New Risk • May 27
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 40% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (40% accrual ratio). Minor Risks High level of debt (116% net debt to equity). Share price has been volatile over the past 3 months (10% average weekly change). Profit margins are more than 30% lower than last year (2.9% net profit margin). Market cap is less than US$100m (zł63.5m market cap, or US$17.4m). New Risk • May 25
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Polish stocks, typically moving 8.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.8x net interest cover). Minor Risks Share price has been volatile over the past 3 months (8.9% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.4% net profit margin). Market cap is less than US$100m (zł70.8m market cap, or US$19.5m). Annonce • May 18
DG-Net S.A., Annual General Meeting, Jun 10, 2026 DG-Net S.A., Annual General Meeting, Jun 10, 2026, at 10:00 Central European Standard Time. Annonce • May 17
DG-Net S.A. announces Annual dividend, payable on June 30, 2026 DG-Net S.A. announced Annual dividend of PLN 0.0200 per share payable on June 30, 2026, ex-date on May 21, 2026 and record date on May 22, 2026. New Risk • Feb 19
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.8x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.8x net interest cover). High level of non-cash earnings (23% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (1.9% net profit margin). Market cap is less than US$100m (zł51.6m market cap, or US$14.4m). Reported Earnings • Feb 19
Full year 2025 earnings released: EPS: zł0.098 (vs zł0.15 in FY 2024) Full year 2025 results: EPS: zł0.098 (down from zł0.15 in FY 2024). Revenue: zł28.3m (up 49% from FY 2024). Net income: zł551.3k (down 34% from FY 2024). Profit margin: 1.9% (down from 4.4% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 69% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 29
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: zł5.50m (up 15% from 3Q 2024). Net income: zł124.6k (down 6.3% from 3Q 2024). Profit margin: 2.3% (down from 2.8% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 74% per year, which means it is well ahead of earnings. Annonce • Nov 13
DG-Net S.A. to Report Q3, 2025 Results on Nov 14, 2025 DG-Net S.A. announced that they will report Q3, 2025 results on Nov 14, 2025 Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to zł9.00, the stock trades at a trailing P/E ratio of 58.4x. Average trailing P/E is 15x in the Telecom industry in Poland. Total returns to shareholders of 359% over the past three years. New Risk • Jul 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Polish stocks, typically moving 7.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (65% net debt to equity). Share price has been volatile over the past 3 months (7.9% average weekly change). Market cap is less than US$100m (zł50.8m market cap, or US$13.8m). Annonce • May 20
DG-Net S.A., Annual General Meeting, Jun 18, 2025 DG-Net S.A., Annual General Meeting, Jun 18, 2025. Reported Earnings • May 16
First quarter 2025 earnings released First quarter 2025 results: Revenue: zł5.00m (up 25% from 1Q 2024). Net income: zł80.8k (up 52% from 1Q 2024). Profit margin: 1.6% (up from 1.3% in 1Q 2024). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to zł8.90, the stock trades at a trailing P/E ratio of 68.5x. Average trailing P/E is 18x in the Telecom industry in Poland. Total returns to shareholders of 345% over the past three years. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to zł7.52, the stock trades at a trailing P/E ratio of 57.9x. Average trailing P/E is 17x in the Telecom industry in Poland. Total returns to shareholders of 294% over the past three years. New Risk • Feb 13
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 28% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 0.6% per year over the past 5 years. High level of non-cash earnings (28% accrual ratio). Minor Risks High level of debt (118% net debt to equity). Share price has been volatile over the past 3 months (9.0% average weekly change). Revenue is less than US$5m (zł19m revenue, or US$4.7m). Market cap is less than US$100m (zł44.9m market cap, or US$11.2m). Reported Earnings • Feb 09
Full year 2024 earnings released: zł0.01 loss per share (vs zł0.019 loss in FY 2023) Full year 2024 results: zł0.01 loss per share (improved from zł0.019 loss in FY 2023). Revenue: zł4.25m (down 73% from FY 2023). Net loss: zł56.5k (loss narrowed 48% from FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 126 percentage points per year, which is a significant difference in performance. New Risk • Sep 11
