Draganfly Inc. (NASDAQ: DPRO)

Sector: Industrials Industry: Aerospace & Defense CIK: 0001786286
Market Cap 65.73 Mn
P/B 1.29
P/E -5.02
P/S 12.21
ROIC (Qtr) -49.30
Div Yield % 0.00
Rev 1y % (Qtr) 12.70
Total Debt (Qtr) 227,426.09
Debt/Equity (Qtr) 0.00

About

Draganfly Inc., a company that operates in the unmanned aerial vehicles (UAVs) and related technologies industry, is listed on the Canadian Securities Exchange (CSE) and the Nasdaq under the ticker symbol "DPRO". Since its incorporation in 2018, the company has grown to become a recognized player in the industry, offering a range of products and services designed to meet the needs of various sectors, including public safety, agriculture, construction, and environmental monitoring. Draganfly's primary business activities include designing, manufacturing,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 50.64M provide 462.69x coverage of short-term debt 109444.20, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (11.86M) provides exceptional 115.87x coverage of interest expenses (102359.42), showing strong debt service capability.
  • Strong tangible asset base of 55.83M provides 245.48x coverage of total debt 227426.09, indicating robust asset backing and low credit risk.
  • Tangible assets of 55.83M provide exceptional 352.53x coverage of deferred revenue 158365.94, showing strong service capability backing.
  • Free cash flow of (12.24M) provides exceptional 119.56x coverage of interest expense (102359.42), showing strong debt service ability.

Bear case

  • Investment activities of (311419.57) provide weak support for R&D spending of 635224.64, which is -0.49x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (11.86M) provides insufficient coverage of deferred revenue obligations of 158365.94, which is -74.89x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (11.86M) shows concerning coverage of stock compensation expenses of 1.03M, with a -11.55 ratio indicating potential earnings quality issues.
  • Free cash flow of (12.24M) provides weak coverage of capital expenditures of 377536.23, with a -32.41 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (13.20M) show weak coverage of depreciation charges of 279537.68, with a -47.23 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Aerospace & Defense
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GE General Electric Co 342.94 Bn 42.54 7.80 20.84 Bn
2 RTX RTX Corp 252.05 Bn 38.24 2.93 40.71 Bn
3 BA Boeing Co 174.43 Bn -17.16 2.16 53.35 Bn
4 LMT Lockheed Martin Corp 126.61 Bn 30.15 1.73 22.19 Bn
5 GD General Dynamics Corp 95.62 Bn 22.69 1.86 8.01 Bn
6 NOC Northrop Grumman Corp /De/ 89.30 Bn 22.22 2.18 16.96 Bn
7 HWM Howmet Aerospace Inc. 88.16 Bn 60.80 11.05 3.19 Bn
8 TDG TransDigm Group INC 80.97 Bn 43.39 9.17 30.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.41 3.58
EV to Cash from Ops. EV/CFO -1.91 58.38
EV to Debt EV to Debt 99.70 98.04
EV to EBIT EV/EBIT -1.72 19.42
EV to EBITDA EV/EBITDA -1.90 33.60
EV to Free Cash Flow [EV/FCF] EV/FCF -1.85 91.66
EV to Market Cap EV to Market Cap 0.34 1.13
EV to Revenue EV/Rev 4.21 11.27
Price to Book Value [P/B] P/B 1.29 4.81
Price to Earnings [P/E] P/E -5.02 31.79
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.75
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 22.95
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 14.15
Interest Coverage Int. cover (Qtr) 128.99 -18.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -945.55 -50.32
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,622.76 1,609.43
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.75
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -33.68 -30.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -14.32 10.65
EBIT Growth (1y) % EBIT 1y % (Qtr) -33.68 -26.90
EBT Growth (1y) % EBT 1y % (Qtr) -33.52 -27.25
EPS Growth (1y) % EPS 1y % (Qtr) 57.20 -99.21
FCF Growth (1y) % FCF 1y % (Qtr) -27.65 6.61
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.76 -5.55
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.07 0.51
Cash Payout Ratio Cash Payout Ratio 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 10.86 1.76
Current Ratio Curr Ratio (Qtr) 11.81 3.72
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.07
Interest Cover Ratio Int Coverage (Qtr) 128.99 -18.00
Times Interest Earned Times Interest Earned (Qtr) 128.99 -18.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -240.00 -345.84
EBIT Margin % EBIT Margin % (Qtr) -338.31 -382.63
EBT Margin % EBT Margin % (Qtr) -243.25 -387.93
Gross Margin % Gross Margin % (Qtr) 19.50 -33.31
Net Profit Margin % Net Margin % (Qtr) -243.30 -389.13