DIGITOUCH SPA (DGT.MI) Stock Fundamental Analysis
BIT:DGT - Euronext Milan - IT0005089476 - Common Stock - Currency: EUR
Taking everything into account, DGT scores 6 out of 10 in our fundamental rating. DGT was compared to 66 industry peers in the Media industry. DGT scores excellent on profitability, but there are some minor concerns on its financial health. DGT is valued quite cheap, while showing a decent growth score. This is a good combination! This makes DGT very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year DGT was profitable.
In the past year DGT had a positive cash flow from operations.
DGT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DGT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DGT (3.04%) is comparable to the rest of the industry.
DGT has a Return On Equity (8.58%) which is comparable to the rest of the industry.
DGT has a better Return On Invested Capital (9.06%) than 77.27% 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 8.67%.
The 3 year average ROIC (8.27%) for DGT is below the current ROIC(9.06%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
DGT has a Profit Margin (4.27%) which is in line with its industry peers.
In the last couple of years the Profit Margin of DGT has grown nicely.
With a decent Operating Margin value of 11.39%, DGT is doing good in the industry, outperforming 72.73% of the companies in the same industry.
DGT's Operating Margin has improved in the last couple of years.
DGT has a Gross Margin of 65.31%. This is in the better half of the industry: DGT outperforms 63.64% of its industry peers.
In the last couple of years the Gross Margin of DGT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.39% | ||
| PM (TTM) | 4.27% | ||
| GM | 65.31% |
OM growth 3Y10.15%
OM growth 5Y19.29%
PM growth 3Y-7.76%
PM growth 5Y45.7%
GM growth 3Y10.61%
GM growth 5Y12.37%
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.
DGT has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for DGT has been reduced compared to 5 years ago.
The debt/assets ratio for DGT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.95 indicates that DGT is not a great score, but indicates only limited risk for bankruptcy at the moment.
DGT has a Altman-Z score of 1.95. This is in the better half of the industry: DGT outperforms 65.15% of its industry peers.
DGT has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as DGT would need 3.36 years to pay back of all of its debts.
DGT's Debt to FCF ratio of 3.36 is fine compared to the rest of the industry. DGT outperforms 72.73% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that DGT is not too dependend on debt financing.
DGT has a Debt to Equity ratio of 0.30. This is in the better half of the industry: DGT outperforms 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 1.95 |
ROIC/WACC1.38
WACC6.55%
2.3 Liquidity
A Current Ratio of 1.17 indicates that DGT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, DGT is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that DGT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, DGT is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
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%.
The Earnings Per Share has been growing by 48.64% on average over the past years. This is a very strong growth
Looking at the last year, DGT shows a decrease in Revenue. The Revenue has decreased by -7.45% in the last year.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.25, DGT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of DGT indicates a somewhat cheap valuation: DGT is cheaper than 62.12% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.20. DGT is valued slightly cheaper when compared to this.
DGT is valuated reasonably with a Price/Forward Earnings ratio of 9.41.
DGT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGT is cheaper than 74.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, DGT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGT is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
72.73% of the companies in the same industry are more expensive than DGT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.44 | ||
| EV/EBITDA | 3.96 |
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.
DGT has a very decent profitability rating, which 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)0.39
PEG (5Y)0.29
EPS Next 2Y29.98%
EPS Next 3Y24.87%
5. Dividend
5.1 Amount
DGT has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
The stock price of DGT dropped by -20.09% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.85, DGT has a dividend in line with its industry peers.
DGT's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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.
The dividend of DGT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.92%
EPS Next 2Y29.98%
EPS Next 3Y24.87%
BIT:DGT (5/21/2025, 7:00:00 PM)
1.71
-0.06 (-3.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners7.76%
Inst Owner ChangeN/A
Ins Owners41.4%
Ins Owner ChangeN/A
Market Cap23.77M
Analysts84
Price Target3.06 (78.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)7.14%
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)-2.04%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 9.41 | ||
| P/S | 0.61 | ||
| P/FCF | 6.44 | ||
| P/OCF | 5.78 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.96 |
EPS(TTM)0.12
EY7.02%
EPS(NY)0.18
Fwd EY10.63%
FCF(TTM)0.27
FCFY15.52%
OCF(TTM)0.3
OCFY17.31%
SpS2.8
BVpS1.39
TBVpS-0.14
PEG (NY)0.39
PEG (5Y)0.29
Profitability
| Industry Rank | Sector 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 | 65.31% | ||
| 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 3Y10.61%
GM growth 5Y12.37%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector 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 | 1.95 |
F-Score6
WACC6.55%
ROIC/WACC1.38
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 Year100%
EBIT Next 3Y32.93%
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%