Executive Summary
Digi Communications N.V. provides telecommunication services in Romania, Hungary, Spain, and Italy.
Snowflake
Fundamentals
Reasonable 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
Market Performance
7 Day Return
-0.3%
DIGI
2.6%
RO Telecom
0.2%
RO Market
1 Year Return
2.4%
DIGI
7.8%
RO Telecom
7.0%
RO Market
Shareholder returns
| DIGI | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.3% | 2.6% | 0.2% |
| 30 Day | 1.7% | 4.6% | 2.6% |
| 90 Day | 1.7% | 6.4% | 4.3% |
| 1 Year | 4.5%2.4% | 13.4%7.8% | 19.9%7.0% |
| 3 Year | n/a | 13.1%-1.2% | 88.2%44.7% |
| 5 Year | n/a | 20.4%-3.2% | 82.3%28.7% |
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
No news available
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
Undervalued: DIGI (RON30.3) is trading below our estimate of fair value (RON207.51)
Significantly Undervalued: DIGI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DIGI is poor value based on its PE Ratio (132.9x) compared to the Telecom industry average (22.6x).
PE vs Market: DIGI is poor value based on its PE Ratio (132.9x) compared to the RO market (10.5x).
Price to Earnings Growth Ratio
Low 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 (4.2x) compared to the XE Telecom industry average (1.9x).
Next Steps
Future Growth
How is Digi Communications forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
46.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if DIGI's forecast earnings growth is above the savings rate (2.7%).
Earnings vs Market: Insufficient data to determine if DIGI's earnings are forecast to grow faster than the RO market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DIGI's revenue (4.8% per year) is forecast to grow faster than the RO market (3.4% per year).
High Growth Revenue: DIGI's revenue (4.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Information is not available.
Next Steps
Past Performance
How has Digi Communications performed over the past 5 years?
49.3%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: DIGI has become profitable over the past 5 years, growing earnings by 49.3% per year.
Accelerating Growth: DIGI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DIGI had negative earnings growth (-88.9%) over the past year, making it difficult to compare to the Telecom industry average (10.1%).
Return on Equity
High ROE: DIGI's Return on Equity (6.2%) is considered low.
Return on Assets
ROA vs Industry: DIGI's Return on Assets is below or equal to the Telecom industry average last year.
Return on Capital Employed
ROCE Improving: DIGI's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Digi Communications's financial position?
Financial Position Analysis
Short Term Liabilities: DIGI's short term assets (€208.4M) do not cover its short term liabilities (€605.1M)
Long Term Liabilities: DIGI's short term assets (208.4M) do not cover its long term liabilities (1.1B)
Debt to Equity History and Analysis
Debt Level: DIGI's debt to equity ratio (587%) is considered high
Reducing Debt: DIGI's debt to equity ratio has increased from 513.1% to 587% over the past 5 years.
Debt Coverage: DIGI's debt is well covered by operating cash flow (31.7%).
Interest Coverage: DIGI's interest payments on its debt are not well covered by EBIT (1.9x coverage).
Balance Sheet
Information is not available.
Information is not available.
Next Steps
Dividend
What is Digi Communications's current dividend yield, its reliability and sustainability?
1.65%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: DIGI's dividend (1.65%) isn’t notable compared to the bottom 25% of dividend payers in the RO market (3.06%).
High Dividend: DIGI's dividend (1.65%) is low compared to the top 25% of dividend payers in the RO market (6.66%).
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
What is the CEO of Digi Communications's salary, the management and board of directors tenure and is there insider trading?
2.8yrs
Average board tenure
CEO
Serghei Bulgac (42yo)
0yrs
Tenure
€1,737,000
Compensation
Mr. Serghei Bulgac serves as the Chief Executive Officer at Digi Communications N.V. and S.C. RCS & RDS S.A. and has been its Executive Director at Digi Communications N.V. since 2017.
CEO Compensation Analysis
Information is not available.
Compensation vs Earnings: Serghei's compensation has been consistent with company performance over the past year.
Board Age and Tenure
2.8yrs
Average Tenure
44yo
Average Age
Experienced Board: DIGI's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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
Marius Varzaru (39yo)
Non-Executive Director & MD of Digi Spain
- Tenure: 6.8yrs
- Compensation: €988.00k
Serghei Bulgac (42yo)
CEO & Executive Director
- Tenure: 0yrs
- Compensation: €1.74m
Valentin Popoviciu (44yo)
Executive Director
- Tenure: 2.8yrs
- Compensation: €840.00k
Smaranda Streanga (39yo)
Co-Chief Financial Officer
- Tenure: 0yrs
Dan Ionita (40yo)
Co-Chief Financial Officer
- Tenure: 0yrs
Emil Jugaru (45yo)
Head of RCS & RDS Sales and Customer Care Business Unit
- Tenure: 0yrs
Dragos Spataru (42yo)
Managing Director of Digi Hungary & Invitel
- Tenure: 0yrs
Mihaela Toroman (39yo)
Accounts Manager and Treasurer of RCS & RDS
- Tenure: 0yrs
Dragos Chivu (47yo)
Managing Director of Digi Italy
- Tenure: 0yrs
Catalin Neagoe (38yo)
Head of Fixed & Mobile Telephony Unit of RCS&RDS
- Tenure: 0yrs
Board Members
Piotr Rymaszewski (55yo)
Independent Non-Executive Director
- Tenure: 2.8yrs
- Compensation: €111.00k
Bogdan Ciobotaru (41yo)
Independent Non-Executive Director
- Tenure: 2.8yrs
- Compensation: €439.00k
Zoltán Teszári (48yo)
President of the Board of Directors
- Tenure: 0yrs
- Compensation: €195.00k
Marius Varzaru (39yo)
Non-Executive Director & MD of Digi Spain
- Tenure: 6.8yrs
- Compensation: €988.00k
Serghei Bulgac (42yo)
CEO & Executive Director
- Tenure: 0yrs
- Compensation: €1.74m
Valentin Popoviciu (44yo)
Executive Director
- Tenure: 2.8yrs
- Compensation: €840.00k
Mihai Dinei (49yo)
Non-Executive Director of RCS & RDS
- Tenure: 0yrs
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: ROL2.776b
- Shares outstanding: 93.46m
- 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 | 2019/10/16 19:43 |
| End of Day Share Price | 2019/10/15 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.