Breaking Down Duos Technologies Group, Inc. (DUOT) Financial Health: Key Insights for Investors

Are you keeping a close watch on Duos Technologies Group, Inc. (DUOT) and wondering about its financial stability? In 2024, the company reported a revenue of $7.28 million, a slight decrease from $7.47 million in 2023, primarily due to delays in deploying high-speed Railcar Inspection Portals. While the company faced a net loss of $10.76 million, this was an improvement compared to the $11.24 million loss in the previous year, thanks to reduced operating expenses. How does the company's cash position of $6.27 million and total debt of $6.53 million shape its financial outlook, and what impact will the new Asset Management Agreement, projected to generate $42 million over two years, have on its future performance? Read on to discover key insights into DUOT's financial health and what it means for investors.

Duos Technologies Group, Inc. (DUOT) Revenue Analysis

Understanding Breaking Down Duos Technologies Group, Inc. (DUOT) Financial Health: Key Insights for Investors's revenue streams is crucial for investors. Here's a breakdown of their financial performance:

Breakdown of Primary Revenue Sources:

• Duos Technologies Group, Inc. operates through its subsidiaries, including Duos Technologies, Inc., Duos Edge AI, Inc., and Duos Energy Corporation.
• Their revenue streams include technology systems, recurring services, and consulting.

Year-over-Year Revenue Growth Rate:

• In 2024, Duos Technologies Group had an annual revenue of $7.28 million, a decrease of -2.55% compared to the previous year.
• The revenue for the quarter ending December 31, 2024, was $1.46 million, representing a decrease of -4.27%.
• Duos Technologies's revenue growth for fiscal years ending December 2020 to 2024 averaged -1.9%.

Here's a look at the historical revenue growth:

Contribution of Different Business Segments to Overall Revenue:

• For the third quarter of 2024, total revenue was $3.24 million, which included approximately $1.685 million from technology systems and approximately $1.550 million from recurring services and consulting revenue.
• For the first nine months of 2024, technology systems revenue totaled approximately $2.22 million, while recurring services and consulting revenue reached approximately $3.60 million.

Analysis of Significant Changes in Revenue Streams:

• In Q3 2024, revenue increased by 112% to $3.24 million, with almost 50% related to recurring revenue services and consulting.
• Duos Energy Corporation, a new subsidiary, generated initial revenues of approximately $500,000 in Q3 2024 from consulting services.
• Duos expects total revenue for 2025 to range between $28 million and $30 million, representing an increase of 285% to 312% from 2024.

Duos Technologies Group, Inc. (DUOT) Profitability Metrics

Analyzing the profitability of Duos Technologies Group, Inc. (DUOT) involves examining several key financial metrics. These include gross profit, operating profit, and net profit margins, as well as trends in these metrics over time. A comparison with industry averages provides additional context.

For the full year 2024, Duos Technologies Group reported a total revenue of $7.28 million, a slight decrease of 3% from the $7.47 million reported in 2023. In Q4 2024, revenue was $1.46 million, down 4% year-over-year. This decrease was attributed to delays in deploying high-speed Railcar Inspection Portals (RIPs) and lower business activity in technology systems.

Here's a breakdown of Duos Technologies Group's profitability metrics:

• Gross Profit: For the full year 2024, gross profit decreased 64% to $469,000, down from $1.31 million in 2023. In Q4 2024, the gross margin decreased to negative $330,000, a 209% decrease from the $303,000 gross profit in Q4 2023. This was impacted by lower business activity and cost-heavy consulting work.
• Operating Expenses: Operating expenses for the full year 2024 decreased by 10% to $11.45 million, compared to $12.76 million in 2023. This reduction was primarily due to decreases in general and administrative costs, as well as research and development expenses.
• Net Loss: The net loss for 2024 was $10.76 million, compared to a net loss of $11.24 million in 2023. The net loss for Q4 2024 was $3.41 million, compared to a net loss of $3.16 million for Q4 2023, driven by higher interest costs.

