan, the stock could see upside potential.
Analyst Recommendations
Analysts have a neutral outlook on Draganfly Inc. Some analysts believe that the company's financial challenges are temporary and that the stock is undervalued. However, other analysts are concerned about the company's long-term prospects.
