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DIGITAL VALUE SPA (DGV.MI) Stock Fundamental Analysis

BIT:DGV - Euronext Milan - IT0005347429 - Common Stock - Currency: EUR

30.3  -0.5 (-1.62%)

Fundamental Rating

5

DGV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 industry peers in the IT Services industry. There are concerns on the financial health of DGV while its profitability can be described as average. DGV has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

DGV had positive earnings in the past year.
In the past year DGV has reported a negative 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.
DGV.MI Yearly Net Income VS EBIT VS OCF VS FCFDGV.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M 60M

1.2 Ratios

DGV has a Return On Assets (4.69%) which is in line with its industry peers.
DGV has a better Return On Equity (15.70%) than 69.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.89%, DGV belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
DGV had an Average Return On Invested Capital over the past 3 years of 14.48%. This is above the industry average of 10.64%.
Industry RankSector Rank
ROA 4.69%
ROE 15.7%
ROIC 12.89%
ROA(3y)5.1%
ROA(5y)5.44%
ROE(3y)19.28%
ROE(5y)21.59%
ROIC(3y)14.48%
ROIC(5y)15.05%
DGV.MI Yearly ROA, ROE, ROICDGV.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

With a Profit Margin value of 4.33%, DGV perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
DGV's Profit Margin has declined in the last couple of years.
DGV's Operating Margin of 7.05% is in line compared to the rest of the industry. DGV outperforms 55.56% of its industry peers.
DGV's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 15.20%, DGV is doing worse than 81.94% of the companies in the same industry.
In the last couple of years the Gross Margin of DGV has grown nicely.
Industry RankSector Rank
OM 7.05%
PM (TTM) 4.33%
GM 15.2%
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%
DGV.MI Yearly Profit, Operating, Gross MarginsDGV.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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3

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.
Compared to 1 year ago, DGV has more shares outstanding
The number of shares outstanding for DGV has been increased compared to 5 years ago.
The debt/assets ratio for DGV is higher compared to a year ago.
DGV.MI Yearly Shares OutstandingDGV.MI Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
DGV.MI Yearly Total Debt VS Total AssetsDGV.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.2 Solvency

DGV has an Altman-Z score of 2.31. This is not the best score and indicates that DGV is in the grey zone with still only limited risk for bankruptcy at the moment.
DGV's Altman-Z score of 2.31 is in line compared to the rest of the industry. DGV outperforms 45.83% of its industry peers.
DGV has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.20, DGV is doing good in the industry, outperforming 69.44% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Altman-Z 2.31
ROIC/WACC1.04
WACC12.4%
DGV.MI Yearly LT Debt VS Equity VS FCFDGV.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 1.42 indicates that DGV should not have too much problems paying its short term obligations.
DGV has a Current ratio (1.42) which is in line with its industry peers.
DGV has a Quick Ratio of 1.42. This is a bad value and indicates that DGV is not financially healthy enough and could expect problems in meeting its short term obligations.
DGV's Quick ratio of 0.98 is on the low side compared to the rest of the industry. DGV is outperformed by 72.22% of its industry peers.
Industry RankSector Rank
Current Ratio 1.42
Quick Ratio 0.98
DGV.MI Yearly Current Assets VS Current LiabilitesDGV.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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7

3. Growth

3.1 Past

The earnings per share for DGV have decreased strongly by -10.01% in the last year.
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.
Looking at the last year, DGV shows a decrease in Revenue. The Revenue has decreased by -3.76% in the last year.
The Revenue has been growing by 17.53% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.01%
EPS 3Y4.51%
EPS 5Y12.47%
EPS Q2Q%-41.57%
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y13.59%
Revenue growth 5Y17.53%
Sales Q2Q%-15.2%

3.2 Future

DGV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.35% yearly.
The Revenue is expected to grow by 26.65% on average over the next years. This is a very strong growth
EPS Next Y37.86%
EPS Next 2Y23.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year47.26%
Revenue Next 2Y26.65%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
DGV.MI Yearly Revenue VS EstimatesDGV.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
DGV.MI Yearly EPS VS EstimatesDGV.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2021 2022 2023 2024 2025 2026 2 4 6

