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7DIG

7digital GroupAIM:7DIG Stock Report

Market Cap

UK£13.6m

7D

-2.0%

1Y

-50.0%

Updated

03 Dec, 2021

Data

Company Financials +
7DIG fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health0/6
Dividends0/6

7DIG Stock Overview

7digital Group plc operates as a digital music technology company in the United Kingdom, the United States, Germany, rest of Europe, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for 7digital Group
Historical stock prices
Current Share PriceUK£0.005
52 Week HighUK£0.021
52 Week LowUK£0.0042
Beta2.88
1 Month Change5.26%
3 Month Change-33.33%
1 Year Change-50.00%
3 Year Change-78.72%
5 Year Change-92.16%
Change since IPO-99.78%

Recent News & Updates

Shareholder Returns

7DIGGB SoftwareGB Market
7D-2.0%-1.9%-2.2%
1Y-50.0%15.1%10.5%

Return vs Industry: 7DIG underperformed the UK Software industry which returned 18% over the past year.

Return vs Market: 7DIG underperformed the UK Market which returned 11.6% over the past year.

Price Volatility

Is 7DIG's price volatile compared to industry and market?
7DIG volatility
7DIG Average Weekly Movement15.1%
Software Industry Average Movement4.8%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.6%

Stable Share Price: 7DIG is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: 7DIG's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
200457Paul Langworthyhttps://www.7digital.com

7digital Group plc operates as a digital music technology company in the United Kingdom, the United States, Germany, rest of Europe, and internationally. The company operates through three divisions: Licensing, Content, and Creative. The Licensing division engages in the creation of software solutions for managing and delivering digital content; and the provision of an API based platform for third parties to create digital music.

7digital Group Fundamentals Summary

How do 7digital Group's earnings and revenue compare to its market cap?
7DIG fundamental statistics
Market CapUK£13.61m
Earnings (TTM)-UK£3.24m
Revenue (TTM)UK£6.69m

2.0x

P/S Ratio

-4.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
7DIG income statement (TTM)
RevenueUK£6.69m
Cost of RevenueUK£2.05m
Gross ProfitUK£4.64m
ExpensesUK£7.88m
Earnings-UK£3.24m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0012
Gross Margin69.40%
Net Profit Margin-48.43%
Debt/Equity Ratio-23.4%

How did 7DIG perform over the long term?

See historical performance and comparison

Valuation

Is 7digital Group undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether 7digital Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as 7digital Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Future Growth

How is 7digital Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

35.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 7DIG's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if 7DIG's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 7DIG's revenue (35.3% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: 7DIG's revenue (35.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 7DIG's Return on Equity is forecast to be high in 3 years time


Past Performance

How has 7digital Group performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7DIG is currently unprofitable.

Growing Profit Margin: 7DIG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 7DIG is unprofitable, but has reduced losses over the past 5 years at a rate of 4% per year.

Accelerating Growth: Unable to compare 7DIG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 7DIG is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (11%).


Return on Equity

High ROE: 7DIG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is 7digital Group's financial position?


Financial Position Analysis

Short Term Liabilities: 7DIG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 7DIG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 7DIG has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 7DIG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


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: 7DIG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 7DIG has less than a year of cash runway if free cash flow continues to grow at historical rates of 1.2% each year.


Dividend

What is 7digital Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 7DIG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 7DIG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 7DIG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 7DIG'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 7DIG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Paul Langworthy (45 yo)

2.42yrs

Tenure

UK£358,000

Compensation

Mr. Paul Langworthy has been Chief Executive Officer and Director of 7digital Group plc since July 18, 2019. Mr. Langworthy served as Chief Operating Officer at 7digital Limited since October 01, 2015 and...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD476.48K) is above average for companies of similar size in the UK market ($USD324.89K).

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


Leadership Team

Experienced Management: 7DIG's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: 7DIG's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

7digital Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: 7digital Group plc
  • Ticker: 7DIG
  • Exchange: AIM
  • Founded: 2004
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£13.610m
  • Shares outstanding: 2.72b
  • Website: https://www.7digital.com

Number of Employees


Location

  • 7digital Group plc
  • LABS Hawley Lock
  • 2nd Floor
  • London
  • Greater London
  • NW1 8NZ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 18:44
End of Day Share Price2021/12/03 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.