tiprankstipranks
Dotdigital Group PLC (GB:DOTD)
LSE:DOTD

Dotdigital (DOTD) AI Stock Analysis

Compare
23 Followers

Top Page

GB

Dotdigital

(LSE:DOTD)

66Neutral
Dotdigital presents a strong financial performance with consistent growth, supported by strategic corporate initiatives. However, technical analysis indicates bearish momentum, which is a key consideration. Valuation remains reasonable, making the stock moderately attractive.

Dotdigital (DOTD) vs. S&P 500 (SPY)

Dotdigital Business Overview & Revenue Model

Company DescriptionDotdigital Group Plc (DOTD) is a leading provider of omnichannel marketing automation technology. The company specializes in delivering a cloud-based platform that enables marketers to create, manage, and optimize marketing campaigns across multiple channels, including email, SMS, social media, and more. Dotdigital primarily serves industries such as retail, eCommerce, and B2B, providing solutions that enhance customer engagement and drive business growth.
How the Company Makes MoneyDotdigital generates revenue primarily through its subscription-based software-as-a-service (SaaS) model. Customers pay recurring fees to access the platform's marketing automation tools and services. The company also earns income from professional services, including consulting, training, and support, which help clients effectively implement and utilize their marketing solutions. Additionally, Dotdigital benefits from strategic partnerships and integrations with eCommerce platforms and other technology providers, expanding its customer base and enhancing its service offerings.

Dotdigital Financial Statement Overview

Summary
Dotdigital's financial health is strong, with consistent revenue and profitability growth. The balance sheet is stable with low leverage, but there is a need to monitor liquidity levels due to decreasing cash reserves.
Income Statement
85
Very Positive
Dotdigital exhibits a strong financial performance with a consistent revenue growth trend over the years, evidenced by a 14.1% growth from 2023 to 2024. The company's gross profit margin remains robust, supported by an improvement in net profit margin. However, EBIT margin saw a slight decline, indicating increased operational costs. EBITDA margin remains solid, showcasing effective cost management.
Balance Sheet
78
Positive
The balance sheet reflects stability with a healthy debt-to-equity ratio, indicating low leverage. The company maintains a strong equity ratio, highlighting a solid capital structure. However, there is a notable decrease in cash and equivalents, signaling potential liquidity management attention.
Cash Flow
82
Very Positive
Dotdigital demonstrates strong cash flow generation capabilities, with significant free cash flow growth. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion. Despite a decline in net income, free cash flow remains strong, supporting future investments and debt servicing.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
78.97M69.23M62.83M58.12M47.40M
Gross Profit
52.67M47.26M44.02M41.68M38.38M
EBIT
13.46M14.24M13.46M13.47M12.14M
EBITDA
23.40M22.05M20.86M18.97M17.41M
Net Income Common Stockholders
11.07M12.60M11.83M10.59M10.59M
Balance SheetCash, Cash Equivalents and Short-Term Investments
42.16M52.68M43.92M31.95M25.38M
Total Assets
123.57M100.17M87.79M75.09M67.37M
Total Debt
3.08M2.14M2.58M3.42M4.47M
Net Debt
-39.08M-50.53M-41.34M-28.53M-20.92M
Total Liabilities
28.37M19.86M17.98M14.05M16.30M
Stockholders Equity
95.20M80.31M69.81M61.03M51.07M
Cash FlowFree Cash Flow
22.22M12.64M15.31M9.97M9.04M
Operating Cash Flow
22.42M21.70M23.46M17.01M15.82M
Investing Cash Flow
-28.84M-9.07M-8.15M-7.04M-6.78M
Financing Cash Flow
-4.07M-3.84M-3.67M-3.50M-2.94M

Dotdigital Technical Analysis

Technical Analysis Sentiment
Negative
Last Price68.00
Price Trends
50DMA
80.63
Negative
100DMA
84.70
Negative
200DMA
87.39
Negative
Market Momentum
MACD
-2.82
Negative
RSI
37.28
Neutral
STOCH
29.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DOTD, the sentiment is Negative. The current price of 68 is below the 20-day moving average (MA) of 73.13, below the 50-day MA of 80.63, and below the 200-day MA of 87.39, indicating a bearish trend. The MACD of -2.82 indicates Negative momentum. The RSI at 37.28 is Neutral, neither overbought nor oversold. The STOCH value of 29.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DOTD.

