DHH SPA (DHH.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DHH - IT0005203622 - Common Stock
21.3 EUR
+0.1 (+0.47%)
Overall DHH gets a fundamental rating of 5 out of 10. We evaluated DHH against 72 industry peers in the IT Services industry. While DHH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, DHH is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
DHH had positive earnings in the past year.
DHH had a positive operating cash flow in the past year.
Each year in the past 5 years DHH has been profitable.
DHH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DHH's Return On Assets of 5.26% is fine compared to the rest of the industry. DHH outperforms 61.11% of its industry peers.
The Return On Equity of DHH (12.73%) is comparable to the rest of the industry.
DHH has a Return On Invested Capital (8.08%) which is comparable to the rest of the industry.
DHH had an Average Return On Invested Capital over the past 3 years of 8.73%. This is significantly below the industry average of 27.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 12.73% | ||
| ROIC | 8.08% |
ROA(3y)3.93%
ROA(5y)4.47%
ROE(3y)8.68%
ROE(5y)9.26%
ROIC(3y)8.73%
ROIC(5y)7.32%
1.3 Margins
The Profit Margin of DHH (10.05%) is better than 87.50% of its industry peers.
In the last couple of years the Profit Margin of DHH has grown nicely.
DHH has a Operating Margin of 18.89%. This is amongst the best in the industry. DHH outperforms 94.44% of its industry peers.
DHH's Operating Margin has improved in the last couple of years.
DHH has a Gross Margin of 93.24%. This is amongst the best in the industry. DHH outperforms 91.67% of its industry peers.
DHH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.89% | ||
| PM (TTM) | 10.05% | ||
| GM | 93.24% |
OM growth 3Y-2.06%
OM growth 5Y54.36%
PM growth 3Y-14.91%
PM growth 5Y46.79%
GM growth 3Y-0.79%
GM growth 5Y-1.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DHH is destroying value.
The number of shares outstanding for DHH has been increased compared to 1 year ago.
DHH has more shares outstanding than it did 5 years ago.
DHH has a better debt/assets ratio than last year.
2.2 Solvency
DHH has an Altman-Z score of 3.11. This indicates that DHH is financially healthy and has little risk of bankruptcy at the moment.
DHH has a better Altman-Z score (3.11) than 68.06% of its industry peers.
DHH has a debt to FCF ratio of 3.64. This is a good value and a sign of high solvency as DHH would need 3.64 years to pay back of all of its debts.
DHH has a Debt to FCF ratio (3.64) which is in line with its industry peers.
A Debt/Equity ratio of 0.51 indicates that DHH is somewhat dependend on debt financing.
DHH has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.6
WACC13.47%
2.3 Liquidity
A Current Ratio of 1.29 indicates that DHH should not have too much problems paying its short term obligations.
DHH's Current ratio of 1.29 is in line compared to the rest of the industry. DHH outperforms 54.17% of its industry peers.
DHH has a Quick Ratio of 1.26. This is a normal value and indicates that DHH is financially healthy and should not expect problems in meeting its short term obligations.
DHH has a better Quick ratio (1.26) than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for DHH have decreased by -5.53% in the last year.
DHH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.49% yearly.
DHH shows a small growth in Revenue. In the last year, the Revenue has grown by 6.82%.
Measured over the past years, DHH shows a very strong growth in Revenue. The Revenue has been growing by 39.65% on average per year.
EPS 1Y (TTM)-5.53%
EPS 3Y3.98%
EPS 5Y62.49%
EPS Q2Q%3.55%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y22.43%
Revenue growth 5Y39.65%
Sales Q2Q%9.01%
3.2 Future
Based on estimates for the next years, DHH will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.50% on average per year.
DHH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.56% yearly.
EPS Next Y7.55%
EPS Next 2Y11.64%
EPS Next 3Y12.5%
EPS Next 5YN/A
Revenue Next Year12.5%
Revenue Next 2Y10.64%
Revenue Next 3Y9.18%
Revenue Next 5Y7.56%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 28.03 indicates a quite expensive valuation of DHH.
DHH's Price/Earnings ratio is in line with the industry average.
DHH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
DHH is valuated rather expensively with a Price/Forward Earnings ratio of 20.49.
The rest of the industry has a similar Price/Forward Earnings ratio as DHH.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, DHH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.03 | ||
| Fwd PE | 20.49 |
4.2 Price Multiples
DHH's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DHH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.18 | ||
| EV/EBITDA | 9.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DHH does not grow enough to justify the current Price/Earnings ratio.
DHH has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DHH's earnings are expected to grow with 12.50% in the coming years.
