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DIGIMARC CORP (DMRC) Stock Fundamental Analysis

NASDAQ:DMRC - Nasdaq - US25381B1017 - Common Stock - Currency: USD

12.52  -0.75 (-5.65%)

After market: 12.52 0 (0%)

Fundamental Rating

3

Taking everything into account, DMRC scores 3 out of 10 in our fundamental rating. DMRC was compared to 284 industry peers in the Software industry. No worries on liquidiy or solvency for DMRC as it has an excellent financial health rating, but there are worries on the profitability. DMRC is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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1

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.
DMRC had a negative operating cash flow in each of the past 5 years.
DMRC Yearly Net Income VS EBIT VS OCF VS FCFDMRC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -20M -40M -60M

1.2 Ratios

With a Return On Assets value of -60.74%, DMRC is not doing good in the industry: 86.27% of the companies in the same industry are doing better.
DMRC has a Return On Equity of -80.78%. This is in the lower half of the industry: DMRC underperforms 74.30% of its industry peers.
Industry RankSector Rank
ROA -60.74%
ROE -80.78%
ROIC N/A
ROA(3y)-53.7%
ROA(5y)-52%
ROE(3y)-66.35%
ROE(5y)-62.86%
ROIC(3y)N/A
ROIC(5y)N/A
DMRC Yearly ROA, ROE, ROICDMRC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -20 -40 -60

1.3 Margins

The Gross Margin of DMRC (62.99%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DMRC has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for DMRC so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 62.99%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.93%
GM growth 5Y-0.6%
DMRC Yearly Profit, Operating, Gross MarginsDMRC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150 -200

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7

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.
DMRC Yearly Shares OutstandingDMRC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
DMRC Yearly Total Debt VS Total AssetsDMRC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

2.2 Solvency

Based on the Altman-Z score of 1.58, we must say that DMRC is in the distress zone and has some risk of bankruptcy.
DMRC has a Altman-Z score of 1.58. This is comparable to the rest of the industry: DMRC outperforms 43.66% 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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 1.58
ROIC/WACCN/A
WACC9.05%
DMRC Yearly LT Debt VS Equity VS FCFDMRC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M

2.3 Liquidity

A Current Ratio of 2.70 indicates that DMRC has no problem at all paying its short term obligations.
DMRC has a Current ratio of 2.70. This is in the better half of the industry: DMRC outperforms 72.89% of its industry peers.
A Quick Ratio of 2.70 indicates that DMRC has no problem at all paying its short term obligations.
DMRC's Quick ratio of 2.70 is fine compared to the rest of the industry. DMRC outperforms 73.24% of its industry peers.
Industry RankSector Rank
Current Ratio 2.7
Quick Ratio 2.7
DMRC Yearly Current Assets VS Current LiabilitesDMRC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

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3

3. Growth

3.1 Past

DMRC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.88%.
The Revenue has been growing slightly by 2.45% in the past year.
The Revenue has been growing by 10.82% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-48.15%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y13.15%
Revenue growth 5Y10.82%
Sales Q2Q%-5.74%

3.2 Future

The Earnings Per Share is expected to grow by 39.81% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -2.82% on average over the next years.
EPS Next Y53.49%
EPS Next 2Y39.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.38%
Revenue Next 2Y-2.82%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
DMRC Yearly Revenue VS EstimatesDMRC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10M 20M 30M
DMRC Yearly EPS VS EstimatesDMRC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 -0.5 -1 -1.5 -2 -2.5

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DMRC. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for DMRC. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
DMRC Price Earnings VS Forward Price EarningsDMRC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -100 -200

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
DMRC Per share dataDMRC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2

4.3 Compensation for Growth

DMRC's earnings are expected to grow with 39.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.81%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for DMRC!.
Industry RankSector Rank
Dividend Yield N/A

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DIGIMARC CORP

NASDAQ:DMRC (6/13/2025, 8:00:01 PM)

After market: 12.52 0 (0%)

12.52

-0.75 (-5.65%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-05 2025-05-05/amc
Earnings (Next)08-11 2025-08-11
Inst Owners64.89%
Inst Owner Change6.37%
Ins Owners12.64%
Ins Owner Change3.97%
Market Cap269.81M
Analysts80
Price Target22.95 (83.31%)
Short Float %11.85%
Short Ratio8.13
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.8%
Min EPS beat(2)-44.44%
Max EPS beat(2)20.85%
EPS beat(4)2
Avg EPS beat(4)-7.71%
Min EPS beat(4)-44.44%
Max EPS beat(4)20.85%
EPS beat(8)6
Avg EPS beat(8)4.39%
EPS beat(12)10
Avg EPS beat(12)8.29%
EPS beat(16)12
Avg EPS beat(16)5.03%
Revenue beat(2)1
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-8.81%
Max Revenue beat(2)4.83%
Revenue beat(4)2
Avg Revenue beat(4)-4.12%
Min Revenue beat(4)-13.29%
Max Revenue beat(4)4.83%
Revenue beat(8)6
Avg Revenue beat(8)-1.45%
Revenue beat(12)7
Avg Revenue beat(12)-1.34%
Revenue beat(16)8
Avg Revenue beat(16)-1.62%
PT rev (1m)-18.18%
PT rev (3m)-18.18%
EPS NQ rev (1m)-4.09%
EPS NQ rev (3m)28.39%
EPS NY rev (1m)-8.23%
EPS NY rev (3m)40.08%
Revenue NQ rev (1m)6.85%
Revenue NQ rev (3m)-33.92%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-27.09%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 7.13
P/FCF N/A
P/OCF N/A
P/B 5.39
P/tB 13.42
EV/EBITDA N/A
EPS(TTM)-1.14
EYN/A
EPS(NY)-0.05
Fwd EYN/A
FCF(TTM)-1.12
FCFYN/A
OCF(TTM)-1.1
OCFYN/A
SpS1.76
BVpS2.32
TBVpS0.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -60.74%
ROE -80.78%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 62.99%
FCFM N/A
ROA(3y)-53.7%
ROA(5y)-52%
ROE(3y)-66.35%
ROE(5y)-62.86%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.93%
GM growth 5Y-0.6%
F-Score5
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 7.68%
Cap/Sales 1.52%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.7
Quick Ratio 2.7
Altman-Z 1.58
F-Score5
WACC9.05%
ROIC/WACCN/A
Cap/Depr(3y)12.3%
Cap/Depr(5y)36.87%
Cap/Sales(3y)2.89%
Cap/Sales(5y)4.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-48.15%
EPS Next Y53.49%
EPS Next 2Y39.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.45%
Revenue growth 3Y13.15%
Revenue growth 5Y10.82%
Sales Q2Q%-5.74%
Revenue Next Year-9.38%
Revenue Next 2Y-2.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.46%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y42.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y42.76%
OCF growth 3YN/A
OCF growth 5YN/A