DHH SPA (DHH.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DHH - IT0005203622 - Common Stock
22.7 EUR
-0.6 (-2.58%)
We assign a fundamental rating of 5 out of 10 to DHH. DHH was compared to 68 industry peers in the IT Services industry. DHH scores excellent on profitability, 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
DHH had positive earnings in the past year.
DHH had a positive operating cash flow in the past year.
DHH had positive earnings in each of the past 5 years.
DHH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DHH has a better Return On Assets (5.26%) than 63.16% of its industry peers.
DHH has a Return On Equity (12.73%) which is comparable to the rest of the industry.
The Return On Invested Capital of DHH (8.08%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for DHH is below the industry average of 11.04%.
| 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
DHH has a better Profit Margin (10.05%) than 89.47% of its industry peers.
In the last couple of years the Profit Margin of DHH has grown nicely.
DHH has a better Operating Margin (18.89%) than 94.74% of its industry peers.
In the last couple of years the Operating Margin of DHH has grown nicely.
Looking at the Gross Margin, with a value of 93.24%, DHH belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
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) just above the Cost of Capital (WACC), DHH is creating some value.
DHH has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DHH has more shares outstanding
DHH has a better debt/assets ratio than last year.
2.2 Solvency
DHH has an Altman-Z score of 3.21. This indicates that DHH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.21, DHH is doing good in the industry, outperforming 65.79% of the companies in the same industry.
The Debt to FCF ratio of DHH is 3.64, which is a good value as it means it would take DHH, 3.64 years of fcf income to pay off all of its debts.
DHH has a Debt to FCF ratio (3.64) which is in line with its industry peers.
DHH has a Debt/Equity ratio of 0.51. This is a neutral value indicating DHH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, DHH perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | 3.21 |
ROIC/WACC1.08
WACC7.47%
2.3 Liquidity
DHH has a Current Ratio of 1.29. 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 Current ratio (1.29) which is comparable to the rest of the industry.
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.
With a decent Quick ratio value of 1.26, DHH is doing good in the industry, outperforming 63.16% of the companies in the same industry.
| 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.
Looking at the last year, DHH shows a small growth in Revenue. The Revenue has grown by 6.82% in the last year.
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 11.37% on average per year.
Based on estimates for the next years, DHH will show a small growth in Revenue. The Revenue will grow by 7.56% on average per year.
EPS Next Y5.73%
EPS Next 2Y9.72%
EPS Next 3Y11.37%
EPS Next 5YN/A
Revenue Next Year15.35%
Revenue Next 2Y10.64%
Revenue Next 3Y9.18%
Revenue Next 5Y7.56%
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
With a Price/Earnings ratio of 29.87, DHH can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of DHH is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.92, DHH is valued at the same level.
The Price/Forward Earnings ratio is 22.61, which indicates a rather expensive current valuation of DHH.
DHH's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of DHH to the average of the S&P500 Index (23.46), we can say DHH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.87 | ||
| Fwd PE | 22.61 |
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.
DHH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.44 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DHH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.21
PEG (5Y)0.48
EPS Next 2Y9.72%
EPS Next 3Y11.37%
5. Dividend
5.1 Amount
No dividends for DHH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:DHH (12/22/2025, 7:00:00 PM)
22.7
-0.6 (-2.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners3.21%
Inst Owner ChangeN/A
Ins Owners68.88%
Ins Owner ChangeN/A
Market Cap118.95M
Revenue(TTM)37.51M
Net Income(TTM)3.77M
Analysts83.33
Price Target34.6 (52.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)17.41%
PT rev (3m)16.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.69%
EPS NY rev (3m)-12.61%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.54%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.87 | ||
| Fwd PE | 22.61 | ||
| P/S | 3.17 | ||
| P/FCF | 20.44 | ||
| P/OCF | 9.68 | ||
| P/B | 4.02 | ||
| P/tB | 17.13 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)0.76
EY3.35%
EPS(NY)1
Fwd EY4.42%
FCF(TTM)1.11
FCFY4.89%
OCF(TTM)2.34
OCFY10.33%
SpS7.16
BVpS5.65
TBVpS1.32
PEG (NY)5.21
PEG (5Y)0.48
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 | 3.21 |
F-Score5
WACC7.47%
ROIC/WACC1.08
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 Y5.73%
EPS Next 2Y9.72%
EPS Next 3Y11.37%
EPS Next 5YN/A
Revenue 1Y (TTM)6.82%
Revenue growth 3Y22.43%
Revenue growth 5Y39.65%
Sales Q2Q%9.01%
Revenue Next Year15.35%
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 Year89.59%
EBIT Next 3Y31.31%
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 5.73% 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%.