AIM:DOTD

Stock Analysis Report

Executive Summary

dotdigital Group Plc provides intuitive software as a service (SaaS) and managed services under the dotmailer and Comapi brand names to digital marketing professionals in the United Kingdom, the United States, and internationally.

Snowflake

Fundamentals

Outstanding track record with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

DOTD

-0.5%

GB Software

0.08%

GB Market


1 Year Return

23.5%

DOTD

9.6%

GB Software

3.5%

GB Market

Return vs Industry: DOTD exceeded the UK Software industry which returned 9.6% over the past year.

Return vs Market: DOTD exceeded the UK Market which returned 3.5% over the past year.


Shareholder returns

DOTDIndustryMarket
7 Day-1.3%-0.5%0.08%
30 Day3.5%1.2%-1.3%
90 Day-5.2%-10.2%-2.2%
1 Year24.4%23.5%16.0%9.6%9.0%3.5%
3 Year91.8%86.7%2.8%-13.8%18.1%3.1%
5 Year242.1%228.6%66.7%34.0%36.2%5.3%

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?

25.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DOTD (£0.96) is trading above our estimate of fair value (£0.28)

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


Price To Earnings Ratio

PE vs Industry: DOTD is good value based on its PE Ratio (26x) compared to the Software industry average (27.5x).

PE vs Market: DOTD is poor value based on its PE Ratio (26x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: DOTD is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: DOTD is overvalued based on its PB Ratio (6.9x) compared to the GB Software industry average (3.3x).


Next Steps

Future Growth

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

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOTD's forecast earnings growth (9.4% per year) is above the savings rate (1.2%).

Earnings vs Market: DOTD's earnings (9.4% per year) are forecast to grow slower than the UK market (12.4% per year).

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

Revenue vs Market: DOTD's revenue (13.3% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: DOTD's revenue (13.3% 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 high in 3 years time (22.8%)


Next Steps

Past Performance

How has dotdigital Group performed over the past 5 years?

20.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DOTD's earnings have grown significantly by 20.8% per year over the past 5 years.

Accelerating Growth: DOTD's earnings growth over the past year (37%) exceeds its 5-year average (20.8% per year).

Earnings vs Industry: DOTD earnings growth over the past year (37%) exceeded the Software industry 7%.


Return on Equity

High ROE: DOTD's Return on Equity (26.5%) is considered high.


Return on Assets

ROA vs Industry: DOTD has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: DOTD has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is dotdigital Group's financial position?


Financial Position Analysis

Short Term Liabilities: DOTD's short term assets (£31.5M) exceeds its short term liabilities (£11.1M)

Long Term Liabilities: DOTD's short term assets (31.5M) exceeds its long term liabilities (1.4M)


Debt to Equity History and Analysis

Debt Level: DOTD's debt to equity ratio (0.01%) is considered satisfactory

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

Debt Coverage: DOTD's debt is well covered by operating cash flow (245720%).

Interest Coverage: DOTD earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: DOTD's debt is covered by short term assets (assets are 6308.400000x debt).


Next Steps

Dividend

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

0.70%

Current Dividend Yield


Upcoming Dividend Payment

Purchase dotdigital Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.7%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DOTD's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: DOTD's dividend (0.7%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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

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

3.3yrs

Average management tenure


CEO

Milan Patel (35yo)

3.3yrs

Tenure

UK£565,000

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 ($USD728.05K) is about average for companies of similar size in the UK market ($USD886.64K).

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


Management Age and Tenure

3.3yrs

Average Tenure

39yo

Average Age

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


Board Age and Tenure

1.1yrs

Average Tenure

42.5yo

Average Age

Experienced Board: DOTD's board of directors are not considered experienced ( 1.1 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.


Ownership Breakdown


Management Team

  • Paraag Amin (39yo)

    CFO & Director

    • Tenure: 1.7yrs
    • Compensation: UK£200.69k
  • Tink Taylor (46yo)

    Co-Founder & Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: UK£130.00k
  • Milan Patel (35yo)

    CEO, President & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£565.00k
  • Peter Duffy

    Senior Business Development Manager

    • Tenure: 5.6yrs
  • Steve Shaw

    Chief Technology Officer

    • Tenure: 0yrs
  • Phil Draper

    Chief Marketing Officer

    • Tenure: 0yrs
  • George Kasparian

    Company Secretary

    • Tenure: 0yrs

Board Members

  • Boris Huard (47yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Paraag Amin (39yo)

    CFO & Director

    • Tenure: 1.7yrs
    • Compensation: UK£200.69k
  • Tink Taylor (46yo)

    Co-Founder & Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: UK£130.00k
  • Milan Patel (35yo)

    CEO, President & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£565.00k

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£284.138m
  • Shares outstanding: 297.37m
  • 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 under the dotmailer and Comapi brand names to digital marketing professionals in the United Kingdom, the United Sta ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 21:14
End of Day Share Price2019/10/23 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.