PEG (NY)3.71
PEG (5Y)0.45
EPS Next 2Y11.64%
EPS Next 3Y12.5%
5. Dividend
5.1 Amount
No dividends for DHH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:DHH (11/25/2025, 7:00:00 PM)
21.3
+0.1 (+0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners3.35%
Inst Owner ChangeN/A
Ins Owners68.88%
Ins Owner ChangeN/A
Market Cap111.61M
Revenue(TTM)37.51M
Net Income(TTM)3.77M
Analysts83.33
Price Target34.6 (62.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)16.86%
PT rev (3m)16.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-11.11%
EPS NY rev (3m)-11.11%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.03 | ||
| Fwd PE | 20.49 | ||
| P/S | 2.98 | ||
| P/FCF | 19.18 | ||
| P/OCF | 9.08 | ||
| P/B | 3.77 | ||
| P/tB | 16.08 | ||
| EV/EBITDA | 9.18 |
EPS(TTM)0.76
EY3.57%
EPS(NY)1.04
Fwd EY4.88%
FCF(TTM)1.11
FCFY5.21%
OCF(TTM)2.34
OCFY11.01%
SpS7.16
BVpS5.65
TBVpS1.32
PEG (NY)3.71
PEG (5Y)0.45
Graham Number9.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 12.73% | ||
| ROCE | 13.66% | ||
| ROIC | 8.08% | ||
| ROICexc | 11.87% | ||
| ROICexgc | 33.1% | ||
| OM | 18.89% | ||
| PM (TTM) | 10.05% | ||
| GM | 93.24% | ||
| FCFM | 15.51% |
ROA(3y)3.93%
ROA(5y)4.47%
ROE(3y)8.68%
ROE(5y)9.26%
ROIC(3y)8.73%
ROIC(5y)7.32%
ROICexc(3y)12.23%
ROICexc(5y)10.48%
ROICexgc(3y)26.87%
ROICexgc(5y)29.48%
ROCE(3y)15.07%
ROCE(5y)12.92%
ROICexgc growth 3Y-10.28%
ROICexgc growth 5YN/A
ROICexc growth 3Y6.52%
ROICexc growth 5Y53.67%
OM growth 3Y-2.06%
OM growth 5Y54.36%
PM growth 3Y-14.91%
PM growth 5Y46.79%
GM growth 3Y-0.79%
GM growth 5Y-1.44%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.64 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 116.31% | ||
| Cap/Sales | 17.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.15% | ||
| Profit Quality | 154.41% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.11 |
F-Score5
WACC13.47%
ROIC/WACC0.6
Cap/Depr(3y)89.93%
Cap/Depr(5y)88.5%
Cap/Sales(3y)13.53%
Cap/Sales(5y)12.57%
Profit Quality(3y)392.65%
Profit Quality(5y)477.25%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.53%
EPS 3Y3.98%
EPS 5Y62.49%
EPS Q2Q%3.55%
EPS Next Y7.55%
EPS Next 2Y11.64%
EPS Next 3Y12.5%
EPS Next 5YN/A
Revenue 1Y (TTM)6.82%
Revenue growth 3Y22.43%
Revenue growth 5Y39.65%
Sales Q2Q%9.01%
Revenue Next Year12.5%
Revenue Next 2Y10.64%
Revenue Next 3Y9.18%
Revenue Next 5Y7.56%
EBIT growth 1Y-0.33%
EBIT growth 3Y19.91%
EBIT growth 5Y115.56%
EBIT Next Year95.83%
EBIT Next 3Y33.29%
EBIT Next 5YN/A
FCF growth 1Y-12.19%
FCF growth 3Y-4.43%
FCF growth 5Y23.86%
OCF growth 1Y2.95%
OCF growth 3Y15.1%
OCF growth 5Y55.96%
DHH SPA / DHH.MI FAQ
What is the fundamental rating for DHH stock?
ChartMill assigns a fundamental rating of 5 / 10 to DHH.MI.
Can you provide the valuation status for DHH SPA?
ChartMill assigns a valuation rating of 3 / 10 to DHH SPA (DHH.MI). This can be considered as Overvalued.
How profitable is DHH SPA (DHH.MI) stock?
DHH SPA (DHH.MI) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for DHH stock?
The Earnings per Share (EPS) of DHH SPA (DHH.MI) is expected to grow by 7.55% in the next year.
How sustainable is the dividend of DHH SPA (DHH.MI) stock?
The dividend rating of DHH SPA (DHH.MI) is 0 / 10 and the dividend payout ratio is 0%.