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Duos Technologies Group (DUOT)
NASDAQ:DUOT
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Duos Technologies Group
(NASDAQ:DUOT)
61Neutral
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
$44.66M
Dividend YieldN/A
Average Volume (3M)94.58K
Price to Earnings (P/E)―
Beta (1Y)2.26
Revenue Growth-38.16%
EPS Growth-13.07%
CountryUS
Employees66
SectorTechnology
Sector Strength43
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.42
Shares Outstanding8,410,625
10 Day Avg. Volume54,477
30 Day Avg. Volume94,580
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 Upside163.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Duos Technologies Group Business Overview & Revenue Model
Company DescriptionDuos Technologies Group (DUOT) is a technology company specializing in providing advanced analytical technology solutions. Operating primarily in the transportation, logistics, and security sectors, the company offers a range of products including intelligent video analytics, machine vision, and data-driven applications. Its solutions are designed to enhance operational efficiency, safety, and security for its clients.
How the Company Makes MoneyDuos Technologies Group makes money by developing and selling its proprietary technology solutions to businesses in key sectors like transportation and logistics. The company's revenue model is based on sales of its analytical software and hardware systems, as well as ongoing maintenance and support services. Key revenue streams include product sales, implementation services, and recurring revenue from software licensing and support contracts. Additionally, strategic partnerships with industry leaders and government agencies play a significant role in expanding its market reach and driving sales growth.
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 | ||||
| 1.20M | 2.44M | 1.12M | 893.72K | 3.97M | 56.25K | Total Assets |
| 6.33M | 12.84M | 13.09M | 9.48M | 6.41M | 5.53M | Total Debt |
| 751.42K | 5.05M | 5.34M | 5.21M | 1.85M | 1.55M | Net Debt |
| -450.99K | 2.61M | 4.22M | 4.32M | -2.12M | 1.50M | Total Liabilities |
| 4.78M | 7.48M | 9.04M | 8.70M | 4.52M | 5.66M | Stockholders Equity |
| 1.55M | 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
Negative
5.31
Price Trends
6.26
Negative
5.72
Negative
4.31
Positive
Market Momentum
-0.08
Positive
39.42
Neutral
31.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DUOT, the sentiment is Negative. The current price of 5.31 is below the 20-day moving average (MA) of 5.81, below the 50-day MA of 6.26, and above the 200-day MA of 4.31, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 31.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.81B | 11.54 | 8.20% | 11.80% | -0.32% | -4.24% | |
75 Outperform | $3.25B | 24.86 | 16.85% | ― | 20.69% | 17.89% | |
64 Neutral | $571.99M | 30.53 | 8.36% | 2.78% | 3.13% | -36.13% | |
64 Neutral | $41.32B | 43.91 | 463.98% | 0.53% | 7.47% | 59.46% | |
62 Neutral | $14.43B | 27.60 | 15.95% | ― | 8.07% | 78.02% | |
61 Neutral | $44.66M | ― | -256.98% | ― | -38.16% | -13.07% | |
58 Neutral | $21.03B | 10.28 | -16.29% | 2.47% | 4.45% | -23.80% |
* Technology Sector Average
Performance Comparison
DUOT
Duos Technologies Group
5.31
1.42
36.50%
CASS
Cass Information Systems
42.48
-3.64
-7.89%
OSIS
OSI Systems
193.32
52.65
37.43%
VRSK
Verisk Analytics
294.58
63.16
27.29%
ZBRA
Zebra Tech
280.79
-20.21
-6.71%
IIPR
Innovative Industrial Properties
63.75
-31.24
-32.89%
Duos Technologies Group Earnings Call Summary
Earnings Call Date: Nov 20, 2024 | % Change Since: 15.43% | Next Earnings Date: Mar 31, 2025
Earnings Call Sentiment Positive
The earnings call presented several positive developments, including a significant increase in quarterly revenue and the announcement of a substantial asset management agreement, indicating future growth and profitability. However, challenges such as a slight decline in nine-month revenue and increased costs were also noted. Overall, the sentiment was largely positive due to the strong growth prospects and strategic initiatives.Highlights
Significant Revenue Growth
Total revenue for Q3 2024 increased 112% to $3.24 million compared to $1.53 million in the third quarter of 2023.
New Asset Management Agreement
Signed a 2-year asset management agreement worth an estimated $42 million to manage 850 megawatts of power generation assets.
Expansion of Duos Edge AI
Expanded investment into Duos Edge AI subsidiary with 3 new Edge Data Centers, totaling 6, with significant commercial demand.
Improved Gross Margin
Gross margin for Q3 2024 increased 306% to $919,000 compared to $226,000 for Q3 2023.
Reduction in Net Loss
Net loss for Q3 2024 decreased 53% to $1.4 million compared to $2.95 million for Q3 2023.
Lowlights
Decrease in Nine-Month Revenue
Total revenue for the first 9 months of 2024 decreased slightly to $5.82 million from $5.95 million in the same period last year.
Increase in Cost of Revenues
Cost of revenues for Q3 2024 increased 78% to $2.32 million compared to $1.3 million for Q3 2023.
Reduced Cash Position
Cash and cash equivalents at September 30, 2024, decreased to approximately $646,000 from $2.44 million at December 31, 2023.
Company Guidance
During the Duos Technologies Third Quarter 2024 Earnings Conference Call, guidance was provided indicating a significant strategic expansion and expected financial growth. The company signed a two-year asset management agreement valued at approximately $42 million to oversee 850 megawatts of power generation assets, which is anticipated to bolster the company's financial performance. Revenue for Q3 2024 increased by 112% to $3.24 million, compared to $1.53 million in Q3 2023, with technology systems and recurring services and consulting revenue contributing $1.69 million and $1.55 million, respectively. The gross margin also saw a substantial rise of 306% to $919,000 from $226,000 in the prior year. Although formal guidance was not given, the company expects profitability in 2025, driven by diversified business lines and a robust backlog of over $18.8 million. The call highlighted ongoing projects in their Edge AI and Railcar Inspection Portal businesses, with strategic partnerships and organizational restructuring poised to support sustained growth.Duos Technologies Group Corporate Events
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.
Business Operations and Strategy
Duos Technologies Expands Energy Sector with New Agreement
Positive
Jan 6, 2025
Duos Technologies Group announced the successful closing of an Asset Management Agreement with Fortress Investment Group, enabling Duos Energy to manage and operate a fleet of mobile gas turbines with a capacity of 850 megawatts. This strategic partnership emphasizes Duos’ role in providing flexible energy solutions for data centers and industrial facilities, while also securing a 5% equity stake in the venture, reflecting the company’s commitment to expanding its footprint in the energy sector and meeting growing power demands.
Business Operations and StrategyFinancial Disclosures
Duos Technologies Group Sees 112% Revenue Surge in Q3
Positive
Nov 21, 2024
Duos Technologies Group reported a significant 112% revenue increase in Q3 2024, reaching $3.24 million, with nearly half from recurring services. The company highlighted its expansion in edge data centers and AI investments, securing substantial contracts and growing its backlog to $18.8 million. Despite a 78% rise in costs, the improved gross margin and reduced operating expenses helped cut net losses by 53%, indicating a promising financial trajectory for those monitoring stock performance and market trends.
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.