A summary of Duos Technologies Group's financial performance:

• Revenue: $7.28 million (FY 2024), $1.46 million (Q4 2024)
• Gross Profit: $469,000 (FY 2024), -$330,000 (Q4 2024)
• Operating Expenses: $11.45 million (FY 2024), $2.76 million (Q4 2024)
• Net Loss: $10.76 million (FY 2024), $3.41 million (Q4 2024)

Here is a table summarizing the key profitability figures for Duos Technologies Group, Inc. in 2024:

The company's financial health score is rated as WEAK, with particular concerns about cash burn rates and profit margins. Despite a challenging 2024, Duos Technologies Group anticipates breaking even in the latter half of 2025 and expects a revenue boost from new business lines and strategic partnerships. They project 2025 revenue between $28 million and $30 million, representing 285-312% growth, with a current backlog at $50.5 million.

Explore more about Duos Technologies Group, Inc. and its investors: Exploring Duos Technologies Group, Inc. (DUOT) Investor Profile: Who’s Buying and Why?

Duos Technologies Group, Inc. (DUOT) Debt vs. Equity Structure

Understanding how Duos Technologies Group, Inc. (DUOT) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and how it balances debt and equity funding.

As of December 31, 2023, Duos Technologies Group, Inc. (DUOT) reported the following debt information:

• Total current liabilities: $7,796,728
• Total liabilities: $12,144,914

These figures provide a snapshot of the company's short-term and overall debt obligations at the close of the fiscal year 2023. Analyzing these values in comparison to the company’s equity and assets can offer insights into its financial leverage and risk profile.

The debt-to-equity ratio is a key metric to assess the balance between debt and equity. While the exact debt-to-equity ratio requires specific calculations using total equity, we can infer stability by comparing total liabilities to total equity. Further analysis would involve comparing these ratios to industry averages to benchmark Duos Technologies Group, Inc. (DUOT)'s financial structure against its peers.

Duos Technologies Group, Inc. (DUOT) might have engaged in recent debt issuances, credit rating assessments, or refinancing activities that could impact its financial health. For instance, securing new lines of credit or restructuring existing debt can alter the company's financial flexibility and interest expenses. To gain a comprehensive understanding, investors should monitor Duos Technologies Group, Inc. (DUOT)'s financial releases and SEC filings for detailed information on such activities.

Balancing debt and equity is vital for sustainable growth. Too much debt can increase financial risk, while too little might limit growth opportunities. Companies often use a mix of both to optimize their capital structure. Investors should evaluate how Duos Technologies Group, Inc. (DUOT) strategically manages this balance to fund its projects and expansion plans.

For additional insights into Duos Technologies Group, Inc. (DUOT)'s financial health, consider reading: Breaking Down Duos Technologies Group, Inc. (DUOT) Financial Health: Key Insights for Investors

Duos Technologies Group, Inc. (DUOT) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Duos Technologies Group, Inc. (DUOT), evaluating these metrics provides insights into its financial stability and risk profile.

Assessing Duos Technologies Group, Inc.'s Liquidity:

Liquidity ratios measure a company's ability to cover its short-term liabilities with its short-term assets. Key ratios include the current ratio and the quick ratio.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. A current ratio of 1.0 or higher generally indicates adequate liquidity.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, excludes inventories from current assets, providing a more conservative measure of liquidity. It is calculated as (Current Assets - Inventory) / Current Liabilities.

Working Capital Trends:

Analyzing working capital trends involves monitoring the difference between a company's current assets and current liabilities over time. A positive working capital balance indicates that a company has enough short-term assets to cover its short-term liabilities. Consistent growth in working capital can signal improved liquidity management, while a decline may raise concerns.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of a company's cash inflows and outflows, categorized into operating, investing, and financing activities.

• Operating Cash Flow: Cash flow from operating activities reflects the cash generated from a company's core business operations. Positive operating cash flow is essential for sustaining day-to-day activities and funding growth initiatives.
• Investing Cash Flow: Cash flow from investing activities includes transactions related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Cash Flow: Cash flow from financing activities involves transactions related to debt, equity, and dividends.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, investors and stakeholders can identify potential liquidity concerns or strengths for Duos Technologies Group, Inc. (DUOT). Factors to consider include:

• Consistent positive operating cash flow: Indicates a strong ability to generate cash from core business operations.
• Healthy liquidity ratios: Suggests the company can meet its short-term obligations.
• Effective management of working capital: Demonstrates efficient use of current assets and liabilities.

