BIT:DGV

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DGV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

DGV

-2.1%

IT Software

-3.7%

IT Market


1 Year Return

81.7%

DGV

6.1%

IT Software

-15.8%

IT Market

Return vs Industry: DGV exceeded the Italian Software industry which returned 6.1% over the past year.

Return vs Market: DGV exceeded the Italian Market which returned -15.8% over the past year.


Shareholder returns

DGVIndustryMarket
7 Day0.3%-2.1%-3.7%
30 Day-2.5%-7.3%-4.6%
90 Day18.1%-1.3%-2.3%
1 Year81.7%81.7%6.4%6.1%-13.7%-15.8%
3 Yearn/a-3.2%-7.1%-14.1%-21.9%
5 Yearn/a83.6%69.6%-4.5%-26.3%

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?

18.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DGV (€30.7) is trading below our estimate of fair value (€37.77)

Significantly Below Fair Value: DGV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DGV is good value based on its PE Ratio (15.1x) compared to the IT Software industry average (19.4x).

PE vs Market: DGV is good value based on its PE Ratio (15.1x) compared to the Italian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: DGV is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: DGV's PB Ratio (3.8x) is in line with the IT Software industry average.


Next Steps

Future Growth

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

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DGV's forecast earnings growth (15.7% per year) is above the savings rate (2%).

Earnings vs Market: DGV's earnings (15.7% per year) are forecast to grow slower than the Italian market (23.6% per year).

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

Revenue vs Market: DGV's revenue (12.8% per year) is forecast to grow faster than the Italian market (3.5% per year).

High Growth Revenue: DGV's revenue (12.8% 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 (22.4%)


Next Steps

Past Performance

How has Digital Value performed over the past 5 years?

34.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: DGV has a high level of non-cash earnings.

Growing Profit Margin: DGV's current net profit margins (5%) are higher than last year (4.6%).


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: DGV earnings growth over the past year (34.9%) exceeded the Software industry 27.4%.


Return on Equity

High ROE: DGV's Return on Equity (25.3%) is considered high.


Next Steps

Financial Health

How is Digital Value's financial position?


Financial Position Analysis

Short Term Liabilities: DGV's short term assets (€255.2M) exceed its short term liabilities (€207.7M).

Long Term Liabilities: DGV's short term assets (€255.2M) exceed its long term liabilities (€19.0M).


Debt to Equity History and Analysis

Debt Level: DGV's debt to equity ratio (19.4%) 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: DGV's debt is well covered by operating cash flow (228.3%).

Interest Coverage: DGV's interest payments on its debt are well covered by EBIT (128.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.41%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate DGV'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 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

  • Explore strong dividend paying companies in the Software industry.

Management

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


CEO

Massimo Rossi

no data

Tenure

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 ...


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 15.6%.


Top Shareholders

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: €303.487m
  • 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 Analysis2020/09/27 03:17
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.