DHH SPA (DHH.MI) Stock Fundamental Analysis
BIT:DHH - Euronext Milan - IT0005203622 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to DHH. DHH was compared to 70 industry peers in the IT Services industry. DHH has an excellent profitability rating, but there are some minor concerns on its financial health. DHH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DHH was profitable.
DHH had a positive operating cash flow in the past year.
In the past 5 years DHH has always been profitable.
In the past 5 years DHH always reported a positive cash flow from operatings.
1.2 Ratios
DHH's Return On Assets of 6.68% is fine compared to the rest of the industry. DHH outperforms 74.67% of its industry peers.
The Return On Equity of DHH (14.85%) is better than 69.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.82%, DHH belongs to the top of the industry, outperforming 85.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DHH is in line with the industry average of 11.01%.
The last Return On Invested Capital (12.82%) for DHH is above the 3 year average (10.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 14.85% | ||
| ROIC | 12.82% |
ROA(3y)4.71%
ROA(5y)3.41%
ROE(3y)9.81%
ROE(5y)6.9%
ROIC(3y)10.35%
ROIC(5y)7.13%
1.3 Margins
The Profit Margin of DHH (11.09%) is better than 93.33% of its industry peers.
DHH's Profit Margin has improved in the last couple of years.
DHH's Operating Margin of 20.25% is amongst the best of the industry. DHH outperforms 97.33% of its industry peers.
DHH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 93.29%, DHH belongs to the top of the industry, outperforming 89.33% of the companies in the same industry.
In the last couple of years the Gross Margin of DHH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.25% | ||
| PM (TTM) | 11.09% | ||
| GM | 93.29% |
OM growth 3Y18.83%
OM growth 5Y30.61%
PM growth 3Y-0.5%
PM growth 5Y30.69%
GM growth 3Y-1.44%
GM growth 5Y-1.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DHH is still creating some value.
Compared to 1 year ago, DHH has about the same amount of shares outstanding.
DHH has more shares outstanding than it did 5 years ago.
DHH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.66 indicates that DHH is not in any danger for bankruptcy at the moment.
DHH has a better Altman-Z score (3.66) than 82.67% of its industry peers.
The Debt to FCF ratio of DHH is 4.18, which is a neutral value as it means it would take DHH, 4.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.18, DHH is in line with its industry, outperforming 52.00% of the companies in the same industry.
DHH has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, DHH perfoms like the industry average, outperforming 54.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 3.66 |
ROIC/WACC1.65
WACC7.75%
2.3 Liquidity
DHH has a Current Ratio of 1.27. This is a normal value and indicates that DHH is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.27, DHH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that DHH should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.24, DHH is doing good in the industry, outperforming 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 2464.60% over the past year.
Measured over the past years, DHH shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.48% on average per year.
Looking at the last year, DHH shows a small growth in Revenue. The Revenue has grown by 6.15% in the last year.
DHH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 41.34% yearly.
EPS 1Y (TTM)2464.6%
EPS 3Y14.04%
EPS 5Y45.48%
EPS Q2Q%546.93%
Revenue 1Y (TTM)6.15%
Revenue growth 3Y54.15%
Revenue growth 5Y41.34%
Sales Q2Q%8.69%
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 16.00% on average per year.
Based on estimates for the next years, DHH will show a small growth in Revenue. The Revenue will grow by 7.42% on average per year.
EPS Next Y19.66%
EPS Next 2Y21.42%
EPS Next 3Y16.34%
EPS Next 5Y16%
Revenue Next Year3.07%
Revenue Next 2Y8.4%
Revenue Next 3Y12.08%
Revenue Next 5Y7.42%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
Based on the Price/Earnings ratio of 28.50, the valuation of DHH can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DHH is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.35. DHH is around the same levels.
DHH is valuated rather expensively with a Price/Forward Earnings ratio of 22.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DHH is on the same level as its industry peers.
DHH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 22.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DHH is on the same level as its industry peers.
66.67% of the companies in the same industry are cheaper than DHH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.91 | ||
| EV/EBITDA | 10.1 |
4.3 Compensation for Growth
DHH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of DHH may justify a higher PE ratio.
DHH's earnings are expected to grow with 16.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)0.63
EPS Next 2Y21.42%
EPS Next 3Y16.34%
5. Dividend
5.1 Amount
DHH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:DHH (3/7/2025, 7:00:00 PM)
22.8
+0.8 (+3.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners4.16%
Inst Owner ChangeN/A
Ins Owners68.88%
Ins Owner ChangeN/A
Market Cap119.47M
Analysts83.33
Price Target30.51 (33.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
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)-7.44%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 22.19 | ||
| P/S | 3.4 | ||
| P/FCF | 28.91 | ||
| P/OCF | 13.48 | ||
| P/B | 4.55 | ||
| P/tB | 11.53 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)0.8
EY3.51%
EPS(NY)1.03
Fwd EY4.51%
FCF(TTM)0.79
FCFY3.46%
OCF(TTM)1.69
OCFY7.42%
SpS6.7
BVpS5.01
TBVpS1.98
PEG (NY)1.45
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 14.85% | ||
| ROCE | 17.15% | ||
| ROIC | 12.82% | ||
| ROICexc | 19.08% | ||
| ROICexgc | 44.14% | ||
| OM | 20.25% | ||
| PM (TTM) | 11.09% | ||
| GM | 93.29% | ||
| FCFM | 11.77% |
ROA(3y)4.71%
ROA(5y)3.41%
ROE(3y)9.81%
ROE(5y)6.9%
ROIC(3y)10.35%
ROIC(5y)7.13%
ROICexc(3y)14.48%
ROICexc(5y)10.14%
ROICexgc(3y)39.08%
ROICexgc(5y)N/A
ROCE(3y)14.64%
ROCE(5y)10.03%
ROICexcg growth 3Y7.6%
ROICexcg growth 5YN/A
ROICexc growth 3Y46.84%
ROICexc growth 5Y30.6%
OM growth 3Y18.83%
OM growth 5Y30.61%
PM growth 3Y-0.5%
PM growth 5Y30.69%
GM growth 3Y-1.44%
GM growth 5Y-1.12%
F-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 94.16% | ||
| Cap/Sales | 13.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.05% | ||
| Profit Quality | 106.1% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 3.66 |
F-Score7
WACC7.75%
ROIC/WACC1.65
Cap/Depr(3y)77.76%
Cap/Depr(5y)66.29%
Cap/Sales(3y)12.43%
Cap/Sales(5y)9.13%
Profit Quality(3y)400.23%
Profit Quality(5y)652.99%
High Growth Momentum
Growth
EPS 1Y (TTM)2464.6%
EPS 3Y14.04%
EPS 5Y45.48%
EPS Q2Q%546.93%
EPS Next Y19.66%
EPS Next 2Y21.42%
EPS Next 3Y16.34%
EPS Next 5Y16%
Revenue 1Y (TTM)6.15%
Revenue growth 3Y54.15%
Revenue growth 5Y41.34%
Sales Q2Q%8.69%
Revenue Next Year3.07%
Revenue Next 2Y8.4%
Revenue Next 3Y12.08%
Revenue Next 5Y7.42%
EBIT growth 1Y23.91%
EBIT growth 3Y83.17%
EBIT growth 5Y84.61%
EBIT Next Year103.89%
EBIT Next 3Y37.61%
EBIT Next 5Y27.57%
FCF growth 1Y165.34%
FCF growth 3Y-15.01%
FCF growth 5Y77.62%
OCF growth 1Y88.04%
OCF growth 3Y6.48%
OCF growth 5Y97.34%