Draganfly: Execution Disappoints, But The Upside Remains

Summary Draganfly remains a speculative buy despite lagging revenue growth and underperformance relative to drone industry peers. DPRO's operating expenses surged threefold to $16.1M, now six times revenues, raising concerns about management discipline and capital allocation. Recent contract wins, including DEVCOM and a Canadian government order, offer potential for significant future revenue but remain unproven. Valuation is low with $139M in cash; a single large contract could quickly re-rate the stock, but execution risk is elevated. onurdongel/iStock via Getty Images Draganfly Inc. ( DPRO ) has seen its stock fall nearly 20% year to date. The stock has been struggling as the company has been struggling to win contracts and grow revenues in a hot market. The drone industry This article was written by Kurt Christensen 1.07K Followers Follow I am a graduate in finance. Currently working in international tax. A personal investor. Analyst’s Disclosure: I/we have a beneficial long position in the shares of DPRO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.