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DIGITOUCH SPA (DGT.MI) Stock Fundamental Analysis

BIT:DGT - Euronext Milan - IT0005089476 - Common Stock - Currency: EUR

1.905  -0.06 (-3.05%)

Fundamental Rating

6

DGT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 66 industry peers in the Media industry. DGT scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DGT. These ratings could make DGT a good candidate for value investing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

DGT had positive earnings in the past year.
In the past year DGT had a positive cash flow from operations.
DGT had positive earnings in 4 of the past 5 years.
DGT had a positive operating cash flow in each of the past 5 years.
DGT.MI Yearly Net Income VS EBIT VS OCF VS FCFDGT.MI 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 2024 0 -5M

1.2 Ratios

Looking at the Return On Assets, with a value of 3.04%, DGT is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
The Return On Equity of DGT (8.58%) is comparable to the rest of the industry.
DGT's Return On Invested Capital of 9.06% is amongst the best of the industry. DGT outperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DGT is in line with the industry average of 8.01%.
The 3 year average ROIC (8.27%) for DGT is below the current ROIC(9.06%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.04%
ROE 8.58%
ROIC 9.06%
ROA(3y)3.87%
ROA(5y)3.02%
ROE(3y)11.26%
ROE(5y)8.84%
ROIC(3y)8.27%
ROIC(5y)7%
DGT.MI Yearly ROA, ROE, ROICDGT.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10

1.3 Margins

The Profit Margin of DGT (4.27%) is comparable to the rest of the industry.
DGT's Profit Margin has improved in the last couple of years.
The Operating Margin of DGT (11.39%) is better than 72.73% of its industry peers.
In the last couple of years the Operating Margin of DGT has grown nicely.
The Gross Margin of DGT (65.94%) is better than 62.12% of its industry peers.
DGT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 11.39%
PM (TTM) 4.27%
GM 65.94%
OM growth 3Y10.15%
OM growth 5Y19.29%
PM growth 3Y-7.76%
PM growth 5Y45.7%
GM growth 3Y11.31%
GM growth 5Y12.8%
DGT.MI Yearly Profit, Operating, Gross MarginsDGT.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DGT is creating some value.
The number of shares outstanding for DGT remains at a similar level compared to 1 year ago.
The number of shares outstanding for DGT has been reduced compared to 5 years ago.
DGT has a better debt/assets ratio than last year.
DGT.MI Yearly Shares OutstandingDGT.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
DGT.MI Yearly Total Debt VS Total AssetsDGT.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M

2.2 Solvency

Based on the Altman-Z score of 1.69, we must say that DGT is in the distress zone and has some risk of bankruptcy.
DGT's Altman-Z score of 1.69 is in line compared to the rest of the industry. DGT outperforms 57.58% of its industry peers.
The Debt to FCF ratio of DGT is 3.36, which is a good value as it means it would take DGT, 3.36 years of fcf income to pay off all of its debts.
DGT has a better Debt to FCF ratio (3.36) than 71.21% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that DGT is not too dependend on debt financing.
The Debt to Equity ratio of DGT (0.30) is better than 65.15% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.36
Altman-Z 1.69
ROIC/WACC1.39
WACC6.51%
DGT.MI Yearly LT Debt VS Equity VS FCFDGT.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M -5M 10M 15M

2.3 Liquidity

DGT has a Current Ratio of 1.17. This is a normal value and indicates that DGT is financially healthy and should not expect problems in meeting its short term obligations.
DGT has a Current ratio of 1.17. This is in the better half of the industry: DGT outperforms 60.61% of its industry peers.
DGT has a Quick Ratio of 1.17. This is a normal value and indicates that DGT is financially healthy and should not expect problems in meeting its short term obligations.
DGT's Quick ratio of 1.17 is fine compared to the rest of the industry. DGT outperforms 68.18% of its industry peers.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 1.17
DGT.MI Yearly Current Assets VS Current LiabilitesDGT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M

5

3. Growth

3.1 Past

DGT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.68%.
Measured over the past years, DGT shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.64% on average per year.
DGT shows a decrease in Revenue. In the last year, the revenue decreased by -7.45%.
DGT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.66% yearly.
EPS 1Y (TTM)-16.68%
EPS 3Y-6.68%
EPS 5Y48.64%
EPS Q2Q%12.14%
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y1.64%
Revenue growth 5Y1.66%
Sales Q2Q%-8.56%

3.2 Future

The Earnings Per Share is expected to grow by 24.87% on average over the next years. This is a very strong growth
DGT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.58% yearly.
EPS Next Y36.36%
EPS Next 2Y29.98%
EPS Next 3Y24.87%
EPS Next 5YN/A
Revenue Next Year4.84%
Revenue Next 2Y6.11%
Revenue Next 3Y5.86%
Revenue Next 5Y4.58%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
DGT.MI Yearly Revenue VS EstimatesDGT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10M 20M 30M 40M 50M
DGT.MI Yearly EPS VS EstimatesDGT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2018 2019 2021 2022 2023 2024 2025 2026 2027 0.05 0.1 0.15 0.2 0.25

