TSXV:DMGI

Stock Analysis Report

DMG Blockchain Solutions

Executive Summary

DMG Blockchain Solutions Inc. operates as a blockchain and cryptocurrency company that manages, operates, and develops digital solutions to monetize the blockchain ecosystem.

Rewards

Revenue grew by 98.1% over the past year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (CA$8M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Fortress Technologies

TSXV:FORT

Share Price & News

How has DMG Blockchain Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DMGI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

DMGI

0.4%

CA Software

1.6%

CA Market


1 Year Return

-57.9%

DMGI

32.7%

CA Software

10.0%

CA Market

Return vs Industry: DMGI underperformed the Canadian Software industry which returned 35.9% over the past year.

Return vs Market: DMGI underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

DMGIIndustryMarket
7 Day0%0.4%1.6%
30 Day0%4.7%2.7%
90 Day-42.9%11.8%6.4%
1 Year-57.9%-57.9%35.1%32.7%13.5%10.0%
3 Yearn/a87.9%83.4%17.5%6.8%
5 Yearn/a143.8%136.4%36.6%16.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is DMG Blockchain Solutions undervalued compared to its fair value and its price relative to the market?

0.37x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DMGI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DMGI's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DMGI is good value based on its PB Ratio (0.4x) compared to the CA Software industry average (2.8x).


Next Steps

Future Growth

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

19.0%

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 DMG Blockchain Solutions 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 DMG Blockchain Solutions performed over the past 5 years?

19.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: DMGI is currently unprofitable.

Growing Profit Margin: DMGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if DMGI's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: DMGI is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (23.2%).


Return on Equity

High ROE: DMGI has a negative Return on Equity (-99.77%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DMG Blockchain Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: DMGI's short term assets (CA$10.6M) exceed its short term liabilities (CA$4.9M).

Long Term Liabilities: DMGI's short term assets (CA$10.6M) exceed its long term liabilities (CA$3.0M).


Debt to Equity History and Analysis

Debt Level: DMGI's debt to equity ratio (19.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DMGI's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: DMGI has a high level of physical assets or inventory.

Debt Coverage by Assets: DMGI's debt is covered by short term assets (assets are 3x debt).


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: DMGI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: DMGI has less than a year of cash runway if free cash flow continues to reduce at historical rates of -67.9% each year


Next Steps

Dividend

What is DMG Blockchain Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if DMGI'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 DMGI's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Dan Reitzik (45yo)

1.9yrs

Tenure

CA$366,801

Compensation

Mr. Daniel Reitzik, also known as Dan, serves as CEO & Director of DMG Blockchain Solutions Inc. Mr. Reitzik was the Chief Operating Officer at Digital Youth Network Corp. since October 7, 2003. Mr. Reitzi ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD280.75K) is above average for companies of similar size in the Canadian market ($USD165.67K).

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


Management Age and Tenure

1.9yrs

Average Tenure

45yo

Average Age

Experienced Management: DMGI's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$1,40019 Sep 19
Sheldon Bennett
EntityIndividual
Role
Member of the Board of Directors
COO & Director
Shares10,000
Max PriceCA$0.14
BuyCA$5,40016 Sep 19
Daniel Reitzik
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares30,000
Max PriceCA$0.18
SellCA$8,00613 Sep 19
Justin Rasekh
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceCA$0.16

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 130.4%.


Management Team

  • Dan Reitzik (45yo)

    CEO & Director

    • Tenure: 1.9yrs
    • Compensation: CA$366.80k
  • Steve Eliscu

    Executive VP of Corporate Development

    • Diana Marks (61yo)

      Corporate Secretary

      • Ryan Cheung (41yo)

        Chief Financial Officer

        • Tenure: 1.9yrs
        • Compensation: CA$89.20k
      • Danny Yang

        Chief Technology Officer

        • Tenure: 1.9yrs
        • Compensation: CA$217.93k
      • Sheldon Bennett

        COO & Director

        • Tenure: 1.9yrs
        • Compensation: CA$365.30k

      Board Members

      • Lou Kerner (57yo)

        Member of Advisory Board

        • Tenure: 1.8yrs
      • Dan Reitzik (45yo)

        CEO & Director

        • Tenure: 1.9yrs
        • Compensation: CA$366.80k
      • Nick Seto

        Independent Director

        • Tenure: 0.4yrs
      • Charlie Lee

        Member of Advisory Board

        • Tenure: 1.8yrs
      • Justin Rasekh

        Independent Director

        • Tenure: 2.8yrs
        • Compensation: CA$15.00k
      • Sheldon Bennett

        COO & Director

        • Tenure: 1.9yrs
        • Compensation: CA$365.30k

      Company Information

      DMG Blockchain Solutions Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: DMG Blockchain Solutions Inc.
      • Ticker: DMGI
      • Exchange: TSXV
      • Founded:
      • Industry: Application Software
      • Sector: Software
      • Market Cap: CA$7.736m
      • Shares outstanding: 96.70m
      • Website: https://dmgblockchain.com

      Location

      • DMG Blockchain Solutions Inc.
      • 1090 Homer Street
      • Suite 490
      • Vancouver
      • British Columbia
      • V6B 2W9
      • Canada

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      DMGITSXV (TSX Venture Exchange)YesCommon SharesCACADFeb 2018
      DMGG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2018

      Biography

      DMG Blockchain Solutions Inc. operates as a blockchain and cryptocurrency company that manages, operates, and develops digital solutions to monetize the blockchain ecosystem. The company is headquartered in Vancouver, Canada. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 00:38
      End of Day Share Price2020/01/17 00:00
      Earnings2019/06/30
      Annual Earnings2018/09/30


      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.