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DroneShield Limited logo

DroneShield Limited

DRSHF
22
Aerospace & Defense · Industrials
Price
$1.53
-0.05 (-2.97%)
Market Cap
$1.42B
Exchange
Other OTC
Winston Score
22
Winston is worried
Weak fundamentals across most pillars.

Share count rising — dilution

+143.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 397.9M (2021) → 970.3M (2025)

DroneShield is an Australian defense technology company that makes systems to detect and stop unauthorized drones. Its products include radar sensors, radio frequency detectors, and jamming devices that can disable drones before they cause harm. Its main customers are military forces, government agencies, and critical infrastructure operators around the world.

The company sells hardware, software, and bundled systems, often through government contracts and procurement programs. DroneShield is headquartered in Sydney, Australia, but generates most of its revenue from the United States and other NATO-aligned countries. Its competitive position comes from specialized expertise in counter-drone technology, a field with relatively few dedicated players. The main growth driver is rising global demand for drone defense as military conflicts and security threats involving drones increase — but the company is not yet consistently profitable, and its revenue can be lumpy because it depends heavily on large, irregular government contracts.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+321.3% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-73.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$45M/ year

Rising (+108% vs prior year)

21.0% of revenue

5.2x the sector average (4%)

Investing heavily in future products and technology

Insider Activity

8.0%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$210M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

DroneShield Limited grew revenue 321% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
44.2%
Healthy — 44.2% gross margin
Operating Margin
-3.5%
Losing money on operations — -3.5%
ROCE
-1.5%
Weak — -1.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+287.8%
Fast-growing sales (287.8% YoY)
EPS YoY
-89.9%
Earnings shrinking (-89.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
-1789%
Weak — only -1789% of profit becomes cash
FCF Margin
-22.0%
Burning cash (-22.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/A
Data not available
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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