APPS

Digital TurbineNasdaqCM:APPS Stock Report

Market Cap

US$6.4b

7D

8.0%

1Y

103.9%

Updated

18 Sep, 2021

Data

Company Financials +
APPS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance3/6
Financial Health2/6
Dividends0/6

APPS Overview

Digital Turbine, Inc., through its subsidiaries, provides media and mobile communication products and solutions for mobile operators, application advertisers, publishers, device original equipment manufacturers (OEMs), and other third parties.

Digital Turbine Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Digital Turbine
Historical stock prices
Current Share PriceUS$66.86
52 Week HighUS$25.26
52 Week LowUS$102.56
Beta2.35
1 Month Change34.15%
3 Month Change-1.05%
1 Year Change103.90%
3 Year Change5,248.80%
5 Year Change6,586.00%
Change since IPO3,243.00%

Recent News & Updates

Sep 13

Can Digital Turbine Stock Rebound After August's Drop Or Will The Trend Continue?

Digital Turbine stock looks ready to resume its uptrend after the recent double-bottom bear trap. The company's acquisitions and debt levels have caused some worry among investors. Despite that, Digital Turbine is a high-growth company with solid EBITDA margins. We maintain our Buy rating, and encourage investors to add now.

Sep 08
Here's Why Digital Turbine, Inc.'s (NASDAQ:APPS) CEO May Deserve A Raise

Here's Why Digital Turbine, Inc.'s (NASDAQ:APPS) CEO May Deserve A Raise

The impressive results at Digital Turbine, Inc. ( NASDAQ:APPS ) recently will be great news for shareholders. At the...

Sep 07

Is Digital Turbine Stock A Buy Or Sell After Q2 Earnings?

Digital Turbine has transformed the business through recent acquisitions and the results have been generally positive. The company has gone from one with a relatively low ceiling to one with much higher growth potential. Despite the positive results, the stock has struggled to gain traction over the previous six months, however analysts are raising targets and a bullish trend may be on the horizon.

Aug 31
Digital Turbine  (NASDAQ:APPS) may gain more Institutional Support After Inclusion in S&P MidCap 400 Index

Digital Turbine (NASDAQ:APPS) may gain more Institutional Support After Inclusion in S&P MidCap 400 Index

Shares of Digital Turbine, Inc. (NASDAQ:APPS) are trading higher after news broke that the stock is going to be added to the S&P MidCap 400 Index. In pre-market trade, the stock has traded as much as 9% higher than Monday’s closing price.

Aug 10

Digital Turbine - 104% Organic Revenue Growth - Hitting On All Cylinders

Digital Turbine reported 104% organic growth last night and 150% EBITDA growth. APPS trades at 4x sales, a fraction of the 26x sales afforded to TTD which is growing much more slowly. SingleTap grew 500% in the quarter.

Jul 20

Digital Turbine's DCF Model: This Is Why The Stock Is Undervalued

Digital Turbine, Inc. offers a mobile services platform that interacts with mobile operators to provide user interface, content development, and billing technologies among other capabilities. The market expects significant sales growth and FCF growth from APPS. Most analysts are expecting triple-digit sales growth in 2021 and 2022. Like most analysts, I believe that FCF will grow significantly from 2021. I used a terminal FCF of $746 million and FCF/Sales of 23%, which seems achievable. Traders believe that the company could report net cash of $13 million in 2023 and $204 million in 2024. In the most realistic scenario, which includes a WACC of 14%, 6% growth rate, and a terminal FCF of $746 million, the equity fair value is $76.

Shareholder Returns

APPSUS SoftwareUS Market
7D8.0%0.9%-0.6%
1Y103.9%42.9%33.8%

Return vs Industry: APPS exceeded the US Software industry which returned 43.5% over the past year.

Return vs Market: APPS exceeded the US Market which returned 33.6% over the past year.

Price Volatility

Is APPS's price volatile compared to industry and market?
APPS volatility
APPS Beta2.35
Industry Beta0.95
Market Beta1

Stable Share Price: APPS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: APPS's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a280Bill Stonehttps://www.digitalturbine.com

Digital Turbine, Inc., through its subsidiaries, provides media and mobile communication products and solutions for mobile operators, application advertisers, publishers, device original equipment manufacturers (OEMs), and other third parties. Its application media software platform that enables mobile operators and OEMs to control, manage, and monetize devices. The company also provides programmatic advertising and targeted media delivery services; and other products and professional services directly related to the core platform.

Valuation

Is Digital Turbine 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: APPS ($66.86) is trading below our estimate of fair value ($160.23)

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


Price To Earnings Ratio

PE vs Industry: APPS is poor value based on its PE Ratio (108.5x) compared to the US Software industry average (56.8x).

PE vs Market: APPS is poor value based on its PE Ratio (108.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: APPS is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: APPS is overvalued based on its PB Ratio (12.8x) compared to the US Software industry average (7.8x).


Future Growth

How is Digital Turbine forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

36.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APPS's forecast earnings growth (36.4% per year) is above the savings rate (2%).

Earnings vs Market: APPS's earnings (36.4% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: APPS's revenue (30.4% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: APPS's revenue (30.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APPS's Return on Equity is forecast to be high in 3 years time (34.5%)


Past Performance

How has Digital Turbine performed over the past 5 years?

72.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APPS has a large one-off loss of $22.7M impacting its June 30 2021 financial results.

Growing Profit Margin: APPS's current net profit margins (12.7%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: APPS has become profitable over the past 5 years, growing earnings by 72.7% per year.

Accelerating Growth: APPS's earnings growth over the past year (128.8%) exceeds its 5-year average (72.7% per year).

Earnings vs Industry: APPS earnings growth over the past year (128.8%) exceeded the Software industry 22.1%.


Return on Equity

High ROE: APPS's Return on Equity (11.2%) is considered low.


Financial Health

How is Digital Turbine's financial position?


Financial Position Analysis

Short Term Liabilities: APPS's short term assets ($323.8M) do not cover its short term liabilities ($618.5M).

Long Term Liabilities: APPS's short term assets ($323.8M) exceed its long term liabilities ($278.7M).


Debt to Equity History and Analysis

Debt Level: APPS's debt to equity ratio (48.3%) is considered high.

Reducing Debt: APPS's debt to equity ratio has increased from 13.7% to 48.3% over the past 5 years.

Debt Coverage: APPS's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: APPS's interest payments on its debt are well covered by EBIT (42.4x coverage).


Balance Sheet


Dividend

What is Digital Turbine current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of APPS'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?

0.7yrs

Average management tenure


CEO

Bill Stone (53 yo)

6.92yrs

Tenure

US$2,297,870

Compensation

Mr. William Gordon Stone, III, also known as Bill, has been the Chief Executive Officer of Digital Turbine, Inc. (known as Mandalay Digital Group) since October 2014. Mr. Stone served as Chief Executive Of...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD2.30M) is below average for companies of similar size in the US market ($USD6.45M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: APPS's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: APPS's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: APPS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.7%.


Top Shareholders

Company Information

Digital Turbine, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Digital Turbine, Inc.
  • Ticker: APPS
  • Exchange: NasdaqCM
  • Founded: NaN
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$6.425b
  • Shares outstanding: 96.10m
  • Website: https://www.digitalturbine.com

Number of Employees


Location

  • Digital Turbine, Inc.
  • 110 San Antonio Street
  • Suite 160
  • Austin
  • Texas
  • 78701
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 00:51
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.