OTCPK:DIGP

Stock Analysis Report

Executive Summary

DigiPath, Inc. together with its subsidiaries, provides cannabis related testing services in the United States.

Snowflake

Fundamentals

Imperfect balance sheet with weak fundamentals.

Risks

  • DigiPath has significant price volatility in the past 3 months.
  • DigiPath is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

6.3%

DIGP

0.008%

US Healthcare

-0.2%

US Market


1 Year Return

-23.4%

DIGP

-9.0%

US Healthcare

1.1%

US Market

DIGP underperformed the Healthcare industry which returned -9.4% over the past year.

DIGP underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

DIGPIndustryMarket
7 Day6.3%0.008%-0.2%
30 Day-12.6%-0.8%2.5%
90 Day-21.3%-1.5%1.6%
1 Year-23.4%-23.4%-7.6%-9.0%3.4%1.1%
3 Year-41.0%-41.0%29.6%24.4%45.2%35.8%
5 Year-98.1%-98.1%66.2%56.2%62.6%44.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is DigiPath undervalued based on future cash flows and its price relative to the stock market?

7.9x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for DigiPath to establish if it is available at moderate discount.

Unable to calculate intrinsic value for DigiPath to establish if it is available at substantial discount.


Price Based on Earnings

DigiPath is loss making, we can't compare its value to the US Healthcare industry average.

DigiPath is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for DigiPath, we can't assess if its growth is good value.


Price Based on Value of Assets

DigiPath is overvalued based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is DigiPath expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as DigiPath has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of DIGP’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access DigiPath's filings and announcements here.
  • Explore growth companies in the Healthcare industry.

Past Performance

How has DigiPath performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

DigiPath does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare DigiPath's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare DigiPath's 1-year growth to the US Healthcare industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if DigiPath has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if DigiPath has efficiently used its assets last year compared to the US Healthcare industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if DigiPath improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is DigiPath's financial position?


Financial Position Analysis

DigiPath is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

DigiPath's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

DigiPath's level of debt (62.5%) compared to net worth is high (greater than 40%).

Unable to establish if DigiPath's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

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.

DigiPath has less than a year of cash runway based on current free cash flow.

DigiPath has less than a year of cash runway if free cash flow continues to reduce at historical rates of -1.4% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate DigiPath's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate DigiPath's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as DigiPath has not reported any payouts.

Unable to verify if DigiPath's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as DigiPath has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of DigiPath's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Todd Denkin (55yo)

1.2yrs

Tenure

US$426,818

Compensation

Mr. Todd Denkin is the Founder of Digipath, Inc. Mr. Denkin has been Chief Executive Officer and Chairman of Digipath, Inc. since July 3, 2018. Mr. Denkin has been President of Digipath, Inc. since April  ...


CEO Compensation Analysis

Todd's remuneration is about average for companies of similar size in United States of America.

Todd's compensation has increased whilst company is loss making.


Management Age and Tenure

3.4yrs

Average Tenure

55yo

Average Age

The tenure for the DigiPath management team is about average.


Board Age and Tenure

1.1yrs

Average Tenure

59.5yo

Average Age

The average tenure for the DigiPath board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Cindy Orser (63yo)

    Chief Science Officer & Director

    • Tenure: 1yrs
    • Compensation: US$24.91k
  • Drazen Jukic

    Executive Officer

    • Tenure: 0yrs
  • Todd Denkin (55yo)

    Founder

    • Tenure: 1.2yrs
    • Compensation: US$426.82k
  • Todd Peterson (49yo)

    CFO, Principal Accounting Officer

    • Tenure: 4.3yrs
    • Compensation: US$237.83k
  • Bo Deitl

    Consultant

    • Tenure: 2.5yrs

Board Members

  • Bruce Raben (65yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$31.02k
  • Michael Dugan (56yo)

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • Cindy Orser (63yo)

    Chief Science Officer & Director

    • Tenure: 1yrs
    • Compensation: US$24.91k
  • Todd Denkin (55yo)

    Founder

    • Tenure: 1.2yrs
    • Compensation: US$426.82k
  • Richard Cote

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • Steven Hinrichs

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • Ossama Tawfik

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • Alexander Judkins

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • Toby Cornish

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • John Abroon

    Member of Advisory Board

    • Tenure: 2.3yrs

Company Information

DigiPath, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DigiPath, Inc.
  • Ticker: DIGP
  • Exchange: OTCPK
  • Founded: 2010
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$5.682m
  • Shares outstanding: 48.16m
  • Website: https://www.digipath.com

Number of Employees


Location

  • DigiPath, Inc.
  • 6450 Cameron Street
  • Suite 113
  • Las Vegas
  • Nevada
  • 89118
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DIGPOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2011

Biography

DigiPath, Inc. together with its subsidiaries, provides cannabis related testing services in the United States. The company offers cannabis lab testing services in Las Vegas to Nevada licensed medical mari ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:58
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.