Why is Digital Network SA ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.28 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.28 times
2
Poor long term growth as Net Sales has grown by an annual rate of 27.90% over the last 5 years
3
Flat results in Mar 26
- INTEREST COVERAGE RATIO(Q) Lowest at 577.02
- RAW MATERIAL COST(Y) Grown by 14.65% (YoY)
- DEBT-EQUITY RATIO (HY) Highest at 158.86 %
4
With ROE of 37.28%, it has a very expensive valuation with a 10.81 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 208.32%, its profits have risen by 44.3% ; the PEG ratio of the company is 0.7
5
Consistent Returns over the last 3 years
- Along with generating 208.32% returns in the last 1 year, the stock has outperformed Poland WIG in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Digital Network SA should be less than 10%
- Overall Portfolio exposure to Media & Entertainment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Digital Network SA for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Digital Network SA
-100.0%
376.11
42.09%
Poland WIG
37.09%
2.22
16.73%
Quality key factors
Factor
Value
Sales Growth (5y)
27.90%
EBIT Growth (5y)
126.84%
EBIT to Interest (avg)
14.65
Debt to EBITDA (avg)
0.20
Net Debt to Equity (avg)
-0.25
Sales to Capital Employed (avg)
1.11
Tax Ratio
20.44%
Dividend Payout Ratio
55.38%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
54.07%
ROE (avg)
30.63%
Valuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
Price to Book Value
10.81
EV to EBIT
22.20
EV to EBITDA
15.94
EV to Capital Employed
6.68
EV to Sales
9.23
PEG Ratio
0.66
Dividend Yield
NA
ROCE (Latest)
30.09%
ROE (Latest)
37.28%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
20What is working for the Company
OPERATING CASH FLOW(Y)
Highest at PLN 57.86 MM
NET SALES(Q)
At PLN 42.92 MM has Grown at 178.76%
NET PROFIT(9M)
Higher at PLN 32.04 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 3.82 times
-16What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 577.02
RAW MATERIAL COST(Y)
Grown by 14.65% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 158.86 %
INTEREST(Q)
Highest at PLN 3.94 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 52.98 %
Here's what is working for Digital Network SA
Net Sales
At PLN 42.92 MM has Grown at 178.76%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely positive
Net Sales (PLN MM)
Operating Cash Flow
Highest at PLN 57.86 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (PLN MM)
Debtors Turnover Ratio
Highest at 3.82 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Profit
Higher at PLN 32.04 MM
than preceding 12 month period ended Mar 2026MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (PLN MM)
Depreciation
Highest at PLN 9.59 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (PLN MM)
Depreciation
At PLN 9.59 MM has Grown at 32.47%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (PLN MM)
Here's what is not working for Digital Network SA
Interest
At PLN 3.94 MM has Grown at 70.63%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (PLN MM)
Interest Coverage Ratio
Lowest at 577.02
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at PLN 3.94 MM
in the last five periods and Increased by 70.63% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (PLN MM)
Operating Profit Margin
Lowest at 52.98 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debt-Equity Ratio
Highest at 158.86 %
in the last five Semi-Annual periodsMOJO 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 14.65% (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






