Digital360 (BIT:DIG) - Share price, News & Analysis

DIG fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

DIG Stock Overview

Digital360 S.p.A. operates multi-channel B2B platform in Italy.

Rewards

Trading at 57.3% below our estimate of its fair value

Earnings are forecast to grow 31.12% per year

Earnings have grown 47.7% per year over the past 5 years

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap (€79M)

Digital360 Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Digital360
Historical stock prices
Current Share Price	€4.02
52 Week High	€5.28
52 Week Low	€2.43
Beta	0.51
1 Month Change	-5.41%
3 Month Change	-6.51%
1 Year Change	60.16%
3 Year Change	318.75%
5 Year Change	181.12%
Change since IPO	183.10%

Recent News & Updates

Feb 25

If You Like EPS Growth Then Check Out Digital360 (BIT:DIG) Before It's Too Late

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Nov 02

Do Digital360's (BIT:DIG) Earnings Warrant Your Attention?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

	DIG	IT Media	IT Market
7D	-5.2%	-1.4%	1.1%
1Y	60.2%	-61.7%	-15.6%

Return vs Industry: DIG exceeded the Italian Media industry which returned -61.3% over the past year.

Return vs Market: DIG exceeded the Italian Market which returned -17.2% over the past year.

Price Volatility

Is DIG's price volatile compared to industry and market?
DIG volatility
DIG Average Weekly Movement	3.7%
Media Industry Average Movement	4.8%
Market Average Movement	5.1%
10% most volatile stocks in IT Market	7.1%
10% least volatile stocks in IT Market	3.3%

Stable Share Price: DIG is less volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DIG's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	218	Gabriele Faggioli	https://www.digital360.it

Digital360 S.p.A. operates multi-channel B2B platform in Italy. The company offers digital marketing and sales services in the areas of content marketing, storytelling, marketing automation, lead generation, and events. It also provides advisory and coaching services in the areas of audit and compliance, IT governance and cyber security, people strategy and digital open innovation, legal, healthcare, and MarTech.

Digital360 Fundamentals Summary

How do Digital360's earnings and revenue compare to its market cap?
DIG fundamental statistics
Market Cap	€78.53m
Earnings (TTM)	€1.80m
Revenue (TTM)	€35.97m

43.5x

P/E Ratio

2.2x

P/S Ratio

Is DIG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DIG income statement (TTM)
Revenue	€35.97m
Cost of Revenue	€28.52m
Gross Profit	€7.44m
Other Expenses	€5.64m
Earnings	€1.80m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.092
Gross Margin	20.70%
Net Profit Margin	5.02%
Debt/Equity Ratio	58.7%

How did DIG perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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 DIG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DIG. This is calculated by dividing DIG's market cap by their current preferred multiple.
What is DIG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€78.53m

DIG 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	2.1x
Enterprise Value/EBITDA	18.1x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

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

DIG PE Ratio vs Peers

The above table shows the PE ratio for DIG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	39.1x

Forward PE

Price-To-Earnings vs Peers: DIG is expensive based on its Price-To-Earnings Ratio (43.5x) compared to the peer average (39.1x).

Price to Earnings Ratio vs Industry

How does DIG's PE Ratio compare vs other companies in the Media Industry?

Price-To-Earnings vs Industry: DIG is expensive based on its Price-To-Earnings Ratio (43.5x) compared to the Italian Media industry average (21x)

Price to Earnings Ratio vs Fair Ratio

What is DIG'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.

DIG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	43.5x
Fair PE Ratio	15.4x

Price-To-Earnings vs Fair Ratio: DIG is expensive based on its Price-To-Earnings Ratio (43.5x) compared to the estimated Fair Price-To-Earnings Ratio (15.4x).

Share Price vs Fair Value

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

Below Fair Value: DIG (€4.02) is trading below our estimate of fair value (€9.42)

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

Price to Earnings Growth Ratio

PEG Ratio: DIG is poor value based on its PEG Ratio (1.4x)

Discover undervalued companies

Future Growth

How is Digital360 forecast to perform in the next 1 to 3 years based on estimates from 3 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

31.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIG's forecast earnings growth (31.1% per year) is above the savings rate (1.7%).

Earnings vs Market: DIG's earnings (31.1% per year) are forecast to grow faster than the Italian market (10.2% per year).

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

Revenue vs Market: DIG's revenue (13.6% per year) is forecast to grow faster than the Italian market (0.3% per year).

High Growth Revenue: DIG's revenue (13.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DIG's Return on Equity is forecast to be low in 3 years time (19.7%).

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Past Performance

How has Digital360 performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

47.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DIG has high quality earnings.

Growing Profit Margin: DIG's current net profit margins (5%) are higher than last year (3.9%).

Past Earnings Growth Analysis

Earnings Trend: DIG's earnings have grown significantly by 47.7% per year over the past 5 years.

Accelerating Growth: DIG's earnings growth over the past year (68.5%) exceeds its 5-year average (47.7% per year).

Earnings vs Industry: DIG earnings growth over the past year (68.5%) underperformed the Media industry 99.7%.

Return on Equity

High ROE: DIG's Return on Equity (12%) is considered low.

Discover strong past performing companies

Financial Health

How is Digital360's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: DIG's short term assets (€28.7M) exceed its short term liabilities (€16.9M).

Long Term Liabilities: DIG's short term assets (€28.7M) exceed its long term liabilities (€11.2M).

Debt to Equity History and Analysis

Debt Level: DIG has more cash than its total debt.

Reducing Debt: DIG's debt to equity ratio has reduced from 209.1% to 58.7% over the past 5 years.

Debt Coverage: DIG's debt is well covered by operating cash flow (71.4%).

Interest Coverage: DIG's interest payments on its debt are well covered by EBIT (15.4x coverage).

Balance Sheet

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Dividend

What is Digital360 current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate DIG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DIG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DIG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DIG's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DIG has not reported any payouts.

Discover strong dividend paying companies

Management

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

CEO

Gabriele Faggioli (51 yo)

no data

Tenure

Mr. Gabriele Faggioli serves as Chief Executive Officer at Digital360 S.p.A. He serves as Chief Executive Officer at P4i and is responsible for Practice Negotiation, Contract & Risk. Mr. Faggioli serves as...

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 been diluted in the past year, with total shares outstanding growing by 7.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31