dotDigital Group Plc (DOTD) 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

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Why is dotDigital Group Plc ?

High Management Efficiency with a high ROE of 15.60%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.34

Flat results in Jun 25

ROCE(HY) Lowest at 11.31%
CASH AND EQV(HY) Lowest at GBP 36.21 MM
DEBT-EQUITY RATIO (HY) Highest at -33.39 %

With ROE of 11.91%, it has a fair valuation with a 1.66 Price to Book Value

Over the past year, while the stock has generated a return of -37.21%, its profits have risen by 3.3% ; the PEG ratio of the company is 4.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -37.21% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to dotDigital Group Plc should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is dotDigital Group Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

dotDigital Group Plc

-39.24%

-1.31

38.40%

FTSE 100

15.58%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.10%

EBIT Growth (5y)

3.13%

EBIT to Interest (avg)

13.34

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.84

Tax Ratio

19.95%

Dividend Payout Ratio

33.15%

Pledged Shares

Institutional Holding

ROCE (avg)

36.93%

ROE (avg)

15.60%

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

1.66

EV to EBIT

9.47

EV to EBITDA

5.28

EV to Capital Employed

2.01

EV to Sales

1.61

PEG Ratio

4.25

Dividend Yield

2.18%

ROCE (Latest)

21.20%

ROE (Latest)

11.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 46.4 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 75.62%

RAW MATERIAL COST(Y)

Fallen by 1.31% (YoY

-5What is not working for the Company

ROCE(HY)

Lowest at 11.31%

CASH AND EQV(HY)

Lowest at GBP 36.21 MM

DEBT-EQUITY RATIO (HY)

Highest at -33.39 %

EPS(Q)

Lowest at GBP 0.02

Here's what is working for dotDigital Group Plc

Operating Cash Flow

Highest at GBP 46.4 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 (GBP MM)

Dividend Payout Ratio

Highest at 75.62%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.31% (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

Depreciation

Highest at GBP 5.83 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for dotDigital Group Plc

EPS

Lowest at GBP 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Cash and Eqv

Lowest at GBP 36.21 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -33.39 %

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