Digital Value SpA (DGV) 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

Digital Value SpA

Defence Tech Holding SpA

Expert.ai SpA

CY4Gate SpA

Energy SpA

Vantea SMART SpA

Tecma Solutions SpA

Triboo SpA

Itway SpA

Neurosoft SA

FOS SpA

Why is Digital Value SpA ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 23.75

Healthy long term growth as Net Sales has grown by an annual rate of 7.70% and Operating profit at -4.91%

With ROE of 5.35%, it has a Very Attractive valuation with a 1.29 Price to Book Value

Over the past year, while the stock has generated a return of 10.61%, its profits have fallen by -65%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Digital Value SpA should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Digital Value SpA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Digital Value SpA

10.61%

-1.94

28.18%

Italy FTSE MIB

27.29%

1.50

16.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.70%

EBIT Growth (5y)

-4.91%

EBIT to Interest (avg)

23.75

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

2.83

Tax Ratio

32.66%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

42.41%

ROE (avg)

21.70%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.29

EV to EBIT

6.13

EV to EBITDA

3.12

EV to Capital Employed

1.72

EV to Sales

0.25

PEG Ratio

Dividend Yield

ROCE (Latest)

27.98%

ROE (Latest)

5.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at EUR 128.18 MM

CASH AND EQV(HY)

Highest at EUR 188.66 MM

DEBT-EQUITY RATIO (HY)

Lowest at -55.07 %

-10What is not working for the Company

ROCE(HY)

Lowest at 6.13%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.18 times

INTEREST COVERAGE RATIO(Q)

Lowest at 710.75

RAW MATERIAL COST(Y)

Grown by 17.9% (YoY

INTEREST(Q)

Highest at EUR 3.71 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.82 %

PRE-TAX PROFIT(Q)

Lowest at EUR 11.9 MM

Here's what is working for Digital Value SpA

Operating Cash Flow

Highest at EUR 128.18 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (EUR MM)

Cash and Eqv

Highest at EUR 188.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -55.07 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Digital Value SpA

Interest Coverage Ratio

Lowest at 710.75

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 2.18 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at EUR 3.71 MM

in the last five periods and Increased by 63.71% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Operating Profit Margin

Lowest at 7.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at EUR 11.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (EUR MM)

Raw Material Cost

Grown by 17.9% (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