DIGITAL VALUE SPA (DGV.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DGV - IT0005347429 - Common Stock
28.6 EUR
+0.05 (+0.18%)
Taking everything into account, DGV scores 4 out of 10 in our fundamental rating. DGV was compared to 70 industry peers in the IT Services industry. DGV has an average financial health and profitability rating. DGV is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year DGV was profitable.
- In the past year DGV had a positive cash flow from operations.
- Each year in the past 5 years DGV has been profitable.
- Of the past 5 years DGV 4 years had a positive operating cash flow.
1.2 Ratios
- DGV has a worse Return On Assets (3.23%) than 62.86% of its industry peers.
- With a Return On Equity value of 8.46%, DGV is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- Looking at the Return On Invested Capital, with a value of 8.59%, DGV is in line with its industry, outperforming 50.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DGV is significantly below the industry average of 26.75%.
- The 3 year average ROIC (14.48%) for DGV is well above the current ROIC(8.59%). The reason for the recent decline needs to be investigated.
| 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
- DGV has a Profit Margin of 2.82%. This is comparable to the rest of the industry: DGV outperforms 41.43% of its industry peers.
- In the last couple of years the Profit Margin of DGV has declined.
- The Operating Margin of DGV (5.31%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of DGV has remained more or less at the same level.
- With a Gross Margin value of 16.60%, DGV is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
- DGV's Gross Margin has improved in the last couple of years.
| 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
- DGV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for DGV has been increased compared to 1 year ago.
- Compared to 5 years ago, DGV has more shares outstanding
- The debt/assets ratio for DGV is higher compared to a year ago.
2.2 Solvency
- DGV has an Altman-Z score of 2.62. 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 has a Altman-Z score of 2.62. This is comparable to the rest of the industry: DGV outperforms 45.71% of its industry peers.
- DGV has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
- The Debt to FCF ratio of DGV (1.42) is better than 77.14% of its industry peers.
- DGV has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- DGV has a better Debt to Equity ratio (0.16) than 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.23
WACC7%
2.3 Liquidity
- DGV has a Current Ratio of 1.61. This is a normal value and indicates that DGV is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.61, DGV is doing good in the industry, outperforming 72.86% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 1.23, DGV is in line with its industry, outperforming 58.57% of the companies in the same 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.
- The Revenue for DGV has decreased by -24.28% in the past year. This is quite bad
- DGV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.53% yearly.
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.
- DGV is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.51% yearly.
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 15.71, which indicates a correct valuation of DGV.
- DGV's Price/Earnings ratio is a bit cheaper when compared to the industry. DGV is cheaper than 78.57% of the companies in the same industry.
- DGV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 12.90, the valuation of DGV can be described as correct.
- DGV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGV is cheaper than 72.86% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, DGV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 12.9 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DGV indicates a rather cheap valuation: DGV is cheaper than 98.57% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, DGV is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.12 | ||
| 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)1.26
EPS Next 2Y-27.71%
EPS Next 3Y-29.13%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.81%, DGV has a reasonable but not impressive dividend return.
- DGV's Dividend Yield is a higher than the industry average which is at 2.27.
- DGV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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 15.71 and the Price/Book (PB) ratio is 1.31.
Can you provide the financial health for DGV stock?
The financial health rating of DIGITAL VALUE SPA (DGV.MI) is 5 / 10.