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dotdigital Group

AIM:DOTD
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DOTD
AIM
£262M
Market Cap
  1. Home
  2. GB
  3. Software
Company description

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. The last earnings update was 179 days ago. More info.


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  • dotdigital Group has significant price volatility in the past 3 months.
DOTD Share Price and Events
7 Day Returns
-3.8%
AIM:DOTD
-1.9%
GB Software
-2%
GB Market
1 Year Returns
-5.4%
AIM:DOTD
2.4%
GB Software
-5.8%
GB Market
DOTD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
dotdigital Group (DOTD) -3.8% -12% -7.4% -5.4% 80.5% 172.9%
GB Software -1.9% -7.7% -4.6% 2.4% -4.3% 54.7%
GB Market -2% -5.1% -3.3% -5.8% 3.9% 0.2%
1 Year Return vs Industry and Market
  • DOTD underperformed the Software industry which returned 2.4% over the past year.
  • DOTD matched the United Kingdom of Great Britain and Northern Ireland Market (-5.8%) over the past year.
Price Volatility
DOTD
Industry
5yr Volatility vs Market

DOTD Value

 Is dotdigital Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of dotdigital Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for dotdigital Group.

AIM:DOTD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:DOTD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Software Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.117 (1 + (1- 19%) (0%))
1.078
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.078 * 6.65%)
8.4%

Discounted Cash Flow Calculation for AIM:DOTD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for dotdigital Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

AIM:DOTD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.4%)
2020 7.77 Analyst x3 7.16
2021 9.15 Analyst x2 7.79
2022 9.66 Est @ 5.54% 7.58
2023 10.07 Est @ 4.25% 7.29
2024 10.40 Est @ 3.34% 6.95
2025 10.68 Est @ 2.71% 6.59
2026 10.93 Est @ 2.26% 6.21
2027 11.14 Est @ 1.95% 5.84
2028 11.33 Est @ 1.73% 5.48
2029 11.51 Est @ 1.58% 5.14
Present value of next 10 years cash flows £66.04
AIM:DOTD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £11.51 × (1 + 1.23%) ÷ (8.4% – 1.23%)
£162.51
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £162.51 ÷ (1 + 8.4%)10
£72.55
AIM:DOTD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £66.04 + £72.55
£138.60
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £138.60 / 297.37
£0.47
AIM:DOTD Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.47
Current discount Discount to share price of £0.88
= -1 x (£0.88 - £0.47) / £0.47
-88.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of dotdigital Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for dotdigital Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are dotdigital Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:DOTD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.03
AIM:DOTD Share Price ** AIM (2019-08-16) in GBP £0.88
United Kingdom of Great Britain and Northern Ireland Software Industry PE Ratio Median Figure of 35 Publicly-Listed Software Companies 29.59x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 791 Publicly-Listed Companies 15.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of dotdigital Group.

AIM:DOTD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:DOTD Share Price ÷ EPS (both in GBP)

= 0.88 ÷ 0.03

29.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • dotdigital Group is good value based on earnings compared to the GB Software industry average.
  • dotdigital Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does dotdigital Group's expected growth come at a high price?
Raw Data
AIM:DOTD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
15%per year
United Kingdom of Great Britain and Northern Ireland Software Industry PEG Ratio Median Figure of 22 Publicly-Listed Software Companies 1.76x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 568 Publicly-Listed Companies 1.42x

*Line of best fit is calculated by linear regression .

AIM:DOTD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.59x ÷ 15%

1.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • dotdigital Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on dotdigital Group's assets?
Raw Data
AIM:DOTD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.13
AIM:DOTD Share Price * AIM (2019-08-16) in GBP £0.88
United Kingdom of Great Britain and Northern Ireland Software Industry PB Ratio Median Figure of 74 Publicly-Listed Software Companies 2.97x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.39x
AIM:DOTD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:DOTD Share Price ÷ Book Value per Share (both in GBP)

