AIM:DOTD

Stock Analysis Report

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Executive Summary

dotdigital Group Plc provides intuitive software as a service (SaaS) and managed services to digital marketing professionals worldwide. More Details

Rewards

Earnings are forecast to grow 3.68% per year

Risk Analysis

DOTD passed our risk checks.


Snowflake Analysis

Flawless balance sheet with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DOTD is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DOTD's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-3.4%

DOTD

-0.4%

GB Software

1.2%

GB Market


1 Year Return

52.2%

DOTD

-7.4%

GB Software

-9.6%

GB Market

Return vs Industry: DOTD exceeded the UK Software industry which returned -7.4% over the past year.

Return vs Market: DOTD exceeded the UK Market which returned -9.1% over the past year.


Shareholder returns

DOTDIndustryMarket
7 Day-3.4%-0.4%1.2%
30 Day-6.7%-5.4%8.6%
90 Day0.7%-6.2%5.4%
1 Year53.2%52.2%-6.2%-7.4%-6.1%-9.6%
3 Year53.5%50.5%-32.2%-40.7%-0.6%-12.6%
5 Year235.1%221.8%18.5%-2.1%23.3%-4.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

39.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DOTD (£1.42) is trading above our estimate of fair value (£0.4)

Significantly Below Fair Value: DOTD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DOTD is poor value based on its PE Ratio (39.7x) compared to the GB Software industry average (31.3x).

PE vs Market: DOTD is poor value based on its PE Ratio (39.7x) compared to the UK market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: DOTD is poor value based on its PEG Ratio (10.8x)


Price to Book Ratio

PB vs Industry: DOTD is overvalued based on its PB Ratio (8.3x) compared to the GB Software industry average (3.7x).


Next Steps

Future Growth

How is dotdigital Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOTD's forecast earnings growth (3.7% per year) is above the savings rate (1.2%).

Earnings vs Market: DOTD's earnings (3.7% per year) are forecast to grow slower than the UK market (26.7% per year).

High Growth Earnings: DOTD's earnings are forecast to grow, but not significantly.

Revenue vs Market: DOTD's revenue (13% per year) is forecast to grow faster than the UK market (6.4% per year).

High Growth Revenue: DOTD's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DOTD's Return on Equity is forecast to be low in 3 years time (17.2%).


Next Steps

Past Performance

How has dotdigital Group performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DOTD has high quality earnings.

Growing Profit Margin: DOTD's current net profit margins (22.4%) are lower than last year (25.8%).


Past Earnings Growth Analysis

Earnings Trend: DOTD's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: DOTD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DOTD had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Software industry average (-3.2%).


Return on Equity

High ROE: DOTD's Return on Equity (21%) is considered high.


Next Steps

Financial Health

How is dotdigital Group's financial position?


Financial Position Analysis

Short Term Liabilities: DOTD's short term assets (£38.4M) exceed its short term liabilities (£11.1M).

Long Term Liabilities: DOTD's short term assets (£38.4M) exceed its long term liabilities (£5.6M).


Debt to Equity History and Analysis

Debt Level: DOTD is debt free.

Reducing Debt: DOTD had no debt 5 years ago.

Debt Coverage: DOTD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DOTD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.59%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: DOTD's dividend (0.59%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: DOTD's dividend (0.59%) is low compared to the top 25% of dividend payers in the UK market (4.91%).


Stability and Growth of Payments

Stable Dividend: DOTD is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: DOTD is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DOTD is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DOTD'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?

4.3yrs

Average management tenure


CEO

Milan Patel (36 yo)

4.33yrs

Tenure

UK£749,000

Compensation

Mr. Milan Patel, ACCA, ACSI, FCCA, serves as President of dotDigital Group Plc. Mr. Patel has been the Chief Executive Officer of dotDigital Group Plc since July 20, 2016. Mr. Patel served as the Chief Fin...


CEO Compensation Analysis

Compensation vs Market: Milan's total compensation ($USD995.59K) is about average for companies of similar size in the UK market ($USD871.97K).

Compensation vs Earnings: Milan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Milan Patel
CEO, President & Executive Director4.33yrsUK£749.00k0.53%
£ 2.2m
Paraag Amin
CFO & Director2.75yrsUK£363.00kno data
Steve Shaw
Chief Technology Officerno datano data0.13%
£ 557.8k
Peter Duffy
Senior Business Development Manager6.67yrsno datano data
Philip Draper
Chief Marketing Officerno datano data0.17%
£ 718.2k
George Kasparian
Company Secretaryno datano datano data

4.3yrs

Average Tenure

Experienced Management: DOTD's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Milan Patel
CEO, President & Executive Director4.33yrsUK£749.00k0.53%
£ 2.2m
Paraag Amin
CFO & Director2.75yrsUK£363.00kno data
Michael O'Leary
Non-Executive Chairman0.83yrno data0.0047%
£ 19.6k
Boris Huard
Independent Non-Executive Director1.67yrsUK£9.00k0.0076%
£ 31.8k
Elizabeth Richards
Independent Non-Executive Director0.50yrno datano data

1.7yrs

Average Tenure

48yo

Average Age

Experienced Board: DOTD's board of directors are not considered experienced ( 1.7 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: DOTD 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

dotdigital Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: dotdigital Group Plc
  • Ticker: DOTD
  • Exchange: AIM
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£417.043m
  • Shares outstanding: 297.89m
  • Website: https://www.dotdigitalgroup.com

Number of Employees


Location

  • dotdigital Group Plc
  • No. 1 London Bridge
  • London
  • Greater London
  • SE1 9BG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DOTDAIM (London Stock Exchange AIM Market)YesNew Ordinary SharesGBGBPFeb 2011
DOTD.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDFeb 2011
3DODB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURFeb 2011

Biography

dotdigital Group Plc provides intuitive software as a service (SaaS) and managed services to digital marketing professionals worldwide. The company offers Engagement Cloud, a SaaS-based cross-channel marke...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 22:32
End of Day Share Price2020/11/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.