DIGITAL TURBINE INC (APPS) Stock Fundamental Analysis
NASDAQ:APPS - Nasdaq - US25400W1027 - Common Stock - Currency: USD
APPS gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. Both the profitability and financial health of APPS have multiple concerns. APPS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
APPS had positive earnings in the past year.
APPS had a positive operating cash flow in the past year.
In multiple years APPS reported negative net income over the last 5 years.
Each year in the past 5 years APPS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -11.33%, APPS is not doing good in the industry: 60.28% of the companies in the same industry are doing better.
APPS's Return On Equity of -59.82% is on the low side compared to the rest of the industry. APPS is outperformed by 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.33% | ||
| ROE | -59.82% | ||
| ROIC | N/A |
ROA(3y)-19.52%
ROA(5y)-7.01%
ROE(3y)-84.5%
ROE(5y)-41.75%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 44.99%, APPS is not doing good in the industry: 70.57% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of APPS has grown nicely.
The Profit Margin and Operating Margin are not available for APPS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.99% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.04%
GM growth 5Y3.05%
2. Health
2.1 Basic Checks
APPS does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for APPS has been increased compared to 1 year ago.
Compared to 5 years ago, APPS has more shares outstanding
Compared to 1 year ago, APPS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.28, we must say that APPS is in the distress zone and has some risk of bankruptcy.
APPS has a worse Altman-Z score (-0.28) than 73.05% of its industry peers.
APPS has a Debt/Equity ratio of 2.65. This is a high value indicating a heavy dependency on external financing.
APPS has a Debt to Equity ratio of 2.65. This is amonst the worse of the industry: APPS underperforms 80.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.28 |
ROIC/WACCN/A
WACC11.5%
2.3 Liquidity
APPS has a Current Ratio of 1.09. This is a normal value and indicates that APPS is financially healthy and should not expect problems in meeting its short term obligations.
APPS has a Current ratio of 1.09. This is in the lower half of the industry: APPS underperforms 70.21% of its industry peers.
A Quick Ratio of 1.09 indicates that APPS should not have too much problems paying its short term obligations.
APPS has a Quick ratio of 1.09. This is in the lower half of the industry: APPS underperforms 69.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
APPS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.66%.
The Earnings Per Share has been growing by 11.84% on average over the past years. This is quite good.
APPS shows a decrease in Revenue. In the last year, the revenue decreased by -9.93%.
The Revenue has been growing by 28.74% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-39.66%
EPS 3Y-40.48%
EPS 5Y11.84%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-9.93%
Revenue growth 3Y-13.11%
Revenue growth 5Y28.74%
Sales Q2Q%6.17%
3.2 Future
Based on estimates for the next years, APPS will show a very negative growth in Earnings Per Share. The EPS will decrease by -52.02% on average per year.
Based on estimates for the next years, APPS will show a small growth in Revenue. The Revenue will grow by 7.81% on average per year.
EPS Next Y20.94%
EPS Next 2Y-52.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.9%
Revenue Next 2Y7.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.51 indicates a correct valuation of APPS.
Compared to the rest of the industry, the Price/Earnings ratio of APPS indicates a rather cheap valuation: APPS is cheaper than 87.23% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. APPS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.00, APPS is valued correctly.
Based on the Price/Forward Earnings ratio, APPS is valued cheaper than 90.43% of the companies in the same industry.
APPS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 12 |
4.2 Price Multiples
APPS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. APPS is cheaper than 73.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 31.63 |
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.
A cheap valuation may be justified as APPS's earnings are expected to decrease with -52.02% in the coming years.
PEG (NY)0.69
PEG (5Y)1.23
EPS Next 2Y-52.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for APPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.08
-0.32 (-5.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners61.7%
Inst Owner Change0%
Ins Owners5.16%
Ins Owner Change5.93%
Market Cap543.46M
Analysts45.71
Price Target5.87 (15.55%)
Short Float %9.09%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)600.61%
Min EPS beat(2)145.1%
Max EPS beat(2)1056.12%
EPS beat(4)3
Avg EPS beat(4)315.08%
Min EPS beat(4)-12.46%
Max EPS beat(4)1056.12%
EPS beat(8)5
Avg EPS beat(8)168.99%
EPS beat(12)7
Avg EPS beat(12)109.6%
EPS beat(16)10
Avg EPS beat(16)83.92%
Revenue beat(2)2
Avg Revenue beat(2)3.44%
Min Revenue beat(2)0.15%
Max Revenue beat(2)6.72%
Revenue beat(4)2
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-7.51%
Max Revenue beat(4)6.72%
Revenue beat(8)3
Avg Revenue beat(8)-1.91%
Revenue beat(12)4
Avg Revenue beat(12)-2.7%
Revenue beat(16)4
Avg Revenue beat(16)-11.09%
PT rev (1m)109.09%
PT rev (3m)109.09%
EPS NQ rev (1m)14.29%
EPS NQ rev (3m)14.29%
EPS NY rev (1m)6.41%
EPS NY rev (3m)6.41%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 12 | ||
| P/S | 1.11 | ||
| P/FCF | N/A | ||
| P/OCF | 45.75 | ||
| P/B | 3.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.63 |
EPS(TTM)0.35
EY6.89%
EPS(NY)0.42
Fwd EY8.33%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)0.11
OCFY2.19%
SpS4.59
BVpS1.44
TBVpS-3.04
PEG (NY)0.69
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.33% | ||
| ROE | -59.82% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.99% | ||
| FCFM | N/A |
ROA(3y)-19.52%
ROA(5y)-7.01%
ROE(3y)-84.5%
ROE(5y)-41.75%
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-1.04%
GM growth 5Y3.05%
F-Score4
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 14.17 | ||
| Cap/Depr | 33.14% | ||
| Cap/Sales | 5.6% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 41.2% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | -0.28 |
F-Score4
WACC11.5%
ROIC/WACCN/A
Cap/Depr(3y)30.52%
Cap/Depr(5y)52.33%
Cap/Sales(3y)4.55%
Cap/Sales(5y)3.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-39.66%
EPS 3Y-40.48%
EPS 5Y11.84%
EPS Q2Q%-16.67%
EPS Next Y20.94%
EPS Next 2Y-52.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.93%
Revenue growth 3Y-13.11%
Revenue growth 5Y28.74%
Sales Q2Q%6.17%
Revenue Next Year6.9%
Revenue Next 2Y7.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-43.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year72.73%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-454.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-58.57%
OCF growth 3Y-48.04%
OCF growth 5Y-17.67%