DIGITAL VALUE SPA (DGV.MI) Stock Fundamental Analysis
BIT:DGV - Euronext Milan - IT0005347429 - Common Stock - Currency: EUR
Taking everything into account, DGV scores 7 out of 10 in our fundamental rating. DGV was compared to 70 industry peers in the IT Services industry. While DGV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: DGV is growing strongly while it also seems undervalued. With these ratings, DGV could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
In the past year DGV was profitable.
DGV had a positive operating cash flow in the past year.
DGV had positive earnings in each of the past 5 years.
DGV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DGV has a Return On Assets of 6.31%. This is in the better half of the industry: DGV outperforms 69.33% of its industry peers.
The Return On Equity of DGV (21.31%) is better than 84.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.49%, DGV belongs to the top of the industry, outperforming 94.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DGV is above the industry average of 11.01%.
The last Return On Invested Capital (17.49%) for DGV is above the 3 year average (15.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 21.31% | ||
| ROIC | 17.49% |
ROA(3y)5.4%
ROA(5y)5.67%
ROE(3y)22.16%
ROE(5y)23.92%
ROIC(3y)15.49%
ROIC(5y)17.92%
1.3 Margins
DGV has a better Profit Margin (4.95%) than 61.33% of its industry peers.
DGV's Profit Margin has declined in the last couple of years.
DGV's Operating Margin of 7.68% is in line compared to the rest of the industry. DGV outperforms 57.33% of its industry peers.
In the last couple of years the Operating Margin of DGV has remained more or less at the same level.
DGV has a Gross Margin of 14.04%. This is in the lower half of the industry: DGV underperforms 78.67% of its industry peers.
DGV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.68% | ||
| PM (TTM) | 4.95% | ||
| GM | 14.04% |
OM growth 3Y-2.3%
OM growth 5Y-0.13%
PM growth 3Y-6.07%
PM growth 5Y-1.87%
GM growth 3Y1.8%
GM growth 5Y2.19%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DGV is creating value.
The number of shares outstanding for DGV remains at a similar level compared to 1 year ago.
The number of shares outstanding for DGV has been increased compared to 5 years ago.
Compared to 1 year ago, DGV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.43 indicates that DGV is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DGV (2.43) is comparable to the rest of the industry.
The Debt to FCF ratio of DGV is 1.64, which is an excellent value as it means it would take DGV, only 1.64 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DGV (1.64) is better than 78.67% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that DGV is not too dependend on debt financing.
DGV's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. DGV outperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 2.43 |
ROIC/WACC2.56
WACC6.82%
2.3 Liquidity
DGV has a Current Ratio of 1.38. This is a normal value and indicates that DGV is financially healthy and should not expect problems in meeting its short term obligations.
DGV has a better Current ratio (1.38) than 66.67% of its industry peers.
A Quick Ratio of 1.01 indicates that DGV should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, DGV is in line with its industry, outperforming 41.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
DGV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.88%, which is quite impressive.
DGV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.12% yearly.
Looking at the last year, DGV shows a quite strong growth in Revenue. The Revenue has grown by 12.10% in the last year.
The Revenue has been growing by 23.37% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)26.88%
EPS 3Y16.84%
EPS 5Y19.12%
EPS Q2Q%29.23%
Revenue 1Y (TTM)12.1%
Revenue growth 3Y24.32%
Revenue growth 5Y23.37%
Sales Q2Q%8.12%
3.2 Future
DGV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.20% yearly.
DGV is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.61% yearly.
EPS Next Y11.33%
EPS Next 2Y23.89%
EPS Next 3Y19.2%
EPS Next 5YN/A
Revenue Next Year17.73%
Revenue Next 2Y31.67%
Revenue Next 3Y23.61%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.11 indicates a rather cheap valuation of DGV.
100.00% of the companies in the same industry are more expensive than DGV, based on the Price/Earnings ratio.
DGV is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 3.06, the valuation of DGV can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DGV indicates a rather cheap valuation: DGV is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, DGV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 3.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGV is valued cheaper than 98.67% of the companies in the same industry.
