OTCPK:DTGI

Stock Analysis Report

Digerati Technologies

Executive Summary

Digerati Technologies, Inc., through its subsidiaries, provides Internet-based telephony products and services through its cloud application platform and session-based communication network.

Risk Analysis

Earnings have declined by -30.58% per year over past 5 years

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap ($1M)

+ 2 more risks


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.0%

DTGI

-0.3%

US Telecom

0.06%

US Market


1 Year Return

-88.2%

DTGI

13.5%

US Telecom

19.4%

US Market

Return vs Industry: DTGI underperformed the US Telecom industry which returned 13.5% over the past year.

Return vs Market: DTGI underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

DTGIIndustryMarket
7 Day6.0%-0.3%0.06%
30 Day-11.7%-1.6%1.1%
90 Day-51.5%-0.1%8.9%
1 Year-88.2%-88.2%19.1%13.5%21.9%19.4%
3 Year-90.5%-90.5%17.2%0.08%48.9%39.3%
5 Year-89.0%-89.0%38.6%7.3%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether Digerati Technologies is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Digerati Technologies has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of DTGI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Digerati Technologies regulatory filings here.
  • Explore potentially undervalued companies in the Telecom industry.

Future Growth

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

9.5%

Forecasted Telecom 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 Digerati Technologies 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

  • Take a look at our analysis of DTGI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • 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 Digerati Technologies's filings and announcements here.
  • Explore growth companies in the Telecom industry.

Past Performance

How has Digerati Technologies performed over the past 5 years?

-30.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DTGI is currently unprofitable.

Growing Profit Margin: DTGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DTGI is unprofitable, and losses have increased over the past 5 years at a rate of -30.6% per year.

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

Earnings vs Industry: DTGI is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-23.8%).


Return on Equity

High ROE: DTGI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Digerati Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: DTGI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: DTGI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: DTGI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: DTGI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: DTGI has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: DTGI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: DTGI has less than a year of cash runway if free cash flow continues to grow at historical rates of 24.2% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if DTGI'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 DTGI'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?

4.7yrs

Average management tenure


CEO

Art Smith (53yo)

7.2yrs

Tenure

US$338,590

Compensation

Mr. Arthur L. Smith, also known as Art, has been the Chief Executive Officer and President of Digerati Technologies, Inc. since December 23, 2012 and has been its Director since May 2003. Mr. Smith served  ...


CEO Compensation Analysis

Compensation vs Market: Art's total compensation ($USD338.59K) is below average for companies of similar size in the US market ($USD519.76K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Craig Clement
Executive Chairman of the Board5.1yrsUS$372.46k7.25% $95.0k
Arthur Smith
CEO, President & Director7.2yrsUS$338.59k10.73% $140.5k
Antonio Estrada
CFO & Treasurer12.8yrsUS$304.51k7.96% $104.3k
Ken Ryon
Chief Technical Officer0.08yrsno datano data
Charlie Slaughter
Chief Revenue Officer2.2yrsno datano data

4.7yrs

Average Tenure

53yo

Average Age

Experienced Management: DTGI's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Clement
Executive Chairman of the Board5.1yrsUS$372.46k7.25% $95.0k
Arthur Smith
CEO, President & Director7.2yrsUS$338.59k10.73% $140.5k
Maxwell Polinsky
Independent Director5.4yrsno data0.17% $2.2k

5.4yrs

Average Tenure

61yo

Average Age

Experienced Board: DTGI's board of directors are considered experienced (5.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 73.2%.


Top Shareholders

Company Information

Digerati Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Digerati Technologies, Inc.
  • Ticker: DTGI
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$1.310m
  • Shares outstanding: 49.42m
  • Website: https://www.digerati-inc.com

Number of Employees


Location

  • Digerati Technologies, Inc.
  • 825 West Bitters Road
  • Suite 104
  • San Antonio
  • Texas
  • 78216
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DTGIOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 2004

Biography

Digerati Technologies, Inc., through its subsidiaries, provides Internet-based telephony products and services through its cloud application platform and session-based communication network. The company offers Internet-based services, including voice over Internet protocol (VoIP) transport, customized VoIP, session initiation protocol trunking, fully hosted IP/PBX, call center applications, IVR auto attendant, voice and Web conferencing, call recording, messaging, voicemail to email conversion, integrated mobility applications, and other customized IP/PBX features in a hosted or cloud environment; enterprise-class data and connectivity solutions, such as cloud WAN (wide area network) or software-defined WAN, fiber, mobile broadband, and Ethernet over copper; and remote network monitoring, data backup, and disaster recovery services. It primarily serves small to medium-sized businesses, enterprise customers, and other resellers. The company was formerly known as ATSI Communications Inc. and changed its name to Digerati Technologies, Inc. in March 2011. Digerati Technologies, Inc. was founded in 1993 and is headquartered in San Antonio, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:29
End of Day Share Price2020/02/19 00:00
Earnings2019/10/31
Annual Earnings2019/07/31


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.