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Digital Ally (DGLY)
:DGLY
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Digital Ally
(NASDAQ:DGLY)
Rating:47Neutral
Price Target:
$2.00
▲(14.94% Upside)
Digital Ally (DGLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.01M
Dividend YieldN/A
Average Volume (3M)81.59K
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth-28.69%
EPS Growth65.07%
CountryUS
Employees31
SectorCommunication Services
Sector Strength90
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)1.41
Shares Outstanding1,727,421
10 Day Avg. Volume86,858
30 Day Avg. Volume81,593
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap-0.47
Enterprise Value/Revenue-0.07
Enterprise Value/Gross Profit-0.27
Enterprise Value/Ebitda0.09
Forecast
1Y Price Target
$2.00Price Target Upside14.94% Upside
Rating ConsensusHold
Number of Analyst Covering1
Digital Ally Business Overview & Revenue Model
Company DescriptionDigital Ally, Inc. is a technology company specializing in advanced digital video recording systems and software solutions primarily for law enforcement agencies, security personnel, and fleet management. The company operates within the public safety and transportation sectors, offering a range of products including body cameras, in-car video systems, and cloud-based video management solutions designed to enhance accountability and operational efficiency.
How the Company Makes MoneyDigital Ally generates revenue through several key streams, including the sale of its hardware products such as body cameras and in-car video systems, as well as subscriptions for its cloud-based video management software. The company also earns money through maintenance and support services for its products. Strategic partnerships with law enforcement agencies and government contracts play a significant role in driving sales, as these entities increasingly adopt technology solutions for transparency and evidence management. Additionally, Digital Ally's ability to provide ongoing software updates and customer support creates a recurring revenue model, further bolstering its financial performance.
Digital Ally Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q1-2025)
| % Change Since: -51.67%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in profitability, cost management, and strategic initiatives, offset by revenue decline and necessary reverse stock splits for NASDAQ compliance. Overall, the company demonstrated a strong turnaround with a positive outlook for future growth, particularly in the Entertainment segment.Q1-2025 Updates
Positive Updates
Increased Gross Margin
Gross margin dollars improved by $78,000, or 5%, with the overall gross margin percentage increasing from 28% to 36% year-over-year.
Significant SG&A Reduction
SG&A expenses decreased by $2.6 million, or 72%, from $3.6 million to less than $1 million, showing a focus on cost efficiencies.
Positive Net Income
Net income was $4.2 million, or $1.41 per share, compared to a $3.9 million loss in the previous year, indicating an $8 million turnaround.
Improved Balance Sheet
Working capital improved to $3.4 million from a deficit of $19.4 million, and equity increased to $11.6 million from a negative $9 million.
Successful Debt and Liability Reduction
Debt reduced by over $5.1 million, and a $2.2 million gain from extinguishment of liabilities was achieved.
NASDAQ Compliance Progress
The company regained compliance with NASDAQ's equity and filing requirements and is on track to meet the minimum bid price requirement.
Entertainment Segment Expansion
Country Stampede secured 2026 headliners, marking the first time since acquisition that next year's headliners are announced at the current event.
Negative Updates
Revenue Decline
Year-over-year revenues decreased by over $1 million, or 19%, mainly due to video product sales decline.
Significant Reverse Stock Split
Two reverse stock splits were implemented to meet NASDAQ compliance, resulting in a reduction of outstanding shares and potential shareholder dissatisfaction.
Company Guidance
During the Digital Ally First Quarter Earnings Call, the company provided key financial metrics and insights into its recent performance and strategic direction. For the first quarter of 2025, which ended on March 31, the company's year-over-year revenues decreased by over $1 million, or 19%, largely due to a decline in video product sales. However, the company reported a firm backlog of over $2 million, which is expected to bolster future revenues. Despite the revenue drop, gross margin dollars improved by $78,000, or 5%, with the overall gross margin percentage rising to 36% from 28% the previous year. Significant cost reductions were achieved, with SG&A expenses reduced by $2.6 million, marking a 72% improvement. The operating loss improved to nearly $1 million from $3.6 million the prior year, a 73% improvement. Non-operating income gains included $1.250 million from debt extinguishment, $2.2 million from liabilities extinguishment, and a $2.5 million gain from warrant derivative value changes. The company reported a net income of $4.2 million, or $1.41 per share, compared to a $3.9 million loss, or $27.48 per share, in the previous year—a turnaround of over $8 million. The balance sheet showed a strong liquidity position following a $14 million public offering, with cash increasing to $3.8 million from $400,000 at the end of 2024. Working capital improved to a positive $3.4 million from a deficit of $19.4 million. The company also addressed NASDAQ compliance issues, having resolved equity and filing non-compliances and working towards resolving the $1 minimum bid price requirement. The call highlighted the company's strategic focus on its core businesses, including video solutions and custom entertainment, and the anticipation of upcoming events like the Country Stampede.Digital Ally Financial Statement Overview