Conversely, potential concerns may arise if the company experiences:

• Declining operating cash flow: May indicate underlying issues with revenue generation or cost management.
• Low liquidity ratios: Suggests difficulty in meeting short-term obligations.
• Negative working capital: Indicates that current liabilities exceed current assets.

Here is a sample table that shows a hypothetical overview:

In conclusion, a thorough assessment of Duos Technologies Group, Inc.'s liquidity and solvency involves analyzing key financial ratios, working capital trends, and cash flow statements. This analysis provides valuable insights into the company's ability to meet its short-term and long-term obligations, informing investment decisions and risk management strategies. You can read more about Duos Technologies Group, Inc. (DUOT) Financial Health here: Breaking Down Duos Technologies Group, Inc. (DUOT) Financial Health: Key Insights for Investors

Duos Technologies Group, Inc. (DUOT) Valuation Analysis

To assess whether Duos Technologies Group, Inc. (DUOT) is overvalued or undervalued, several key financial metrics and indicators can be examined. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend information (if applicable), and analyst consensus.

Here's a breakdown based on the latest available data:

• Price-to-Earnings (P/E) Ratio: As of April 2025, Duos Technologies Group has a negative P/E ratio, ranging from -6.2x to -5.3x. This is because the company has negative earnings per share (EPS) of -$1.39 or -$0.41. A negative P/E ratio suggests that the company is currently not profitable.
• Price-to-Book (P/B) Ratio: The P/B ratio for Duos Technologies Group is relatively high, with values around 22.34, 23.9, 25.10, or even 29.3x. Another source indicates a P/B ratio of 17.13. Generally, a high P/B ratio could indicate that the stock is overvalued because investors are paying a premium for the company's net assets.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: Duos Technologies Group's EV/EBITDA ratio is negative, around -7.35x or -6.6x. This is due to negative EBITDA (earnings before interest, taxes, depreciation, and amortization) of -$9.11 million. A negative EV/EBITDA ratio can occur when a company has negative earnings, making it difficult to use this metric for valuation.

Stock price trends provide insight into market sentiment and company performance:

• Current Price: As of April 15, 2025, the stock price is around $5.15.
• 52-Week Range: The 52-week high is $8.53, and the 52-week low is $2.025.
• 12-Month Performance: The stock has shown significant volatility. For Indian investors, a 40.11% or 71.51% return was observed over the past year.
• Recent Movement: In the last 7 days, the stock has increased by approximately 9.3%.

Duos Technologies Group does not currently pay dividends. Therefore, dividend yield and payout ratios are not applicable.

Analyst ratings provide a perspective on the stock's potential future performance:

• Consensus: The consensus rating is a 'Moderate Buy' or 'Buy.'
• Price Target: The average 12-month price target from analysts is $10.75 or $14.00, suggesting a significant upside potential of 79.77% to 143.48% from the recent price.
• Analyst Coverage: Based on ratings from one or two Wall Street analysts, the sentiment is generally positive.

Here is a summary of key valuation metrics for Duos Technologies Group, Inc.:

Considering these factors, the valuation of Duos Technologies Group, Inc. (DUOT) appears mixed. While analysts have a positive outlook and anticipate substantial price appreciation, the negative P/E and EV/EBITDA ratios, along with a high P/B ratio, suggest caution. Investors should carefully weigh these factors and conduct thorough due diligence before making investment decisions.

For more detailed financial insights, you can refer to Breaking Down Duos Technologies Group, Inc. (DUOT) Financial Health: Key Insights for Investors.

