DB:DJM1

Stock Analysis Report

Executive Summary

Leaf Group Ltd., together with its subsidiaries, operates as a diversified consumer Internet company worldwide.


Snowflake Analysis

Excellent balance sheet with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DJM1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

DJM1

-1.4%

DE Online Retail

-0.2%

DE Market


1 Year Return

-58.9%

DJM1

80.2%

DE Online Retail

13.7%

DE Market

Return vs Industry: DJM1 underperformed the German Online Retail industry which returned 80.2% over the past year.

Return vs Market: DJM1 underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

DJM1IndustryMarket
7 Day-5.1%-1.4%-0.2%
30 Day21.6%7.8%0.3%
90 Day-14.8%42.3%3.7%
1 Year-58.9%-58.9%80.9%80.2%17.2%13.7%
3 Year-61.4%-61.4%11.5%12.0%15.4%5.3%
5 Year-34.4%-34.4%73.5%69.4%21.3%4.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.66x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DJM1's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DJM1's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DJM1 is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: DJM1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DJM1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DJM1 is overvalued based on its PB Ratio (1.7x) compared to the DE Online Retail industry average (1.3x).


Next Steps

Future Growth

How is Leaf Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DJM1 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DJM1 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DJM1 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DJM1's revenue (6.2% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: DJM1's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DJM1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Leaf Group performed over the past 5 years?

59.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DJM1 is currently unprofitable.

Growing Profit Margin: DJM1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DJM1 is unprofitable, but has reduced losses over the past 5 years at a rate of 59.5% per year.

Accelerating Growth: Unable to compare DJM1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DJM1 is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (-2.6%).


Return on Equity

High ROE: DJM1 has a negative Return on Equity (-52.54%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Leaf Group's financial position?


Financial Position Analysis

Short Term Liabilities: DJM1's short term assets ($26.7M) exceed its short term liabilities ($23.7M).

Long Term Liabilities: DJM1's short term assets ($26.7M) exceed its long term liabilities ($7.6M).


Debt to Equity History and Analysis

Debt Level: DJM1 is debt free.

Reducing Debt: DJM1 has no debt compared to 5 years ago when its debt to equity ratio was 57.1%.


Balance Sheet

Inventory Level: DJM1 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DJM1'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: DJM1 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: DJM1 has sufficient cash runway for 2.1 years if free cash flow continues to reduce at historical rates of -48.1% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate DJM1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DJM1'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 DJM1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DJM1'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 DJM1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Sean Moriarty (49yo)

5.5yrs

Tenure

US$2,268,486

Compensation

Mr. Sean P. Moriarty has been Chief Executive Officer of Leaf Group Ltd. (formerly, Demand Media, Inc.) since August 11, 2014. Mr. Moriarty serves as an Advisor of TreatFeed, Inc. Mr. Moriarty has experien ...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD2.27M) is above average for companies of similar size in the German market ($USD412.50K).

Compensation vs Earnings: Sean's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sean Moriarty
CEO & Director5.5yrsUS$2.27m1.28% $993.5k
Jantoon Reigersman
Chief Financial Officer2.2yrsUS$1.86m0.22% $174.7k
Brian Pike
COO & Chief Technology Officer4.8yrsUS$1.02m0.59% $457.2k
Adam Wergeles
Executive VP & General Counsel1.8yrsUS$1.17m0.55% $429.2k
Brian Gephart
Chief Accounting Officer0.7yrsno datano data
Brinlea Johnson
Investor Relations Contact6.1yrsno datano data
Shawn Milne
IR Contact0yrsno datano data
Sharna Daduk
Vice President of Communications0yrsno datano data
Jill Angel
Executive Vice President of People3.9yrsno datano data
Jay Ku
Senior Vice President of Advertising & Brand Solutions2.8yrsno datano data

3.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: DJM1's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sean Moriarty
CEO & Director5.5yrsUS$2.27m1.28% $993.5k
John Hawkins
Independent Director14.1yrsUS$13.75kno data
John Pleasants
Independent Director3.3yrsUS$132.47k0.059% $46.1k
Mitchell Stern
Independent Director4yrsUS$156.53k0.079% $61.7k
James Quandt
Non-Executive Chairman of the Board6.3yrsUS$287.47k0.35% $268.0k
Beverly Carmichael
Independent Director1.6yrsUS$171.75kno data
Charles Baker
Independent Director0.8yrsno datano data
Brian Regan
Independent Director5yrsUS$18.75k0.055% $42.8k
Jennifer Schulz
Independent Director3.3yrsUS$140.91k0.078% $61.0k
Deborah Benton
Independent Director1.1yrsno datano data

3.6yrs

Average Tenure

52.5yo

Average Age

Experienced Board: DJM1's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.7%.


Top Shareholders

Company Information

Leaf Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Leaf Group Ltd.
  • Ticker: DJM1
  • Exchange: DB
  • Founded: 2006
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$83.832m
  • Listing Market Cap: US$77.679m
  • Shares outstanding: 26.20m
  • Website: https://www.leafgroup.com

Number of Employees


Location

  • Leaf Group Ltd.
  • 1655 26th Street
  • Santa Monica
  • California
  • 90404
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LEAFNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2011
DJM1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 2011
0JTPLSE (London Stock Exchange)YesCommon StockGBUSDJan 2011

Biography

Leaf Group Ltd., together with its subsidiaries, operates as a diversified consumer Internet company worldwide. It operates in two segments, Marketplaces and Media. The Marketplaces segment offers Society6.com, which provides artists with an online commerce platform to feature and sell their original art and designs on consumer products in the home décor, accessories, and apparel categories; and Deny Designs, a made-to-order home décor brand. It also provides SaatchiArt.com and its related art fair event brand, which is an online art gallery where a global community of artists exhibit and sell their original artwork directly to consumers. The Media segment offers Well+Good, a health and wellness media brand that offers journalistic approach to content; and Livestrong.com, a destination and action-oriented community, as well as mobile applications, such as MyPlate that monitors users’ health, fitness, and life achievements. It also provides Hunker, a home design media site for enabling first-time homeowners enhance their homes with practical solutions, home tours, and design advice for people. In addition, this segment offers content creation, traffic source, mobile application, and monetization services; and develops partner sites. The company sells its products through wholesale channels to trade and hospitality clients, as well as through retail distribution partners. The company was formerly known as Demand Media, Inc. and changed its name to Leaf Group Ltd. in November 2016. Leaf Group Ltd. was founded in 2006 and is headquartered in Santa Monica, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:58
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.