NasdaqGS:DMRC

Stock Analysis Report

Executive Summary

Digimarc Corporation provides media identification and management solutions to government and commercial customers in the United States and internationally.


Snowflake Analysis

Flawless 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.4%

DMRC

-1.0%

US Software

-2.0%

US Market


1 Year Return

-61.5%

DMRC

6.5%

US Software

-15.1%

US Market

Return vs Industry: DMRC underperformed the US Software industry which returned 6.9% over the past year.

Return vs Market: DMRC underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

DMRCIndustryMarket
7 Day-4.4%-1.0%-2.0%
30 Day-41.5%-15.0%-19.7%
90 Day-63.9%-8.6%-23.2%
1 Year-61.5%-61.5%7.6%6.5%-13.4%-15.1%
3 Year-56.4%-56.4%100.0%91.4%10.9%3.7%
5 Year-44.5%-44.5%162.3%143.8%28.4%14.4%

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?

2.94x

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 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 (2.9x) compared to the US Software industry average (4.2x).


Next Steps

Future Growth

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

-1.8%

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 (19.8% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: DMRC's revenue (19.8% 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 DMRC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Digimarc performed over the past 5 years?

-14.5%

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 -14.5% 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 (18.7%).


Return on Equity

High ROE: DMRC has a negative Return on Equity (-66.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is Digimarc's financial position?


Financial Position Analysis

Short Term Liabilities: DMRC's short term assets ($43.3M) exceed its short term liabilities ($5.4M).

Long Term Liabilities: DMRC's short term assets ($43.3M) exceed its long term liabilities ($2.5M).


Debt to Equity History and Analysis

Debt Level: DMRC is debt free.

Reducing Debt: DMRC has not had any debt for past 5 years.


Balance Sheet

Inventory Level: DMRC has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DMRC's debt is covered by short term assets.


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 a year based on its current free cash flow.

Forecast Cash Runway: DMRC has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of -23.4% each year.


Next Steps

Dividend

What is Digimarc's 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 payouts.

High Dividend: Unable to evaluate DMRC'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 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?

6.4yrs

Average management tenure


CEO

Bruce Davis (66yo)

11.83s

Tenure

US$2,468,326

Compensation

Mr. Bruce L. Davis has been the Chairman and Chief Executive Officer of Digimarc Corporation since June 18, 2008 and serves as its President. Mr. Davis has more than 25 years of experience establishing and ...


CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD2.47M) is above average for companies of similar size in the US market ($USD609.32K).

Compensation vs Earnings: Bruce's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Bruce Davis
President11.83yrsUS$2.47m0.17% $247.7k
Charles Beck
Executive VP6.42yrsUS$721.94k0.50% $735.8k
Joel Meyer
Executive Vice President of Innovation7.92yrsUS$655.53k0.64% $940.6k
Tony Rodriguez
Executive VP & CTO1yrUS$570.22k0.31% $456.0k
Robert Chamness
Executive VP of Sustainability & Governance16.92yrsUS$632.77k0.50% $731.1k
Heidi Dethloff
Vice President of Marketingno datano datano data
Brian O'Sullivan
Vice President of Sales & Business Development2yrsno datano data
Cindy Marple
Vice President of Human Resources0.75yrno datano data

6.4yrs

Average Tenure

52yo

Average Age

Experienced Management: DMRC's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bruce Davis
President11.83yrsUS$2.47m0.17% $247.7k
Bernard Whitney
Independent Director11.75yrsUS$165.09k0.18% $268.4k
Gary Destefano
Independent Director3.5yrsUS$160.09k0.13% $194.9k
James Richardson
Lead Independent Director14.83yrsUS$170.09k0.68% $997.8k
Richard King
Independent Director4.92yrsUS$155.09k0.17% $252.0k
Andrew Walter
Independent Director3.5yrsUS$157.59k0.099% $146.5k

8.3yrs

Average Tenure

64yo

Average Age

Experienced Board: DMRC'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: 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 been diluted in the past year, with total shares outstanding growing by 3.5%.


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$147.308m
  • Shares outstanding: 12.17m
  • Website: https://www.digimarc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DMRCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2008

Biography

Digimarc Corporation provides media identification and management solutions to government and commercial customers in the United States and internationally. It offers Digimarc Intuitive Computing Platform, a comprehensive set of technologies for identifying, discovering, and interacting with digitally-enhanced media, which includes Digimarc Barcode, a method for imperceptibly enhancing packaging, print, images, thermal labels, audio, and other objects with data that is detected by enabled devices, such as smart phones, computers, barcode scanners, and machine-vision equipment. The company also provides Digimarc Discover software that enables an ecosystem of connected devices to identify content or materials and deliver information. Its solutions are used in various media identification and management products and solutions, such as retail point of sale transaction processing; track and trace of products within the supply chain; quality control in manufacturing processes; counterfeiting and piracy deterrence; online e-publication piracy protection; content identification and media management; authentication and monitoring; linking to networks and providing access to information; and enhanced services in support of mobile commerce. The company provides its solutions directly and through its business partners. Digimarc Corporation was founded in 2008 and is based in Beaverton, Oregon. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 00:50
End of Day Share Price2020/04/03 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.