Dotdigital Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
£220.93M19.5111.66%1.53%11.38%-8.44%
GBYOU
62
Neutral
£362.16M-1.26%2.90%29.81%-106.55%
57
Neutral
$20.97B10.32-14.01%2.49%4.46%-23.38%
55
Neutral
£84.14M5.2521.85%-6.57%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DOTD
Dotdigital
68.00
-17.86
-20.80%
GB:YOU
Yougov plc
275.00
-709.90
-72.08%
GB:FDEV
Frontier Developments
220.00
62.00
39.24%

Dotdigital Corporate Events

Business Operations and StrategyFinancial Disclosures
Dotdigital Reports Strong H1 FY25 Results with 10% Revenue Growth
Positive
Feb 25, 2025

Dotdigital Group plc reported a 10% increase in revenue to £42.4m for the first half of FY25, driven by strong demand for its customer experience and data platform. The company saw growth across all geographic regions, with international revenue now comprising 32% of total revenue. Dotdigital’s strategic focus on data, personalization, and AI has aligned well with market demand, resulting in significant customer wins and increased platform usage. The upcoming launch of a native WhatsApp channel is expected to further enhance customer engagement. Despite economic challenges, Dotdigital remains confident in its long-term growth prospects, supported by a robust cash position and plans for selective acquisitions to expand its offerings.

Business Operations and Strategy
Dotdigital Announces Change in Major Shareholding with Octopus Investments
Neutral
Feb 18, 2025

Dotdigital Group plc has announced a change in major holdings, with Octopus Investments Limited increasing its voting rights in the company to 13.24%, up from a previous 12.99%. This acquisition of voting rights reflects a growing interest and investment from Octopus Investments, potentially strengthening their influence and involvement in Dotdigital’s future strategic decisions.

Shareholder MeetingsFinancial Disclosures
Dotdigital Announces Interim Results and Investor Presentation
Neutral
Feb 6, 2025

Dotdigital Group plc has announced that it will release its interim results for the six months ended December 31, 2024, on February 25, 2025. Additionally, the company will host a live investor presentation on February 28, 2025, allowing existing and potential shareholders to engage with the company’s leadership. This event aims to enhance transparency and communication with stakeholders, potentially impacting investor confidence and market positioning.

Executive/Board ChangesBusiness Operations and Strategy
Dotdigital CFO Alistair Gurney to Step Down in June 2025
Neutral
Jan 28, 2025

Dotdigital Group plc has announced the departure of its Chief Financial Officer, Alistair Gurney, who will leave his role at the end of June 2025 to pursue a new opportunity. The company has initiated the search for a successor and will update on this in due course. Gurney’s tenure was marked by significant contributions towards the company’s strategic M&A efforts, advancing Dotdigital’s CXDP vision. His departure comes at a time when the company is well-positioned for continued growth, with a stable leadership team in place.

Business Operations and StrategyFinancial Disclosures
Dotdigital Reports Strong First Half 2025 Performance
Positive
Jan 28, 2025

Dotdigital Group plc has released a positive trading update for the first half of the fiscal year 2025, revealing a 10% revenue increase and continued alignment with market expectations. The company has seen growth across all regions, driven by its enhanced CXDP offering and strategic acquisitions, particularly Fresh Relevance, which has bolstered its web personalization capabilities. The company highlights growth in EMEA, APAC, and North America, and anticipates sustainable growth in the second half of the year, backed by a strong cash position and a robust pipeline of opportunities. Dotdigital continues to expand its product capabilities with new integrations and features, positioning itself as a leader in comprehensive digital marketing solutions.

Dotdigital Announces Change in Major Holdings by Octopus Investments
Jan 16, 2025

On January 16, 2025, Dotdigital Group plc announced a change in its major holdings as Octopus Investments Limited adjusted its voting rights in the company. The voting rights held by Octopus Investments now account for 12.99%, slightly down from the previous 13.11%. This adjustment reflects a minor shift in shareholder influence, which could impact future corporate governance and decision-making processes within Dotdigital Group.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.