One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Liberty Defense Holdings, Ltd.
DETX · NCM · Industrials · Security & Protection Services
Current price
$2.16
52-week range
$1.91 - $7.00
Market cap
$12.27M
Balance sheet
Healthy
-19.46x Concerning
Net cash $6.62M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
2 Risks
0 rewards · 2 risks
- Risk Return on equity was -326.1% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 10.4% (peer median: 11.6%).
What this company does
Liberty Defense Holdings, Ltd.
Liberty Defense develops and sells high-tech security scanners, including its main product HEXWAVE, a walk-through system that detects hidden metal and non-metal weapons. The company makes money by selling these systems and through its contract segment (custom security projects for specific clients) to large venues like airports, schools, and stadiums. This is important because these places need ways to screen crowds for threats quickly and effectively without creating long lines.
How the company got here
Liberty Defense was founded to bring new security screening technology to the market. A key turning point was securing an exclusive license for a technology developed at the Massachusetts Institute of Technology (MIT). The company spent years and raised significant funds from investors to turn this licensed technology from a patent into its main commercial product, HEXWAVE. After focusing heavily on research and development, it has recently shifted its focus to selling its products and expanding into different markets.
What it actually does
Liberty Defense creates high-tech security systems that can spot hidden weapons and other threats. Its main product is a walkthrough portal, like an advanced metal detector, that people can pass through without stopping or even taking off their jackets. Using a combination of 3D imaging and artificial intelligence (AI), the system can detect both metal and non-metal items like 3D-printed guns or explosives. These systems are designed for places with lots of foot traffic, such as airports, stadiums, and schools, to increase safety without causing long lines.
HEXWAVE
This is the company's flagship business, centered around its HEXWAVE screening portal. Customers like airports, warehouses, and sports venues pay for these systems to screen employees or visitors for concealed weapons and prohibited items. The company makes money by selling or financing the physical HEXWAVE units and also through related service and support agreements. This segment represents the company's primary focus and is its main source of business activity.
Contract
This part of the business involves developing and providing security technology under specific agreements, often with government agencies. For example, the company works with the Transportation Security Administration (TSA) to develop new technologies for airport security checkpoints, such as advanced body scanners and footwear screeners. This segment is a smaller piece of the company that focuses on research and development contracts rather than selling a standardized product off the shelf.
What management is betting on now
The company's main strategy is to move beyond development and focus on selling its HEXWAVE systems more widely. A major priority is expanding in the aviation industry, as airports look to enhance the screening of their employees. They are also targeting new commercial customers, such as logistics companies that want to prevent theft of valuable inventory or intellectual property. Management is betting that by focusing on these key markets, they can scale the business and increase sales of their core products.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $2.16
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $6.6M - more cash than debt. Interest coverage -19.5x.
Net debt
$-6.62M
Interest coverage
-19.46x
Liberty Defense Holdings, Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
DETX
BASELINE
Liberty Defense Holdings, Ltd.
Total debt $963.70K Interest coverage -19.46x This is the baseline the peer rows are being compared against.
Total debt $41.57M Interest coverage -26.44x Neither company has much profit cushion over interest right now.
Total debt $652.91K Interest coverage -38.83x Neither company has much profit cushion over interest right now.
Total debt $0.00 Interest coverage -183.06x Neither company has much profit cushion over interest right now.
What you should know
The case for and against DETX
0 Rewards
2 Risks
Rewards
Risks
-
Return on equity was -326.1% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 10.4% (peer median: 11.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
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P/B
1.36x
P/S
12.59x
EV/EBITDA
-0.48x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
0.0%
Operating margin
-8,258.3%
Net margin
0.0%
ROE
-326.1%
ROA
-77.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.11x
Current ratio
2.78x
Quick ratio
1.95x
Total debt
$963.70K
Total cash
$7.59M
Growth
How the business has been compounding
Revenue TTM
$974.74K
Revenue 5Y CAGR
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EPS TTM
-5.23
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-11.35M
Free CF TTM
$-11.44M
FCF margin
-1,173.3%
Dividend
Shareholder payout
Yield
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Payout ratio
0.0%
Last ex-div date
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