Duos Technologies Group, Inc. (DUOT) Risk Factors

Duos Technologies Group, Inc. (DUOT) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics. Understanding these factors is crucial for investors assessing the company's stability and growth potential. For further insights, see: Breaking Down Duos Technologies Group, Inc. (DUOT) Financial Health: Key Insights for Investors

Here's an overview of key risks impacting Duos Technologies Group, Inc. (DUOT):

• Industry Competition: The market for technology solutions in the rail and transit sectors is competitive. New entrants and established players could intensify competition, potentially leading to pricing pressures and reduced market share for Duos Technologies Group, Inc. (DUOT).
• Regulatory Changes: Changes in government regulations related to transportation, security, or technology standards could require Duos Technologies Group, Inc. (DUOT) to adapt its products and services, incurring additional costs or creating delays.
• Market Conditions: Economic downturns or shifts in infrastructure spending priorities could reduce demand for Duos Technologies Group, Inc. (DUOT)'s solutions, impacting revenue and profitability.

A deeper dive into operational, financial, and strategic risks can be gleaned from Duos Technologies Group, Inc. (DUOT)'s recent filings. While specific details may vary depending on the reporting period, common risk areas include:

• Project Execution: Delays or cost overruns in implementing large-scale projects could negatively affect Duos Technologies Group, Inc. (DUOT)'s financial results and reputation.
• Technological Obsolescence: The rapid pace of technological innovation could render Duos Technologies Group, Inc. (DUOT)'s existing products or services obsolete if the company fails to keep pace with advancements.
• Client Concentration: Dependence on a small number of key clients could pose a risk if those clients reduce their spending or switch to alternative providers.

Mitigation strategies are vital for managing these risks. While specific strategies would be detailed in Duos Technologies Group, Inc. (DUOT)'s reports, typical approaches include:

• Diversification: Expanding into new markets or developing new product lines to reduce reliance on specific sectors or clients.
• Innovation: Investing in research and development to stay ahead of technological changes and maintain a competitive edge.
• Risk Management: Implementing robust project management and quality control processes to minimize execution risks.

Understanding these risks and mitigation efforts is essential for evaluating the overall financial health and investment potential of Duos Technologies Group, Inc. (DUOT).

Duos Technologies Group, Inc. (DUOT) Growth Opportunities

Duos Technologies Group, Inc. (DUOT) is strategically positioned for future growth, driven by several key factors. These include product innovations, market expansions, strategic initiatives, and competitive advantages.

Key growth drivers for Duos Technologies Group, Inc. (DUOT) include:

• Product Innovations: Continuous development and enhancement of its technology solutions, particularly in the areas of artificial intelligence and machine learning applications for railcar inspection.
• Market Expansions: Extending its reach within the rail industry and potentially into other sectors that can benefit from its advanced inspection technologies.
• Strategic Initiatives: Forming partnerships and collaborations to expand its market presence and service offerings.
• Competitive Advantages: Leveraging its expertise in AI-powered technologies and its established position in the railcar inspection market.

While specific future revenue growth projections and earnings estimates for Duos Technologies Group, Inc. (DUOT) are not available within the provided search results, insights into their strategic direction can be gleaned. Duos Technologies is focused on:

• Expanding its technological capabilities.
• Broadening its market reach.
• Securing key partnerships.

These efforts are all aimed at driving future growth.

Duos Technologies Group, Inc. (DUOT) is actively pursuing strategic initiatives and partnerships to fuel its growth. For instance, the company has been involved in projects related to automated railcar inspection systems, which are crucial for improving safety and efficiency in the rail industry. These projects often involve collaboration with other technology providers and industry stakeholders.

Competitive advantages that position Duos Technologies Group, Inc. (DUOT) for growth:

• Technological Expertise: Specialized knowledge in AI and machine learning applied to railcar inspection.
• Established Market Position: A recognized presence in the rail industry with a track record of delivering effective solutions.
• Comprehensive Service Offerings: Providing a range of services from system design and integration to maintenance and support.

These advantages enable Duos Technologies Group, Inc. (DUOT) to capitalize on the increasing demand for advanced inspection technologies in the rail sector and beyond.

More information about the company's values can be found here: Mission Statement, Vision, & Core Values of Duos Technologies Group, Inc. (DUOT).