= 0.88 ÷ 0.13

6.83x

* Primary Listing of dotdigital Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • dotdigital Group is overvalued based on assets compared to the GB Software industry average.
X
Value checks
We assess dotdigital Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. dotdigital Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DOTD Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is dotdigital Group expected to grow at an attractive rate?
  • dotdigital Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • dotdigital Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • dotdigital Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:DOTD Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:DOTD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 15%
AIM:DOTD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 10.2%
United Kingdom of Great Britain and Northern Ireland Software Industry Earnings Growth Rate Market Cap Weighted Average 36.7%
United Kingdom of Great Britain and Northern Ireland Software Industry Revenue Growth Rate Market Cap Weighted Average 6.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.1%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:DOTD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:DOTD Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 57 18 4
2020-06-30 50 16 11 5
2019-06-30 44 13 9 5
AIM:DOTD Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 49 14 9
2018-09-30 46 14 9
2018-06-30 43 13 9
2018-03-31 39 10 8
2017-12-31 36 8 7
2017-09-30 34 8 7
2017-06-30 32 8 7
2017-03-31 31 8 7
2016-12-31 29 7 6
2016-09-30 28 7 6
2016-06-30 27 8 5
2016-03-31 26 8 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • dotdigital Group's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).
  • dotdigital Group's revenue is expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:DOTD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from dotdigital Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:DOTD Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30
2020-06-30 0.04 0.04 0.04 1.00
2019-06-30 0.03 0.03 0.03 1.00
AIM:DOTD Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.03
2018-09-30 0.03
2018-06-30 0.03
2018-03-31 0.03
2017-12-31 0.03
2017-09-30 0.02
2017-06-30 0.02
2017-03-31 0.02
2016-12-31 0.02
2016-09-30 0.02
2016-06-30 0.02
2016-03-31 0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if dotdigital Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess dotdigital Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
dotdigital Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DOTD Past Performance

  How has dotdigital Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare dotdigital Group's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • dotdigital Group's year on year earnings growth rate has been positive over the past 5 years.
  • dotdigital Group's 1-year earnings growth is less than its 5-year average (18.2% vs 19.7%)
  • dotdigital Group's earnings growth has exceeded the GB Software industry average in the past year (18.2% vs 8.8%).
Earnings and Revenue History
dotdigital Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from dotdigital Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:DOTD Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 49.23 8.85 27.44
2018-09-30 46.16 8.70 25.94
2018-06-30 43.09 8.56 24.43
2018-03-31 39.42 8.02 23.08
2017-12-31 35.75 7.48 21.73
2017-09-30 33.86 7.31 20.58
2017-06-30 31.97 7.15 19.43
2017-03-31 30.51 6.59 17.91
2016-12-31 29.06 6.03 16.39
2016-09-30 27.99 5.70 16.11
2016-06-30 26.93 5.37 15.83
2016-03-31 25.58 5.42 14.99
2015-12-31 24.23 5.46 14.15
2015-09-30 22.80 5.06 13.19
2015-06-30 21.37 4.66 12.24
2015-03-31 20.00 4.22 11.74
2014-12-31 18.64 3.79 11.25
2014-09-30 17.42 3.62 10.56
2014-06-30 16.21 3.46 9.88
2014-03-31 15.13 3.60 8.95
2013-12-31 14.05 3.74 8.03
2013-09-30 13.13 3.75 7.25
2013-06-30 12.20 3.77 6.47
2012-12-31 9.78 2.86 5.87
2012-09-30 9.66 2.52 5.93

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • dotdigital Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • dotdigital Group used its assets more efficiently than the GB Software industry average last year based on Return on Assets.
  • dotdigital Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess dotdigital Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
dotdigital Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DOTD Health

 How is dotdigital Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up dotdigital Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • dotdigital Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • dotdigital Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of dotdigital Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • dotdigital Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from dotdigital Group Company Filings, last reported 7 months ago.

