Dianomi Plc (DNM) AI Stock Analysis

• Market Cap: £4.20M
• Dividend Yield: N/A
• Average Volume (3M): 3.43K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 42
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.03
• Shares Outstanding: 30,027,971
• 10 Day Avg. Volume: 889
• 30 Day Avg. Volume: 3,432
• PEG Ratio: -0.25
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 10.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: 14.50p ▼(-12.12% Downside)

The score is primarily supported by a strong balance-sheet position (no reported debt) and improved 2024 profitability/cash flow, but it is held back by declining/choppy revenue, very thin margins, and bearish technical signals with price trading below key moving averages.

Positive Factors

Balance Sheet Strength

Zero reported debt and sizeable equity relative to assets materially reduce financial risk and preserve flexibility. This balance-sheet conservatism supports investment or working capital through cyclical ad demand and makes the company better-positioned to endure 2–6 month revenue stresses without external financing.

Improved 2024 Profitability and FCF

A return to operating profitability and positive free cash flow in 2024 strengthens internal funding capacity and validates cost structure adjustments. Sustained FCF generation supports reinvestment in platform capabilities and reduces reliance on equity or debt over the medium term, enhancing operational resilience.

Niche, High-Value Business Model

Specialization in finance-focused native and performance advertising concentrates the company on high-value, regulated-advertiser demand and premium publisher inventory. This niche positioning creates durable advertiser relationships and differentiated audience targeting that supports repeat campaigns and pricing power over months.

Negative Factors

Choppy and Declining Revenue

Persistent revenue volatility and recent declines hinder predictability of cash flows and planning. For an ad-tech firm reliant on advertiser spend, multi-year choppiness undermines the company’s ability to sustain investments in product, sales, and publisher partnerships, raising execution risk in the medium term.

Very Thin Operating Margins

Operating and net margins near 1–2% provide minimal buffer against revenue shocks or rising traffic acquisition costs. Such compressed profitability limits reinvestment capacity, makes earnings fragile to demand swings, and reduces the company's ability to absorb higher platform or sales costs over months.

Volatile Cash Generation Track Record

Although 2024 produced positive free cash flow, the historical volatility in operating cash undermines reliability of internal funding. Inconsistent cash generation complicates budgeting for product development and sales growth, and raises dependence on retained equity when cash dips recur over the medium term.

Dianomi Plc Business Overview & Revenue Model

Company Description

Dianomi Plc provides online advertising services in the form of contextual lead generation to financial services, technology, and corporate sectors. It offers cost-per-click advertising, cost-per-lead advertising, transparent publisher network, contextual smart technology, transparent reporting, and consultative services, as well as dianomi level2insight that optimizes campaign through competitor benchmarking, multivariant testing, demographic targeting, and a customized survey. The company also provides paid search, cost-per-acquisition networks, and online lead generation services. In addition, it offers a marketing intelligence platform to optimize campaign ROI from click-through-rate to client acquisition, offering intelligence to maximize return on the marketing plan. The company was incorporated in 2002 and is based in London, United Kingdom with additional locations at New York, New York and Pyrmont, Australia.

How the Company Makes Money

Dianomi Plc Financial Statement Overview

Summary

Financials are mixed: a conservative, low-risk balance sheet with zero reported debt supports stability, and 2024 showed a rebound to positive operating profit/net income and improved free cash flow. However, revenue has been choppy and recently declining, and operating/net margins remain very thin (around 1–2%), leaving limited cushion and raising consistency concerns.

Income Statement

Revenue has been choppy and recently declining (down ~5% in 2024 after a sharper drop in 2023), pointing to a tougher demand environment. Profitability improved meaningfully in 2024 versus 2023 (returning to positive operating profit and net income), but margins remain thin (about 1–2% at the operating and net level), leaving limited cushion if revenues soften further. Gross margin is fairly steady in the mid-to-high 20% range, but the multi-year pattern shows volatility with loss-making years (2021 and 2023) mixed with modestly profitable years.

Balance Sheet

The balance sheet looks conservative with zero reported debt in 2023–2024 and low leverage even in prior years, which reduces financial risk. Equity remains sizeable relative to assets (2024 equity of ~£8.4m vs. assets of ~£15.6m), supporting balance-sheet stability. The key weakness is that shareholder returns have been inconsistent, swinging from negative in 2023 to modestly positive in 2024, reflecting uneven profitability rather than balance-sheet strain.

Cash Flow

Cash generation improved sharply in 2024, with positive operating cash flow and free cash flow (~£1.18m) after a weak 2023 (both negative). Free cash flow growth turned positive in 2024, but the track record is volatile across years, which raises predictability risk. Cash flow broadly aligns with earnings direction (positive in 2024, negative in 2023), yet the business has not shown consistently strong cash generation relative to its revenue base.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.03M	28.05M	30.15M	35.91M	35.78M	28.43M
Gross Profit	6.96M	7.33M	7.45M	9.79M	10.33M	8.15M
EBITDA	673.00K	582.00K	-1.60M	1.26M	-418.00K	2.25M
Net Income	-274.00K	419.00K	-2.92M	485.00K	-496.00K	1.51M
Balance Sheet
Total Assets	12.83M	15.59M	16.22M	20.43M	18.35M	10.48M
Cash, Cash Equivalents and Short-Term Investments	5.72M	8.84M	7.74M	11.66M	10.28M	4.72M
Total Debt	266.00K	0.00	0.00	219.00K	0.00	1.41M
Total Liabilities	5.57M	7.17M	7.64M	8.64M	8.22M	7.16M
Stockholders Equity	7.25M	8.42M	8.58M	11.79M	10.13M	3.31M
Cash Flow
Free Cash Flow	-1.68M	1.18M	-3.15M	1.01M	2.62M	2.06M
Operating Cash Flow	-1.68M	1.18M	-3.15M	1.01M	2.62M	2.06M
Investing Cash Flow	107.00K	117.00K	115.00K	41.00K	5.00K	6.73K
Financing Cash Flow	-278.00K	-249.00K	-222.00K	-110.00K	2.96M	-205.96K

Dianomi Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYS1	69 Neutral	£29.44M	10.40	21.43%	2.29%	3.32%	-10.58%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DNM	57 Neutral	£4.20M	10.00	4.93%	―	―	―
SFOR	54 Neutral	£175.70M	-0.52	-45.75%	6.33%	-14.27%	-15466.67%
TMG	49 Neutral	£17.67M	-6.72	-3.81%	―	-25.20%	78.55%
EBQ	48 Neutral	£17.93M	-1.43	-37.24%	―	-0.79%	-100.22%
MIRI	40 Neutral	£1.28M	-0.02	-114.93%	―	―	―