Executive Summary
Digi Communications N.V. provides telecommunication services in Romania, Hungary, Spain, and Italy. More Details
Rewards
Risk Analysis
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
| DIGI | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.2% | -1.5% | -0.4% |
| 30 Day | 0.3% | -0.8% | -2.5% |
| 90 Day | -4.7% | -7.0% | 0.9% |
| 1 Year | 2.6%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 Year | n/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
3 weeks ago | Simply Wall St
Is There More Growth In Store For Digi Communications' (BVB:DIGI) Returns On Capital?1 month ago | Simply Wall St
We Think Digi Communications (BVB:DIGI) Is Taking Some Risk With Its Debt2 months ago | Simply Wall St
Digi Communications (BVB:DIGI) Shareholders Booked A 16% Gain In The Last YearValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | no data | €1.18m | 0.40% € 12.4m | |
| Vice-President Non-Executive Director | no data | €831.83k | 0.053% € 1.6m | |
| Executive Director | 3.75yrs | €736.39k | 0.25% € 7.8m | |
| Non-executive Director and Head of RCS & RDS Sales and Customer Care Business Unit | 1.5yrs | €214.39k | no data | |
| Independent Non-Executive Director | 3.75yrs | €111.10k | no data | |
| Independent Non-Executive Director | 3.75yrs | €153.25k | 0.72% € 22.1m | |
| President of the Board of Directors | no data | €198.59k | 2.41% € 73.8m | |
| Non-Executive Director of RCS & RDS | no data | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DIGI | BVB (Bucharest Stock Exchange) | Yes | Class B Ordinary Shares | RO | RON | May 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/24 19:51 |
| End of Day Share Price | 2020/10/23 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.