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

• Market Cap: €509.98M
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: 22.48%
• EPS Growth: 69.78%
• Country: IT
• Employees: 3,458
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -0.02
• Shares Outstanding: 190,140,350
• 10 Day Avg. Volume: 632,834
• 30 Day Avg. Volume: 1,010,739
• PEG Ratio: -0.54
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 2.00
• 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: €3.40
• Price Target Upside: 37.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: €3.00 ▲(20.97% Upside)

doValue S.p.A's overall stock score is primarily impacted by its mixed financial performance and bearish technical indicators. The company's high leverage and negative net income are significant concerns, while the oversold technical condition suggests potential for a short-term rebound. However, the negative P/E ratio and lack of dividend yield make the stock less attractive from a valuation standpoint.

Positive Factors

Revenue Growth

The company has demonstrated a moderate revenue growth rate of 4.85% in the TTM, indicating a positive trajectory and expanding market reach.

Operational Efficiency

Healthy EBIT and EBITDA margins suggest strong operational efficiency, which can support sustainable growth and competitive positioning.

Cash Flow Management

Efficient cash management, despite net income challenges, indicates robust cash flow operations, crucial for long-term financial health.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially impacting the company's ability to invest in growth and manage economic downturns.

Profitability Concerns

Low net profit margins and negative net income highlight challenges in converting revenue into profit, affecting long-term sustainability.

Declining Free Cash Flow

Declining free cash flow may signal potential liquidity issues, limiting the company's ability to fund operations and growth initiatives.

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 generates revenue through multiple streams, primarily by charging fees for its asset servicing and management services. This includes performance fees based on the recovery rates of the non-performing loans it manages, which incentivizes the company to maximize collections. Additionally, doValue may earn income from advisory services offered to financial institutions and other partners, aiding them in the management and resolution of distressed assets. Significant partnerships with banks and financial institutions across Southern Europe enhance its revenue potential, as these entities rely on doValue's expertise to manage their portfolios effectively. Furthermore, the company may also benefit from economies of scale as it expands its operations and increases its market share.

doValue S.p.A Financial Statement Overview

Summary

doValue S.p.A demonstrates a mixed financial performance. Revenue growth and operational efficiency are positive, but profitability is a concern due to low net profit margins and negative net income in the TTM. High leverage poses financial risks, although cash flow management shows some strengths. Overall, the company needs to address profitability and leverage to improve its financial health.

Income Statement

doValue S.p.A has shown a moderate revenue growth rate of 4.85% in the TTM, indicating a positive trajectory. The gross profit margin is strong at 56.37%, but the net profit margin is low at 1.53%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins are healthy, suggesting operational efficiency, but the negative net income in the TTM highlights profitability issues.

Balance Sheet

The company has a high debt-to-equity ratio of 3.20, indicating significant leverage, which could pose financial risks. The return on equity is modest at 6.12%, showing limited profitability for shareholders. The equity ratio is low, suggesting reliance on debt financing over equity.

Cash Flow

Operating cash flow is strong, but the free cash flow has declined by 14.79% in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is below 1, suggesting that cash generation is not fully covering net income. However, the free cash flow to net income ratio is relatively high, indicating efficient cash management despite the net income challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	547.79M	484.07M	481.70M	559.78M	565.14M	421.61M
Gross Profit	283.63M	246.83M	243.26M	294.07M	283.21M	197.87M
EBITDA	109.38M	91.97M	104.34M	133.45M	138.80M	83.55M
Net Income	-17.65M	1.90M	-18.33M	16.50M	23.74M	-30.41M
Balance Sheet
Total Assets	1.29B	1.45B	1.03B	1.13B	1.18B	1.12B
Cash, Cash Equivalents and Short-Term Investments	131.69M	232.17M	112.38M	134.26M	168.18M	132.49M
Total Debt	662.00M	776.83M	629.53M	618.44M	599.19M	571.85M
Total Liabilities	985.99M	1.14B	926.87M	945.68M	990.63M	937.73M
Stockholders Equity	197.80M	202.46M	53.03M	136.56M	156.65M	156.01M
Cash Flow
Free Cash Flow	88.65M	52.42M	69.51M	31.25M	58.40M	78.96M
Operating Cash Flow	116.82M	76.19M	71.51M	62.30M	123.60M	98.95M
Investing Cash Flow	-198.31M	-183.48M	-21.36M	-31.06M	-64.77M	-254.44M
Financing Cash Flow	102.78M	227.09M	-72.03M	-63.65M	-24.66M	159.81M

doValue S.p.A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DOV, the sentiment is Negative. The current price of 2.48 is below the 20-day moving average (MA) of 2.63, below the 50-day MA of 2.88, and above the 200-day MA of 2.32, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 36.41 is Neutral, neither overbought nor oversold. The STOCH value of 39.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
CE	73 Outperform	€4.67B	7.00	14.69%	6.74%	-7.81%	4.89%
IF	71 Outperform	€1.34B	7.57	8.85%	8.26%	-3.63%	-5.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PRO	64 Neutral	€104.01M	22.08	7.01%	8.13%	-19.12%	29.55%
BDB	60 Neutral	€1.11B	9.55	7.87%	5.52%	-5.81%	-11.05%
ILTY	59 Neutral	―	―	―	―	―	―
DOV	47 Neutral	€509.98M	-14.85	-12.79%	―	22.48%	69.78%