DD Droneshield: tendies are printing and WSB is not even joining the party?!
Hello Regards,
Droneshield (DRO) is showing promising returns and WSB seems unaware. A quick search on google trends would make it seem that the USA are not aware of the stock at the moment. So here is a small DD to get this beauty of a company on your radar and not leave all the tendies to the Germans and Australians.
Plain and simple:
DRO develops and sells anti-drone tech. DRO engineers, produces and maintains their own products.
Costumers: EU countries that are ramping up their drone defense systems since Ukraine has demonstrated the dangers of drones. Countries neighboring China since they also can't keep their drones to themselves. South American countries that are trying to counter the use of drones by the drug cartels.
Added value: Their products protect and save lives.
[Their revenue is ramping up with repeat orders by satisfied customers.](https://preview.redd.it/zp0bc0imhkke1.png?width=1058&format=png&auto=webp&s=bc4cd9e2d400ab64f4fdeee2bcf84c4b8293e514)
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[They manage to maintain super healthy gross profit margins.](https://preview.redd.it/oy2dheyyhkke1.png?width=1068&format=png&auto=webp&s=dfcdc462de4e6c547a8c3325948efb6256ba61bd)
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[Net profit margin transitioned into the green. ](https://preview.redd.it/hrvdph1qikke1.png?width=1057&format=png&auto=webp&s=596bfe90e67ba299511afd52132c499501c31797)
Why is the net profit margin relatively low: 200 of their 255 employees are engineers that R&D this company to perfection. My guess is that this is quite expensive. Droneshield understands: great value comes from great products. And great products bring in great costumers.
Here is a page out of their latest earnings report. This update caused the reverse of the trend. It shows that their revenue spike was not a one off event but only the beginning of the profitable era. Read the full report here: [https://static1.squarespace.com/static/660a32624c94dd36e509baf3/t/67995f878b0b2b6c9b290038/1738104717089/4C\_4Q24.pdf](https://static1.squarespace.com/static/660a32624c94dd36e509baf3/t/67995f878b0b2b6c9b290038/1738104717089/4C_4Q24.pdf)
https://preview.redd.it/7ow29x92okke1.png?width=633&format=png&auto=webp&s=26bcc8aedaa65b0100d586dfea9b91a4bdcb543b
Negative: DRO takes on very little debt, to little. Instead they have gradually over the years sold more shares. I would say this should slow down now cash is coming in through sales.
Furthermore they maintain a very healthy balance sheet with 220 million cash balance. Check out their website. Its a piece of art on its own: [https://www.droneshield.com/investor-relations](https://www.droneshield.com/investor-relations)
My humble position:
https://preview.redd.it/ikyzvcrqfkke1.png?width=1534&format=png&auto=webp&s=565d7e0a27412ff805ca54df26f64635d2263423
I plan to stay in for the long run. But if it moons again like last time I will take profit and step back in when the dust settled.
There is a lot more to be said about this company. But I leave that for the discussion. I hope I have been of service to my fellow regards at WSB.
Disclaimer: I am not a financial advisor. No AI was used making this DD. The first 3 graphs are not fully up to date with the latest earnings report.