DHH SPA (DHH.MI) Stock Fundamental Analysis
BIT:DHH - Euronext Milan - IT0005203622 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to DHH. DHH was compared to 68 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 not priced too expensively while it is growing strongly. Keep and eye on this one! This makes DHH very considerable for growth investing!
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
The Return On Assets of DHH (6.23%) is better than 73.53% of its industry peers.
DHH has a Return On Equity of 13.10%. This is comparable to the rest of the industry: DHH outperforms 58.82% of its industry peers.
DHH has a Return On Invested Capital of 9.59%. This is in the better half of the industry: DHH outperforms 63.24% of its industry peers.
DHH had an Average Return On Invested Capital over the past 3 years of 8.73%. This is below the industry average of 10.89%.
The last Return On Invested Capital (9.59%) for DHH is above the 3 year average (8.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 13.1% | ||
| ROIC | 9.59% |
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
With an excellent Profit Margin value of 10.06%, DHH belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
In the last couple of years the Profit Margin of DHH has grown nicely.
DHH's Operating Margin of 18.96% is amongst the best of the industry. DHH outperforms 95.59% of its industry peers.
In the last couple of years the Operating Margin of DHH has grown nicely.
DHH has a better Gross Margin (92.68%) than 88.24% of its industry peers.
DHH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.96% | ||
| PM (TTM) | 10.06% | ||
| GM | 92.68% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DHH is still creating some value.
The number of shares outstanding for DHH has been increased compared to 1 year ago.
Compared to 5 years ago, DHH has more shares outstanding
The debt/assets ratio for DHH has been reduced compared to a year ago.
2.2 Solvency
DHH has an Altman-Z score of 3.48. This indicates that DHH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.48, DHH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of DHH is 5.92, which is a neutral value as it means it would take DHH, 5.92 years of fcf income to pay off all of its debts.
DHH has a Debt to FCF ratio of 5.92. This is in the lower half of the industry: DHH underperforms 60.29% of its industry peers.
DHH has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DHH (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 5.92 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.27
WACC7.53%
2.3 Liquidity
DHH has a Current Ratio of 1.28. 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 (1.28) which is comparable to the rest of the industry.
DHH has a Quick Ratio of 1.25. 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 Quick ratio of 1.25. This is in the better half of the industry: DHH outperforms 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.48% 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 62.49% on average per year.
The Revenue has been growing slightly by 6.57% in the past 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)63.48%
EPS 3Y3.98%
EPS 5Y62.49%
EPS Q2Q%-15.07%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y22.43%
Revenue growth 5Y39.65%
Sales Q2Q%4.53%
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 16.53% on average per year.
The Revenue is expected to grow by 11.64% on average over the next years. This is quite good.
EPS Next Y28.3%
EPS Next 2Y17.55%
EPS Next 3Y16.53%
EPS Next 5YN/A
Revenue Next Year16.44%
Revenue Next 2Y13.61%
Revenue Next 3Y11.64%
Revenue Next 5YN/A
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.76 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 27.51, which is the current average of the S&P500 Index.
DHH is valuated rather expensively with a Price/Forward Earnings ratio of 18.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DHH is on the same level as its industry peers.
DHH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.76 | ||
| Fwd PE | 18.51 |
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.
64.71% 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 | 37.36 | ||
| EV/EBITDA | 8.86 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DHH has an outstanding 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 16.53% in the coming years.
PEG (NY)0.95
PEG (5Y)0.43
EPS Next 2Y17.55%
EPS Next 3Y16.53%
5. Dividend
5.1 Amount
No dividends for DHH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:DHH (7/14/2025, 7:00:00 PM)
19.8
-0.1 (-0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners3.64%
Inst Owner ChangeN/A
Ins Owners68.88%
Ins Owner ChangeN/A
Market Cap103.75M
Analysts83.33
Price Target29.61 (49.55%)
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)0%
PT rev (3m)-2.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)3.11%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.76 | ||
| Fwd PE | 18.51 | ||
| P/S | 2.89 | ||
| P/FCF | 37.36 | ||
| P/OCF | 11.3 | ||
| P/B | 3.77 | ||
| P/tB | 8.67 | ||
| EV/EBITDA | 8.86 |
EPS(TTM)0.74
EY3.74%
EPS(NY)1.07
Fwd EY5.4%
FCF(TTM)0.53
FCFY2.68%
OCF(TTM)1.75
OCFY8.85%
SpS6.85
BVpS5.26
TBVpS2.28
PEG (NY)0.95
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 13.1% | ||
| ROCE | 16.31% | ||
| ROIC | 9.59% | ||
| ROICexc | 14.05% | ||
| ROICexgc | 30.83% | ||
| OM | 18.96% | ||
| PM (TTM) | 10.06% | ||
| GM | 92.68% | ||
| FCFM | 7.74% |
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%
ROICexcg growth 3Y-10.28%
ROICexcg 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-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 5.92 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 123.07% | ||
| Cap/Sales | 17.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.45% | ||
| Profit Quality | 76.95% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.48 |
F-Score6
WACC7.53%
ROIC/WACC1.27
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)63.48%
EPS 3Y3.98%
EPS 5Y62.49%
EPS Q2Q%-15.07%
EPS Next Y28.3%
EPS Next 2Y17.55%
EPS Next 3Y16.53%
EPS Next 5YN/A
Revenue 1Y (TTM)6.57%
Revenue growth 3Y22.43%
Revenue growth 5Y39.65%
Sales Q2Q%4.53%
Revenue Next Year16.44%
Revenue Next 2Y13.61%
Revenue Next 3Y11.64%
Revenue Next 5YN/A
EBIT growth 1Y9.7%
EBIT growth 3Y19.91%
EBIT growth 5Y115.56%
EBIT Next Year95.83%
EBIT Next 3Y32.77%
EBIT Next 5YN/A
FCF growth 1Y-33.41%
FCF growth 3Y-4.43%
FCF growth 5Y23.86%
OCF growth 1Y1.33%
OCF growth 3Y15.1%
OCF growth 5Y55.96%