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7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 8.73, the valuation of DGV can be described as very reasonable.
97.22% 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 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.18, which indicates a rather cheap valuation of DGV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DGV indicates a rather cheap valuation: DGV is cheaper than 97.22% of the companies listed in the same industry.
DGV is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.73
Fwd PE 5.18
DGV.MI Price Earnings VS Forward Price EarningsDGV.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

93.06% of the companies in the same industry are more expensive than DGV, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.37
DGV.MI Per share dataDGV.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DGV's earnings are expected to grow with 23.35% in the coming years.
PEG (NY)0.23
PEG (5Y)0.7
EPS Next 2Y23.35%
EPS Next 3YN/A

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4

5. Dividend

5.1 Amount

DGV has a Yearly Dividend Yield of 2.60%.
Compared to an average industry Dividend Yield of 6.92, DGV pays a bit more dividend than its industry peers.
DGV's Dividend Yield is comparable with the S&P500 average which is at 2.38.
Industry RankSector Rank
Dividend Yield 2.6%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

26.70% of the earnings are spent on dividend by DGV. This is a low number and sustainable payout ratio.
DP26.7%
EPS Next 2Y23.35%
EPS Next 3YN/A
DGV.MI Yearly Income VS Free CF VS DividendDGV.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M 20M -20M 30M
DGV.MI Dividend Payout.DGV.MI Dividend Payout, showing the Payout Ratio.DGV.MI Dividend Payout.PayoutRetained Earnings

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DIGITAL VALUE SPA

BIT:DGV (7/4/2025, 7:00:00 PM)

30.3

-0.5 (-1.62%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners3.82%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap308.45M
Analysts84
Price Target81.6 (169.31%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.6%
Yearly Dividend0.94
Dividend Growth(5Y)N/A
DP26.7%
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 RankSector Rank
PE 8.73
Fwd PE 5.18
P/S 0.38
P/FCF N/A
P/OCF N/A
P/B 1.37
P/tB 1.6
EV/EBITDA 3.37
EPS(TTM)3.47
EY11.45%
EPS(NY)5.85
Fwd EY19.3%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)-0.06
OCFYN/A
SpS80.03
BVpS22.07
TBVpS18.9
PEG (NY)0.23
PEG (5Y)0.7
Profitability
Industry RankSector Rank
ROA 4.69%
ROE 15.7%
ROCE 18.84%
ROIC 12.89%
ROICexc 20.42%
ROICexgc 24.52%
OM 7.05%
PM (TTM) 4.33%
GM 15.2%
FCFM N/A
ROA(3y)5.1%
ROA(5y)5.44%
ROE(3y)19.28%
ROE(5y)21.59%
ROIC(3y)14.48%
ROIC(5y)15.05%
ROICexc(3y)28.11%
ROICexc(5y)30.75%
ROICexgc(3y)36.03%
ROICexgc(5y)40.18%
ROCE(3y)21.29%
ROCE(5y)22.07%
ROICexcg growth 3Y-17.68%
ROICexcg growth 5Y-43.18%
ROICexc growth 3Y-14.37%
ROICexc growth 5Y-26.6%
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%
F-Score4
Asset Turnover1.08
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Debt/EBITDA 0.52
Cap/Depr 66.72%
Cap/Sales 2.5%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.42
Quick Ratio 0.98
Altman-Z 2.31
F-Score4
WACC12.4%
ROIC/WACC1.04
Cap/Depr(3y)140.58%
Cap/Depr(5y)153.89%
Cap/Sales(3y)4.61%
Cap/Sales(5y)4.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.01%
EPS 3Y4.51%
EPS 5Y12.47%
EPS Q2Q%-41.57%
EPS Next Y37.86%
EPS Next 2Y23.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y13.59%
Revenue growth 5Y17.53%
Sales Q2Q%-15.2%
Revenue Next Year47.26%
Revenue Next 2Y26.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.74%
EBIT growth 3Y9.18%
EBIT growth 5Y16.25%
EBIT Next Year105.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-210.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-100.83%
OCF growth 3YN/A
OCF growth 5YN/A