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DIGITAL VALUE SPA (DGV.MI) Stock Fundamental Analysis

BIT:DGV - Euronext Milan - IT0005347429 - Common Stock - Currency: EUR

31  +0.45 (+1.47%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to DGV. DGV was compared to 73 industry peers in the IT Services industry. There are concerns on the financial health of DGV while its profitability can be described as average. DGV is growing strongly while it also seems undervalued. This is an interesting combination


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

DGV had positive earnings in the past year.
In the past year DGV has reported a negative cash flow from operations.
Each year in the past 5 years DGV has been profitable.
DGV had a positive operating cash flow in 4 of the past 5 years.
DGV.MI Yearly Net Income VS EBIT VS OCF VS FCFDGV.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M 60M

1.2 Ratios

With a Return On Assets value of 4.69%, DGV perfoms like the industry average, outperforming 59.46% of the companies in the same industry.
The Return On Equity of DGV (15.70%) is better than 70.27% of its industry peers.
With an excellent Return On Invested Capital value of 12.89%, DGV belongs to the best of the industry, outperforming 85.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DGV is above the industry average of 11.17%.
Industry RankSector Rank
ROA 4.69%
ROE 15.7%
ROIC 12.89%
ROA(3y)5.1%
ROA(5y)5.44%
ROE(3y)19.28%
ROE(5y)21.59%
ROIC(3y)14.48%
ROIC(5y)15.05%
DGV.MI Yearly ROA, ROE, ROICDGV.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

DGV has a Profit Margin of 4.33%. This is comparable to the rest of the industry: DGV outperforms 58.11% of its industry peers.
DGV's Profit Margin has declined in the last couple of years.
DGV has a Operating Margin (7.05%) which is in line with its industry peers.
In the last couple of years the Operating Margin of DGV has remained more or less at the same level.
The Gross Margin of DGV (15.20%) is worse than 79.73% of its industry peers.
In the last couple of years the Gross Margin of DGV has grown nicely.
Industry RankSector Rank
OM 7.05%
PM (TTM) 4.33%
GM 15.2%
OM growth 3Y-3.88%
OM growth 5Y-1.1%
PM growth 3Y-7.22%
PM growth 5Y-3.69%
GM growth 3Y2.93%
GM growth 5Y4.49%
DGV.MI Yearly Profit, Operating, Gross MarginsDGV.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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3

2. Health

2.1 Basic Checks

DGV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, DGV has more shares outstanding
DGV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DGV is higher compared to a year ago.
DGV.MI Yearly Shares OutstandingDGV.MI Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
DGV.MI Yearly Total Debt VS Total AssetsDGV.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.2 Solvency

DGV has an Altman-Z score of 2.32. This is not the best score and indicates that DGV is in the grey zone with still only limited risk for bankruptcy at the moment.
DGV's Altman-Z score of 2.32 is in line compared to the rest of the industry. DGV outperforms 45.95% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that DGV is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.20, DGV is doing good in the industry, outperforming 72.97% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Altman-Z 2.32
ROIC/WACC1.04
WACC12.45%
DGV.MI Yearly LT Debt VS Equity VS FCFDGV.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M

2.3 Liquidity

DGV has a Current Ratio of 1.42. This is a normal value and indicates that DGV is financially healthy and should not expect problems in meeting its short term obligations.
DGV has a Current ratio of 1.42. This is in the better half of the industry: DGV outperforms 60.81% of its industry peers.
DGV has a Quick Ratio of 1.42. This is a bad value and indicates that DGV is not financially healthy enough and could expect problems in meeting its short term obligations.
DGV has a worse Quick ratio (0.98) than 71.62% of its industry peers.
Industry RankSector Rank
Current Ratio 1.42
Quick Ratio 0.98
DGV.MI Yearly Current Assets VS Current LiabilitesDGV.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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7

3. Growth

3.1 Past

DGV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.01%.
Measured over the past years, DGV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.47% on average per year.
The Revenue has decreased by -3.76% in the past year.
Measured over the past years, DGV shows a quite strong growth in Revenue. The Revenue has been growing by 17.53% on average per year.
EPS 1Y (TTM)-10.01%
EPS 3Y4.51%
EPS 5Y12.47%
EPS Q2Q%-41.57%
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y13.59%
Revenue growth 5Y17.53%
Sales Q2Q%-15.2%

3.2 Future

Based on estimates for the next years, DGV will show a very strong growth in Earnings Per Share. The EPS will grow by 23.35% on average per year.
DGV is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.65% yearly.
EPS Next Y37.86%
EPS Next 2Y23.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year47.26%
Revenue Next 2Y26.65%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
DGV.MI Yearly Revenue VS EstimatesDGV.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
DGV.MI Yearly EPS VS EstimatesDGV.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2021 2022 2023 2024 2025 2026 2 4 6

