DIGITOUCH SPA (DGT.MI) Stock Fundamental Analysis
BIT:DGT - Euronext Milan - IT0005089476 - Common Stock - Currency: EUR
Overall DGT gets a fundamental rating of 6 out of 10. We evaluated DGT against 63 industry peers in the Media industry. DGT scores excellent on profitability, but there are some minor concerns on its financial health. DGT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make DGT suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year DGT was profitable.
DGT had a positive operating cash flow in the past year.
Of the past 5 years DGT 4 years were profitable.
Each year in the past 5 years DGT had a positive operating cash flow.
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 60.32% of the companies in the same industry.
DGT's Return On Equity of 8.58% is in line compared to the rest of the industry. DGT outperforms 57.14% of its industry peers.
DGT has a Return On Invested Capital of 9.06%. This is amongst the best in the industry. DGT outperforms 82.54% of its industry peers.
DGT had an Average Return On Invested Capital over the past 3 years of 8.27%. This is in line with the industry average of 7.76%.
The last Return On Invested Capital (9.06%) for DGT is above the 3 year average (8.27%), which is a sign of increasing profitability.
| 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 comparable to the rest of the industry.
DGT's Profit Margin has improved in the last couple of years.
DGT has a Operating Margin of 11.39%. This is in the better half of the industry: DGT outperforms 73.02% of its industry peers.
DGT's Operating Margin has improved in the last couple of years.
DGT's Gross Margin of 65.31% is fine compared to the rest of the industry. DGT outperforms 61.90% 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.
DGT has less shares outstanding than it did 5 years ago.
DGT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.00 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 2.00. This is in the better half of the industry: DGT outperforms 66.67% 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.
The Debt to FCF ratio of DGT (3.36) is better than 71.43% of its industry peers.
DGT has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DGT (0.30) is better than 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 2 |
ROIC/WACC1.35
WACC6.69%
2.3 Liquidity
A Current Ratio of 1.17 indicates that DGT should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.17, DGT is doing good in the industry, outperforming 60.32% 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.
DGT has a Quick ratio of 1.17. This is in the better half of the industry: DGT outperforms 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for DGT have decreased strongly by -16.68% in the last year.
DGT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.64% yearly.
Looking at the last year, DGT shows a decrease in Revenue. The Revenue has decreased by -7.45% in the last year.
The Revenue has been growing slightly by 1.66% on average over the past years.
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
DGT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.87% yearly.
The Revenue is expected to grow by 4.58% on average over the next years.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.88, DGT is valued correctly.
DGT's Price/Earnings is on the same level as the industry average.
DGT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.48, the valuation of DGT can be described as very reasonable.
68.25% of the companies in the same industry are more expensive than DGT, based on the Price/Forward Earnings ratio.
DGT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 10.48 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than DGT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGT indicates a somewhat cheap valuation: DGT is cheaper than 68.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.18 | ||
| EV/EBITDA | 4.33 |
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.
A more expensive valuation may be justified as DGT's earnings are expected to grow with 24.87% in the coming years.
PEG (NY)0.44
PEG (5Y)0.33
EPS Next 2Y29.98%
EPS Next 3Y24.87%
5. Dividend
5.1 Amount
DGT has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 4.70, DGT has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, DGT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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
DGT pays out 20.92% of its income as dividend. This is a 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%
BIT:DGT (6/9/2025, 7:00:00 PM)
1.905
+0.2 (+11.4%)
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 Cap26.48M
Analysts84
Price Target3.06 (60.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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 | 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 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 | 2 |
F-Score6
WACC6.69%
ROIC/WACC1.35
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%