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

• Market Cap: €395.09M
• Dividend Yield: N/A
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.32
• Revenue Growth: 8.70%
• EPS Growth: N/A
• Country: IT
• Employees: 3,458
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Regional
• EPS (TTM): 0.05
• Shares Outstanding: 190,140,350
• 10 Day Avg. Volume: 1,336,557
• 30 Day Avg. Volume: 1,001,303
• PEG Ratio: 3.88
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.80
• 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: €2.52
• Price Target Upside: 17.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: €2.00 ▼(-6.98%Downside)

The stock's overall score is primarily affected by mixed financial performance, characterized by high leverage and profit volatility but strong cash flow management. Technical indicators suggest bearish sentiment, while valuation points to potential undervaluation, providing a balanced view.

Positive Factors

Business Expansion

DOV achieved new business of €10bn (GBV), exceeding its annual target of €8.0bn.

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.

Debt Levels

A slower improvement in free cash flow is expected with a net debt decline to €475m, leading to a leverage ratio of 2.2x, above the company’s target of 2.0x.

doValue S.p.A Business Overview & Revenue Model

Company Description

doValue 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 Money

doValue 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 presents a mixed financial profile with moderate stability and growth prospects. Positive revenue growth and operational efficiency are strengths, but high financial leverage and profit stability are concerns.

Income Statement

The income statement shows moderate growth and margin performance. The TTM data indicates a revenue growth rate of 7.92% compared to the previous year, reflecting a positive trend. Gross profit margin stands at 56.37% and net profit margin at 1.53%, showing adequate profitability with room for improvement. However, the historical trajectory shows fluctuating net income levels, suggesting some instability in profit generation. The EBIT and EBITDA margins of 16.10% and 25.01% respectively indicate reasonable operational efficiency.

Balance Sheet

The balance sheet indicates moderate financial leverage with a debt-to-equity ratio of 3.19, which is relatively high, suggesting potential risk in terms of debt burden. Return on Equity (ROE) is low at 3.98%, reflecting limited profitability on shareholders’ equity. The equity ratio is 15.16%, indicating a modest portion of assets funded by equity, which could signal vulnerability to financial instability.

Cash Flow

The cash flow analysis shows strong operational cash flow performance with an operating cash flow to net income ratio of 16.35, indicating effective cash conversion from earnings. The free cash flow growth rate is 98.45%, showcasing robust improvement in free cash flow generation. However, the free cash flow to net income ratio is 12.98, suggesting moderate cash flow coverage over earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	484.07M	481.70M	559.78M	565.14M	419.32M
Gross Profit	246.83M	243.26M	294.07M	283.21M	195.57M
EBITDA	91.97M	104.84M	135.41M	176.95M	103.57M
Net Income	1.90M	-17.83M	26.48M	33.17M	-23.14M
Balance Sheet
Total Assets	1.45B	1.03B	1.13B	1.18B	1.13B
Cash, Cash Equivalents and Short-Term Investments	232.17M	112.38M	134.26M	168.18M	132.49M
Total Debt	776.83M	629.53M	618.44M	599.19M	571.85M
Total Liabilities	1.14B	926.87M	945.68M	990.63M	920.90M
Stockholders Equity	202.46M	53.03M	136.56M	156.65M	164.40M
Cash Flow
Free Cash Flow	52.42M	69.51M	31.25M	58.40M	78.96M
Operating Cash Flow	76.19M	71.51M	62.30M	123.60M	98.95M
Investing Cash Flow	-183.48M	-21.36M	-31.06M	-64.77M	-254.44M
Financing Cash Flow	227.09M	-72.03M	-63.65M	-24.66M	159.81M

doValue S.p.A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.15
• 50DMA: Negative
• 100DMA: Positive
• 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:DOV, the sentiment is Neutral. The current price of 2.15 is below the 20-day moving average (MA) of 2.35, below the 50-day MA of 2.27, and above the 200-day MA of 1.78, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 8.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:DOV.

doValue S.p.A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$16.73B	11.75	9.79%	3.76%	11.87%	-7.97%
DOV	58 Neutral	€395.09M	6.32	6.61%	―	8.70%	―
0NBX	―	€1.43B	7.78	9.47%	7.67%	―	―
0FP9	―	€108.26M	8.87	5.24%	7.76%	―	―
0O5V	―	€952.63M	7.59	8.39%	6.44%	―	―
0K93	―	€4.30B	6.24	17.03%	5.92%	―	―
53D	―	€339.91M	4.84	-7.32%	6.92%	―	―