Digimarc Corp. (DMRC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Model N, Inc.

MeridianLink, Inc.

A10 Networks, Inc.

Grid Dynamics Holdings, Inc.

PC Connection, Inc.

Accolade, Inc.

PDF Solutions, Inc.

Digimarc Corp.

PROS Holdings, Inc.

Verint Systems, Inc.

TTEC Holdings, Inc.

Why is Digimarc Corp. ?

Poor long term growth as Operating profit has grown by an annual rate -2.66% of over the last 5 years

Flat results in Sep 25

ROCE(HY) Lowest at -65.89%
RAW MATERIAL COST(Y) Grown by 14.95% (YoY)
CASH AND EQV(HY) Lowest at USD 28.65 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -70.58%, its profits have risen by 10.2%

Below par performance in long term as well as near term

Along with generating -70.58% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Digimarc Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Digimarc Corp.

-69.1%

-1.11

76.18%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.21%

EBIT Growth (5y)

-2.66%

EBIT to Interest (avg)

-43.86

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.58

Tax Ratio

0.08%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

70.69%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.30

EV to EBIT

-3.28

EV to EBITDA

-4.15

EV to Capital Employed

4.21

EV to Sales

3.72

PEG Ratio

Dividend Yield

ROCE (Latest)

-128.36%

ROE (Latest)

-88.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD -17.02 MM

PRE-TAX PROFIT(Q)

Highest at USD -8.21 MM

NET PROFIT(Q)

Highest at USD -8.15 MM

EPS(Q)

Highest at USD -0.38

-13What is not working for the Company

ROCE(HY)

Lowest at -65.89%

RAW MATERIAL COST(Y)

Grown by 14.95% (YoY

CASH AND EQV(HY)

Lowest at USD 28.65 MM

DEBT-EQUITY RATIO (HY)

Highest at -17.26 %

NET SALES(Q)

Lowest at USD 7.63 MM

Here's what is working for Digimarc Corp.

Operating Cash Flow

Highest at USD -17.02 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

Highest at USD -8.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD -8.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD -0.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Here's what is not working for Digimarc Corp.

Net Sales

At USD 7.63 MM has Fallen at -14.01%

over average net sales of the previous four periods of USD 8.87 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Net Sales

Lowest at USD 7.63 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Cash and Eqv

Lowest at USD 28.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -17.26 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 14.95% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales