Dotdigital (DOTD) AI Stock Analysis

• Market Cap: £254.07M
• Dividend Yield: 1.33%
• Average Volume (3M): 546.38K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.00
• Revenue Growth: 11.38%
• EPS Growth: -8.44%
• Country: UK
• Employees: 451
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 306,848,360
• 10 Day Avg. Volume: 384,567
• 30 Day Avg. Volume: 546,375
• PEG Ratio: 82.39
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.33
• 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: £150.00
• Price Target Upside: 77.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: 94.00p ▲(11.11%Upside)

Dotdigital's overall score reflects strong financial performance and positive corporate events. However, moderate technical indicators and valuation suggest a balanced risk-reward profile. Strategic management changes are expected to support future growth, enhancing investor confidence.

Dotdigital Business Overview & Revenue Model

Company Description

dotdigital Group Plc provides intuitive software as a service (SaaS) and managed services to digital marketing professionals worldwide. The company offers Engagement Cloud, a SaaS-based omni-channel marketing automation platform that enables companies to create, test, and send data-driven automated campaigns and communications across channels, such as email, SMS, social, push, etc. dotdigital Group Plc was founded in 1999 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Dotdigital generates revenue primarily through a software-as-a-service (SaaS) model, where clients subscribe to its Engagement Cloud platform on a recurring basis. The company's revenue streams are largely driven by subscription fees, which can vary based on the level of service and features selected by the customer. Dotdigital also benefits from additional revenue through professional services, including onboarding, training, and consultancy, which help clients maximize the value of their marketing automation solutions. Strategic partnerships and integrations with other technology providers further enhance Dotdigital's offerings, contributing to its revenue growth by expanding its customer base and adding value to its services.

Dotdigital Financial Statement Overview

Summary

Dotdigital shows strong financial health with consistent revenue growth, solid profitability, and effective cash flow management. However, attention to liquidity management is recommended due to decreased cash reserves.

Income Statement

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
82.59M	78.97M	69.23M	62.83M	58.12M	47.40M
	Gross Profit
59.70M	62.80M	47.26M	44.02M	41.68M	38.38M
	EBIT
13.68M	11.92M	14.24M	13.46M	13.47M	12.14M
	EBITDA
25.17M	23.40M	22.05M	20.86M	18.97M	17.41M
	Net Income Common Stockholders
11.34M	11.07M	12.60M	11.83M	10.59M	10.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.68M	42.16M	52.68M	43.92M	31.95M	25.38M
	Total Assets
126.95M	123.57M	100.17M	87.79M	75.09M	67.37M
	Total Debt
1.90M	3.08M	2.14M	2.58M	3.42M	4.47M
	Net Debt
-43.78M	-39.08M	-50.53M	-41.34M	-28.53M	-20.92M
	Total Liabilities
24.93M	28.37M	19.86M	17.98M	14.05M	16.30M
	Stockholders Equity
102.03M	95.20M	80.31M	69.81M	61.03M	51.07M
Cash Flow		Free Cash Flow
22.10M	22.22M	12.64M	15.31M	9.97M	9.04M
	Operating Cash Flow
22.29M	21.07M	21.70M	23.46M	17.01M	15.82M
	Investing Cash Flow
-9.71M	-27.48M	-9.07M	-8.15M	-7.04M	-6.78M
	Financing Cash Flow
-4.06M	-4.07M	-3.84M	-3.67M	-3.50M	-2.94M

Dotdigital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 84.6 is below the 20-day moving average (MA) of 84.88, above the 50-day MA of 77.73, and above the 200-day MA of 84.10, indicating a neutral trend. The MACD of 0.74 indicates Positive momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 66.47 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACSO	78 Outperform	£200.25M	29.30	4.56%	―	-0.90%	15.22%
DOTD	76 Outperform	£254.07M	22.44	11.66%	1.33%	11.38%	-8.44%
IDOX	75 Outperform	£264.47M	50.00	6.94%	1.21%	19.55%	-6.45%
APTD	73 Outperform	£168.50M	34.59	8.42%	1.78%	-6.21%	21.39%
NET	72 Outperform	£172.61M	33.17	12.87%	0.86%	15.40%	-6.59%
AOM	64 Neutral	£87.42M	102.12	9.60%	―	―	―
Sector *	62 Neutral	$11.70B	10.39	-7.10%	2.92%	7.45%	-8.42%

Dotdigital Corporate Events

Dotdigital Announces Change in Major Shareholder Holdings

Dotdigital Group PLC has announced a change in its major holdings, with Canaccord Genuity Group Inc. increasing its voting rights to 5.0388% as of April 23, 2025. This acquisition of voting rights signifies a strategic move by Canaccord Genuity, potentially impacting Dotdigital’s shareholder dynamics and indicating confidence in the company’s market position.

Dotdigital CFO Designate Increases Stake in Company

Dotdigital Group plc announced that Tom Mullan, the designated Chief Financial Officer, has purchased 27,096 ordinary shares of the company, representing less than 0.1% of the company’s issued share capital. This move may indicate confidence in the company’s future prospects and could impact investor sentiment positively, reflecting on the company’s strategic positioning in the SaaS industry.

Dotdigital Appoints New CFO to Drive Growth

Dotdigital Group plc has appointed Thomas Oliver Mullan as its new Chief Financial Officer, succeeding Alistair Gurney. Mullan brings extensive experience from his previous roles in the software sector, including his tenure at Gresham Technologies PLC, where he contributed to significant growth and strategic transitions. His appointment is expected to support Dotdigital’s long-term growth ambitions, leveraging his expertise in driving organic growth, international expansion, and mergers and acquisitions.