OTCPK:DGGX.F

Stock Analysis Report

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Executive Summary

DigitalX Limited develops software products in Australia.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DGGX.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.3%

DGGX.F

-1.2%

US Software

1.5%

US Market


1 Year Return

-38.4%

DGGX.F

33.9%

US Software

6.9%

US Market

Return vs Industry: DGGX.F underperformed the US Software industry which returned 31.8% over the past year.

Return vs Market: DGGX.F underperformed the US Market which returned 5.3% over the past year.


Shareholder returns

DGGX.FIndustryMarket
7 Day-10.3%-1.2%1.5%
30 Day-4.7%9.4%5.9%
90 Day-1.6%25.0%17.9%
1 Year-38.4%-38.4%34.9%33.9%9.2%6.9%
3 Yearn/a144.2%135.8%36.4%27.5%
5 Yearn/a236.8%216.7%64.9%47.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: DGGX.F is good value based on its PB Ratio (1.1x) compared to the US Software industry average (6.6x).


Next Steps

Future Growth

How is DigitalX forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.6%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as DigitalX has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine DigitalX's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access DigitalX's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has DigitalX performed over the past 5 years?

-4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DGGX.F is currently unprofitable.

Growing Profit Margin: DGGX.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DGGX.F is unprofitable, and losses have increased over the past 5 years at a rate of 4.1% per year.

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

Earnings vs Industry: DGGX.F is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (12.3%).


Return on Equity

High ROE: DGGX.F has a negative Return on Equity (-36.67%), as it is currently unprofitable.


Next Steps

Financial Health

How is DigitalX's financial position?


Financial Position Analysis

Short Term Liabilities: DGGX.F's short term assets ($7.5M) exceed its short term liabilities ($372.8K).

Long Term Liabilities: DGGX.F's short term assets ($7.5M) exceed its long term liabilities ($292.0K).


Debt to Equity History and Analysis

Debt Level: DGGX.F is debt free.

Reducing Debt: DGGX.F had no debt 5 years ago.


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: DGGX.F has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: DGGX.F has less than a year of cash runway if free cash flow continues to grow at historical rates of 40.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if DGGX.F'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 DGGX.F'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?

3.6yrs

Average management tenure


CEO

Leigh Travers

3.58yrs

Tenure

US$192,216

Compensation

Mr. Leigh Daniel Travers serves as Executive Director of DigitalX Limited since November 28, 2017 and has been its Managing Director. Mr. Travers has been the Chief Executive Officer of DigitalX Limited si ...


CEO Compensation Analysis

Compensation vs Market: Leigh's total compensation ($USD192.22K) is below average for companies of similar size in the US market ($USD618.98K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Leigh Travers
MD, CEO & Executive Director3.58yrsUS$192.22k0.83% $76.6k
Jonathon Carley
Head of Finance1.08yrsno datano data
Mike Segal
Chief Technology Officerno datano datano data
David Beros
Chief Product Officer2.25yrsno datano data
Shannon Coates
Company Secretary3.58yrsno datano data
Brett Mitchell
Corporate Advisor4yrsUS$2.25kno data

3.6yrs

Average Tenure

Experienced Management: DGGX.F's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leigh Travers
MD, CEO & Executive Director3.58yrsUS$192.22k0.83% $76.6k
Toby Hicks
Non-Executive Chairman1yrUS$6.09k0.13% $12.3k
Peter Rubinstein
Non-Executive Director2.83yrsUS$198.83k4.2% $390.2k

2.7yrs

Average Tenure

Experienced Board: DGGX.F's board of directors are not considered experienced ( 2.7 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: 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DigitalX Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DigitalX Limited
  • Ticker: DGGX.F
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$13.324m
  • Listing Market Cap: AU$9.278m
  • Shares outstanding: 605.63m
  • Website: https://www.digitalx.com

Location

  • DigitalX Limited
  • The Blockchain Centre
  • Suite 1, Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DCCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2014
DCCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2014
VSLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014
VSLHMSE (Hamburg Stock Exchange)YesOrdinary SharesDEEURJun 2014
DGGX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2014
VSLBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJun 2014

Biography

DigitalX Limited develops software products in Australia. The company provides blockchain consulting and development services; and asset management services focusing on blockchain and emerging technologies. It also offers corporate advisory, technical due diligence, and marketing and promotion services. The company was formerly known as Digital CC Limited and changed its name to DigitalX Limited in December 2015. DigitalX Limited was incorporated in 1988 and is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 00:48
End of Day Share Price2020/07/14 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.