New major risk - Revenue and earnings growth Earnings have declined by 16% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 16% per year over the past 5 years. Market cap is less than US$10m (zł35.1m market cap, or US$9.02m). Minor Risks High level of debt (107% net debt to equity). Revenue is less than US$5m (zł17m revenue, or US$4.3m). New Risk • Jun 07
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: zł38.5m (US$9.65m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Share price has been highly volatile over the past 3 months (30% average weekly change). Market cap is less than US$10m (zł38.5m market cap, or US$9.65m). Minor Risk Revenue is less than US$5m (zł16m revenue, or US$3.9m). New Risk • Jun 06
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.5x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Share price has been highly volatile over the past 3 months (30% average weekly change). Minor Risks Revenue is less than US$5m (zł16m revenue, or US$3.9m). Market cap is less than US$100m (zł51.7m market cap, or US$13.1m). Buy Or Sell Opportunity • May 23
Now 27% undervalued Over the last 90 days, the stock has risen 69% to zł9.62. The fair value is estimated to be zł13.17, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last year. Earnings per share has declined by 87%. Buy Or Sell Opportunity • May 06
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 167% to zł16.00. The fair value is estimated to be zł13.17, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last year. Earnings per share has declined by 87%. Annonce • May 05
DG-Net S.A., Annual General Meeting, May 27, 2024 DG-Net S.A., Annual General Meeting, May 27, 2024, at 12:00 Central European Standard Time. New Risk • Mar 03
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Market cap is less than US$10m (zł26.9m market cap, or US$6.74m). Minor Risks High level of debt (137% net debt to equity). Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Profit margins are more than 30% lower than last year (0.8% net profit margin). Revenue is less than US$5m (zł14m revenue, or US$3.6m). Buying Opportunity • Nov 13
Now 21% undervalued Over the last 90 days, the stock is up 468%. The fair value is estimated to be zł12.20, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last year. Earnings per share has declined by 87%. New Risk • Aug 20
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.8% Last year net profit margin: 7.2% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (zł9.38m market cap, or US$2.29m). Minor Risks High level of debt (137% net debt to equity). Profit margins are more than 30% lower than last year (0.8% net profit margin). Revenue is less than US$5m (zł14m revenue, or US$3.5m). Reported Earnings • Aug 18
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: zł3.76m (up 14% from 2Q 2022). Net loss: zł29.8k (down 105% from profit in 2Q 2022). New Risk • Jun 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Polish stocks, typically moving 9.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.4% average weekly change). High level of non-cash earnings (46% accrual ratio). Market cap is less than US$10m (zł10.3m market cap, or US$2.53m). Minor Risks High level of debt (144% net debt to equity). Revenue is less than US$5m (zł14m revenue, or US$3.4m). Annonce • May 31
DG-Net S.A., Annual General Meeting, Jun 27, 2023 DG-Net S.A., Annual General Meeting, Jun 27, 2023, at 12:00 Central European Standard Time. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to zł2.18, the stock trades at a trailing P/E ratio of 16.5x. Average trailing P/E is 14x in the Telecom industry in Poland. Total returns to shareholders of 23% over the past year. Reported Earnings • Feb 12
Full year 2022 earnings released: EPS: zł0.13 (vs zł0.018 in FY 2021) Full year 2022 results: EPS: zł0.13 (up from zł0.018 in FY 2021). Revenue: zł13.5m (up 19% from FY 2021). Net income: zł743.8k (up zł642.8k from FY 2021). Profit margin: 5.5% (up from 0.9% in FY 2021). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Sep 22
Investor sentiment improved over the past week After last week's 17% share price gain to zł2.08, the stock trades at a trailing P/E ratio of 12.9x. Average trailing P/E is 10x in the Telecom industry in Poland. Total returns to shareholders of 26% over the past year. Annonce • Jun 29
DG-Net S.A., Annual General Meeting, Jul 25, 2022 DG-Net S.A., Annual General Meeting, Jul 25, 2022, at 12:00 Central European Standard Time.