DIGITAL VALUE SPA (DGV.MI) Stock Fundamental Analysis
BIT:DGV - Euronext Milan - IT0005347429 - Common Stock - Currency: EUR
Overall DGV gets a fundamental rating of 5 out of 10. We evaluated DGV against 70 industry peers in the IT Services industry. While DGV is still in line with the averages on profitability rating, there are concerns on its financial health. An interesting combination arises when we look at growth and value: DGV is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year DGV was profitable.
In the past year DGV has reported a negative cash flow from operations.
DGV had positive earnings in each of the past 5 years.
DGV had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.69%, DGV is in line with its industry, outperforming 57.14% of the companies in the same industry.
DGV has a better Return On Equity (15.70%) than 70.00% of its industry peers.
DGV's Return On Invested Capital of 12.89% is amongst the best of the industry. DGV outperforms 87.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DGV is above the industry average of 11.11%.
| Industry Rank | Sector 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%
1.3 Margins
DGV's Profit Margin of 4.33% is in line compared to the rest of the industry. DGV outperforms 58.57% of its industry peers.
In the last couple of years the Profit Margin of DGV has declined.
The Operating Margin of DGV (7.05%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DGV has remained more or less at the same level.
DGV has a worse Gross Margin (15.20%) than 80.00% of its industry peers.
DGV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for DGV has been increased compared to 1 year ago.
DGV has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DGV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.29 indicates that DGV is not a great score, but indicates only limited risk for bankruptcy at the moment.
DGV's Altman-Z score of 2.29 is in line compared to the rest of the industry. DGV outperforms 50.00% 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 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.29 |
ROIC/WACC1.06
WACC12.2%
2.3 Liquidity
A Current Ratio of 1.42 indicates that DGV should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.42, DGV is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that DGV may have some problems paying its short term obligations.
The Quick ratio of DGV (0.98) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for DGV have decreased strongly by -10.01% in the last year.
DGV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.47% yearly.
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
The Earnings Per Share is expected to grow by 23.35% on average over the next years. This is a very strong growth
Based on estimates for the next years, DGV will show a very strong growth in Revenue. The Revenue will grow by 25.57% on average per year.
EPS Next Y37.86%
EPS Next 2Y23.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year46.34%
Revenue Next 2Y25.57%
Revenue Next 3YN/A
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 accelerating.
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
Based on the Price/Earnings ratio of 8.34, the valuation of DGV can be described as reasonable.
94.29% of the companies in the same industry are more expensive than DGV, based on the Price/Earnings ratio.
DGV is valuated cheaply when we compare the Price/Earnings ratio to 26.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.95, the valuation of DGV can be described as very cheap.
Based on the Price/Forward Earnings ratio, DGV is valued cheaply inside the industry as 94.29% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.61. DGV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 4.95 |
4.2 Price Multiples
94.29% of the companies in the same industry are more expensive than DGV, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.19 |
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.
DGV's earnings are expected to grow with 23.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)0.67
EPS Next 2Y23.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DGV has a Yearly Dividend Yield of 2.79%. 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 7.37.
DGV's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DGV pays out 26.70% of its income as dividend. This is a sustainable payout ratio.
DP26.7%
EPS Next 2Y23.35%
EPS Next 3YN/A
BIT:DGV (8/13/2025, 5:28:22 PM)
28.95
+0.15 (+0.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners3.82%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap294.71M
Analysts84
Price Target81.6 (181.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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)-0.62%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 4.95 | ||
| P/S | 0.36 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.31 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 3.19 |
EPS(TTM)3.47
EY11.99%
EPS(NY)5.85
Fwd EY20.2%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)-0.06
OCFYN/A
SpS80.03
BVpS22.07
TBVpS18.9
PEG (NY)0.22
PEG (5Y)0.67
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.29 |
F-Score4
WACC12.2%
ROIC/WACC1.06
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 Year46.34%
Revenue Next 2Y25.57%
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