Duos Technologies Group, Inc. (NASDAQ: DUOT)

Sector: Technology Industry: Software - Application CIK: 0001396536
Market Cap 107.74 Mn
P/B 2.18
P/E -10.73
P/S 5.66
ROIC (Qtr) -28.26
Div Yield % 0.00
Rev 1y % (Qtr) 112.33
Total Debt (Qtr) 4.67 Mn
Debt/Equity (Qtr) 0.09

About

Duos Technologies Group, Inc., or DUOT, operates in the technology industry, specializing in designing, developing, deploying, and operating intelligent solutions for inspecting and evaluating moving objects. The company's primary business activities are concentrated in the rail and intermodal markets, with potential expansion into other sectors. These markets provide an opportunity for imaging-based automatic inspection and analysis for process control in various industries. Duos generates revenue primarily through the sale of its proprietary...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 33.20M provide 37.32x coverage of short-term debt 889729, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 61.34M provides 13.13x coverage of total debt 4.67M, indicating robust asset backing and low credit risk.
  • Tangible assets of 61.34M provide exceptional 5.24x coverage of deferred revenue 11.71M, showing strong service capability backing.
  • Operating cash flow of (8.32M) fully covers other non-current liabilities (4.87M) by 1.71x, showing strong long-term stability.
  • Long-term investments of 7.47M provide solid 1.98x coverage of long-term debt 3.78M, indicating strategic financial planning.

Bear case

  • Investment activities of (8.16M) provide weak support for R&D spending of 1.21M, which is -6.75x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (8.32M) provides insufficient coverage of deferred revenue obligations of 11.71M, which is -0.71x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (8.32M) shows concerning coverage of stock compensation expenses of 3.11M, with a -2.68 ratio indicating potential earnings quality issues.
  • High receivables of 2.23M relative to inventory of 700087 (3.18 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (16.42M) provides weak coverage of capital expenditures of 8.10M, with a -2.03 ratio suggesting additional external financing needs for growth initiatives.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.64 2.65
EV to Cash from Ops. EV/CFO -13.72 13.37
EV to Debt EV to Debt 24.43 57.69
EV to EBIT EV/EBIT -12.09 19.12
EV to EBITDA EV/EBITDA -18.38 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -6.95 14.69
EV to Market Cap EV to Market Cap 1.06 -92.28
EV to Revenue EV/Rev 6.00 4.60
Price to Book Value [P/B] P/B 2.18 4.26
Price to Earnings [P/E] P/E -10.73 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) -15.54 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -339.03 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5,038.65 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 9.26 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 31.86 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 9.26 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 4.51 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 33.57 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -47.20 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 355.06 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.27 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 3.43 3.75
Current Ratio Curr Ratio (Qtr) 3.85 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.09 0.17
Interest Cover Ratio Int Coverage (Qtr) -15.54 -52.32
Times Interest Earned Times Interest Earned (Qtr) -15.54 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -32.70 -100.06
EBIT Margin % EBIT Margin % (Qtr) -49.60 -164.24
EBT Margin % EBT Margin % (Qtr) -52.79 -116.94
Gross Margin % Gross Margin % (Qtr) 26.40 58.20
Net Profit Margin % Net Margin % (Qtr) -52.80 -121.65