Digital Value SpA (DGV) AI Stock Analysis

• Market Cap: €303.41M
• Dividend Yield: 2.74%
• Average Volume (3M): 76.83K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.07
• Revenue Growth: -24.28%
• EPS Growth: -57.55%
• Country: IT
• Employees: 678
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.57
• Shares Outstanding: 10,181,624
• 10 Day Avg. Volume: 63,263
• 30 Day Avg. Volume: 76,832
• PEG Ratio: -0.71
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -9.62
• 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: €33.00
• Price Target Upside: 13.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: €33.00 ▲(13.21% Upside)

Digital Value SpA's overall score reflects its strong financial performance and reasonable valuation. While technical indicators suggest mixed signals, the company's solid profitability and stable balance sheet are significant strengths. Addressing cash flow issues will be crucial for maintaining long-term growth.

Positive Factors

Business Model Strength

Digital Value SpA's diverse service offerings in high-demand areas like cloud computing and cybersecurity position it well for sustained growth and relevance in digital transformation.

Strategic Partnerships

Partnerships with industry leaders enhance DGV's market reach and credibility, supporting long-term revenue growth and competitive advantage through integrated solutions.

Profitability Metrics

Improved gross profit margins reflect effective cost management, contributing to sustained profitability and operational efficiency, which are crucial for long-term financial health.

Negative Factors

Cash Flow Challenges

Negative operating cash flow indicates potential issues in converting profits into cash, which could strain liquidity and financial flexibility if not addressed.

Revenue Decline

A recent decline in revenue growth could signal challenges in market demand or competitive pressures, potentially impacting future growth prospects if not reversed.

Liabilities Increase

An increase in liabilities may indicate rising financial obligations, which could affect the company's balance sheet strength and require careful management to maintain stability.

Digital Value SpA Business Overview & Revenue Model

Company Description

Digital Value S.p.A. provides technology and service solutions to the telecommunications, utilities, finance, automotive, defense and security, and IT services and solutions sectors in Italy. It offers security, Internet of Things, cloud, business applications, digital transformation, artificial intelligence, analytics, cognitive big data, and unified collaboration and digital workplace solutions, as well as networking, technology, managed, test, monitoring, and e-visibility solutions. The company is headquartered in Milan, Italy. Digital Value S.p.A. is a subsidiary of DV Holding S.p.A.

How the Company Makes Money

Digital Value SpA generates revenue through multiple streams, primarily by offering consulting services, software solutions, and managed services. The company's core revenue drivers include project-based consulting fees for digital transformation initiatives, subscription fees for proprietary software platforms, and recurring revenue from managed services agreements. Additionally, DGV has established strategic partnerships with leading technology providers, which enable it to offer integrated solutions and expand its market reach. Collaborations with industry leaders also enhance DGV's credibility and attract new clients, contributing significantly to its overall earnings.

Digital Value SpA Financial Statement Overview

Summary

Digital Value SpA demonstrates robust financial performance with strong revenue growth and profitability metrics. The balance sheet reflects stability with manageable leverage and solid equity backing. However, recent cash flow challenges, especially in operating cash flows, could impact liquidity if not corrected.

Income Statement

Digital Value SpA has demonstrated a solid financial performance with consistent revenue growth over the years. The company's gross profit margin has improved, indicating efficient cost management, while the net profit margin remains healthy. The EBIT and EBITDA margins reflect strong operational efficiency, contributing to the company's profitability. However, the slight decline in revenue in the latest year is a point of concern, but overall growth trajectory remains positive.

Balance Sheet

The balance sheet of Digital Value SpA shows a healthy equity ratio, indicating a stable financial position with a good portion of assets financed by equity. The company maintains a manageable debt-to-equity ratio, suggesting prudent leverage levels. Return on equity is strong, showcasing effective utilization of shareholders' funds. The company's financial stability is reinforced by adequate cash reserves, although a slight increase in liabilities requires monitoring.

Cash Flow

Digital Value SpA's cash flow statement reveals a mixed picture. The operating cash flow has fluctuated, with recent negative results raising concerns. Despite this, the company has managed to maintain its free cash flow, albeit with a declining growth rate. The negative operating cash flow to net income ratio in the latest period indicates potential issues in converting profits into cash, which should be addressed to ensure liquidity stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	666.51M	814.67M	847.39M	708.51M	557.78M	442.26M
Gross Profit	255.99M	262.60M	96.72M	79.29M	62.37M	49.41M
EBITDA	64.07M	87.33M	89.44M	71.81M	56.36M	44.41M
Net Income	18.79M	35.27M	38.37M	33.95M	30.13M	24.10M
Balance Sheet
Total Assets	581.92M	752.58M	729.75M	634.73M	539.58M	379.86M
Cash, Cash Equivalents and Short-Term Investments	163.09M	112.38M	148.05M	114.64M	112.13M	73.26M
Total Debt	80.08M	100.22M	101.04M	78.06M	90.86M	40.40M
Total Liabilities	359.24M	525.79M	541.33M	476.95M	410.42M	286.14M
Stockholders Equity	222.14M	224.62M	187.29M	156.86M	123.67M	93.54M
Cash Flow
Free Cash Flow	43.17M	-25.46M	18.90M	19.14M	-12.00M	6.45M
Operating Cash Flow	66.94M	-5.12M	76.45M	51.19M	15.36M	17.85M
Investing Cash Flow	-39.88M	-36.32M	-57.56M	-35.87M	-31.61M	-13.03M
Financing Cash Flow	-985.00K	1.29M	14.51M	-12.80M	50.46M	13.55M

Digital Value SpA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DGV, the sentiment is Neutral. The current price of 29.15 is below the 20-day moving average (MA) of 30.85, below the 50-day MA of 30.69, and above the 200-day MA of 24.82, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 38.92 is Neutral, neither overbought nor oversold. The STOCH value of 6.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:DGV.

Digital Value SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGV	71 Outperform	€303.41M	16.10	―	2.74%	-24.28%	-57.55%
SES	70 Outperform	€1.28B	20.39	13.73%	1.21%	3.50%	-19.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TNXT	60 Neutral	€683.79M	170.68	1.04%	2.01%	17.21%	-80.93%