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

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IT:DIB

Digital Bros S.p.A.

(DIB)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
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. (DIB) vs. iShares MSCI Italy ETF (EWI)

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

Company DescriptionDigital 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 MoneyDigital 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue93.62M93.62M117.93M117.93M132.24M149.18M
Gross Profit48.74M28.48M79.77M82.23M86.78M89.45M
EBITDA15.45M15.27M33.67M40.87M59.66M59.96M
Net Income-10.92M-10.92M-2.21M9.68M28.55M32.02M
Balance Sheet
Total Assets189.56M189.56M230.81M265.19M226.31M202.02M
Cash, Cash Equivalents and Short-Term Investments6.72M6.72M22.22M20.75M11.29M35.51M
Total Debt24.73M24.73M45.63M59.38M25.25M16.09M
Total Liabilities74.82M74.82M103.12M121.47M88.99M90.22M
Stockholders Equity113.95M113.95M131.00M142.34M135.90M110.90M
Cash Flow
Free Cash Flow17.04M32.50M13.16M-36.90M-35.87M43.49M
Operating Cash Flow32.83M32.83M30.75M37.53M21.53M99.12M
Investing Cash Flow-17.18M-17.18M-14.78M-78.33M-53.72M-61.34M
Financing Cash Flow-20.91M-20.91M-13.40M39.24M7.42M-10.80M

Digital Bros S.p.A. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price12.00
Price Trends
50DMA
12.07
Negative
100DMA
13.16
Negative
200DMA
12.63
Negative
Market Momentum
MACD
0.04
Negative
RSI
50.35
Neutral
STOCH
62.05
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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
€292.21M15.502.76%-24.28%-57.55%
€430.84M-5.53%-3.47%-947.32%
$48.67B4.58-11.27%4.14%2.83%-41.78%
€152.04M-7.05%29.64%62.10%
€171.75M-8.92%-20.62%-393.17%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:DIB
Digital Bros S.p.A.
12.00
2.81
30.58%
IT:IOT
SECO S.p.A.
3.49
1.83
110.96%
IT:AIW
Almawave S.p.A.
4.29
1.18
37.94%
IT:CY4
CY4Gate SpA
6.33
2.20
53.08%
IT:DGV
Digital Value SpA
28.55
17.90
168.08%
IT:PWS
Powersoft S.p.A.
16.35
3.15
23.86%

Digital Bros S.p.A. Corporate Events

Digital Bros Releases June 2025 Financial Statements
Oct 27, 2025

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
Oct 27, 2025

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
Sep 26, 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
Sep 25, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 30, 2025