96.00% of the companies in the same industry are more expensive than DGV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.81 | ||
| EV/EBITDA | 1.34 |
4.3 Compensation for Growth
DGV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DGV may justify a higher PE ratio.
A more expensive valuation may be justified as DGV's earnings are expected to grow with 19.20% in the coming years.
PEG (NY)0.36
PEG (5Y)0.21
EPS Next 2Y23.89%
EPS Next 3Y19.2%
5. Dividend
5.1 Amount
DGV has a Yearly Dividend Yield of 5.45%, which is a nice return.
In the last 3 months the price of DGV has falen by -26.41%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.29, DGV pays a better dividend. On top of this DGV pays more dividend than 86.67% of the companies listed in the same industry.
DGV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y23.89%
EPS Next 3Y19.2%
BIT:DGV (3/7/2025, 7:00:00 PM)
17.92
+0.5 (+2.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners9.76%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap182.43M
Analysts84
Price Target81.6 (355.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
Yearly Dividend0.85
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 3.06 | ||
| P/S | 0.21 | ||
| P/FCF | 3.81 | ||
| P/OCF | 2.55 | ||
| P/B | 0.89 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 1.34 |
EPS(TTM)4.36
EY24.33%
EPS(NY)5.85
Fwd EY32.63%
FCF(TTM)4.7
FCFY26.23%
OCF(TTM)7.03
OCFY39.22%
SpS86.46
BVpS20.1
TBVpS17.53
PEG (NY)0.36
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 21.31% | ||
| ROCE | 24.9% | ||
| ROIC | 17.49% | ||
| ROICexc | 34.21% | ||
| ROICexgc | 42.14% | ||
| OM | 7.68% | ||
| PM (TTM) | 4.95% | ||
| GM | 14.04% | ||
| FCFM | 5.44% |
ROA(3y)5.4%
ROA(5y)5.67%
ROE(3y)22.16%
ROE(5y)23.92%
ROIC(3y)15.49%
ROIC(5y)17.92%
ROICexc(3y)32.99%
ROICexc(5y)47.05%
ROICexgc(3y)43.63%
ROICexgc(5y)121.15%
ROCE(3y)22.18%
ROCE(5y)25.59%
ROICexcg growth 3Y-4.95%
ROICexcg growth 5Y-42.61%
ROICexc growth 3Y-3.68%
ROICexc growth 5Y-18.49%
OM growth 3Y-2.3%
OM growth 5Y-0.13%
PM growth 3Y-6.07%
PM growth 5Y-1.87%
GM growth 3Y1.8%
GM growth 5Y2.19%
F-Score7
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 85.39% | ||
| Cap/Sales | 2.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.05% | ||
| Profit Quality | 109.77% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 2.43 |
F-Score7
WACC6.82%
ROIC/WACC2.56
Cap/Depr(3y)193.52%
Cap/Depr(5y)296.48%
Cap/Sales(3y)5.42%
Cap/Sales(5y)5.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.88%
EPS 3Y16.84%
EPS 5Y19.12%
EPS Q2Q%29.23%
EPS Next Y11.33%
EPS Next 2Y23.89%
EPS Next 3Y19.2%
EPS Next 5YN/A
Revenue 1Y (TTM)12.1%
Revenue growth 3Y24.32%
Revenue growth 5Y23.37%
Sales Q2Q%8.12%
Revenue Next Year17.73%
Revenue Next 2Y31.67%
Revenue Next 3Y23.61%
Revenue Next 5YN/A
EBIT growth 1Y24.83%
EBIT growth 3Y21.46%
EBIT growth 5Y23.21%
EBIT Next Year79%
EBIT Next 3Y39.2%
EBIT Next 5YN/A
FCF growth 1Y2336.03%
FCF growth 3Y53.42%
FCF growth 5Y37.27%
OCF growth 1Y106.39%
OCF growth 3Y62.39%
OCF growth 5Y78.34%