DHH SPA (DHH.MI) Stock Fundamental Analysis
BIT:DHH - Euronext Milan - IT0005203622 - Common Stock - Currency: EUR
DHH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the IT Services industry. While DHH has a great profitability rating, there are some minor concerns on its financial health. DHH shows excellent growth, but is valued quite expensive already. These ratings could make DHH a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
DHH had positive earnings in the past year.
In the past year DHH had a positive cash flow from operations.
In the past 5 years DHH has always been profitable.
Each year in the past 5 years DHH had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.23%, DHH is doing good in the industry, outperforming 67.69% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.10%, DHH is in line with its industry, outperforming 56.92% of the companies in the same industry.
DHH has a Return On Invested Capital of 9.70%. This is in the better half of the industry: DHH outperforms 63.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DHH is below the industry average of 10.96%.
The last Return On Invested Capital (9.70%) 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 | 9.7% |
ROA(3y)3.93%
ROA(5y)4.47%
ROE(3y)8.68%
ROE(5y)9.26%
ROIC(3y)8.73%
ROIC(5y)7.33%
1.3 Margins
Looking at the Profit Margin, with a value of 10.06%, DHH belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
In the last couple of years the Profit Margin of DHH has grown nicely.
Looking at the Operating Margin, with a value of 19.06%, DHH belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
In the last couple of years the Operating Margin of DHH has grown nicely.
With an excellent Gross Margin value of 92.68%, DHH belongs to the best of the industry, outperforming 87.69% 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 | 19.06% | ||
| PM (TTM) | 10.06% | ||
| GM | 92.68% |
OM growth 3Y-2.2%
OM growth 5Y54.23%
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.
The number of shares outstanding for DHH has been increased compared to 1 year ago.
The number of shares outstanding for DHH has been increased compared to 5 years ago.
Compared to 1 year ago, DHH has an improved debt to assets ratio.
2.2 Solvency
DHH has an Altman-Z score of 3.91. This indicates that DHH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.91, DHH belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
DHH has a debt to FCF ratio of 5.92. This is a neutral value as DHH would need 5.92 years to pay back of 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 60.00% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that DHH is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.40, DHH perfoms like the industry average, outperforming 56.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 5.92 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.25
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.28 indicates that DHH should not have too much problems paying its short term obligations.
DHH has a Current ratio of 1.28. This is comparable to the rest of the industry: DHH outperforms 53.85% of its industry peers.
A Quick Ratio of 1.25 indicates that DHH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, DHH is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
DHH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.69%, which is quite impressive.
DHH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.76% yearly.
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)64.69%
EPS 3Y4.26%
EPS 5Y62.76%
EPS Q2Q%-13.66%
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.
Based on estimates for the next years, DHH will show a quite strong growth in Revenue. The Revenue will grow by 11.64% on average per year.
EPS Next Y28.3%
EPS Next 2Y17.55%
EPS Next 3Y16.53%
EPS Next 5YN/A
Revenue Next Year21.38%
Revenue Next 2Y17.65%
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 27.73 indicates a quite expensive valuation of DHH.
Compared to the rest of the industry, the Price/Earnings ratio of DHH indicates a slightly more expensive valuation: DHH is more expensive than 63.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, DHH is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.44, the valuation of DHH can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DHH is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, DHH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 19.44 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than DHH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHH indicates a slightly more expensive valuation: DHH is more expensive than 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.25 | ||
| EV/EBITDA | 9.29 |
4.3 Compensation for Growth
DHH's 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)0.98
PEG (5Y)0.44
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 (4/25/2025, 7:00:00 PM)
20.8
+0.3 (+1.46%)
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 Cap108.99M
Analysts83.33
Price Target30.18 (45.1%)
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)-1.09%
PT rev (3m)-1.09%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)4.13%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)6.18%
Revenue NY rev (3m)6.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 19.44 | ||
| P/S | 3.04 | ||
| P/FCF | 39.25 | ||
| P/OCF | 11.87 | ||
| P/B | 3.96 | ||
| P/tB | 9.11 | ||
| EV/EBITDA | 9.29 |
EPS(TTM)0.75
EY3.61%
EPS(NY)1.07
Fwd EY5.14%
FCF(TTM)0.53
FCFY2.55%
OCF(TTM)1.75
OCFY8.42%
SpS6.85
BVpS5.26
TBVpS2.28
PEG (NY)0.98
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 13.1% | ||
| ROCE | 16.4% | ||
| ROIC | 9.7% | ||
| ROICexc | 14.25% | ||
| ROICexgc | 31.58% | ||
| OM | 19.06% | ||
| 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)7.33%
ROICexc(3y)12.25%
ROICexc(5y)10.49%
ROICexgc(3y)27.02%
ROICexgc(5y)29.56%
ROCE(3y)15.05%
ROCE(5y)12.9%
ROICexcg growth 3Y-9.85%
ROICexcg growth 5YN/A
ROICexc growth 3Y6.67%
ROICexc growth 5Y53.8%
OM growth 3Y-2.2%
OM growth 5Y54.23%
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 | 0.4 | ||
| Debt/FCF | 5.92 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 123.07% | ||
| Cap/Sales | 17.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.21% | ||
| Profit Quality | 76.95% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.91 |
F-Score6
WACC7.79%
ROIC/WACC1.25
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)64.69%
EPS 3Y4.26%
EPS 5Y62.76%
EPS Q2Q%-13.66%
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 Year21.38%
Revenue Next 2Y17.65%
Revenue Next 3Y11.64%
Revenue Next 5YN/A
EBIT growth 1Y10.31%
EBIT growth 3Y19.74%
EBIT growth 5Y115.38%
EBIT Next Year97.18%
EBIT Next 3Y29.59%
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%