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7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 8.93 indicates a reasonable valuation of DGV.
DGV's Price/Earnings ratio is rather cheap when compared to the industry. DGV is cheaper than 95.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, DGV is valued rather cheaply.
The Price/Forward Earnings ratio is 5.30, which indicates a rather cheap valuation of DGV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DGV indicates a rather cheap valuation: DGV is cheaper than 95.95% of the companies listed in the same industry.
DGV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.03.
Industry RankSector Rank
PE 8.93
Fwd PE 5.3
DGV.MI Price Earnings VS Forward Price EarningsDGV.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

93.24% of the companies in the same industry are more expensive than DGV, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.45
DGV.MI Per share dataDGV.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

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 more expensive valuation may be justified as DGV's earnings are expected to grow with 23.35% in the coming years.
PEG (NY)0.24
PEG (5Y)0.72
EPS Next 2Y23.35%
EPS Next 3YN/A

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.62%, DGV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.12, DGV pays a bit more dividend than its industry peers.
DGV's Dividend Yield is comparable with the S&P500 average which is at 2.44.
Industry RankSector Rank
Dividend Yield 2.62%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

26.70% of the earnings are spent on dividend by DGV. This is a low number and sustainable payout ratio.
DP26.7%
EPS Next 2Y23.35%
EPS Next 3YN/A
DGV.MI Yearly Income VS Free CF VS DividendDGV.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M 20M -20M 30M
DGV.MI Dividend Payout.DGV.MI Dividend Payout, showing the Payout Ratio.DGV.MI Dividend Payout.PayoutRetained Earnings

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DIGITAL VALUE SPA

BIT:DGV (6/20/2025, 7:00:00 PM)

31

+0.45 (+1.47%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners3.82%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap315.58M
Analysts84
Price Target81.6 (163.23%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.62%
Yearly Dividend0.94
Dividend Growth(5Y)N/A
DP26.7%
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)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 8.93
Fwd PE 5.3
P/S 0.39
P/FCF N/A
P/OCF N/A
P/B 1.4
P/tB 1.64
EV/EBITDA 3.45
EPS(TTM)3.47
EY11.19%
EPS(NY)5.85
Fwd EY18.86%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)-0.06
OCFYN/A
SpS80.03
BVpS22.07
TBVpS18.9
PEG (NY)0.24
PEG (5Y)0.72
Profitability
Industry RankSector Rank
ROA 4.69%
ROE 15.7%
ROCE 18.84%
ROIC 12.89%
ROICexc 20.42%
ROICexgc 24.52%
OM 7.05%
PM (TTM) 4.33%
GM 15.2%
FCFM N/A
ROA(3y)5.1%
ROA(5y)5.44%
ROE(3y)19.28%
ROE(5y)21.59%
ROIC(3y)14.48%
ROIC(5y)15.05%
ROICexc(3y)28.11%
ROICexc(5y)30.75%
ROICexgc(3y)36.03%
ROICexgc(5y)40.18%
ROCE(3y)21.29%
ROCE(5y)22.07%
ROICexcg growth 3Y-17.68%
ROICexcg growth 5Y-43.18%
ROICexc growth 3Y-14.37%
ROICexc growth 5Y-26.6%
OM growth 3Y-3.88%
OM growth 5Y-1.1%
PM growth 3Y-7.22%
PM growth 5Y-3.69%
GM growth 3Y2.93%
GM growth 5Y4.49%
F-Score4
Asset Turnover1.08
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Debt/EBITDA 0.52
Cap/Depr 66.72%
Cap/Sales 2.5%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.42
Quick Ratio 0.98
Altman-Z 2.32
F-Score4
WACC12.45%
ROIC/WACC1.04
Cap/Depr(3y)140.58%
Cap/Depr(5y)153.89%
Cap/Sales(3y)4.61%
Cap/Sales(5y)4.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.01%
EPS 3Y4.51%
EPS 5Y12.47%
EPS Q2Q%-41.57%
EPS Next Y37.86%
EPS Next 2Y23.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y13.59%
Revenue growth 5Y17.53%
Sales Q2Q%-15.2%
Revenue Next Year47.26%
Revenue Next 2Y26.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.74%
EBIT growth 3Y9.18%
EBIT growth 5Y16.25%
EBIT Next Year105.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-210.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-100.83%
OCF growth 3YN/A
OCF growth 5YN/A