DIGITAL VALUE SPA (DGV.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DGV - IT0005347429 - Common Stock
28.55 EUR
0 (0%)
DGV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 70 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- DGV had positive earnings in each of the past 5 years.
- Of the past 5 years DGV 4 years had a positive operating cash flow.
1.2 Ratios
- DGV has a Return On Assets of 3.23%. This is in the lower half of the industry: DGV underperforms 62.86% of its industry peers.
- Looking at the Return On Equity, with a value of 8.46%, DGV is doing worse than 60.00% of the companies in the same industry.
- DGV has a Return On Invested Capital (8.59%) which is comparable to the rest of the 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
- The Profit Margin of DGV (2.82%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of DGV has declined.
- DGV has a Operating Margin (5.31%) which 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.
- Looking at the Gross Margin, with a value of 16.60%, DGV is doing worse than 85.71% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DGV is creating 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.
- The debt/assets ratio for DGV is higher compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of 2.62, DGV is in line with its industry, outperforming 45.71% of the companies in the same industry.
- 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.
- DGV has a better Debt to FCF ratio (1.42) than 77.14% of its industry peers.
- A Debt/Equity ratio of 0.16 indicates that DGV is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.16, DGV is in the better half of the industry, outperforming 75.71% of the companies in the same industry.
| 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.
- The Current ratio of DGV (1.61) is better than 72.86% of its industry peers.
- A Quick Ratio of 1.23 indicates that DGV should not have too much problems paying its short term obligations.
- DGV has a Quick ratio (1.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- The earnings per share for DGV have decreased strongly by -58.28% 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 very negative growth in Revenue. The Revenue has decreased by -24.28% 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)-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
- The Earnings Per Share is expected to decrease by -29.13% on average over the next years. This is quite bad
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.69, 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 78.57% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of DGV to the average of the S&P500 Index (28.82), we can say DGV is valued slightly cheaper.
- A Price/Forward Earnings ratio of 12.88 indicates a correct valuation of DGV.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DGV indicates a somewhat cheap valuation: DGV is cheaper than 72.86% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. DGV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 12.88 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DGV is valued cheaper than 98.57% of the companies in the same industry.
- 88.57% 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 | 6.11 | ||
| 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
- DGV has a Yearly Dividend Yield of 2.81%. Purely for dividend investing, there may be better candidates out there.
- DGV's Dividend Yield is a higher than the industry average which is at 2.27.
- Compared to an average S&P500 Dividend Yield of 1.82, DGV pays a better dividend.
| 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
- DGV pays out 50.13% of its income as dividend. 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 15.69 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.