BVB:DIGI

Stock Analysis Report

Digi Communications

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

DIGIIndustryMarket
7 Day-0.3%2.6%0.2%
30 Day1.7%4.6%2.6%
90 Day1.7%6.4%4.3%
1 Year4.5%2.4%13.4%7.8%19.9%7.0%
3 Yearn/a13.1%-1.2%88.2%44.7%
5 Yearn/a20.4%-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

company1.6%marketbottom25%3.1%markettop25%6.7%industryaverage4.7%forecastin3Years4.3%

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

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 Analysis2019/10/16 19:43
End of Day Share Price2019/10/15 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.