ScoreWhy 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
With a growth in Net Sales of 197.1%, the company declared Very Positive results in Jun 26
- OPERATING CASH FLOW(Y) Highest at PLN 73.41 MM
- NET PROFIT(9M) Higher at PLN 36.94 MM
- CASH AND EQV(HY) Highest at PLN 60.68 MM
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 289.12%, 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 289.12% returns in the last 1 year, the stock has outperformed Poland WIG in each of the last 3 annual periods
Real-Time Research ReportHow 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
289.12%
418.42
46.35%
Poland WIG
43.29%
2.67
16.21%
Quality
Management Risk
Growth
Capital StructureQuality 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%
ValuationValuation 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%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
OPERATING CASH FLOW(Y)
Highest at PLN 73.41 MM
NET PROFIT(9M)
Higher at PLN 36.94 MM
CASH AND EQV(HY)
Highest at PLN 60.68 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 4.58 times
NET SALES(Q)
Highest at PLN 60.82 MM
OPERATING PROFIT(Q)
Highest at PLN 38.24 MM
PRE-TAX PROFIT(Q)
At PLN 20.12 MM has Grown at 102.33%
-12What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 13.32% (YoY
INTEREST(Q)
Highest at PLN 5.54 MM
Here's what is working for Digital Network SA
Net Sales
At PLN 60.82 MM has Grown at 197.1%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely positive
Net Sales (PLN MM)
Operating Cash Flow
Highest at PLN 73.41 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)
Net Sales
Highest at PLN 60.82 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (PLN MM)
Operating Profit
Highest at PLN 38.24 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (PLN MM)
Pre-Tax Profit
At PLN 20.12 MM has Grown at 102.33%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (PLN MM)
Cash and Eqv
Highest at PLN 60.68 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 4.58 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 36.94 MM
than preceding 12 month period ended Jun 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 12.74 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 12.74 MM has Grown at 32.8%
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 5.54 MM has Grown at 40.52%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (PLN MM)
Interest
Highest at PLN 5.54 MM
in the last five periods and Increased by 40.52% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (PLN MM)
Raw Material Cost
Grown by 13.32% (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
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