NasdaqGS:DMRC

Stock Analysis Report

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Market Cap

US$449.2m

Last Updated

2021/07/23 02:54 UTC

Data Sources

Company Financials +

Executive Summary

Digimarc Corporation provides automatic identification solutions to commercial and government customers in the United States and internationally. More Details


Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-1.6%

DMRC

3.0%

US Software

0.4%

US Market


1 Year Return

89.4%

DMRC

40.9%

US Software

36.9%

US Market

Return vs Industry: DMRC exceeded the US Software industry which returned 34.5% over the past year.

Return vs Market: DMRC exceeded the US Market which returned 35.1% over the past year.


Shareholder returns

DMRCIndustryMarket
7 Day-1.6%3.0%0.4%
30 Day-14.2%4.9%1.6%
90 Day-23.7%8.5%2.7%
1 Year89.4%89.4%41.8%40.9%39.1%36.9%
3 Year-9.5%-9.5%139.9%133.4%61.0%51.0%
5 Year-24.3%-24.3%358.6%335.0%122.5%97.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Digimarc undervalued compared to its fair value and its price relative to the market?

5.83x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DMRC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DMRC's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: DMRC 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 DMRC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DMRC is good value based on its PB Ratio (5.8x) compared to the US Software industry average (7.1x).


Future Growth

How is Digimarc forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DMRC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DMRC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DMRC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DMRC's revenue (16.3% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: DMRC's revenue (16.3% 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 DMRC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Digimarc performed over the past 5 years?

-14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DMRC is currently unprofitable.

Growing Profit Margin: DMRC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DMRC is unprofitable, and losses have increased over the past 5 years at a rate of 14.3% per year.

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

Earnings vs Industry: DMRC is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (33.3%).


Return on Equity

High ROE: DMRC has a negative Return on Equity (-41.48%), as it is currently unprofitable.


Financial Health

How is Digimarc's financial position?


Financial Position Analysis

Short Term Liabilities: DMRC's short term assets ($76.6M) exceed its short term liabilities ($10.8M).

Long Term Liabilities: DMRC's short term assets ($76.6M) exceed its long term liabilities ($2.6M).


Debt to Equity History and Analysis

Debt Level: DMRC's debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DMRC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: DMRC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: DMRC has sufficient cash runway for 2.9 years if free cash flow continues to reduce at historical rates of 13% each year.


Dividend

What is Digimarc current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate DMRC'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 DMRC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.3yrs

Average management tenure


CEO

Riley McCormack (45 yo)

0.25

Tenure

US$215,046

Compensation

Mr. Riley Young McCormack serves as CEO, President and Director at Digimarc Corporation since April 12, 2021. Mr. McCormack served as Lead Independent Director at Digimarc Corporation since February 22, 20...


Leadership Team

Experienced Management: DMRC's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: DMRC's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: DMRC 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 35.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Digimarc Corporation
  • Ticker: DMRC
  • Exchange: NasdaqGS
  • Founded: 2008
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$449.247m
  • Shares outstanding: 16.41m
  • Website: https://www.digimarc.com

Number of Employees


Location

  • Digimarc Corporation
  • 9405 SW Gemini Drive
  • Beaverton
  • Oregon
  • 97008
  • United States

Listings


Biography

Digimarc Corporation provides automatic identification solutions to commercial and government customers in the United States and internationally. The company offers Digimarc Platform for the identification...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 02:54
End of Day Share Price2021/07/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.