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.

Rewards

Revenue is forecast to grow 15.71% per year

Risk Analysis

Earnings are forecast to decline by an average of -3.7% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with concerning outlook.


Similar Companies

Collectors Universe

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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

0.2%

US Software

1.1%

US Market


1 Year Return

84.7%

DMRC

28.8%

US Software

17.8%

US Market

Return vs Industry: DMRC exceeded the US Software industry which returned 28.8% over the past year.

Return vs Market: DMRC exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

DMRCIndustryMarket
7 Day4.4%0.2%1.1%
30 Day-6.6%1.3%1.4%
90 Day-22.6%4.0%3.9%
1 Year84.7%84.7%30.7%28.8%20.3%17.8%
3 Year17.5%17.5%125.1%116.1%44.8%35.4%
5 Year11.4%11.4%185.0%164.8%71.3%52.4%

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?

7.38x

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 overvalued based on its PB Ratio (7.4x) compared to the US Software industry average (5.7x).


Next Steps

Future Growth

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

-3.7%

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 (15.7% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: DMRC's revenue (15.7% 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?

-17.1%

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 -17.1% 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 (15.8%).


Return on Equity

High ROE: DMRC has a negative Return on Equity (-57.61%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Digimarc's financial position?


Financial Position Analysis

Short Term Liabilities: DMRC's short term assets ($47.8M) exceed its short term liabilities ($5.0M).

Long Term Liabilities: DMRC's short term assets ($47.8M) exceed its long term liabilities ($2.7M).


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 1.641134 years if free cash flow continues to reduce at historical rates of -14.3% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

9.5yrs

Average management tenure


CEO

Bruce Davis (66yo)

11.5yrs

Tenure

US$2,233,854

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 ($USD2.23M) is above average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: Bruce's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.5yrs

Average Tenure

59yo

Average Age

Experienced Management: DMRC's management team is seasoned and experienced (9.5 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

64yo

Average Age

Experienced Board: DMRC's board of directors are considered experienced (8 years average tenure).


Insider Trading

Insider Buying: DMRC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$70,00010 Dec 19
Tony Rodriguez
EntityIndividual
Shares2,000
Max PriceUS$35.00
SellUS$33,00004 Dec 19
Tony Rodriguez
EntityIndividual
Shares1,000
Max PriceUS$33.00
SellUS$102,48013 Jun 19
Andrew Walter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$51.24
SellUS$100,52003 Jun 19
Andrew Walter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$50.26
SellUS$88,10223 May 19
Tony Rodriguez
EntityIndividual
Shares1,398
Max PriceUS$63.02
SellUS$222,97623 May 19
Robert Chamness
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares3,688
Max PriceUS$60.46
SellUS$484,20413 May 19
Robert Chamness
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares8,062
Max PriceUS$60.06
SellUS$114,76013 May 19
Joel Meyer
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Intellectual Property
Shares2,000
Max PriceUS$57.86
SellUS$742,77909 May 19
Robert Chamness
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares15,334
Max PriceUS$48.44
SellUS$340,05309 May 19
Bruce Davis
EntityIndividual
Role
Chief Executive Officer
President
Shares5,799
Max PriceUS$58.64
SellUS$718,50007 May 19
Bruce Davis
EntityIndividual
Role
Chief Executive Officer
President
Shares15,000
Max PriceUS$47.90
SellUS$160,00001 Apr 19
James Richardson
EntityIndividual
Role
Lead Director
Lead Director
Shares5,000
Max PriceUS$32.00
SellUS$165,10021 Mar 19
James Richardson
EntityIndividual
Role
Lead Director
Lead Director
Shares5,000
Max PriceUS$33.02
SellUS$84,84227 Feb 19
Aimee Arana
EntityIndividual
Shares2,760
Max PriceUS$30.74

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Management Team

  • Bruce Davis (66yo)

    President

    • Tenure: 11.5yrs
    • Compensation: US$2.23m
  • Robert Chamness (66yo)

    Executive VP

    • Tenure: 16.6yrs
    • Compensation: US$632.77k
  • Larry Logan

    Chief Marketing Officer & Chief Evangelist

    • Tenure: 0yrs
  • Joel Meyer (52yo)

    Executive Vice President of Intellectual Property

    • Tenure: 7.6yrs
    • Compensation: US$632.77k
  • Charles Beck (41yo)

    Executive VP

    • Tenure: 6.1yrs
    • Compensation: US$721.71k

Board Members

  • Bruce Davis (66yo)

    President

    • Tenure: 11.5yrs
    • Compensation: US$2.23m
  • Bern Whitney (62yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$164.00k
  • Gary Destefano (62yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$157.75k
  • James Richardson (71yo)

    Lead Director

    • Tenure: 14.5yrs
    • Compensation: US$169.00k
  • Dick King (69yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$154.00k
  • Andy Walter (50yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$150.25k

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$411.931m
  • Shares outstanding: 11.94m
  • 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:15
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.