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DIGITAL VALUE SPA (DGV.MI) Stock Fundamental Analysis

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

28.6  -1.2 (-4.03%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to DGV. DGV was compared to 76 industry peers in the IT Services industry. While DGV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DGV is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make DGV a good candidate for value and growth investing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year DGV was profitable.
In the past year DGV had a positive cash flow from operations.
In the past 5 years DGV has always been profitable.
DGV had a positive operating cash flow in each 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 0 20M 40M 60M

1.2 Ratios

Looking at the Return On Assets, with a value of 6.31%, DGV is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
DGV's Return On Equity of 21.31% is amongst the best of the industry. DGV outperforms 86.84% of its industry peers.
DGV has a better Return On Invested Capital (17.49%) than 96.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DGV is above the industry average of 10.85%.
The last Return On Invested Capital (17.49%) for DGV is above the 3 year average (15.49%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.31%
ROE 21.31%
ROIC 17.49%
ROA(3y)5.4%
ROA(5y)5.67%
ROE(3y)22.16%
ROE(5y)23.92%
ROIC(3y)15.49%
ROIC(5y)17.92%
DGV.MI Yearly ROA, ROE, ROICDGV.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

1.3 Margins

DGV has a better Profit Margin (4.95%) than 65.79% of its industry peers.
In the last couple of years the Profit Margin of DGV has declined.
DGV has a better Operating Margin (7.68%) than 61.84% of its industry peers.
In the last couple of years the Operating Margin of DGV has remained more or less at the same level.
Looking at the Gross Margin, with a value of 14.04%, DGV is doing worse than 78.95% of the companies in the same industry.
In the last couple of years the Gross Margin of DGV has grown nicely.
Industry RankSector Rank
OM 7.68%
PM (TTM) 4.95%
GM 14.04%
OM growth 3Y-2.3%
OM growth 5Y-0.13%
PM growth 3Y-6.07%
PM growth 5Y-1.87%
GM growth 3Y1.8%
GM growth 5Y2.19%
DGV.MI Yearly Profit, Operating, Gross MarginsDGV.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 5 10

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DGV is creating value.
Compared to 1 year ago, DGV has about the same amount of shares outstanding.
The number of shares outstanding for DGV has been increased compared to 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 2M 4M 6M 8M
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 200M 400M 600M

2.2 Solvency

An Altman-Z score of 2.58 indicates that DGV is not a great score, but indicates only limited risk for bankruptcy at the moment.
DGV has a Altman-Z score (2.58) which is comparable to the rest of the industry.
The Debt to FCF ratio of DGV is 1.64, which is an excellent value as it means it would take DGV, only 1.64 years of fcf income to pay off all of its debts.
DGV's Debt to FCF ratio of 1.64 is fine compared to the rest of the industry. DGV outperforms 77.63% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that DGV is not too dependend on debt financing.
DGV's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. DGV outperforms 69.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.64
Altman-Z 2.58
ROIC/WACC2.36
WACC7.42%
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 0 50M 100M 150M

2.3 Liquidity

DGV has a Current Ratio of 1.38. This is a normal value and indicates that DGV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.38, DGV is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that DGV should not have too much problems paying its short term obligations.
DGV has a worse Quick ratio (1.01) than 67.11% of its industry peers.
Industry RankSector Rank
Current Ratio 1.38
Quick Ratio 1.01
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 200M 400M 600M

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8

3. Growth

3.1 Past

DGV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.88%, which is quite impressive.
The Earnings Per Share has been growing by 19.12% on average over the past years. This is quite good.
DGV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.10%.
The Revenue has been growing by 23.37% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)26.88%
EPS 3Y16.84%
EPS 5Y19.12%
EPS Q2Q%29.23%
Revenue 1Y (TTM)12.1%
Revenue growth 3Y24.32%
Revenue growth 5Y23.37%
Sales Q2Q%8.12%

3.2 Future

The Earnings Per Share is expected to grow by 19.20% on average over the next years. This is quite good.
The Revenue is expected to grow by 23.61% on average over the next years. This is a very strong growth
EPS Next Y11.33%
EPS Next 2Y23.89%
EPS Next 3Y19.2%
EPS Next 5YN/A
Revenue Next Year17.73%
Revenue Next 2Y31.67%
Revenue Next 3Y23.61%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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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9

