Datalogic (BATS-CHIXE:DALM) - Share price, News & Analysis

Q: What is the Fair Price of DALM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DALM (€7.59) is trading below our estimate of [[fair value]] (€14.32)

DALM fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	3/6
Financial Health	5/6
Dividends	3/6

DALM Stock Overview

Datalogic S.p.A. manufactures and sells automatic data capture and process automation products worldwide.

Rewards

Trading at 47% below our estimate of its fair value

Earnings are forecast to grow 25.05% per year

Earnings grew by 20.6% over the past year

Risk Analysis

Shares are highly illiquid

Dividend of 4.42% is not well covered by earnings

Datalogic Competitors

Oxford Instruments

LSE:OXIG

UK£1.1b

SDI Group

AIM:SDI

UK£147.6m

Renishaw

LSE:RSW

UK£2.8b

Spectra Systems

AIM:SPSY

UK£60.7m

Price History & Performance

Summary of all time highs, changes and price drops for Datalogic
Historical stock prices
Current Share Price	€7.59
52 Week High	€19.83
52 Week Low	€7.59
Beta	1.7
1 Month Change	-25.64%
3 Month Change	-25.64%
1 Year Change	n/a
3 Year Change	-54.98%
5 Year Change	-67.50%
Change since IPO	5.79%

Shareholder Returns

	DALM	GB Electronic	GB Market
7D	0%	3.1%	-2.7%
1Y	n/a	-23.7%	-10.6%

Return vs Industry: Insufficient data to determine how DALM performed against the UK Electronic industry.

Return vs Market: Insufficient data to determine how DALM performed against the UK Market.

Price Volatility

Is DALM's price volatile compared to industry and market?
DALM volatility
DALM Average Weekly Movement	n/a
Electronic Industry Average Movement	5.0%
Market Average Movement	5.3%
10% most volatile stocks in GB Market	10.6%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: Insufficient data to determine DALM's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine DALM's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1972	2,875	Valentina Volta	https://www.datalogic.com

Datalogic S.p.A. manufactures and sells automatic data capture and process automation products worldwide. It operates through Datalogic and Informatics segments. The company offers fixed retail scanners, including single plane scanners, presentation scanners, multi-plane imaging scanner/scales, and loss prevention solutions; general duty and industrial handheld scanners; wearable scanners; mobile computers, such as vehicle mounted and handheld computers, and related software solutions; and laser marking systems.

Datalogic Fundamentals Summary

How do Datalogic's earnings and revenue compare to its market cap?
DALM fundamental statistics
Market Cap	€382.99m
Earnings (TTM)	€31.57m
Revenue (TTM)	€604.08m

12.1x

P/E Ratio

0.6x

P/S Ratio

Is DALM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DALM income statement (TTM)
Revenue	€604.08m
Cost of Revenue	€352.11m
Gross Profit	€251.98m
Other Expenses	€220.41m
Earnings	€31.57m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)	0.56
Gross Margin	41.71%
Net Profit Margin	5.23%
Debt/Equity Ratio	32.5%

How did DALM perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

54%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is DALM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DALM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DALM. This is calculated by dividing DALM's market cap by their current preferred multiple.
What is DALM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€382.99m

DALM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	7.3x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does DALM's PE Ratio compare to its peers?

DALM PE Ratio vs Peers

The above table shows the PE ratio for DALM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.8x
OXIG Oxford Instruments	29.7x	15.8%	UK£1.1b
SDI SDI Group	23.4x	n/a	UK£147.6m
RSW Renishaw	21.7x	2.8%	UK£2.8b
SPSY Spectra Systems	14x	n/a	UK£60.7m
DALM Datalogic	12.1x	25.1%	€383.0m

Forward PE

Price-To-Earnings vs Peers: DALM is good value based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (21.8x).

Price to Earnings Ratio vs Industry

How does DALM's PE Ratio compare vs other companies in the European Electronic Industry?

Price-To-Earnings vs Industry: DALM is good value based on its Price-To-Earnings Ratio (12.1x) compared to the UK Electronic industry average (21.1x)

Price to Earnings Ratio vs Fair Ratio

What is DALM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DALM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DALM's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of DALM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DALM (€7.59) is trading below our estimate of fair value (€14.32)

Significantly Below Fair Value: DALM is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: DALM is good value based on its PEG Ratio (0.5x)

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

25.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DALM's forecast earnings growth (25.1% per year) is above the savings rate (0.9%).

Earnings vs Market: DALM's earnings (25.1% per year) are forecast to grow faster than the UK market (11% per year).

High Growth Earnings: DALM's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DALM's revenue (4.7% per year) is forecast to grow faster than the UK market (4.2% per year).

High Growth Revenue: DALM's revenue (4.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DALM's Return on Equity is forecast to be low in 3 years time (10.3%).

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Past Performance

How has Datalogic performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-15.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DALM has high quality earnings.

Growing Profit Margin: DALM's current net profit margins (5.2%) are lower than last year (5.3%).

Past Earnings Growth Analysis

Earnings Trend: DALM's earnings have declined by 15.2% per year over the past 5 years.

Accelerating Growth: DALM's earnings growth over the past year (20.6%) exceeds its 5-year average (-15.2% per year).

Earnings vs Industry: DALM earnings growth over the past year (20.6%) exceeded the Electronic industry 13.6%.

Return on Equity

High ROE: DALM's Return on Equity (7.5%) is considered low.

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Financial Health

How is Datalogic's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DALM's short term assets (€350.8M) exceed its short term liabilities (€277.9M).

Long Term Liabilities: DALM's short term assets (€350.8M) exceed its long term liabilities (€120.1M).

Debt to Equity History and Analysis

Debt Level: DALM's net debt to equity ratio (14.7%) is considered satisfactory.

Reducing Debt: DALM's debt to equity ratio has reduced from 47.4% to 32.5% over the past 5 years.

Debt Coverage: DALM's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: DALM's interest payments on its debt are well covered by EBIT (10.8x coverage).

Balance Sheet

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Dividend

What is Datalogic current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.42%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DALM's dividend (4.42%) is higher than the bottom 25% of dividend payers in the UK market (1.93%).

High Dividend: DALM's dividend (4.42%) is low compared to the top 25% of dividend payers in the UK market (5.3%).

Stability and Growth of Payments

Stable Dividend: DALM's dividend payments have been volatile in the past 10 years.

Growing Dividend: DALM's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (53.7%), DALM's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: DALM is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

4.2yrs

Average board tenure

CEO

Valentina Volta

5.5yrs

Tenure

€523,200

Compensation

Dr. Valentina Volta has been the Chief Executive Officer of Datalogic S.p.A. since January 21, 2017 and serves as its Director.

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Valentina's total compensation is reasonable compared to companies of similar size in the UK market.

Compensation vs Earnings: Insufficient data to compare Valentina's compensation with company performance.

Board Members

Experienced Board: DALM's board of directors are considered experienced (4.2 years average tenure).

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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/06 00:00
End of Day Share Price	2022/06/22 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31