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

• Market Cap: €338.41M
• Dividend Yield: N/A
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.37
• Revenue Growth: -0.32%
• EPS Growth: N/A
• Country: IT
• Employees: 3,458
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 0.19
• Shares Outstanding: 190,140,350
• 10 Day Avg. Volume: 1,251,832
• 30 Day Avg. Volume: 1,443,735
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: €2.36
• Price Target Upside: 30.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

doValue S.p.A.'s overall stock score reflects a stable financial position with consistent cash flow, although profitability and leverage remain areas of concern. The technical indicators suggest neutral momentum, while the valuation indicates potential undervaluation. The absence of a dividend yield is a minor drawback for income investors.

Positive Factors

Business Performance

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

Financial Position

Following the acquisition of Gardant, DOV is now in a stronger position, both strategically and financially.

Strategic Acquisition

The acquisition of Gardant contributed positively to the diversification strategy and GBV breakdown.

Negative Factors

Cash Flow Challenges

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.

Market Conditions

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 Business Overview & Revenue Model

Company Description

doValue S.p.A. (DOV) is a leading operator in Southern Europe specializing in credit management and real estate services. The company primarily operates in Italy, Spain, Portugal, Greece, and Cyprus, offering a comprehensive suite of services that include loan servicing, real estate management, and advisory services. doValue serves a broad range of clients including banks, financial institutions, and investors, helping them manage non-performing loans (NPLs) and optimize their real estate assets.

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. 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

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

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

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 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
481.70M	559.78M	565.14M	419.32M	365.87M
	Gross Profit
243.26M	294.07M	283.21M	195.57M	191.63M
	EBIT
63.01M	65.23M	68.92M	21.45M	75.36M
	EBITDA
104.84M	135.41M	176.95M	103.57M	111.13M
	Net Income Common Stockholders
-17.83M	26.48M	33.17M	-23.14M	38.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
112.38M	134.26M	168.18M	132.49M	128.16M
	Total Assets
1.03B	1.13B	1.18B	1.13B	830.69M
	Total Debt
629.53M	618.44M	599.19M	571.85M	383.29M
	Net Debt
517.15M	484.18M	432.53M	439.36M	255.13M
	Total Liabilities
926.87M	945.68M	990.63M	920.90M	605.39M
	Stockholders Equity
53.03M	136.56M	156.65M	164.40M	225.30M
Cash Flow		Free Cash Flow
69.51M	31.25M	58.40M	78.96M	94.48M
	Operating Cash Flow
71.51M	62.30M	123.60M	98.95M	102.84M
	Investing Cash Flow
-21.36M	-31.06M	-64.77M	-254.44M	-364.81M
	Financing Cash Flow
-72.03M	-63.65M	-24.66M	159.81M	316.51M

doValue S.p.A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.81
• 50DMA: Positive
• 100DMA: Positive
• 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:DOV, the sentiment is Positive. The current price of 1.81 is above the 20-day moving average (MA) of 1.70, above the 50-day MA of 1.71, and below the 200-day MA of 1.92, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.59 is Neutral, neither overbought nor oversold. The STOCH value of 60.41 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UCG	81 Outperform	$79.30B	8.67	15.33%	4.34%	4.37%	11.60%
DOV	65 Neutral	€338.41M	9.43	1.49%	―	-0.32%	―
Sector *	64 Neutral	$12.51B	9.81	7.92%	16985.69%	12.67%	-5.98%
ISP	61 Neutral	€84.61B	9.98	13.42%	6.77%	6.32%	17.08%