Should you buy DroneShield stock? (May 2024)

Published first at https://www.3minutebreakdowns.com DroneShield stock analysis. Ticker: $DRO.AX Australian defense company DroneShield manufactures products that detect and neutralize drones. After gaining 240% over the past year the company now has a market cap around 769 million Australian dollars. After a recent capital raise, the company should have $150 million of cash on the balance sheet which means the enterprise value should be 615 million. Meanwhile, DroneShield is experiencing excellent growth. Revenue increased 226% last year to 55 million dollars and Q1 revenue showed a 10x improvement on the prior year. The company also reported 9.3 million of net income and 7.7 million of free cash flow which means the stock is valued at around 11 times revenue and 83 times earnings. The war in Ukraine has seen large scale use of drones on both sides and this has led to products being developed to neutralize the threat. DroneShield’s products use radio-waves and AI to jam drones and bring them to the ground without force. And these products are not only reserved for the battlefield. They can also be used to protect airports, stadiums and government buildings. DroneShield has reported revenue in these areas but 70 does currently come from the military. The company won a $33 million dollar contract with the US government last year and recently secured a procurement agreement with Nato. Additional smaller deals and a contracted backlog of $27 million suggest DroneShield is setting up for another record year. And the company recently moved to a larger site in Australia that will allow it to meet a projected pipeline of over $400 million. So based on a healthy pipeline and recent contract wins with the US government, DroneShield has momentum and looks to be worth backing. However, there are some risks to consider. #stocks #investing #3mb