DHX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. There are concerns on the financial health of DHX while its profitability can be described as average. DHX is valued quite cheap, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year DHX was profitable.
In the past year DHX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DHX reported negative net income in multiple years.
DHX had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of DHX (-6.98%) is worse than 62.86% of its industry peers.
DHX has a Return On Equity (-13.82%) which is comparable to the rest of the industry.
The Return On Invested Capital of DHX (6.12%) is better than 72.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHX is significantly below the industry average of 13.53%.
The 3 year average ROIC (3.66%) for DHX is below the current ROIC(6.12%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	-6.98%
ROE	-13.82%
ROIC	6.12%

ROA(3y)1.17%

ROA(5y)-4.47%

ROE(3y)2.47%

ROE(5y)-8.33%

ROIC(3y)3.66%

ROIC(5y)3.04%

1.3 Margins

In the last couple of years the Profit Margin of DHX has declined.
With a decent Operating Margin value of 8.06%, DHX is doing good in the industry, outperforming 65.71% of the companies in the same industry.
In the last couple of years the Operating Margin of DHX has declined.
With an excellent Gross Margin value of 84.64%, DHX belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
DHX's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	8.06%
PM (TTM)	N/A
GM	84.64%

OM growth 3Y235.07%

OM growth 5Y-16.43%

PM growth 3YN/A

PM growth 5Y-53.76%

GM growth 3Y-0.64%

GM growth 5Y-0.76%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DHX is destroying value.
DHX has more shares outstanding than it did 1 year ago.
DHX has less shares outstanding than it did 5 years ago.
DHX has a better debt/assets ratio than last year.

2.2 Solvency

DHX has an Altman-Z score of 1.31. This is a bad value and indicates that DHX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.31, DHX perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
DHX has a debt to FCF ratio of 3.10. This is a good value and a sign of high solvency as DHX would need 3.10 years to pay back of all of its debts.
DHX's Debt to FCF ratio of 3.10 is fine compared to the rest of the industry. DHX outperforms 71.43% of its industry peers.
DHX has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
DHX has a Debt to Equity ratio of 0.31. This is comparable to the rest of the industry: DHX outperforms 44.29% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.31
Debt/FCF	3.1
Altman-Z	1.31

ROIC/WACC0.73

WACC8.39%

2.3 Liquidity

A Current Ratio of 0.43 indicates that DHX may have some problems paying its short term obligations.
DHX's Current ratio of 0.43 is on the low side compared to the rest of the industry. DHX is outperformed by 90.00% of its industry peers.
DHX has a Quick Ratio of 0.43. This is a bad value and indicates that DHX is not financially healthy enough and could expect problems in meeting its short term obligations.
DHX has a worse Quick ratio (0.43) than 90.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.43
Quick Ratio	0.43

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

DHX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.00%, which is quite impressive.
The Earnings Per Share has been decreasing by -3.16% on average over the past years.
The Revenue has decreased by -9.13% in the past year.
Measured over the past years, DHX shows a decrease in Revenue. The Revenue has been decreasing by -1.02% on average per year.

EPS 1Y (TTM)35%

EPS 3YN/A

EPS 5Y-3.16%

EPS Q2Q%80%

Revenue 1Y (TTM)-9.13%

Revenue growth 3Y5.78%

Revenue growth 5Y-1.02%

Sales Q2Q%-8.96%

3.2 Future

The Earnings Per Share is expected to grow by 7.13% on average over the next years.
DHX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.10% yearly.

EPS Next Y18.57%

EPS Next 2Y-9.46%

EPS Next 3Y7.13%

EPS Next 5YN/A

Revenue Next Year-10.33%

Revenue Next 2Y-8.19%

Revenue Next 3Y-3.1%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 6.44, the valuation of DHX can be described as very cheap.
88.57% of the companies in the same industry are more expensive than DHX, based on the Price/Earnings ratio.
DHX is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.23, the valuation of DHX can be described as very reasonable.
DHX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DHX is cheaper than 82.86% of the companies in the same industry.
DHX is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	6.44
Fwd PE	9.23

4.2 Price Multiples

DHX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DHX is cheaper than 91.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DHX is valued cheaper than 82.86% of the companies in the same industry.