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Drone Volt

Bloomberg   ALDRV FP
Aerosp. & Defence Equipt.  /  France  Web Site   |   Investors Relation
From distributor to service provider.
Upside 179%
Price (€) 0.01
Market Cap (€M) 11.7
Perf. 1W: -4.29%
Perf. 1M: -14.1%
Perf. 3M: -13.0%
Perf Ytd: -33.0%
10 day relative perf. to stoxx600: -8.29%
20 day relative perf. to stoxx600: -8.89%
Target Change08/12/2021 10:02

Postponed contracts lead to a target price decrease

Change in Target Price€ 0.18 vs 0.24-23.9%

Change in EPS2021 : € -0.01 vs 0.00ns
2022 : € 0.00 vs 0.01ns

Drone Volt had signed two mega contracts with Aquiline Drones, one in April concerning 600 Hercules 2 drones (€3m at catalogue price) and, later, another one concerning 500 Hercules 20 and 200 Hercules 10 (€15m at catalogue price). Though the latter was not a fixed contract, we had previously expected some sales to occur in H2. The Q3 results have proved us wrong as Drone Volt has put all its resources into the first Hercules 2 contract. This, we now believe, will lead to no sales in FY21 of the second mega contract. The Hungarian contract on 275 Hercules 20 drones has also been postponed to next year, directly impacting our EPS.

Change in NAV€ 0.24 vs 0.29-16.9%

As we use EV/Sales multiples to value the different businesses, the decline in anticipated sales due to the mega contracts being delayed has negatively impacted the NAV's final value. The multiples have remained unchanged, with the Training multiple being the highest (3x) of Drone Volt's historical businesses as it is the most profitable (excluding the royalties from Aquiline Drones).

Change in DCF€ 0.26 vs 0.37-30.8%

As major contracts have been postponed, the expected sales have been pushed further down the road. As a consequence, FCF has been impacted due to the hit on profitability. Nevertheless, the reason for the delay on these contracts is mainly linked to the limited production capacity of Drone Volt which is currently fully utilised to fulfill the 600 Hercules 2 fixed contract with Aquiline Drones. The demand for Drone Volt’s products remains intact, and the sales not generated this year will be the drivers for the coming years. Hence, we remain positive in the mid-term outlook of Drone Volt.


26 Jul 22 Earnings/sales releases
H1 22: SKYTOOLS, another successful bet

18 May 22 Other news/comments
Could the French government be a new major ...

26 Apr 22 Earnings/sales releases
Q1 22: integration of the acquisitions is progres...

24 Mar 22 Target Change
All eyes on Aquiline Drones

22 Mar 22 Earnings/sales releases
Q4 21: getting closer to break-even

28 Jan 22 Earnings/sales releases
Q4 21: best sales in its history

20 Oct 21 Earnings/sales releases
Q3 21: strong contract execution, as promised