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Duos Technologies Group Inc (DUOT)
:DUOT
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Duos Technologies Group
(NASDAQ:DUOT)
45Neutral
Positive Factors
Market Opportunities
Duos recently won a contract for a RIP system in a new industrial application environment expanding its market opportunities.
New Contracts
The company just announced a major new contract for $42 million to deploy and operate a fleet of mobile gas turbine affiliates with Fortress Investment Group.
Revenue Growth
Q3 revenue grew +112% from improved contracts revenue.
Negative Factors
Backlog Concerns
Backlog at Q2 was $20 million, up from $10 million at Q1.
Commercialization Challenges
The company's new 3 businesses have long commercialization challenges ahead, but the billion dollars market potential presents high rewards for the risks.
Duos Technologies Group (DUOT) vs. S&P 500 (SPY)
Market Cap
$68.76M
Dividend YieldN/A
Average Volume (3M)90.11K
Price to Earnings (P/E)―
Beta (1Y)1.86
Revenue Growth-2.55%
EPS Growth10.18%
CountryUS
Employees79
SectorTechnology
Sector Strength46
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.40
Shares Outstanding11,653,905
10 Day Avg. Volume107,097
30 Day Avg. Volume90,108
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.06
Price to Cash Flow (P/CF)-5.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.00Price Target Upside128.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Duos Technologies Group Business Overview & Revenue Model
Company DescriptionDuos Technologies Group (DUOT) is a technology company primarily operating in the rail, logistics, and transportation sectors. The company specializes in developing and deploying advanced intelligent technology solutions that enhance safety, security, and operational efficiency. Its core products include automated inspection systems, data management platforms, and artificial intelligence-driven analytics tools designed to optimize asset management and operational performance for its clients.
How the Company Makes MoneyDuos Technologies Group generates revenue by selling its advanced technology solutions and services to clients in the transportation and logistics sectors. The company earns money through the sale of its automated inspection systems, which help clients improve safety and efficiency by automating the inspection process of railcars and other transportation assets. Additionally, Duos Technologies offers data management and analytics services that provide clients with actionable insights to optimize their operations. The company may also engage in strategic partnerships and collaborations that contribute to its earnings by expanding its market reach and enhancing its product offerings.
Duos Technologies Group Financial Statement Overview
Summary
Duos Technologies Group is facing significant financial challenges, as indicated by declining revenues, negative profit margins, and high leverage. The company's current trajectory raises concerns about operational efficiency and financial stability, requiring strategic adjustments to improve performance and reduce risks.Income Statement
Duos Technologies Group has shown a declining revenue trend over the years with a 1.68% decrease in TTM compared to the previous year. The company is experiencing negative profit margins with a TTM net profit margin of -143.2% and a gross profit margin of 15%. This indicates significant challenges in achieving profitability, despite some gross profit. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.6 in TTM, indicating significant leverage. The equity ratio is a mere 11.4%, which suggests lower financial stability and dependency on debt. Additionally, the negative return on equity (ROE) of -418.6% in TTM highlights the company's inability to generate returns for shareholders, which is a major concern.50
Neutral
Cash Flow
The cash flow statement shows negative free cash flow with a decline of 12.4% in the TTM. The operating cash flow to net income ratio is not favorable, indicating that the company struggles to convert its income into cash. This may pose liquidity risks and constrain operational financing.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 7.35M | 7.47M | 15.01M | 8.26M | 8.04M | 13.64M | Gross Profit |
| 1.10M | 1.31M | 4.75M | -2.56M | 2.79M | 6.48M | EBIT |
| -11.08M | -11.45M | -6.87M | -7.46M | -6.63M | -2.41M | EBITDA |
| -8.43M | -10.37M | -6.27M | -5.44M | -6.14M | -2.00M | Net Income Common Stockholders |
| -10.52M | -11.24M | -6.86M | -6.97M | -6.93M | -2.55M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.79K | 2.44M | 1.12M | 893.72K | 3.97M | 56.25K | Total Assets |
| 420.04K | 12.84M | 13.09M | 9.48M | 6.41M | 5.53M | Total Debt |
| 73.00K | 5.05M | 5.34M | 5.21M | 1.85M | 1.55M | Net Debt |
| 67.21K | 2.61M | 4.22M | 4.32M | -2.12M | 1.50M | Total Liabilities |
| 267.21K | 7.48M | 9.04M | 8.70M | 4.52M | 5.66M | Stockholders Equity |
| 152.83K | 5.37M | 4.05M | 781.49K | 1.88M | -127.27K |
| Cash Flow | Free Cash Flow | ||||
| -11.06M | -9.84M | -8.52M | -7.13M | -4.52M | -4.24M | Operating Cash Flow |
| -9.31M | -8.75M | -7.87M | -6.58M | -4.23M | -4.02M | Investing Cash Flow |
| -1.75M | -1.09M | -644.89K | -552.94K | -287.33K | -219.57K | Financing Cash Flow |
| 8.44M | 11.16M | 8.75M | 4.06M | 8.43M | 3.09M |
Duos Technologies Group Technical Analysis
Positive
6.14
Price Trends
5.82
Positive
5.81
Positive
4.51
Positive
Market Momentum
>-0.01
Negative
60.68
Neutral
80.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DUOT, the sentiment is Positive. The current price of 6.14 is above the 20-day moving average (MA) of 5.22, above the 50-day MA of 5.82, and above the 200-day MA of 4.51, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 60.68 is Neutral, neither overbought nor oversold. The STOCH value of 80.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DUOT.
