BIT:DGV

Stock Analysis Report

Executive Summary

Digital Value S.p.A. provides technology and service solutions to the telecommunications, utilities, energy, defense, transportation, and finance sectors in Italy.

Snowflake

Fundamentals

Very undervalued with reasonable growth potential.

Share Price & News

How has Digital Value's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

DGV

0.7%

IT Software

1.3%

IT Market


1 Year Return

n/a

DGV

27.2%

IT Software

13.9%

IT Market

Return vs Industry: Insufficient data to determine how DGV performed against the Italian Software industry.

Return vs Market: Insufficient data to determine how DGV performed against the Italian Market.


Shareholder returns

DGVIndustryMarket
7 Day0%0.7%1.3%
30 Day-1.2%-3.3%0.8%
90 Day5.7%-4.2%1.3%
1 Yearn/a29.1%27.2%19.1%13.9%
3 Yearn/a67.2%58.0%24.5%6.2%
5 Yearn/a108.1%91.9%23.0%-26.0%

Price Volatility Vs. Market

How volatile is Digital Value's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Digital Value undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DGV (€16.8) is trading below our estimate of fair value (€45.33)

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


Price To Earnings Ratio

PE vs Industry: DGV is good value based on its PE Ratio (9.4x) compared to the Software industry average (42.7x).

PE vs Market: DGV is good value based on its PE Ratio (9.4x) compared to the Italian market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: DGV is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: DGV is good value based on its PB Ratio (2.4x) compared to the IT Software industry average (3.4x).


Next Steps

Future Growth

How is Digital Value forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DGV's forecast earnings growth (15.4% per year) is above the savings rate (2.9%).

Earnings vs Market: DGV's earnings (15.4% per year) are forecast to grow faster than the Italian market (8.4% per year).

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

Revenue vs Market: DGV's revenue (9.3% per year) is forecast to grow faster than the Italian market (3% per year).

High Growth Revenue: DGV's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DGV's Return on Equity is forecast to be high in 3 years time (22.6%)


Next Steps

Past Performance

How has Digital Value performed over the past 5 years?

13.7%

Historical Software annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if DGV's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare DGV's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: Insufficient data to determine if DGV's earnings growth over the past year exceeded the Software industry average.


Return on Equity

High ROE: DGV's Return on Equity (25%) is considered high.


Return on Assets

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


Return on Capital Employed

ROCE Improving: Insufficient data to calculate DGV's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Digital Value's financial position?


Financial Position Analysis

Short Term Liabilities: DGV's short term assets (€244.8M) exceeds its short term liabilities (€207.7M)

Long Term Liabilities: DGV's short term assets (244.8M) exceeds its long term liabilities (5.3M)


Debt to Equity History and Analysis

Debt Level: DGV's debt to equity ratio (19.7%) is considered satisfactory

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

Debt Coverage: Insufficient data to determine if DGV's debt is well covered by operating cash flow.

Interest Coverage: DGV's interest payments on its debt are well covered by EBIT (40.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: DGV's debt is covered by short term assets (assets are 20.745950x debt).


Next Steps

Dividend

What is Digital Value's current dividend yield, its reliability and sustainability?

3.23%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.1%markettop25%4.4%industryaverage1.4%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DGV's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

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


CEO

Massimo Rossi 0

0yrs

Tenure

0

Mr. Massimo Rossi serves as Executive Chairman, President and Chief Executive Officer at Digital Value S.p.A. Mr. Rossi served as purchaising manager of a group formed by the companies Alenia S.p.A., Otom ...


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

  • Carlo Brigada

    Vice Chairman

    • Tenure: 0yrs
  • Riccardo Benedini

    Director

    • Tenure: 0yrs
  • Massimo Rossi

    • Tenure: 0yrs
  • Massimo Rossi

    Executive Chairman

    • Tenure: 0yrs

Board Members

  • Simone Strocchi

    Director

    • Tenure: 0yrs
  • Alessandro Fabbroni (47yo)

    Director

    • Tenure: 0yrs
  • Giovanna Zanotti (47yo)

    Independent Director

    • Tenure: 0yrs
  • David Reali (53yo)

    Member of Statutory Auditors

    • Tenure: 0yrs
  • Maurizio Bastoni (53yo)

    President of Statutory Auditors & Member of Supervisory Board

    • Tenure: 0yrs
  • Carlo Brigada

    Vice Chairman

    • Tenure: 0yrs
  • Riccardo Benedini

    Director

    • Tenure: 0yrs
  • Massimo Rossi

    Executive Chairman

    • Tenure: 0yrs
  • Massimo Bareato

    Director

    • Tenure: 0yrs
  • Sergio Marchese

    Member of Statutory Auditors & Member of Supervisory Board

    • Tenure: 0yrs

Company Information

Digital Value S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Digital Value S.p.A.
  • Ticker: DGV
  • Exchange: BIT
  • Founded:
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: €166.078m
  • Shares outstanding: 9.89m
  • Website: https://www.digitalvalue.it

Number of Employees


Location

  • Digital Value S.p.A.
  • Via Galileo Galilei, 7
  • Milan
  • Milan
  • 20124
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DGVBIT (Borsa Italiana)YesOrdinary SharesITEURNov 2018

Biography

Digital Value S.p.A. provides technology and service solutions to the telecommunications, utilities, energy, defense, transportation, and finance sectors in Italy. It offers services in the areas of data c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:58
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.