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.88, which indicates a correct valuation of DGT.
60.61% of the companies in the same industry are more expensive than DGT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.48. DGT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.48 indicates a reasonable valuation of DGT.
DGT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGT is cheaper than 69.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.52, DGT is valued rather cheaply.
Industry RankSector Rank
PE 15.88
Fwd PE 10.48
DGT.MI Price Earnings VS Forward Price EarningsDGT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DGT indicates a somewhat cheap valuation: DGT is cheaper than 69.70% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGT indicates a somewhat cheap valuation: DGT is cheaper than 75.76% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 7.18
EV/EBITDA 4.33
DGT.MI Per share dataDGT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1 1.5 2 2.5

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.
The decent profitability rating of DGT may justify a higher PE ratio.
DGT's earnings are expected to grow with 24.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)0.33
EPS Next 2Y29.98%
EPS Next 3Y24.87%

4

5. Dividend

5.1 Amount

DGT has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
DGT's Dividend Yield is comparable with the industry average which is at 5.29.
Compared to the average S&P500 Dividend Yield of 2.34, DGT is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.52%

5.2 History

The dividend of DGT has a limited annual growth rate of 4.87%.
Dividend Growth(5Y)4.87%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

20.92% of the earnings are spent on dividend by DGT. This is a low number and sustainable payout ratio.
DGT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.92%
EPS Next 2Y29.98%
EPS Next 3Y24.87%
DGT.MI Yearly Income VS Free CF VS DividendDGT.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2M -2M -4M -6M -8M
DGT.MI Dividend Payout.DGT.MI Dividend Payout, showing the Payout Ratio.DGT.MI Dividend Payout.PayoutRetained Earnings

DIGITOUCH SPA

BIT:DGT (7/8/2025, 7:00:00 PM)

1.905

-0.06 (-3.05%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners4.2%
Inst Owner ChangeN/A
Ins Owners41.4%
Ins Owner ChangeN/A
Market Cap26.48M
Analysts84
Price Target3.06 (60.63%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.52%
Yearly Dividend0.03
Dividend Growth(5Y)4.87%
DP20.92%
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)7.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-37.93%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.04%
Valuation
Industry RankSector Rank
PE 15.88
Fwd PE 10.48
P/S 0.68
P/FCF 7.18
P/OCF 6.43
P/B 1.37
P/tB N/A
EV/EBITDA 4.33
EPS(TTM)0.12
EY6.3%
EPS(NY)0.18
Fwd EY9.54%
FCF(TTM)0.27
FCFY13.93%
OCF(TTM)0.3
OCFY15.54%
SpS2.8
BVpS1.39
TBVpS-0.14
PEG (NY)0.44
PEG (5Y)0.33
Profitability
Industry RankSector Rank
ROA 3.04%
ROE 8.58%
ROCE 15.22%
ROIC 9.06%
ROICexc 11.62%
ROICexgc 185.05%
OM 11.39%
PM (TTM) 4.27%
GM 65.94%
FCFM 9.49%
ROA(3y)3.87%
ROA(5y)3.02%
ROE(3y)11.26%
ROE(5y)8.84%
ROIC(3y)8.27%
ROIC(5y)7%
ROICexc(3y)10.99%
ROICexc(5y)9.63%
ROICexgc(3y)111%
ROICexgc(5y)154.86%
ROCE(3y)13.88%
ROCE(5y)11.75%
ROICexcg growth 3Y-17.77%
ROICexcg growth 5YN/A
ROICexc growth 3Y3.28%
ROICexc growth 5Y5.68%
OM growth 3Y10.15%
OM growth 5Y19.29%
PM growth 3Y-7.76%
PM growth 5Y45.7%
GM growth 3Y11.31%
GM growth 5Y12.8%
F-Score6
Asset Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.36
Debt/EBITDA 0.78
Cap/Depr 14.6%
Cap/Sales 1.1%
Interest Coverage 250
Cash Conversion 56.02%
Profit Quality 222.13%
Current Ratio 1.17
Quick Ratio 1.17
Altman-Z 1.69
F-Score6
WACC6.51%
ROIC/WACC1.39
Cap/Depr(3y)25.83%
Cap/Depr(5y)41.06%
Cap/Sales(3y)1.68%
Cap/Sales(5y)3.42%
Profit Quality(3y)117.43%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.68%
EPS 3Y-6.68%
EPS 5Y48.64%
EPS Q2Q%12.14%
EPS Next Y36.36%
EPS Next 2Y29.98%
EPS Next 3Y24.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y1.64%
Revenue growth 5Y1.66%
Sales Q2Q%-8.56%
Revenue Next Year4.84%
Revenue Next 2Y6.11%
Revenue Next 3Y5.86%
Revenue Next 5Y4.58%
EBIT growth 1Y16.79%
EBIT growth 3Y11.96%
EBIT growth 5Y21.27%
EBIT Next Year105.13%
EBIT Next 3Y36.87%
EBIT Next 5Y19.15%
FCF growth 1Y121.19%
FCF growth 3Y1.96%
FCF growth 5Y43.54%
OCF growth 1Y101.53%
OCF growth 3Y-0.44%
OCF growth 5Y23.05%