Summary
Digital Ally faces significant financial challenges, including declining revenues, persistent losses, negative equity, and cash flow issues. These factors indicate a precarious financial position that needs urgent addressing for financial stability.Income Statement
Digital Ally's income statement reflects significant challenges, with declining revenues over the years and persistent net losses. The gross profit margin is positive but insufficient to cover operating costs, resulting in negative EBIT and EBITDA margins. The net profit margin remains deeply negative, indicating ongoing profitability issues.25
Negative
Balance Sheet
The balance sheet of Digital Ally shows financial instability, with negative stockholders' equity and a high debt-to-equity ratio. The company's liabilities exceed its assets, raising concerns over solvency. The equity ratio is negative, highlighting a reliance on debt financing, which poses a risk to financial health.20
Very Negative
Cash Flow
Cash flow analysis reveals consistent negative operating cash flows, indicating operational inefficiencies. Free cash flow remains negative, with no signs of sustainable improvement. The company relies on financing activities to offset negative cash flows, which may not be sustainable in the long term.30
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.65M | 28.25M | 37.01M | 21.41M | 10.51M |
| Gross Profit | 5.49M | 5.76M | 2.32M | 5.66M | 4.06M |
| EBITDA | -84.00 | -20.11M | -16.66M | 26.38M | -2.00M |
| Net Income | -19.84M | -25.69M | -6.11M | 25.47M | -1.42M |
Balance Sheet | |||||
| Total Assets | 27.74M | 47.03M | 56.67M | 82.99M | 20.80M |
| Cash, Cash Equivalents and Short-Term Investments | 454.31K | 680.55K | 3.53M | 32.01M | 4.36M |
| Total Debt | 8.66M | 9.92M | 1.78M | 2.18M | 996.75K |
| Total Liabilities | 36.75M | 35.58M | 20.33M | 27.13M | 6.44M |
| Stockholders Equity | -7.82M | 10.78M | 35.89M | 55.81M | 14.36M |
Cash Flow | |||||
| Free Cash Flow | -5.14M | -10.13M | -20.77M | -25.44M | -13.97M |
| Operating Cash Flow | -5.11M | -9.89M | -18.58M | -17.83M | -13.27M |
| Investing Cash Flow | 387.55K | -240.71K | -2.94M | -19.12M | -1.50M |
| Financing Cash Flow | 4.40M | 7.38M | -6.95M | 64.60M | 18.78M |
Digital Ally Technical Analysis
Negative
1.74
Price Trends
2.21
Negative
21.71
Negative
473.70
Negative
Market Momentum
-0.50
Negative
25.67
Positive
11.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DGLY, the sentiment is Negative. The current price of 1.74 is below the 20-day moving average (MA) of 1.92, below the 50-day MA of 2.21, and below the 200-day MA of 473.70, indicating a bearish trend. The MACD of -0.50 indicates Negative momentum. The RSI at 25.67 is Positive, neither overbought nor oversold. The STOCH value of 11.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DGLY.
Digital Ally Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $44.01B | 1.91 | -11.93% | 4.00% | 2.46% | -39.70% | |
55 Neutral | $10.47M | ― | -28.37% | ― | -13.20% | -89.43% | |
54 Neutral | $7.63M | 15.24 | 9.89% | ― | 18.39% | ― | |
47 Neutral | $3.01M | ― | -118.58% | ― | -28.69% | 65.07% | |
43 Neutral | $5.54M | ― | -145.28% | ― | 13.96% | 85.22% | |
40 Underperform | $2.25M | ― | -57.40% | ― | 6.77% | 97.28% |
* Communication Services Sector Average
Performance Comparison
DGLY
Digital Ally
1.74
-2,938.26
-99.94%
UUU
Universal Security Instruments
3.30
1.97
148.12%
LGMK
LogicMark
0.01
-3.91
-99.74%
BKYI
BIO-key International
0.74
-0.56
-43.08%
VRME
VerifyMe
0.88
-0.23
-20.72%
Digital Ally Corporate Events
Business Operations and StrategyFinancial Disclosures
Digital Ally to Host Investor Call on May 28
Neutral
May 27, 2025
Digital Ally, Inc. announced it will host an investor conference call on May 28, 2025, to discuss its first quarter 2025 operating results and future plans. This call follows the filing of their Quarterly Report on May 21, 2025, and aims to provide insights into the company’s operations and strategic direction.
Stock Split
Digital Ally Executes Reverse Stock Split on Nasdaq
Neutral
May 23, 2025
On May 22, 2025, Digital Ally, Inc. executed a one-for-one hundred reverse stock split of its common stock, effective at 5:30 p.m. Eastern Time. This adjustment, which was authorized by stockholders earlier in May, means that every one hundred shares of common stock were consolidated into one share. The stock will begin trading on a split-adjusted basis on Nasdaq starting May 23, 2025. The reverse stock split did not alter the total number of authorized shares, and fractional shares were rounded up to the nearest whole share. The company’s transfer agent, Securities Transfer Corporation, is managing the exchange process for stockholders.
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Digital Ally Reports Q1 2025 Financial Turnaround
Positive
May 21, 2025
On May 21, 2025, Digital Ally, Inc. announced its first-quarter operating results for 2025, highlighting a significant financial turnaround. Despite a 19% decrease in total revenue to $4.4 million, the company reported a net income of $4,263,471, or $1.41 per share, compared to a net loss in the previous year. The company achieved improvements in gross profit margin, operating income, and stockholders’ equity, while also completing a $14.3 million public equity offering to enhance liquidity. These results reflect the company’s successful restructuring and cost reduction efforts, positioning it for future growth despite a challenging economic environment.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.