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DIGIMARC CORP (DMRC) Stock Fundamental Analysis

NASDAQ:DMRC - Nasdaq - US25381B1017 - Common Stock - Currency: USD

27.46  -1.46 (-5.05%)

After market: 27.46 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to DMRC. DMRC was compared to 284 industry peers in the Software industry. No worries on liquidiy or solvency for DMRC as it has an excellent financial health rating, but there are worries on the profitability. While showing a medium growth rate, DMRC is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

DMRC had negative earnings in the past year.
In the past year DMRC has reported a negative cash flow from operations.
In the past 5 years DMRC always reported negative net income.
DMRC had a negative operating cash flow in each of the past 5 years.
DMRC Yearly Net Income VS EBIT VS OCF VS FCFDMRC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 -20M -40M -60M

1.2 Ratios

DMRC has a worse Return On Assets (-48.15%) than 86.23% of its industry peers.
Looking at the Return On Equity, with a value of -58.35%, DMRC is doing worse than 71.74% of the companies in the same industry.
Industry RankSector Rank
ROA -48.15%
ROE -58.35%
ROIC N/A
ROA(3y)-54.39%
ROA(5y)-53.14%
ROE(3y)-66.08%
ROE(5y)-63.41%
ROIC(3y)N/A
ROIC(5y)N/A
DMRC Yearly ROA, ROE, ROICDMRC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 -20 -40 -60

1.3 Margins

With a Gross Margin value of 60.73%, DMRC is not doing good in the industry: 60.14% of the companies in the same industry are doing better.
DMRC's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for DMRC so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 60.73%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.45%
GM growth 5Y-1.88%
DMRC Yearly Profit, Operating, Gross MarginsDMRC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150 -200

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8

2. Health

2.1 Basic Checks

DMRC does not have a ROIC to compare to the WACC, probably because it is not profitable.
DMRC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DMRC has been increased compared to 5 years ago.
DMRC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
DMRC Yearly Shares OutstandingDMRC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
DMRC Yearly Total Debt VS Total AssetsDMRC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

2.2 Solvency

An Altman-Z score of 18.69 indicates that DMRC is not in any danger for bankruptcy at the moment.
DMRC's Altman-Z score of 18.69 is amongst the best of the industry. DMRC outperforms 92.03% of its industry peers.
There is no outstanding debt for DMRC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 18.69
ROIC/WACCN/A
WACC13.99%
DMRC Yearly LT Debt VS Equity VS FCFDMRC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M

2.3 Liquidity

A Current Ratio of 4.77 indicates that DMRC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.77, DMRC belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
A Quick Ratio of 4.77 indicates that DMRC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.77, DMRC belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.77
Quick Ratio 4.77
DMRC Yearly Current Assets VS Current LiabilitesDMRC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

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5

3. Growth

3.1 Past

DMRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.69%, which is quite impressive.
The Revenue has grown by 19.11% in the past year. This is quite good.
Measured over the past years, DMRC shows a quite strong growth in Revenue. The Revenue has been growing by 10.46% on average per year.
EPS 1Y (TTM)25.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)19.11%
Revenue growth 3Y13.26%
Revenue growth 5Y10.46%
Sales Q2Q%4.99%

3.2 Future

DMRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.39% yearly.
Based on estimates for the next years, DMRC will show a quite strong growth in Revenue. The Revenue will grow by 18.38% on average per year.
EPS Next Y17.15%
EPS Next 2Y18.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.75%
Revenue Next 2Y18.38%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
DMRC Yearly Revenue VS EstimatesDMRC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
DMRC Yearly EPS VS EstimatesDMRC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 -0.5 -1 -1.5 -2 -2.5

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DMRC. In the last year negative earnings were reported.
Also next year DMRC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
DMRC Price Earnings VS Forward Price EarningsDMRC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
DMRC Per share dataDMRC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2 3

4.3 Compensation for Growth

A more expensive valuation may be justified as DMRC's earnings are expected to grow with 18.39% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.39%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

DMRC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DIGIMARC CORP

NASDAQ:DMRC (2/21/2025, 8:14:11 PM)

After market: 27.46 0 (0%)

27.46

-1.46 (-5.05%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-14 2024-11-14/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners60.9%
Inst Owner Change6.79%
Ins Owners12.32%
Ins Owner Change0.81%
Market Cap589.02M
Analysts80
Price Target34.68 (26.29%)
Short Float %13.25%
Short Ratio12.58
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.21
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.63%
Min EPS beat(2)-22.81%
Max EPS beat(2)15.55%
EPS beat(4)3
Avg EPS beat(4)5.46%
Min EPS beat(4)-22.81%
Max EPS beat(4)15.55%
EPS beat(8)7
Avg EPS beat(8)10.69%
EPS beat(12)10
Avg EPS beat(12)10.41%
EPS beat(16)13
Avg EPS beat(16)7.54%
Revenue beat(2)1
Avg Revenue beat(2)-6.26%
Min Revenue beat(2)-13.29%
Max Revenue beat(2)0.77%
Revenue beat(4)3
Avg Revenue beat(4)-2.69%
Min Revenue beat(4)-13.29%
Max Revenue beat(4)1.75%
Revenue beat(8)5
Avg Revenue beat(8)-2.24%
Revenue beat(12)7
Avg Revenue beat(12)-1.33%
Revenue beat(16)8
Avg Revenue beat(16)-1.37%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-5.83%
EPS NQ rev (3m)5.05%
EPS NY rev (1m)-3.91%
EPS NY rev (3m)-11.36%
Revenue NQ rev (1m)-13.93%
Revenue NQ rev (3m)-11.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.51%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 15.09
P/FCF N/A
P/OCF N/A
P/B 8.4
P/tB 16.23
EV/EBITDA N/A
EPS(TTM)-1.07
EYN/A
EPS(NY)-0.78
Fwd EYN/A
FCF(TTM)-1.32
FCFYN/A
OCF(TTM)-1.29
OCFYN/A
SpS1.82
BVpS3.27
TBVpS1.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -48.15%
ROE -58.35%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 60.73%
FCFM N/A
ROA(3y)-54.39%
ROA(5y)-53.14%
ROE(3y)-66.08%
ROE(5y)-63.41%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.45%
GM growth 5Y-1.88%
F-Score6
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 10.26%
Cap/Sales 1.93%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.77
Quick Ratio 4.77
Altman-Z 18.69
F-Score6
WACC13.99%
ROIC/WACCN/A
Cap/Depr(3y)35.21%
Cap/Depr(5y)50.77%
Cap/Sales(3y)4.3%
Cap/Sales(5y)5.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y17.15%
EPS Next 2Y18.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)19.11%
Revenue growth 3Y13.26%
Revenue growth 5Y10.46%
Sales Q2Q%4.99%
Revenue Next Year12.75%
Revenue Next 2Y18.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.43%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year52.35%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y38.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.93%
OCF growth 3YN/A
OCF growth 5YN/A