Why is Digital Network SA ?
1
Positive results in Mar 25
- OPERATING CASH FLOW(Y) Highest at PLN 36.28 MM
- ROCE(HY) Highest at 47.78%
- RAW MATERIAL COST(Y) Fallen by -7.53% (YoY)
2
With ROE of 62.49%, it has a expensive valuation with a 7.56 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 203.49%, its profits have risen by 9.4% ; the PEG ratio of the company is 1.3
3
Consistent Returns over the last 3 years
- Along with generating 203.49% 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?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Digital Network SA
201.15%
211.93
38.25%
Poland WIG
39.24%
1.84
20.48%
Quality key factors
Factor
Value
Sales Growth (5y)
8.29%
EBIT Growth (5y)
73.05%
EBIT to Interest (avg)
12.85
Debt to EBITDA (avg)
0.26
Net Debt to Equity (avg)
-0.25
Sales to Capital Employed (avg)
1.19
Tax Ratio
18.49%
Dividend Payout Ratio
79.84%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
48.05%
ROE (avg)
30.63%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
7.56
EV to EBIT
9.83
EV to EBITDA
7.39
EV to Capital Employed
10.03
EV to Sales
4.47
PEG Ratio
1.29
Dividend Yield
5.39%
ROCE (Latest)
102.03%
ROE (Latest)
62.49%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at PLN 36.28 MM
ROCE(HY)
Highest at 47.78%
RAW MATERIAL COST(Y)
Fallen by -7.53% (YoY
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Digital Network SA
Operating Cash Flow
Highest at PLN 36.28 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)
Raw Material Cost
Fallen by -7.53% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales






