BVB:DIGI

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Digi Communications

Executive Summary

Digi Communications N.V. provides telecommunication services in Romania, Hungary, Spain, and Italy. More Details


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Digi Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.2%

DIGI

-1.5%

RO Telecom

-0.4%

RO Market


1 Year Return

0.6%

DIGI

-17.5%

RO Telecom

-12.8%

RO Market

Return vs Industry: DIGI exceeded the RO Telecom industry which returned -17.5% over the past year.

Return vs Market: DIGI exceeded the RO Market which returned -12.7% over the past year.


Shareholder returns

DIGIIndustryMarket
7 Day1.2%-1.5%-0.4%
30 Day0.3%-0.8%-2.5%
90 Day-4.7%-7.0%0.9%
1 Year2.6%0.6%-13.8%-17.5%-8.3%-12.8%
3 Year-7.3%-11.9%-10.4%-21.6%34.7%6.1%
5 Yearn/a-16.6%-32.6%69.7%17.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Digi Communications 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: DIGI (RON32.5) is trading below our estimate of fair value (RON155.18)

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


Price To Earnings Ratio

PE vs Industry: DIGI is unprofitable, so we can't compare its PE Ratio to the XE Telecom industry average.

PE vs Market: DIGI is unprofitable, so we can't compare its PE Ratio to the RO market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DIGI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DIGI is overvalued based on its PB Ratio (5.8x) compared to the XE Telecom industry average (1.8x).


Next Steps

Future Growth

How is Digi Communications forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

53.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIGI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: DIGI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DIGI's is expected to become profitable in the next 3 years.

Revenue vs Market: DIGI's revenue (5.6% per year) is forecast to grow faster than the RO market (4.2% per year).

High Growth Revenue: DIGI's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DIGI's Return on Equity is forecast to be high in 3 years time (31.3%)


Next Steps

Past Performance

How has Digi Communications performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIGI is currently unprofitable.

Growing Profit Margin: DIGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DIGI is unprofitable, but has reduced losses over the past 5 years at a rate of 24.3% per year.

Accelerating Growth: Unable to compare DIGI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DIGI is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (7.7%).


Return on Equity

High ROE: DIGI has a negative Return on Equity (-3.17%), as it is currently unprofitable.


Next Steps

Financial Health

How is Digi Communications's financial position?


Financial Position Analysis

Short Term Liabilities: DIGI's short term assets (€299.6M) do not cover its short term liabilities (€645.3M).

Long Term Liabilities: DIGI's short term assets (€299.6M) do not cover its long term liabilities (€1.3B).


Debt to Equity History and Analysis

Debt Level: DIGI's debt to equity ratio (977.5%) is considered high.

Reducing Debt: DIGI's debt to equity ratio has increased from 584.4% to 977.5% over the past 5 years.

Debt Coverage: DIGI's debt is well covered by operating cash flow (31.3%).

Interest Coverage: DIGI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Digi Communications's current dividend yield, its reliability and sustainability?

2.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DIGI's dividend (2.1%) isn’t notable compared to the bottom 25% of dividend payers in the RO market (3.82%).

High Dividend: DIGI's dividend (2.1%) is low compared to the top 25% of dividend payers in the RO market (9.39%).


Stability and Growth of Payments

Stable Dividend: DIGI is not paying a notable dividend for the RO market, therefore no need to check if payments are stable.

Growing Dividend: DIGI is not paying a notable dividend for the RO market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DIGI is not paying a notable dividend for the RO market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.8yrs

Average board tenure


CEO

Serghei Bulgac (43 yo)

no data

Tenure

€1,179,236

Compensation

Mr. Serghei Bulgac serves as the Chief Executive Officer at S.C RCS & RDS S.A. (formerly known as DIGI COMMUNICATIONS N.V). and S.C. RCS & RDS S.A. and has been its Executive Director at S.C RCS & RDS S.A ...


CEO Compensation Analysis

Compensation vs Market: Serghei's total compensation ($USD1.40M) is above average for companies of similar size in the RO market ($USD969.40K).

Compensation vs Earnings: Serghei's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Serghei Bulgac
CEO & Executive Directorno data€1.18m0.40%
€ 12.4m
Marius Varzaru
Vice-President Non-Executive Directorno data€831.83k0.053%
€ 1.6m
Valentin Popoviciu
Executive Director3.75yrs€736.39k0.25%
€ 7.8m
Emil Jugaru
Non-executive Director and Head of RCS & RDS Sales and Customer Care Business Unit1.5yrs€214.39kno data
Piotr Rymaszewski
Independent Non-Executive Director3.75yrs€111.10kno data
Bogdan Ciobotaru
Independent Non-Executive Director3.75yrs€153.25k0.72%
€ 22.1m
Zoltán Teszári
President of the Board of Directorsno data€198.59k2.41%
€ 73.8m
Mihai Dinei
Non-Executive Director of RCS & RDSno datano datano data

3.8yrs

Average Tenure

45.5yo

Average Age

Experienced Board: DIGI's board of directors are considered experienced (3.8 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.


Top Shareholders

Company Information

Digi Communications N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Digi Communications N.V.
  • Ticker: DIGI
  • Exchange: BVB
  • Founded: 2000
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: RON3.064b
  • Shares outstanding: 94.26m
  • Website: https://www.digi-communications.ro

Number of Employees


Location

  • Digi Communications N.V.
  • 75 Dr. Staicovici Street
  • Fourth Floor
  • Bucharest
  • Romania

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DIGIBVB (Bucharest Stock Exchange)YesClass B Ordinary SharesRORONMay 2017

Biography

Digi Communications N.V. provides telecommunication services in Romania, Hungary, Spain, and Italy. Its services include cable television (TV), fixed internet and data, fixed line and mobile telephony, mob ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 19:51
End of Day Share Price2020/10/23 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.