company background image
DMRC

DigimarcNasdaqGS:DMRC Stock Report

Market Cap

US$598.3m

7D

6.8%

1Y

115.7%

Updated

26 Sep, 2021

Data

Company Financials +
DMRC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance0/6
Financial Health5/6
Dividends0/6

DMRC Overview

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

Digimarc Competitors

Eastman Kodak

NYSE:KODK

US$553.2m

De La Rue

LSE:DLAR

UK£361.0m

Ipsidy

NasdaqCM:AUID

US$299.8m

Spectra Systems

AIM:SPSY

UK£73.6m

Price History & Performance

Summary of all time highs, changes and price drops for Digimarc
Historical stock prices
Current Share PriceUS$36.32
52 Week HighUS$17.13
52 Week LowUS$58.74
Beta1.2
1 Month Change30.60%
3 Month Change10.16%
1 Year Change115.68%
3 Year Change15.49%
5 Year Change-5.29%
Change since IPO284.34%

Recent News & Updates

Shareholder Returns

DMRCUS SoftwareUS Market
7D6.8%0.5%0.1%
1Y115.7%38.7%35.3%

Return vs Industry: DMRC exceeded the US Software industry which returned 38.7% over the past year.

Return vs Market: DMRC exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is DMRC's price volatile compared to industry and market?
DMRC volatility
DMRC Beta1.2
Industry Beta0.95
Market Beta1

Stable Share Price: DMRC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: DMRC's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2008203Riley McCormackhttps://www.digimarc.com

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, discovery, and management of media, which includes Digimarc Barcode, a data carrier that integrates the identification function; Digimarc Discover, a software for computing devices and network interfaces that recognize and decode indicia of the identity of media; and Digimarc Verify, a suite of software tools used to inspect and verify that the identification and discovery of media. 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; inventory management and planogram compliance; sorting of consumer packaged goods in recycling streams; 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.

Digimarc Fundamentals Summary

How do Digimarc's earnings and revenue compare to its market cap?
DMRC fundamental statistics
Market CapUS$598.28m
Earnings (TTM)-US$51.25m
Revenue (TTM)US$24.28m

Earnings & Revenue

Key profitability statistics from the latest earnings report
DMRC income statement (TTM)
RevenueUS$24.28m
Cost of RevenueUS$8.03m
Gross ProfitUS$16.25m
ExpensesUS$67.50m
Earnings-US$51.25m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-3.11
Gross Margin66.92%
Net Profit Margin-211.08%
Debt/Equity Ratio7.8%

How did DMRC perform over the long term?

See historical performance and comparison

Valuation

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

9.18x

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 overvalued based on its PB Ratio (9.2x) compared to the US Software industry average (7.9x).


Future Growth

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

25.3%

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 (17% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: DMRC's revenue (17% 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?

-15.4%

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 15.4% 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 (22.1%).


Return on Equity

High ROE: DMRC has a negative Return on Equity (-61.02%), as it is currently unprofitable.


Financial Health

How is Digimarc's financial position?


Financial Position Analysis

Short Term Liabilities: DMRC's short term assets ($67.3M) exceed its short term liabilities ($12.2M).

Long Term Liabilities: DMRC's short term assets ($67.3M) exceed its long term liabilities ($3.1M).


Debt to Equity History and Analysis

Debt Level: DMRC's debt to equity ratio (7.8%) 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 a year based on its current free cash flow.

Forecast Cash Runway: DMRC has sufficient cash runway for 2.5 years if free cash flow continues to reduce at historical rates of 11.8% 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?

2.4yrs

Average management tenure


CEO

Riley McCormack (45 yo)

0.42

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 (2.4 years average tenure).


Board Members

Experienced Board: DMRC's board of directors are not considered experienced ( 0.6 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 35.8%.


Top Shareholders

Company Information

Digimarc Corporation's 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$598.280m
  • Shares outstanding: 16.47m
  • Website: https://www.digimarc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:07
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
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.