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doValue S.p.A (IT:DOV)
:DOV

doValue S.p.A (DOV) AI Stock Analysis

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IT

doValue S.p.A

(Frankfurt:DOV)

Rating:74Outperform
Price Target:
€2.50
▲(6.38%Upside)
The overall score reflects strong technical momentum and a favorable valuation, tempered by financial performance challenges. While the stock shows potential for price appreciation, attention to improving profitability and managing leverage is critical for sustained growth.
Positive Factors
Commercial Performance
Strong commercial start has prompted the management to raise the 2025 new business target to EUR 12+Bn GBV.
Revenue Growth
1Q25 highlighted strong double-digit growth in revenue, which increased even ex-Gardant consolidation.
Negative Factors
Cash Flow Challenges
The group has experienced challenges in recent years in growing cash flows and deleveraging, primarily due to lower-than-expected EBITDA and adverse, unexpected dynamics of payment advances and redundancy costs.
Liquidity Issues
Ongoing low liquidity in its NPE markets in the medium term, a demanding integration process ahead, and still significant leverage remain the main headwinds.

doValue S.p.A (DOV) vs. iShares MSCI Italy ETF (EWI)

doValue S.p.A Business Overview & Revenue Model

Company DescriptiondoValue S.p.A. primarily manages non-performing loans for banks, investors, individuals, and public and private financial institutions in Spain, Portugal, Greece, Cyprus, and Italy. The company's services include debt collection and loan recovery, management of lease payments, due diligence, structuring, and co-investment. It also provides ancillary products, including the collection, processing, and provision of commercial, real estate, and legal information relating to debtors, as well as the provision of legal services; and real estate services. The company was formerly known as doBank S.p.A. and changed its name to doValue S.p.A. in June 2019. The company was founded in 2015 and is based in Verona, Italy.
How the Company Makes MoneydoValue S.p.A. makes money through several key revenue streams centered around its core competencies in credit management and real estate services. The primary source of revenue comes from servicing fees, which are charged to financial institutions and investors for managing their loan portfolios. This includes overseeing the collection of non-performing loans, restructuring debt, and maximizing recovery rates. Additionally, doValue earns income from real estate services, which involve managing and selling real estate assets to optimize value for their clients. The company also provides advisory services, offering strategic insights and solutions to clients navigating complex financial situations. Significant partnerships with major banks and financial institutions enhance doValue's ability to access large portfolios and consolidate its market position, contributing to its financial performance.

doValue S.p.A Financial Statement Overview

Summary
doValue S.p.A. demonstrates a stable financial position with consistent revenue and operational cash flow, but faces challenges with profitability and leverage. While the company shows potential for growth, careful management of debt levels and improvement in profit margins are essential for long-term financial health.
Income Statement
65
Positive
doValue S.p.A. has shown resilient revenue growth over several years, although the growth rate has been inconsistent, with a significant drop in 2023. Gross profit margin has remained relatively stable, indicating consistent cost management. However, the net profit margin was under pressure due to fluctuating net income, especially in 2023, where a loss was recorded. EBIT and EBITDA margins have been consistent but not particularly strong, which reflects modest operational efficiency.
Balance Sheet
72
Positive
The company's debt-to-equity ratio is high, indicating significant leverage, which could pose risks if not managed carefully. However, the equity ratio shows some improvements, suggesting a better capitalization structure over time. Return on equity has been volatile, impacted by fluctuating net income and equity levels, but the recent increase in equity is a positive sign.
Cash Flow
68
Positive
Operating cash flow has generally been positive, indicating strong cash generation from operations. However, free cash flow has shown volatility due to fluctuating capital expenditures and investments. The cash flow to net income ratios indicate that cash generation is sometimes misaligned with net income, suggesting potential inefficiencies or timing differences in cash flow recognition.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
484.07M481.70M559.78M565.14M419.32M
Gross Profit
246.83M243.26M294.07M283.21M195.57M
EBIT
59.94M63.01M65.23M68.92M21.45M
EBITDA
91.97M104.84M135.41M176.95M103.57M
Net Income Common Stockholders
1.90M-17.83M26.48M33.17M-23.14M
Balance SheetCash, Cash Equivalents and Short-Term Investments
232.17M112.38M134.26M168.18M132.49M
Total Assets
1.45B1.03B1.13B1.18B1.13B
Total Debt
776.83M629.53M618.44M599.19M571.85M
Net Debt
544.66M517.15M484.18M432.53M439.36M
Total Liabilities
1.14B926.87M945.68M990.63M920.90M
Stockholders Equity
202.46M53.03M136.56M156.65M164.40M
Cash FlowFree Cash Flow
52.42M69.51M31.25M58.40M78.96M
Operating Cash Flow
76.19M71.51M62.30M123.60M98.95M
Investing Cash Flow
-183.48M-21.36M-31.06M-64.77M-254.44M
Financing Cash Flow
227.09M-72.03M-63.65M-24.66M159.81M

doValue S.p.A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.35
Price Trends
50DMA
1.91
Positive
100DMA
1.77
Positive
200DMA
1.81
Positive
Market Momentum
MACD
0.13
Positive
RSI
64.51
Neutral
STOCH
46.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DOV, the sentiment is Positive. The current price of 2.35 is above the 20-day moving average (MA) of 2.21, above the 50-day MA of 1.91, and above the 200-day MA of 1.81, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 64.51 is Neutral, neither overbought nor oversold. The STOCH value of 46.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:DOV.

doValue S.p.A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITDOV
74
Outperform
€437.94M6.926.61%8.70%
64
Neutral
$12.77B9.777.59%16985.66%12.31%-7.69%
€1.19B7.529.47%9.16%
€116.11M13.485.24%7.19%
€1.04B8.518.39%5.81%
€4.08B6.0417.03%6.20%
DE53D
€305.31M4.84-7.32%6.92%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:DOV
doValue S.p.A
2.35
-1.45
-38.11%
GB:0NBX
Banca Ifis SPA
23.14
5.10
28.27%
GB:0FP9
Banca Profilo SPA
0.18
-0.01
-5.26%
GB:0O5V
Banco di Desio e Della Brianza SPA
7.47
2.52
50.91%
GB:0K93
Credito Emiliano SPA Credem
12.22
3.39
38.39%
DE:53D
illimity Bank SpA
3.61
-1.20
-24.95%
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.