DHH SPA (DHH.MI) Stock Fundamental Analysis
BIT:DHH - Euronext Milan - IT0005203622 - Common Stock - Currency: EUR
Overall DHH gets a fundamental rating of 6 out of 10. We evaluated DHH against 77 industry peers in the IT Services industry. While DHH has a great profitability rating, there are some minor concerns on its financial health. DHH shows excellent growth, but is valued quite expensive already. These ratings could make DHH a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
DHH had positive earnings in the past year.
DHH had a positive operating cash flow in the past year.
DHH had positive earnings in each of the past 5 years.
DHH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.23%, DHH is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Return On Equity of DHH (13.10%) is comparable to the rest of the industry.
DHH has a Return On Invested Capital of 9.59%. This is in the better half of the industry: DHH outperforms 62.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DHH is below the industry average of 11.17%.
The last Return On Invested Capital (9.59%) for DHH is above the 3 year average (8.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 13.1% | ||
| ROIC | 9.59% |
ROA(3y)3.93%
ROA(5y)4.47%
ROE(3y)8.68%
ROE(5y)9.26%
ROIC(3y)8.73%
ROIC(5y)7.32%
1.3 Margins
The Profit Margin of DHH (10.06%) is better than 93.51% of its industry peers.
In the last couple of years the Profit Margin of DHH has grown nicely.
DHH has a Operating Margin of 18.96%. This is amongst the best in the industry. DHH outperforms 96.10% of its industry peers.
In the last couple of years the Operating Margin of DHH has grown nicely.
Looking at the Gross Margin, with a value of 92.68%, DHH belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
In the last couple of years the Gross Margin of DHH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.96% | ||
| PM (TTM) | 10.06% | ||
| GM | 92.68% |
OM growth 3Y-2.06%
OM growth 5Y54.36%
PM growth 3Y-14.91%
PM growth 5Y46.79%
GM growth 3Y-0.79%
GM growth 5Y-1.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DHH is creating some value.
The number of shares outstanding for DHH has been increased compared to 1 year ago.
Compared to 5 years ago, DHH has more shares outstanding
The debt/assets ratio for DHH has been reduced compared to a year ago.
2.2 Solvency
DHH has an Altman-Z score of 3.61. This indicates that DHH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.61, DHH belongs to the best of the industry, outperforming 80.52% of the companies in the same industry.
DHH has a debt to FCF ratio of 5.92. This is a neutral value as DHH would need 5.92 years to pay back of all of its debts.
DHH has a Debt to FCF ratio (5.92) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.41 indicates that DHH is not too dependend on debt financing.
DHH's Debt to Equity ratio of 0.41 is in line compared to the rest of the industry. DHH outperforms 53.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 5.92 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.23
WACC7.77%
2.3 Liquidity
DHH has a Current Ratio of 1.28. This is a normal value and indicates that DHH is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.28, DHH perfoms like the industry average, outperforming 55.84% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that DHH should not have too much problems paying its short term obligations.
The Quick ratio of DHH (1.25) is better than 62.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.48% over the past year.
DHH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.49% yearly.
The Revenue has been growing slightly by 6.57% in the past year.
DHH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.65% yearly.
EPS 1Y (TTM)63.48%
EPS 3Y3.98%
EPS 5Y62.49%
EPS Q2Q%-15.07%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y22.43%
Revenue growth 5Y39.65%
Sales Q2Q%4.53%
3.2 Future
Based on estimates for the next years, DHH will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.53% on average per year.
DHH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.64% yearly.
EPS Next Y28.3%
EPS Next 2Y17.55%
EPS Next 3Y16.53%
EPS Next 5YN/A
Revenue Next Year16.44%
Revenue Next 2Y13.61%
Revenue Next 3Y11.64%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
DHH is valuated quite expensively with a Price/Earnings ratio of 27.30.
The rest of the industry has a similar Price/Earnings ratio as DHH.
When comparing the Price/Earnings ratio of DHH to the average of the S&P500 Index (26.29), we can say DHH is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.88, the valuation of DHH can be described as rather expensive.
