Digital Bros S.p.A. (DIB) AI Stock Analysis

• Market Cap: €171.75M
• Dividend Yield: N/A
• Average Volume (3M): 48.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -20.62%
• EPS Growth: -393.17%
• Country: IT
• Employees: 286
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.10
• Shares Outstanding: 14,265,037
• 10 Day Avg. Volume: 53,299
• 30 Day Avg. Volume: 48,354
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: €12.50 ▲(4.17% Upside)

The overall stock score reflects the company's strong cash flow performance and stable balance sheet, which are offset by declining revenue and profitability. Technical indicators suggest a neutral market sentiment, while valuation metrics highlight concerns due to negative earnings and lack of dividends.

Positive Factors

Cash Flow Growth

Strong free cash flow growth indicates improved cash generation, supporting future investments and debt repayment, enhancing long-term stability.

Balance Sheet Health

A balanced debt-to-equity ratio and strong equity suggest a solid capital structure, providing financial stability and flexibility for growth.

Operational Efficiency

Positive EBIT and EBITDA margins indicate operational efficiency, enabling the company to manage costs effectively even with declining revenues.

Negative Factors

Declining Revenue

Declining revenue can hinder growth prospects and market competitiveness, affecting long-term business sustainability and expansion opportunities.

Negative Profitability

Negative profitability impacts the company's ability to reinvest in its business and may limit its capacity to withstand economic downturns.

Decreased Gross Profit Margin

A declining gross profit margin suggests challenges in cost management or pricing power, potentially affecting long-term profitability and competitive positioning.

Digital Bros S.p.A. Business Overview & Revenue Model

Company Description

Digital Bros S.p.A. (DIB) is an Italian video game publisher and developer that operates in the interactive entertainment industry. The company is involved in various sectors including game development, publishing, and distribution across multiple platforms such as PC, consoles, and mobile devices. Digital Bros is known for its diverse portfolio of games, which includes both proprietary titles and those developed by third-party studios. The company also invests in and collaborates with developers to expand its offerings in the global gaming market.

How the Company Makes Money

Digital Bros generates revenue through several key streams. Primarily, the company earns money from the sale of video games, both digital and physical, across various platforms. This includes revenues from its proprietary titles and those published from third-party developers. Additionally, Digital Bros monetizes its games through in-game purchases and downloadable content (DLC), which enhance player engagement and drive additional sales. The company also benefits from strategic partnerships with digital distribution platforms, which provide wider access to its games and help increase sales. Furthermore, Digital Bros may engage in licensing agreements and collaborations that can generate additional revenue, particularly in merchandising and adaptations of their gaming properties.

Digital Bros S.p.A. Financial Statement Overview

Summary

Digital Bros S.p.A. faces challenges with declining revenue and profitability, as reflected in the income statement. However, the company maintains a stable balance sheet with a reasonable debt level and strong equity position. The cash flow statement is a bright spot, showing significant growth in free cash flow, which could support future investments and debt repayment.

Income Statement

Digital Bros S.p.A. has experienced a decline in revenue over the past year, with a negative revenue growth rate of -13.77%. The company also reported a negative net income, resulting in a negative net profit margin. However, the EBIT and EBITDA margins remain positive, indicating operational efficiency despite the revenue decline. The gross profit margin has decreased compared to previous years, reflecting challenges in maintaining profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the return on equity is negative, reflecting the company's recent net losses. The equity ratio is strong, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reveals a strong free cash flow growth rate of 41.18%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is positive, suggesting that the company is generating sufficient cash from operations despite net losses. The free cash flow to net income ratio is also positive, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	93.62M	93.62M	117.93M	117.93M	132.24M	149.18M
Gross Profit	48.74M	28.48M	79.77M	82.23M	86.78M	89.45M
EBITDA	15.45M	15.27M	33.67M	40.87M	59.66M	59.96M
Net Income	-10.92M	-10.92M	-2.21M	9.68M	28.55M	32.02M
Balance Sheet
Total Assets	189.56M	189.56M	230.81M	265.19M	226.31M	202.02M
Cash, Cash Equivalents and Short-Term Investments	6.72M	6.72M	22.22M	20.75M	11.29M	35.51M
Total Debt	24.73M	24.73M	45.63M	59.38M	25.25M	16.09M
Total Liabilities	74.82M	74.82M	103.12M	121.47M	88.99M	90.22M
Stockholders Equity	113.95M	113.95M	131.00M	142.34M	135.90M	110.90M
Cash Flow
Free Cash Flow	17.04M	32.50M	13.16M	-36.90M	-35.87M	43.49M
Operating Cash Flow	32.83M	32.83M	30.75M	37.53M	21.53M	99.12M
Investing Cash Flow	-17.18M	-17.18M	-14.78M	-78.33M	-53.72M	-61.34M
Financing Cash Flow	-20.91M	-20.91M	-13.40M	39.24M	7.42M	-10.80M

