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DIGITAL VALUE SPA (DGV.MI) Stock Fundamental Analysis

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

25.25  +1.8 (+7.68%)

Fundamental Rating

7

Overall DGV gets a fundamental rating of 7 out of 10. We evaluated DGV against 69 industry peers in the IT Services industry. DGV has an excellent profitability rating, but there are some minor concerns on its financial health. DGV has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes DGV very considerable for value and growth investing!


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

DGV had positive earnings in the past year.
DGV had a positive operating cash flow in the past year.
In the past 5 years DGV has always been profitable.
Each year in the past 5 years DGV had a positive operating cash flow.
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

DGV's Return On Assets of 6.31% is fine compared to the rest of the industry. DGV outperforms 69.57% of its industry peers.
DGV's Return On Equity of 21.31% is amongst the best of the industry. DGV outperforms 86.96% of its industry peers.
DGV has a better Return On Invested Capital (17.49%) than 95.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DGV is above the industry average of 10.77%.
The 3 year average ROIC (15.49%) for DGV is below the current ROIC(17.49%), indicating increased profibility in the last year.
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 Profit Margin of 4.95%. This is in the better half of the industry: DGV outperforms 63.77% of its industry peers.
In the last couple of years the Profit Margin of DGV has declined.
The Operating Margin of DGV (7.68%) 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's Gross Margin of 14.04% is on the low side compared to the rest of the industry. DGV is outperformed by 78.26% of its industry peers.
DGV's Gross Margin has improved in the last couple of years.
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

DGV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
DGV has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, DGV has more shares outstanding
DGV has a worse debt/assets ratio than last year.
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 2.50 indicates that DGV is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.50, DGV perfoms like the industry average, outperforming 52.17% of the companies in the same 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 76.81% of its industry peers.
DGV has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
DGV's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. DGV outperforms 68.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.64
Altman-Z 2.5
ROIC/WACC2.42
WACC7.24%
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

A Current Ratio of 1.38 indicates that DGV should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.38, DGV is doing good in the industry, outperforming 62.32% 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.
With a Quick ratio value of 1.01, DGV is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
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.
The Revenue has grown by 12.10% in the past year. This is quite good.
DGV shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.37% yearly.
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

Based on estimates for the next years, DGV will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.20% on average per year.
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

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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 5.79.
Compared to the rest of the industry, the Price/Earnings ratio of DGV indicates a rather cheap valuation: DGV is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. DGV is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.32 indicates a rather cheap valuation of DGV.
Based on the Price/Forward Earnings ratio, DGV is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, DGV is valued rather cheaply.
Industry RankSector Rank
PE 5.79
Fwd PE 4.32
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

98.55% of the companies in the same industry are more expensive than DGV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DGV is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.37
EV/EBITDA 1.93
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

The 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)0.51
PEG (5Y)0.3
EPS Next 2Y23.89%
EPS Next 3Y19.2%

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6

5. Dividend

5.1 Amount

DGV has a Yearly Dividend Yield of 5.22%, which is a nice return.
DGV's Dividend Yield is rather good when compared to the industry average which is at 7.38. DGV pays more dividend than 86.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, DGV pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.22%

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 (5/6/2025, 5:28:07 PM)

25.25

+1.8 (+7.68%)

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 Cap257.05M
Analysts84
Price Target81.6 (223.17%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.22%
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 5.79
Fwd PE 4.32
P/S 0.29
P/FCF 5.37
P/OCF 3.59
P/B 1.26
P/tB 1.44
EV/EBITDA 1.93
EPS(TTM)4.36
EY17.27%
EPS(NY)5.85
Fwd EY23.16%
FCF(TTM)4.7
FCFY18.62%
OCF(TTM)7.03
OCFY27.84%
SpS86.46
BVpS20.1
TBVpS17.53
PEG (NY)0.51
PEG (5Y)0.3
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 2.5
F-Score7
WACC7.24%
ROIC/WACC2.42
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%