DIGITAL VALUE SPA (DGV.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DGV - IT0005347429 - Common Stock
28.45 EUR
-0.1 (-0.35%)
Overall DGV gets a fundamental rating of 4 out of 10. We evaluated DGV against 76 industry peers in the IT Services industry. Both the profitability and the financial health of DGV get a neutral evaluation. Nothing too spectacular is happening here. DGV is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- DGV had positive earnings in the past year.
- In the past year DGV had a positive cash flow from operations.
- In the past 5 years DGV has always been profitable.
- DGV had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 3.23%, DGV is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
- The Return On Equity of DGV (8.46%) is comparable to the rest of the industry.
- The Return On Invested Capital of DGV (8.59%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for DGV is significantly below the industry average of 25.98%.
- The last Return On Invested Capital (8.59%) for DGV is well below the 3 year average (14.48%), which needs to be investigated, but indicates that DGV had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 8.46% | ||
| ROIC | 8.59% |
ROA(3y)5.1%
ROA(5y)5.44%
ROE(3y)19.28%
ROE(5y)21.59%
ROIC(3y)14.48%
ROIC(5y)15.05%
1.3 Margins
- With a Profit Margin value of 2.82%, DGV perfoms like the industry average, outperforming 44.74% of the companies in the same industry.
- In the last couple of years the Profit Margin of DGV has declined.
- DGV has a Operating Margin of 5.31%. This is comparable to the rest of the industry: DGV outperforms 47.37% of its industry peers.
- DGV's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 16.60%, DGV is not doing good in the industry: 88.16% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of DGV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.31% | ||
| PM (TTM) | 2.82% | ||
| GM | 16.6% |
OM growth 3Y-3.88%
OM growth 5Y-1.1%
PM growth 3Y-7.22%
PM growth 5Y-3.69%
GM growth 3Y2.93%
GM growth 5Y4.49%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DGV is creating some value.
- DGV has more shares outstanding than it did 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 2.62 indicates that DGV is not a great score, but indicates only limited risk for bankruptcy at the moment.
- DGV has a Altman-Z score (2.62) which is in line with its industry peers.
- The Debt to FCF ratio of DGV is 1.42, which is an excellent value as it means it would take DGV, only 1.42 years of fcf income to pay off all of its debts.
- DGV has a better Debt to FCF ratio (1.42) than 76.32% of its industry peers.
- A Debt/Equity ratio of 0.16 indicates that DGV is not too dependend on debt financing.
- DGV's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. DGV outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.7
WACC12.21%
2.3 Liquidity
- A Current Ratio of 1.61 indicates that DGV should not have too much problems paying its short term obligations.
- DGV has a better Current ratio (1.61) than 72.37% of its industry peers.
- DGV has a Quick Ratio of 1.23. 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 Quick ratio (1.23) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- DGV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.28%.
- Measured over the past years, DGV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.47% on average per year.
- DGV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.28%.
- Measured over the past years, DGV shows a quite strong growth in Revenue. The Revenue has been growing by 17.53% on average per year.
EPS 1Y (TTM)-58.28%
EPS 3Y4.51%
EPS 5Y12.47%
EPS Q2Q%-74.36%
Revenue 1Y (TTM)-24.28%
Revenue growth 3Y13.59%
Revenue growth 5Y17.53%
Sales Q2Q%-32.98%
3.2 Future
- DGV is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -29.13% yearly.
- The Revenue is expected to decrease by -6.51% on average over the next years.
EPS Next Y-57.62%
EPS Next 2Y-27.71%
EPS Next 3Y-29.13%
EPS Next 5YN/A
Revenue Next Year-26.92%
Revenue Next 2Y-13.54%
Revenue Next 3Y-6.51%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.63, which indicates a correct valuation of DGV.
- Compared to the rest of the industry, the Price/Earnings ratio of DGV indicates a somewhat cheap valuation: DGV is cheaper than 75.00% of the companies listed in the same industry.
- DGV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
- A Price/Forward Earnings ratio of 12.83 indicates a correct valuation of DGV.
- Based on the Price/Forward Earnings ratio, DGV is valued a bit cheaper than the industry average as 71.05% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of DGV to the average of the S&P500 Index (24.32), we can say DGV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
- DGV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DGV is cheaper than 98.68% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DGV is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.09 | ||
| EV/EBITDA | 3.13 |
4.3 Compensation for Growth
- DGV's earnings are expected to decrease with -29.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y-27.71%
EPS Next 3Y-29.13%
5. Dividend
5.1 Amount
- DGV has a Yearly Dividend Yield of 2.79%.
- DGV's Dividend Yield is a higher than the industry average which is at 2.10.
- DGV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 50.13% of the earnings are spent on dividend by DGV. This is a bit on the high side, but may be sustainable.
DP50.13%
EPS Next 2Y-27.71%
EPS Next 3Y-29.13%
DIGITAL VALUE SPA / DGV.MI FAQ
What is the ChartMill fundamental rating of DIGITAL VALUE SPA (DGV.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to DGV.MI.
What is the valuation status for DGV stock?
ChartMill assigns a valuation rating of 5 / 10 to DIGITAL VALUE SPA (DGV.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for DIGITAL VALUE SPA?
DIGITAL VALUE SPA (DGV.MI) has a profitability rating of 4 / 10.
What is the valuation of DIGITAL VALUE SPA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DIGITAL VALUE SPA (DGV.MI) is 15.63 and the Price/Book (PB) ratio is 1.3.
Can you provide the financial health for DGV stock?
The financial health rating of DIGITAL VALUE SPA (DGV.MI) is 5 / 10.