Liberty Defense Holdings Ltd. Common Shares (DETX)

FairStock Score: 15/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable earnings, honest financials, and a price that offers a margin of safety. Liberty Defense does not fit that mold today. At the close on 2026-10-13, the shares were $1.56, giving a market cap of $9.1 million. In fiscal Q2 2026, revenue was $42,202 and net income was -$2.2 million, producing a margin of -5,236.17%. That is not a business yet; it is a development-stage commercial effort. The company sells HEXWAVE walk-through detection, body scanners, and footwear screeners, but the figures show revenue growth of -12.88% and trailing free cash flow of -$13.9 million. Against a $9.1 million market cap, that is an FCF yield of -153.1%, meaning the enterprise is consuming cash far faster than its equity value. The lower debt-to-equity of 0.11 is a small comfort, and profit growth of 28.17% may hint at narrowing losses, but the overall picture remains fragile. FairStock calculations show a P/E of -0.19, ROE of -326.13%, ROCE of -77.77%, Piotroski F-Score of 3/9, and Altman Z-Score of -5.63. No P/B is available, and no Lynch category is assigned because there are only 0 years of filed results, far short of the 3 needed. A beta of -0.33 and a 52-week range of $1.56-$4.98 tell me the market has lost confidence and the price sits at the low. Cheapness without earnings power, a moat, or cash generation is not value; it is speculation. I would need evidence of durable revenue and self-funding before calling this a Graham-style opportunity.

In plain English: Liberty Defense makes security screening systems like walk-through scanners that look for hidden weapons. The business looks very weak right now: in fiscal Q2 2026 it brought in only $42,202 in revenue and lost $2.2 million, while burning cash. At $1.56, the stock is at the bottom of its 52-week range, and the numbers suggest the price is not a bargain so much as a reflection of high risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer