Fundamental Analysis of DIGIMARC CORP(NASDAQ:DMRC) stock

Fundamental Rating

DMRC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. While DMRC has a great health rating, there are worries on its profitability. DMRC is valied quite expensively at the moment, while it does show a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year DMRC has reported negative net income.

DMRC had a negative operating cash flow in the past year.

DMRC had negative earnings in each of the past 5 years.

In the past 5 years DMRC always reported negative operating cash flow.

1.2 Ratios

With a Return On Assets value of -57.05%, DMRC is not doing good in the industry: 84.31% of the companies in the same industry are doing better.

The Return On Equity of DMRC (-74.21%) is worse than 68.98% of its industry peers.

		Industry Rank	Sector Rank
ROA	-57.05%
ROE	-74.21%
ROIC	N/A

ROA(3y)-54.39%

ROA(5y)-53.14%

ROE(3y)-66.08%

ROE(5y)-63.41%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

DMRC has a Gross Margin of 54.80%. This is in the lower half of the industry: DMRC underperforms 62.77% of its industry peers.

DMRC's Gross Margin has declined in the last couple of years.

DMRC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	54.8%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-6.45%

GM growth 5Y-1.88%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

DMRC does not have a ROIC to compare to the WACC, probably because it is not profitable.

Compared to 1 year ago, DMRC has more shares outstanding

The number of shares outstanding for DMRC has been increased compared to 5 years ago.

There is no outstanding debt for DMRC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 8.98 indicates that DMRC is not in any danger for bankruptcy at the moment.

DMRC's Altman-Z score of 8.98 is amongst the best of the industry. DMRC outperforms 86.13% of its industry peers.

There is no outstanding debt for DMRC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Altman-Z	8.98

ROIC/WACCN/A

WACC9.92%

2.3 Liquidity

DMRC has a Current Ratio of 2.96. This indicates that DMRC is financially healthy and has no problem in meeting its short term obligations.

DMRC has a better Current ratio (2.96) than 75.18% of its industry peers.

DMRC has a Quick Ratio of 2.96. This indicates that DMRC is financially healthy and has no problem in meeting its short term obligations.

DMRC's Quick ratio of 2.96 is fine compared to the rest of the industry. DMRC outperforms 75.18% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.96
Quick Ratio	2.96

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

DMRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.78%, which is quite impressive.

Looking at the last year, DMRC shows a quite strong growth in Revenue. The Revenue has grown by 15.38% in the last year.

Measured over the past years, DMRC shows a quite strong growth in Revenue. The Revenue has been growing by 10.46% on average per year.

EPS 1Y (TTM)35.78%

EPS 3YN/A

EPS 5YN/A

EPS growth Q2Q31.71%

Revenue 1Y (TTM)15.38%

Revenue growth 3Y13.26%

Revenue growth 5Y10.46%

Revenue growth Q2Q28.59%

3.2 Future

DMRC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.95% yearly.

Based on estimates for the next years, DMRC will show a quite strong growth in Revenue. The Revenue will grow by 19.36% on average per year.

EPS Next Y8.51%

EPS Next 2Y7.95%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year17.19%

Revenue Next 2Y19.36%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DMRC. In the last year negative earnings were reported.

Also next year DMRC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y7.95%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

DMRC does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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DIGIMARC CORP

NASDAQ:DMRC (5/3/2024, 11:52:28 AM)

23.3

+0.69 (+3.05%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustrySoftware

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap497.92M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-57.05%
ROE	-74.21%
ROCE
ROIC
ROICexc
ROICexgc
OM	N/A
PM (TTM)	N/A
GM	54.8%
FCFM

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.43

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	2.96
Quick Ratio	2.96
Altman-Z

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)35.78%

EPS 3YN/A

EPS 5Y

EPS growth Q2Q

EPS Next Y8.51%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)15.38%

Revenue growth 3Y13.26%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

DIGIMARC CORP (DMRC)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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