DHH's Price/Forward Earnings is on the same level as the industry average.
DHH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.17, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.3 | ||
| Fwd PE | 18.88 |
4.2 Price Multiples
DHH's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, DHH is valued a bit more expensive than the industry average as 62.34% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.12 | ||
| EV/EBITDA | 9.39 |
4.3 Compensation for Growth
DHH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DHH has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DHH's earnings are expected to grow with 16.53% in the coming years.
PEG (NY)0.96
PEG (5Y)0.44
EPS Next 2Y17.55%
EPS Next 3Y16.53%
5. Dividend
5.1 Amount
No dividends for DHH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:DHH (6/2/2025, 7:00:00 PM)
20.2
-0.8 (-3.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners4.16%
Inst Owner ChangeN/A
Ins Owners68.88%
Ins Owner ChangeN/A
Market Cap105.85M
Analysts83.33
Price Target30.18 (49.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)-1.09%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)4.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-4.07%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.3 | ||
| Fwd PE | 18.88 | ||
| P/S | 2.95 | ||
| P/FCF | 38.12 | ||
| P/OCF | 11.53 | ||
| P/B | 3.84 | ||
| P/tB | 8.85 | ||
| EV/EBITDA | 9.39 |
EPS(TTM)0.74
EY3.66%
EPS(NY)1.07
Fwd EY5.3%
FCF(TTM)0.53
FCFY2.62%
OCF(TTM)1.75
OCFY8.67%
SpS6.85
BVpS5.26
TBVpS2.28
PEG (NY)0.96
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 13.1% | ||
| ROCE | 16.31% | ||
| ROIC | 9.59% | ||
| ROICexc | 14.05% | ||
| ROICexgc | 30.83% | ||
| OM | 18.96% | ||
| PM (TTM) | 10.06% | ||
| GM | 92.68% | ||
| FCFM | 7.74% |
ROA(3y)3.93%
ROA(5y)4.47%
ROE(3y)8.68%
ROE(5y)9.26%
ROIC(3y)8.73%
ROIC(5y)7.32%
ROICexc(3y)12.23%
ROICexc(5y)10.48%
ROICexgc(3y)26.87%
ROICexgc(5y)29.48%
ROCE(3y)15.07%
ROCE(5y)12.92%
ROICexcg growth 3Y-10.28%
ROICexcg growth 5YN/A
ROICexc growth 3Y6.52%
ROICexc growth 5Y53.67%
OM growth 3Y-2.06%
OM growth 5Y54.36%
PM growth 3Y-14.91%
PM growth 5Y46.79%
GM growth 3Y-0.79%
GM growth 5Y-1.44%
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 5.92 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 123.07% | ||
| Cap/Sales | 17.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.45% | ||
| Profit Quality | 76.95% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.61 |
F-Score6
WACC7.77%
ROIC/WACC1.23
Cap/Depr(3y)89.93%
Cap/Depr(5y)88.5%
Cap/Sales(3y)13.53%
Cap/Sales(5y)12.57%
Profit Quality(3y)392.65%
Profit Quality(5y)477.25%
High Growth Momentum
Growth
EPS 1Y (TTM)63.48%
EPS 3Y3.98%
EPS 5Y62.49%
EPS Q2Q%-15.07%
EPS Next Y28.3%
EPS Next 2Y17.55%
EPS Next 3Y16.53%
EPS Next 5YN/A
Revenue 1Y (TTM)6.57%
Revenue growth 3Y22.43%
Revenue growth 5Y39.65%
Sales Q2Q%4.53%
Revenue Next Year16.44%
Revenue Next 2Y13.61%
Revenue Next 3Y11.64%
Revenue Next 5YN/A
EBIT growth 1Y9.7%
EBIT growth 3Y19.91%
EBIT growth 5Y115.56%
EBIT Next Year95.83%
EBIT Next 3Y32.77%
EBIT Next 5YN/A
FCF growth 1Y-33.41%
FCF growth 3Y-4.43%
FCF growth 5Y23.86%
OCF growth 1Y1.33%
OCF growth 3Y15.1%
OCF growth 5Y55.96%