Duos Technologies Group Risk Analysis
Duos Technologies Group disclosed 21 risk factors in its most recent earnings report. Duos Technologies Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Duos Technologies Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $58.20M | ― | -5.36% | ― | 6.70% | -202.12% | |
59 Neutral | $9.97B | 10.09 | -6.54% | 3.08% | 7.41% | -11.60% | |
52 Neutral | $54.91M | ― | -209.93% | ― | -55.61% | -259.24% | |
45 Neutral | $68.76M | ― | -282.24% | ― | -2.55% | 10.18% | |
37 Underperform | $55.07M | ― | -105.39% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
DUOT
Duos Technologies Group
6.14
2.98
94.30%
PHUN
Phunware
2.92
-3.22
-52.44%
INLX
Intellinetics
14.99
7.53
100.94%
SURG
SurgePays
2.63
-0.73
-21.73%
Duos Technologies Group Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: 8.87% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. The company has made significant strides with new agreements and expansion into edge data centers, which are expected to drive future growth and profitability. However, the decrease in revenue and gross margin, along with ongoing operating losses, indicate challenges that need to be addressed. Overall, the sentiment is cautiously optimistic with a positive outlook for the future.Highlights
Significant Asset Management Agreement
Closed an asset management agreement with APR Energy and Fortress Investment Group, expecting to earn approximately $42 million over the next 2 years.
Edge Data Center Expansion
Conducted a ribbon-cutting ceremony for the first edge data center in Amarillo, Texas, and plan to install 15 edge data centers by the end of 2025.
Increased Services and Consulting Revenues
Services and consulting revenues increased by 31% compared to 2023, driven by new AI and subscription customers and power consulting work.
Strong Financial Guidance for 2025
Expecting between $28 million and $30 million in revenue and positive adjusted EBITDA for 2025.
Improved Balance Sheet
Balance sheet is the strongest in the company's history with $6.27 million in cash and cash equivalents and $4+ million in assets.
Lowlights
Decrease in Total Revenue
Total revenue for the fourth quarter decreased 4% to $1.46 million, and total revenue for the year decreased 3% to $7.28 million compared to 2023.
Decline in Gross Margin
Gross margin for Q4 2024 decreased 209% to a negative $330,000, and for the year, gross margin decreased 64% to $469,000.
Operating Losses
Net operating loss for Q4 2024 was $3.09 million and for the year was $10.98 million.
Challenges in Railcar Inspection Portal Adoption
Struggles with widespread adoption due to the rail industry's conservative nature and slow adoption cycles.
Company Guidance
During the Duos Technologies Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided guidance that set expectations for significant growth in 2025. The company projects consolidated revenue between $28 million and $30 million for 2025, with the first quarter revenue anticipated to be between $4 million and $5 million. Duos Technologies expects to break even and achieve positive adjusted EBITDA by the end of 2025, despite anticipating some losses in the first half of the year. The company also plans to raise between $10 million and $15 million through their S-3 shelf registration to expand their edge data center business, aiming to deploy 15 data centers by the end of 2025. The projected expansion is expected to result in $3.5 million in high-margin annual recurring revenue from this business. The company has a backlog representing more than $50 million in revenue and a pipeline of over $500 million in potential business, signaling robust growth prospects in the coming year.Duos Technologies Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Duos Technologies Group Reports 2024 Financial Results
Neutral
Apr 2, 2025
Duos Technologies Group reported its financial results for the fourth quarter and full year of 2024, highlighting a transformative year with the addition of two new business lines and a significant contract with New APR Energy and Fortress Investment Group valued at up to $42 million. Despite a decrease in total revenue for Q4 2024 by 4% compared to Q4 2023, the company saw a 9% increase in recurring services and consulting revenue. The company also faced a net loss of $3.41 million for Q4 2024, attributed to higher interest costs related to acquisitions. However, Duos strengthened its balance sheet with increased cash equivalents and inventory, and anticipates continued growth in service revenue supported by a growing backlog and new technology systems expected in 2025.
Executive/Board ChangesBusiness Operations and Strategy
Duos Technologies Secures Future with New Executive Contracts
Positive
Feb 4, 2025
On January 31, 2025, Duos Technologies Group, Inc. announced new Employment Agreements with key executives Charles Ferry, Adrian Goldfarb, and Christopher King effective January 1, 2025. These agreements, replacing previous ones, are set for an initial term of three years with automatic extensions, unless terminated with notice. The agreements outline base salaries and potential bonuses based on performance metrics. Additionally, the executives received equity awards under the company’s 2021 Equity Incentive Plan, subject to a three-year vesting period. This move signifies the company’s commitment to aligning executive incentives with long-term growth and stability.
Product-Related AnnouncementsBusiness Operations and Strategy
Duos Technologies Showcases AI Innovations at Microcap Conference
Positive
Jan 30, 2025
On January 30, 2025, Duos Technologies Group presented at The Microcap Conference 2025, showcasing its advancements in AI technology for railcar inspection and edge data centers. The presentation highlighted the company’s focus on leveraging AI to enhance railcar safety and efficiency through patented technologies and edge computing solutions, promising significant operational improvements for railroads. The company’s strategies also include expanding its edge data centers with expected growth in annual recurring revenues, underscoring its commitment to innovation and market expansion.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.