Digital Ally (DGLY) AI Stock Analysis

• Market Cap: $3.96M
• Dividend Yield: N/A
• Average Volume (3M): 976.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -28.69%
• EPS Growth: 65.07%
• Country: US
• Employees: 31
• Sector: Communication Services
• Sector Strength: 87
• Industry: Security & Protection Services
• EPS (TTM): 1.41
• Shares Outstanding: 1,727,421
• 10 Day Avg. Volume: 122,792
• 30 Day Avg. Volume: 976,635
• PEG Ratio: 0.02
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.56
• Enterprise Value/Market Cap: 2.52
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: -0.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $2.50 ▲(8.70%Upside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues and negative cash flow. While technical analysis highlights a bearish trend, the earnings call provides a positive outlook with profitability improvements and strategic focus. Valuation remains a concern with no clear earnings or dividend support.

Digital Ally Business Overview & Revenue Model

Company Description

Digital Ally, Inc. produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States and internationally. It operates through Video Solutions, Revenue Cycle Management, and Ticketing segments. The company offers in-car digital video mirror systems for law enforcement; in-car digital video event recorder systems for commercial fleets; a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information; miniature body-worn digital video systems for law enforcement and private security; and VuLink, an in-car device that enables an in-car digital audio/video system and a body worn digital audio/video camera system to automatically and simultaneously start recording. It also provides VuVault and EVO Web, a cloud-based evidence management system; FleetVU Manager, a web-based software for commercial fleet tracking and monitoring; ThermoVu, a non-contact temperature-screening instrument that measures temperature through the wrist and controls entry to facilities when temperature measurements exceed pre-determined parameters; and Shield disinfectants and cleansers, as well as other personal protective equipment and supplies, such as masks, gloves, sanitizer wipes, and electrostatic sprayer to health care workers and other consumers. In addition, the company offers working capital and back-office services, including insurance and benefit verification, medical treatment documentation and coding, and collections to healthcare organizations; and operates TicketSmarter.com, an online ticketing marketplace for ticket sales, partnerships, and ticket resale services for live events, including concerts, sporting events, theatres, and performing arts. Digital Ally, Inc. was founded in 2004 and is headquartered in Lenexa, Kansas.

How the Company Makes Money

Digital Ally generates revenue through the sale of its video recording hardware products, such as body cameras and in-car video systems, which are primarily marketed to law enforcement and security agencies. Additionally, the company offers evidence management software and cloud storage solutions, generating recurring revenue through subscription-based models. Key revenue streams include product sales, software licensing, and service contracts. Partnerships with distributors and technology integrators help expand the company's market reach and contribute to its earnings.

Digital Ally Financial Statement Overview

Summary

Digital Ally faces significant financial challenges with declining revenues, persistent net losses, negative equity, and cash flow issues. The balance sheet shows financial instability with liabilities exceeding assets, indicating a precarious financial position.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 2.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

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 2.3 is below the 20-day moving average (MA) of 2.50, below the 50-day MA of 16.14, and below the 200-day MA of 787.70, indicating a bearish trend. The MACD of -3.75 indicates Negative momentum. The RSI at 26.90 is Positive, neither overbought nor oversold. The STOCH value of 41.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DGLY.

Digital Ally Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$41.01B	-0.64	-14.21%	3.80%	2.39%	-73.52%
UUU	54 Neutral	$7.17M	―	-26.63%	―	5.57%	-449.87%
VRME	52 Neutral	$9.36M	―	-28.42%	―	-9.87%	-49.12%
DGLY	48 Neutral	$3.96M	―	-118.58%	―	-28.69%	65.07%
BKYI	46 Neutral	$5.53M	―	-116.82%	―	-7.25%	80.12%
LGMK	41 Neutral	$1.84M	―	-51.79%	―	1.56%	88.49%
IVDA		$5.93M	―	-112.33%	―	―	―

Digital Ally Corporate Events

Digital Ally to Host Investor Call on May 28

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.

Digital Ally Executes Reverse Stock Split on Nasdaq

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.

Digital Ally Reports Q1 2025 Financial Turnaround

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.

Digital Ally Secures Nasdaq Listing Amid Stock Split

On May 6, 2025, Digital Ally, Inc. implemented a one-for-twenty reverse stock split of its common stock, which became effective at 5:30 p.m. Eastern Time. This move, approved by stockholders in December 2024, was aimed at adjusting the trading price of its stock, which began trading on a split-adjusted basis on May 7, 2025. The reverse stock split did not change the total number of authorized shares and proportionately affected all outstanding options and warrants. Additionally, on May 7, 2025, Digital Ally announced that the Nasdaq Hearings Panel granted the company’s request for continued listing on the Nasdaq Stock Market, contingent on meeting specific listing criteria by set deadlines. This decision is crucial for maintaining the company’s market presence and investor confidence.

Digital Ally Faces Nasdaq Compliance Deadline

On April 23, 2025, Digital Ally, Inc. received a notice from Nasdaq due to a delay in filing its Annual Report for the period ended December 31, 2024, resulting in non-compliance with Nasdaq Listing Rule 5250(c)(1). The notice does not immediately affect the company’s Nasdaq listing, and Digital Ally is working to file the report promptly to regain compliance. The company has until April 30, 2025, to address this deficiency with Nasdaq.