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DIGIMARC CORP (DMRC) Stock Fundamental Analysis

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

12.45  -0.15 (-1.19%)

After market: 12.45 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to DMRC. DMRC was compared to 283 industry peers in the Software industry. DMRC has a great financial health rating, but its profitability evaluates not so good. DMRC is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year DMRC has reported negative net income.
In the past year DMRC has reported a negative cash flow from operations.
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

The Return On Assets of DMRC (-51.49%) is worse than 83.04% of its industry peers.
DMRC's Return On Equity of -63.58% is on the low side compared to the rest of the industry. DMRC is outperformed by 71.73% of its industry peers.
Industry RankSector Rank
ROA -51.49%
ROE -63.58%
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

DMRC's Gross Margin of 60.24% is in line compared to the rest of the industry. DMRC outperforms 41.34% 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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 60.24%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.43%
GM growth 5Y-1.52%
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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8

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
DMRC has more shares outstanding than it did 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

DMRC has an Altman-Z score of 4.01. This indicates that DMRC is financially healthy and has little risk of bankruptcy at the moment.
DMRC's Altman-Z score of 4.01 is fine compared to the rest of the industry. DMRC outperforms 63.60% of its industry peers.
DMRC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 4.01
ROIC/WACCN/A
WACC11.08%
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 4.30 indicates that DMRC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.30, DMRC belongs to the top of the industry, outperforming 83.39% of the companies in the same industry.
DMRC has a Quick Ratio of 4.30. This indicates that DMRC is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of DMRC (4.30) is better than 83.39% of its industry peers.
Industry RankSector Rank
Current Ratio 4.3
Quick Ratio 4.3
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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4

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%.
Looking at the last year, DMRC shows a quite strong growth in Revenue. The Revenue has grown by 10.24% in the last year.
Measured over the past years, DMRC shows a quite strong growth in Revenue. The Revenue has been growing by 10.82% on average per year.
EPS 1Y (TTM)-0.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-48.15%
Revenue 1Y (TTM)10.24%
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
Based on estimates for the next years, DMRC will show a small growth in Revenue. The Revenue will grow by 0.65% on average per year.
EPS Next Y53.49%
EPS Next 2Y39.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.93%
Revenue Next 2Y0.65%
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 40M
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

A more expensive valuation may be justified as DMRC's earnings are expected to grow with 39.81% in the coming years.
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

DMRC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DIGIMARC CORP

NASDAQ:DMRC (5/23/2025, 9:28:19 PM)

After market: 12.45 0 (0%)

12.45

-0.15 (-1.19%)

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 Owners63.6%
Inst Owner Change6.08%
Ins Owners12.29%
Ins Owner Change4.37%
Market Cap268.30M
Analysts80
Price Target28.05 (125.3%)
Short Float %11.15%
Short Ratio6.7
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)-0.98%
Min EPS beat(2)-22.81%
Max EPS beat(2)20.85%
EPS beat(4)3
Avg EPS beat(4)7.25%
Min EPS beat(4)-22.81%
Max EPS beat(4)20.85%
EPS beat(8)7
Avg EPS beat(8)10.77%
EPS beat(12)10
Avg EPS beat(12)11.83%
EPS beat(16)13
Avg EPS beat(16)8.54%
Revenue beat(2)0
Avg Revenue beat(2)-11.05%
Min Revenue beat(2)-13.29%
Max Revenue beat(2)-8.81%
Revenue beat(4)2
Avg Revenue beat(4)-4.89%
Min Revenue beat(4)-13.29%
Max Revenue beat(4)1.75%
Revenue beat(8)5
Avg Revenue beat(8)-2.15%
Revenue beat(12)6
Avg Revenue beat(12)-2.52%
Revenue beat(16)8
Avg Revenue beat(16)-1.63%
PT rev (1m)0%
PT rev (3m)-19.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-47.55%
EPS NY rev (1m)-8.23%
EPS NY rev (3m)40.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-26.58%
Revenue NY rev (1m)3.52%
Revenue NY rev (3m)-26.73%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 6.98
P/FCF N/A
P/OCF N/A
P/B 4.37
P/tB 8.76
EV/EBITDA N/A
EPS(TTM)-1.14
EYN/A
EPS(NY)-0.05
Fwd EYN/A
FCF(TTM)-1.26
FCFYN/A
OCF(TTM)-1.23
OCFYN/A
SpS1.78
BVpS2.85
TBVpS1.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -51.49%
ROE -63.58%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 60.24%
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-3.43%
GM growth 5Y-1.52%
F-Score6
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 8.47%
Cap/Sales 1.67%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.3
Quick Ratio 4.3
Altman-Z 4.01
F-Score6
WACC11.08%
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)10.24%
Revenue growth 3Y13.15%
Revenue growth 5Y10.82%
Sales Q2Q%-5.74%
Revenue Next Year-8.93%
Revenue Next 2Y0.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.88%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-19.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-20.81%
OCF growth 3YN/A
OCF growth 5YN/A