4. Valuation

4.1 Price/Earnings Ratio

DGV is valuated cheaply with a Price/Earnings ratio of 6.56.
Based on the Price/Earnings ratio, DGV is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.25, DGV is valued rather cheaply.
The Price/Forward Earnings ratio is 4.89, which indicates a rather cheap valuation of DGV.
Based on the Price/Forward Earnings ratio, DGV is valued cheaper than 97.37% of the companies in the same industry.
DGV is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.56
Fwd PE 4.89
DGV.MI Price Earnings VS Forward Price EarningsDGV.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 DGV indicates a rather cheap valuation: DGV is cheaper than 97.37% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DGV is valued cheaper than 84.21% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.08
EV/EBITDA 2.61
DGV.MI Per share dataDGV.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

DGV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DGV may justify a higher PE ratio.
DGV's earnings are expected to grow with 19.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)0.34
EPS Next 2Y23.89%
EPS Next 3Y19.2%

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3

5. Dividend

5.1 Amount

DGV has a Yearly Dividend Yield of 2.93%. Purely for dividend investing, there may be better candidates out there.
DGV's Dividend Yield is a higher than the industry average which is at 6.98.
Compared to an average S&P500 Dividend Yield of 2.40, DGV pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.93%

5.2 History

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

5.3 Sustainability

DP0%
EPS Next 2Y23.89%
EPS Next 3Y19.2%
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 0 10M 20M 30M

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DIGITAL VALUE SPA

BIT:DGV (5/30/2025, 7:00:00 PM)

28.6

-1.2 (-4.03%)

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 Owners9.76%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap291.15M
Analysts84
Price Target81.6 (185.31%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.93%
Yearly Dividend0.85
Dividend Growth(5Y)N/A
DP0%
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 6.56
Fwd PE 4.89
P/S 0.33
P/FCF 6.08
P/OCF 4.07
P/B 1.42
P/tB 1.63
EV/EBITDA 2.61
EPS(TTM)4.36
EY15.24%
EPS(NY)5.85
Fwd EY20.45%
FCF(TTM)4.7
FCFY16.44%
OCF(TTM)7.03
OCFY24.58%
SpS86.46
BVpS20.1
TBVpS17.53
PEG (NY)0.58
PEG (5Y)0.34
Profitability
Industry RankSector Rank
ROA 6.31%
ROE 21.31%
ROCE 24.9%
ROIC 17.49%
ROICexc 34.21%
ROICexgc 42.14%
OM 7.68%
PM (TTM) 4.95%
GM 14.04%
FCFM 5.44%
ROA(3y)5.4%
ROA(5y)5.67%
ROE(3y)22.16%
ROE(5y)23.92%
ROIC(3y)15.49%
ROIC(5y)17.92%
ROICexc(3y)32.99%
ROICexc(5y)47.05%
ROICexgc(3y)43.63%
ROICexgc(5y)121.15%
ROCE(3y)22.18%
ROCE(5y)25.59%
ROICexcg growth 3Y-4.95%
ROICexcg growth 5Y-42.61%
ROICexc growth 3Y-3.68%
ROICexc growth 5Y-18.49%
OM growth 3Y-2.3%
OM growth 5Y-0.13%
PM growth 3Y-6.07%
PM growth 5Y-1.87%
GM growth 3Y1.8%
GM growth 5Y2.19%
F-Score7
Asset Turnover1.27
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.64
Debt/EBITDA 0.5
Cap/Depr 85.39%
Cap/Sales 2.69%
Interest Coverage 250
Cash Conversion 75.05%
Profit Quality 109.77%
Current Ratio 1.38
Quick Ratio 1.01
Altman-Z 2.58
F-Score7
WACC7.42%
ROIC/WACC2.36
Cap/Depr(3y)193.52%
Cap/Depr(5y)296.48%
Cap/Sales(3y)5.42%
Cap/Sales(5y)5.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.88%
EPS 3Y16.84%
EPS 5Y19.12%
EPS Q2Q%29.23%
EPS Next Y11.33%
EPS Next 2Y23.89%
EPS Next 3Y19.2%
EPS Next 5YN/A
Revenue 1Y (TTM)12.1%
Revenue growth 3Y24.32%
Revenue growth 5Y23.37%
Sales Q2Q%8.12%
Revenue Next Year17.73%
Revenue Next 2Y31.67%
Revenue Next 3Y23.61%
Revenue Next 5YN/A
EBIT growth 1Y24.83%
EBIT growth 3Y21.46%
EBIT growth 5Y23.21%
EBIT Next Year100.28%
EBIT Next 3Y44.51%
EBIT Next 5YN/A
FCF growth 1Y2336.03%
FCF growth 3Y53.42%
FCF growth 5Y37.27%
OCF growth 1Y106.39%
OCF growth 3Y62.39%
OCF growth 5Y78.34%