AIM:DOTD Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 38.42 0.00 16.68
2018-09-30 38.42 0.00 16.68
2018-06-30 36.55 0.01 15.01
2018-03-31 36.55 0.01 15.01
2017-12-31 32.69 0.00 10.50
2017-09-30 32.69 0.00 10.50
2017-06-30 28.64 0.00 20.43
2017-03-31 28.64 0.00 20.43
2016-12-31 27.43 0.00 18.93
2016-09-30 27.43 0.00 18.93
2016-06-30 23.71 0.00 17.31
2016-03-31 23.71 0.00 17.31
2015-12-31 22.11 0.00 14.81
2015-09-30 22.11 0.00 14.81
2015-06-30 18.39 0.00 11.93
2015-03-31 18.39 0.00 11.93
2014-12-31 16.49 0.00 9.50
2014-09-30 16.49 0.00 9.50
2014-06-30 14.15 0.00 9.31
2014-03-31 14.15 0.00 9.31
2013-12-31 12.29 0.00 7.29
2013-09-30 12.29 0.00 7.29
2013-06-30 10.64 0.00 6.07
2012-12-31 9.89 0.00 4.62
2012-09-30 9.89 0.00 4.62
  • dotdigital Group has no debt.
  • dotdigital Group currently has no debt however we can't compare to 5 years ago as we have no data for that period.
  • dotdigital Group has no debt, it does not need to be covered by operating cash flow.
  • dotdigital Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess dotdigital Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. dotdigital Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DOTD Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.73%
Current annual income from dotdigital Group dividends. Estimated to be 1.08% next year.
If you bought £2,000 of dotdigital Group shares you are expected to receive £15 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • dotdigital Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.09%).
  • dotdigital Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:DOTD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Software Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 2.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 699 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.1%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:DOTD Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.01 4.00
2020-06-30 0.01 5.00
2019-06-30 0.01 5.00
AIM:DOTD Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-10-24 0.006 0.706
2017-10-17 0.006 0.626
2016-10-18 0.004 0.667
2015-10-13 0.004 0.785
2014-12-16 0.002 0.602
2013-10-15 0.001 0.336

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • dotdigital Group is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.
  • dotdigital Group is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of dotdigital Group's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of dotdigital Group's dividends as it is not paying a notable one for United Kingdom of Great Britain and Northern Ireland.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess dotdigital Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can dotdigital Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. dotdigital Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DOTD Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Milan Patel
COMPENSATION £565,000
AGE 35
TENURE AS CEO 3.1 years
CEO Bio

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 Financial Officer of dotDigital Group Plc since 2015 until July 2017 and served as its Company Secretary since 2009. He served as the Interim Chief Executive Officer of dotDigital Group Plc from January 2016 to July 20, 2016 and served as its Financial Controller. Mr. Patel joined dotDigital in 2007. Mr. Patel has over 8 years experience in Accounting and Finance within the Digital Media, Technology and Logistics industry. He has been responsible for the financial and legal aspects of the reverse acquisition of West End Ventures PLC, admission to Plus and the introduction to AIM. He is a responsible for the Group's functions in financial management & reporting, regulatory compliance, legal and corporate governance. He has been an Executive Director of dotDigital Group Plc since March 11, 2014. Mr. Patel holds a B.A (Hons) degree in Accounting and Finance.

CEO Compensation
  • Milan's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Milan's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the dotdigital Group management team in years:

3.1
Average Tenure
39
Average Age
  • The tenure for the dotdigital Group management team is about average.
Management Team

Tink Taylor

TITLE
Co-Founder & Non-Executive Chairman
COMPENSATION
£130K
AGE
46

Milan Patel

TITLE
CEO, President & Executive Director
COMPENSATION
£565K
AGE
35
TENURE
3.1 yrs

Paraag Amin

TITLE
CFO & Director
COMPENSATION
£201K
AGE
39
TENURE
1.5 yrs

Steve Shaw

TITLE
Chief Technology Officer

Peter Duffy

TITLE
Senior Business Development Manager
TENURE
5.4 yrs

Phil Draper

TITLE
Chief Marketing Officer

George Kasparian

TITLE
Company Secretary
Board of Directors Tenure

Average tenure and age of the dotdigital Group board of directors in years:

1
Average Tenure
42.5
Average Age
  • The average tenure for the dotdigital Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Tink Taylor

TITLE
Co-Founder & Non-Executive Chairman
COMPENSATION
£130K
AGE
46
TENURE
0.3 yrs

Milan Patel

TITLE
CEO, President & Executive Director
COMPENSATION
£565K
AGE
35
TENURE
5.4 yrs

Paraag Amin

TITLE
CFO & Director
COMPENSATION
£201K
AGE
39
TENURE
1.5 yrs

Boris Huard

TITLE
Independent Non-Executive Director
AGE
47
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess dotdigital Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. dotdigital Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DOTD News

Simply Wall St News

Are dotdigital Group Plc’s (LON:DOTD) High Returns Really That Great?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for dotdigital Group: 0.25 = UK£10m ÷ (UK£51m - UK£10m) (Based on the trailing twelve months to December 2018.) So, dotdigital Group has an ROCE of 25%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … The Bottom Line On dotdigital Group's ROCE This is good to see, and with such a high ROCE, dotdigital Group may be worth a closer look.

