NasdaqGM:DRAD

Stock Analysis Report

Executive Summary

Digirad Corporation provides healthcare solutions in the United States and internationally.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DRAD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.9%

DRAD

11.2%

US Healthcare

5.3%

US Market


1 Year Return

-52.9%

DRAD

1.4%

US Healthcare

-10.7%

US Market

Return vs Industry: DRAD underperformed the US Healthcare industry which returned 1.9% over the past year.

Return vs Market: DRAD underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

DRADIndustryMarket
7 Day6.9%11.2%5.3%
30 Day60.7%-7.5%-13.6%
90 Day50.4%-15.0%-19.8%
1 Year-52.9%-52.9%2.8%1.4%-8.9%-10.7%
3 Year-91.0%-92.1%23.3%17.8%15.5%8.0%
5 Year-89.2%-91.3%27.5%18.8%35.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Digirad 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: DRAD ($4.04) is trading below our estimate of fair value ($11.81)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DRAD is good value based on its PB Ratio (0.4x) compared to the US Healthcare industry average (2.3x).


Next Steps

Future Growth

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

93.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRAD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: DRAD's revenue (13.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: DRAD's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DRAD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Digirad performed over the past 5 years?

-47.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRAD is currently unprofitable.

Growing Profit Margin: DRAD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DRAD is unprofitable, and losses have increased over the past 5 years at a rate of -47.9% per year.

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

Earnings vs Industry: DRAD is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (14%).


Return on Equity

High ROE: DRAD has a negative Return on Equity (-12.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Digirad's financial position?


Financial Position Analysis

Short Term Liabilities: DRAD's short term assets ($29.5M) exceed its short term liabilities ($28.2M).

Long Term Liabilities: DRAD's short term assets ($29.5M) exceed its long term liabilities ($21.7M).


Debt to Equity History and Analysis

Debt Level: DRAD's debt to equity ratio (56.5%) is considered high.

Reducing Debt: DRAD had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: DRAD has a high level of physical assets or inventory.

Debt Coverage by Assets: DRAD's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DRAD has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: DRAD has less than a year of cash runway if free cash flow continues to reduce at historical rates of -12.3% each year


Next Steps

Dividend

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

75.85%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate DRAD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DRAD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DRAD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DRAD is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Matt Molchan (52yo)

6.75s

Tenure

US$637,997

Compensation

Mr. Matthew Gabel Molchan, also known as Matt, has been the Chief Executive Officer and Director of Digirad Corporation since July 01, 2013 and has been its President from February 2013. Mr. Molchan served ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD638.00K) is about average for companies of similar size in the US market ($USD602.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Molchan
President6.75yrsUS$638.00k0.91% $73.9k
Martin Shirley
President of Digirad Imaging Solutions4.25yrsUS$321.37k0.14% $11.5k
David Noble
CFO & COO1.25yrsno data1.09% $89.0k
Hannah Bible
Vice President of Legal & Financeno datano datano data
Bob Halbert
Senior Director of Human Resourceno datano datano data

4.3yrs

Average Tenure

52yo

Average Age

Experienced Management: DRAD's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Molchan
President6.75yrsUS$638.00k0.91% $73.9k
Mitchell Quain
Independent Director1.25yrsno data1.0% $81.3k
John Sayward
Independent Director12.08yrsUS$78.50k0.76% $62.1k
Michael Cunnion
Independent Director6.25yrsUS$72.13k0.30% $24.8k
John Climaco
Independent Director7.33yrsUS$68.13k0.34% $27.4k
Mickey King
Executive Chairman of Digirad Imaging Solutions8.25yrsno datano data
Jeffrey Eberwein
Independent Chairman7.17yrsUS$75.00k4.3% $350.0k
Dimitrios Angelis
Independent Director4.75yrsUS$72.13k0.24% $19.8k

7.0yrs

Average Tenure

50yo

Average Age

Experienced Board: DRAD's board of directors are considered experienced (6.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Digirad Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Digirad Corporation
  • Ticker: DRAD
  • Exchange: NasdaqGM
  • Founded: 1985
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$8.141m
  • Shares outstanding: 2.05m
  • Website: https://www.digirad.com

Number of Employees


Location

  • Digirad Corporation
  • 1048 Industrial Court
  • Suite E
  • Suwanee
  • Georgia
  • 30024
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRADNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 2004
FDV1DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2004
DRAD.PNasdaqGM (Nasdaq Global Market)10% CUM SR A PFDUSUSDSep 2019

Biography

Digirad Corporation provides healthcare solutions in the United States and internationally. It operates through five segments: Diagnostic Services, Diagnostic Imaging Mobile Healthcare, Building and Construction, and Real Estate and Investments. The company offers imaging and monitoring services to healthcare providers; and contract diagnostic imaging, including computerized tomography (CT), magnetic resonance imaging, positron emission tomography (PET), PET/CT, and nuclear medicine and healthcare services hospitals, integrated delivery networks, and federal institutions on a long-term contract basis, as well as provisional services to institutions that are in transition. It also develops, sells, and maintains solid-state gamma cameras, such as nuclear cardiac imaging systems and general purpose nuclear imaging systems to physician offices and hospitals; and offers camera maintenance contract services. In addition, it manufactures modular housing units, structural wall panels, permanent wood foundation systems, and other engineered wood products; supplies general contractors with building materials; and manages real estate assets and investments. Digirad Corporation was founded in 1985 and is headquartered in Suwanee, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 15:01
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
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.