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

Flawless balance sheet with proven track record.

Risks

  • dotdigital Group's last earnings update was 209 days ago.

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

0%

AIM:DOTD

-0.6%

GB Software

1.6%

GB Market


1 Year Return

-5.6%

AIM:DOTD

-4.8%

GB Software

-0.08%

GB Market

DOTD matched the Software industry (-5.4%) over the past year.

DOTD underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 0.3% over the past year.


Share holder returns

DOTDIndustryMarket
7 Day0%-0.6%1.6%
30 Day5.1%-6.3%4.6%
90 Day-17.0%-14.6%-0.1%
1 Year-4.9%-5.6%0.09%-4.8%4.7%-0.08%
3 Year90.0%85.0%0.1%-15.7%21.8%7.3%
5 Year185.3%174.1%65.4%32.6%30.7%3.1%

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 based on future cash flows and its price relative to the stock market?

31.11x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

dotdigital Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

dotdigital Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

dotdigital Group is poor value based on expected growth next year.


Price Based on Value of Assets

dotdigital Group is overvalued based on assets compared to the GB Software industry average.


Next Steps

Future Growth

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

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

dotdigital Group's revenue is expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).

dotdigital Group's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).

dotdigital Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

dotdigital Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

dotdigital Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if dotdigital Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has dotdigital Group performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 7.3%).


Return on Equity

dotdigital Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

dotdigital Group used its assets more efficiently than the GB Software industry average last year based on Return on Assets.


Return on Capital Employed

dotdigital Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is dotdigital Group's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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.


Balance Sheet

Low level of unsold assets.

dotdigital Group has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

1.03%

Expected Dividend Yield


Dividend Yield and Payments Analysis

dotdigital Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).

dotdigital Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.5%).

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

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

No need to calculate the sustainability of dotdigital Group's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Milan Patel (35yo)

3.2yrs

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

Milan's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Milan's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

39yo

Average Age

The tenure for the dotdigital Group management team is about average.


Board Age and Tenure

1.0yrs

Average Tenure

42.5yo

Average Age

The average tenure for the dotdigital Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Paraag Amin (39yo)

    CFO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£200.69k
  • Tink Taylor (46yo)

    Co-Founder & Non-Executive Chairman

    • Tenure: 0.4yrs
    • Compensation: UK£130.00k
  • Milan Patel (35yo)

    CEO, President & Executive Director

    • Tenure: 3.2yrs
    • Compensation: UK£565.00k
  • Peter Duffy

    Senior Business Development Manager

    • Tenure: 5.5yrs
  • 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: 0.5yrs
  • Paraag Amin (39yo)

    CFO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£200.69k
  • Tink Taylor (46yo)

    Co-Founder & Non-Executive Chairman

    • Tenure: 0.4yrs
    • Compensation: UK£130.00k
  • Milan Patel (35yo)

    CEO, President & Executive Director

    • Tenure: 3.2yrs
    • 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£273.581m
  • 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 Analysis2019/09/16 21:42
End of Day Share Price2019/09/16 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.