Simply Wall St -

What You Must Know About dotdigital Group Plc's (LON:DOTD) Beta Value

A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … This is reasonably close to the market beta of 1, so the stock has in the past displayed similar levels of volatility to the overall market. … If the future looks like the past, we could therefore consider it likely that the stock price will experience share price volatility that is roughly similar to the overall market.

Simply Wall St -

Is Now The Time To Look At Buying dotdigital Group Plc (LON:DOTD)?

dotdigital Group Plc (LON:DOTD), which is in the software business, and is based in United Kingdom, saw a decent share price growth in the teens level on the AIM over the last few months. … In addition to this, it seems like dotdigital Group’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. … If you believe DOTD should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

Is Now The Time To Put dotdigital Group (LON:DOTD) On Your Watchlist?

So if you're like me, you might be more interested in profitable, growing companies, like dotdigital Group (LON:DOTD). … See our latest analysis for dotdigital Group dotdigital Group's Earnings Per Share Are Growing. … As I already mentioned, dotdigital Group is a growing business, which is what I like to see.

Simply Wall St -

Does dotdigital Group Plc's (LON:DOTD) CEO Pay Compare Well With Peers?

First, this article will compare CEO compensation with compensation at similar sized companies. … Check out our latest analysis for dotdigital Group How Does Milan Patel's Compensation Compare With Similar Sized Companies? … Our data indicates that dotdigital Group Plc is worth UK£297m, and total annual CEO compensation is UK£565k.

Simply Wall St -

Why dotdigital Group Plc's (LON:DOTD) High P/E Ratio Isn't Necessarily A Bad Thing

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for dotdigital Group: P/E of 33.46 = £0.99 ÷ £0.030 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … Does dotdigital Group Have A Relatively High Or Low P/E For Its Industry? … The Verdict On dotdigital Group's P/E Ratio dotdigital Group has a P/E of 33.5.

Simply Wall St -

Is dotdigital Group Plc (LON:DOTD) Undervalued After Accounting For Its Future Growth?

dotdigital Group is trading at price-to-earnings (PE) ratio of 31.95x, this tells us the stock is overvalued compared to the GB market average ratio of 16.24x , and overvalued based on current earnings compared to the Software industry average of 30.01x. … However, seeing as dotdigital Group is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … So, when we include the growth factor in our analysis, dotdigital Group appears overvalued , based on its fundamentals.

Simply Wall St -

Can dotdigital Group Plc's (LON:DOTD) ROE Continue To Surpass The Industry Average?

View our latest analysis for dotdigital Group How Do I Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for dotdigital Group: 23% = UK£8.8m ÷ UK£38m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining dotdigital Group's Debt And Its 23% Return On Equity Shareholders will be pleased to learn that dotdigital Group has not one iota of net debt!

Simply Wall St -

How dotdigital Group Plc (LON:DOTD) Could Add Value To Your Portfolio

I've been keeping an eye on dotdigital Group Plc (LON:DOTD) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe DOTD has a lot to offer. … is a company with great financial health as well as a

Simply Wall St -

If You Had Bought dotdigital Group (LON:DOTD) Shares Five Years Ago You'd Have Made 168%

One great example is dotdigital Group Plc (LON:DOTD) which saw its share price drive 168% higher over five years. … During five years of share price growth, dotdigital Group achieved compound earnings per share (EPS) growth of 17% per year. … This EPS growth is slower than the share price growth of 22% per year, over the same period.

Simply Wall St -

DOTD Company Info

Description

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. The company offers dotMailer, a SaaS marketing platform that enables marketers to create, send, and automate marketing campaigns, including email; and Comapi, a secure enterprise cloud communications platform for messaging. The company was founded in 1999 and is based in London, the United Kingdom.

Details
Name: dotdigital Group Plc
DOTD
Exchange: AIM
Founded: 1999
£261,686,097
297,370,565
Website: http://www.dotdigitalgroup.com
Address: dotdigital Group Plc
No. 1 London Bridge,
London,
Greater London, SE1 9BG,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM DOTD New Ordinary Shares London Stock Exchange AIM Market GB GBP 11. Feb 2011
OTCPK DOTD.F New Ordinary Shares Pink Sheets LLC US USD 11. Feb 2011
DB 3DO New Ordinary Shares Deutsche Boerse AG DE EUR 11. Feb 2011
Number of employees
Current staff
Staff numbers
279
dotdigital Group employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 22:02
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/02
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.