Digital Bros S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DIB, the sentiment is Negative. The current price of 12 is above the 20-day moving average (MA) of 11.83, below the 50-day MA of 12.07, and below the 200-day MA of 12.63, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 50.35 is Neutral, neither overbought nor oversold. The STOCH value of 62.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:DIB.

Digital Bros S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGV	―	€292.21M	15.50	―	2.76%	-24.28%	-57.55%
IOT	―	€430.84M	―	-5.53%	―	-3.47%	-947.32%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CY4	―	€152.04M	―	-7.05%	―	29.64%	62.10%
DIB	―	€171.75M	―	-8.92%	―	-20.62%	-393.17%

Digital Bros S.p.A. Corporate Events

Digital Bros Releases June 2025 Financial Statements

Digital Bros S.p.A. has announced the availability of its Consolidated Financial Statements and Financial Statements as of June 30, 2025. These documents can be accessed at the company’s headquarters, on their website, and through an authorized storage mechanism, providing stakeholders with the necessary financial insights and transparency.

The most recent analyst rating on (IT:DIB) stock is a Hold with a EUR12.00 price target. To see the full list of analyst forecasts on Digital Bros S.p.A. stock, see the IT:DIB Stock Forecast page.

Digital Bros Approves Financial Statements Amid Revenue Decline

Digital Bros S.p.A. held its Ordinary Shareholders’ Meeting, where it approved the financial statements for the fiscal year 2024-2025, despite a notable decline in revenues and increased losses attributed to underperforming new launches and project cancellations. The meeting also saw the approval of the allocation of operating profit to retained earnings and the authorization for the purchase and disposal of treasury shares, aiming to enhance market liquidity and support strategic transactions.

The most recent analyst rating on (IT:DIB) stock is a Hold with a EUR12.00 price target. To see the full list of analyst forecasts on Digital Bros S.p.A. stock, see the IT:DIB Stock Forecast page.

Digital Bros S.p.A. Announces Shareholders’ Meeting for October 2025

Digital Bros S.p.A. has announced a call for an Ordinary Meeting of shareholders on October 27, 2025, to discuss and resolve on various agenda items, including the approval of financial statements and the allocation of profits. The meeting will be conducted exclusively through a Designated Representative, Computershare S.p.A., ensuring compliance with legislative requirements and facilitating shareholder participation through proxy voting.

The most recent analyst rating on (IT:DIB) stock is a Hold with a EUR12.50 price target. To see the full list of analyst forecasts on Digital Bros S.p.A. stock, see the IT:DIB Stock Forecast page.

Digital Bros Faces Revenue Decline Amid Strategic Shift

Digital Bros reported a 20.6% decline in revenues for the 2024-2025 financial year, attributed to underperforming new game launches. Despite a stable gross operating margin percentage, the company faced a negative operating margin and net loss, but expects revenue growth and positive operating margins in the next financial year. The company has undertaken a strategic review to focus on high-margin games with predictable revenues, particularly those with owned intellectual property.

The most recent analyst rating on (IT:DIB) stock is a Hold with a EUR12.50 price target. To see the full list of analyst forecasts on Digital Bros S.p.A. stock, see the IT:DIB Stock Forecast page.