ASX:DCC

Stock Analysis Report

Executive Summary

DigitalX Limited develops software products in Australia.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Share Price & News

How has DigitalX's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.1%

DCC

1.3%

AU Software

1.0%

AU Market


1 Year Return

-65.3%

DCC

42.3%

AU Software

11.7%

AU Market

Return vs Industry: DCC underperformed the Australian Software industry which returned 42.3% over the past year.

Return vs Market: DCC underperformed the Australian Market which returned 11.7% over the past year.


Shareholder returns

DCCIndustryMarket
7 Day-7.1%1.3%1.0%
30 Day-16.1%1.3%-0.2%
90 Day-29.7%4.3%0.3%
1 Year-65.3%-65.3%43.6%42.3%18.1%11.7%
3 Year-69.4%-69.4%123.7%113.7%37.4%19.0%
5 Year-87.0%-87.0%159.9%139.1%51.7%17.6%

Price Volatility Vs. Market

How volatile is DigitalX's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DigitalX undervalued compared to its fair value and its price relative to the market?

0.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate DCC's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate DCC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DCC is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: DCC is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate DCC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DCC is good value based on its PB Ratio (0.9x) compared to the AU Software industry average (4.6x).


Next Steps

Future Growth

How is DigitalX forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

33.9%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as DigitalX has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has DigitalX performed over the past 5 years?

32.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DCC is unprofitable, but has reduced losses over the past 5 years at a rate of 32.8% per year.

Accelerating Growth: Unable to compare DCC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DCC is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (22%).


Return on Equity

High ROE: DCC has a negative Return on Equity (-20.38%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: DCC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: DCC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is DigitalX's financial position?


Financial Position Analysis

Short Term Liabilities: DCC's short term assets ($12.5M) exceeds its short term liabilities ($1.2M)

Long Term Liabilities: DCC has no long term liabilities


Debt to Equity History and Analysis

Debt Level: DCC is debt free.

Reducing Debt: DCC had no debt 5 years ago.


Balance Sheet

Inventory Level: DCC has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DCC's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DCC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: DCC has sufficient cash runway for 2.306927 years if free cash flow continues to grow at historical rates of 42.7% each year.


Next Steps

Dividend

What is DigitalX's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate DCC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DCC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if DCC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DCC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DCC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of DigitalX's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Leigh Travers 0

2.8yrs

Tenure

US$918,162

Compensation

Mr. Leigh Daniel Travers serves as Executive Director of DigitalX Limited since November 28, 2017 and has been its Managing Director. Mr. Travers has been the Chief Executive Officer of DigitalX Limited si ...


CEO Compensation Analysis

Compensation vs. Market: Leigh's total compensation ($USD918.16K) is about average for companies of similar size in the Australian market ($USD257.89K).

Compensation vs Earnings: Leigh's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.8yrs

Average Tenure

Experienced Management: DCC's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

Experienced Board: DCC's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: DCC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$59,40111 Sep 19
Peter Rubinstein
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,200,000
Max PriceUS$0.027
BuyUS$14,55006 Sep 19
Leigh Travers
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares538,889
Max PriceUS$0.027
BuyUS$140,86028 Jul 19
Leigh Travers
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares2,561,111
Max PriceUS$0.055
SellUS$140,86028 Jul 19
Leigh Travers
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares2,561,111
Max PriceUS$0.055

Ownership Breakdown


Management Team

  • Brett Mitchell (46yo)

    Corporate Advisor

    • Tenure: 3.3yrs
    • Compensation: US$2.25k
  • Shannon Coates

    Company Secretary

    • Tenure: 2.8yrs
  • Neel Krishnan

    President

    • Tenure: 2.9yrs
    • Compensation: US$250.62k
  • Leigh Travers

    MD, CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$918.16k
  • Mike Segal

    Chief Technology Officer

    • Tenure: 0yrs
  • Scott Benson

    Head of Compliance

    • Tenure: 0.4yrs
  • David Beros

    Head of Product

    • Tenure: 1.5yrs
  • Jonathon Carley

    Head of Finance

    • Tenure: 0.3yrs

Board Members

  • Toby Hicks

    Non-Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: US$41.91k
  • Leigh Travers

    MD, CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$918.16k
  • Peter Rubinstein

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: US$25.63k

Company Information

DigitalX Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DigitalX Limited
  • Ticker: DCC
  • Exchange: ASX
  • Founded: 1988
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$14.905m
  • Shares outstanding: 596.22m
  • Website: https://www.digitalx.com

Location

  • DigitalX Limited
  • Blockchain Centre
  • Suite 1, Level 2
  • Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DCCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2014
DCCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2014
VSLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014
VSLHMSE (Hamburg Stock Exchange)YesOrdinary SharesDEEURJun 2014
DGGX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2014
VSLBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJun 2014

Biography

DigitalX Limited develops software products in Australia. It provides corporate and investment advisory, tech due diligence and consulting, and marketing and promotional material services; and security and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 10:32
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.