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: 17.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: €2.50 ▼(-13.79% Downside)

doValue S.p.A's overall stock score reflects a mixed financial performance with significant challenges in profitability and high leverage. The technical analysis provides some positive momentum, but the valuation remains unattractive due to the negative P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Positive revenue growth indicates expanding business operations and market presence, which can lead to increased market share and long-term stability.

Cash Flow Trends

Positive cash flow trends suggest effective cash management, providing the company with the ability to reinvest in growth opportunities and maintain financial flexibility.

Gross Profit Margin

A strong gross profit margin reflects efficient cost management, which can support profitability and competitive pricing strategies over the long term.

Negative Factors

High Leverage

High leverage indicates significant reliance on debt, which can increase financial risk and limit the company's ability to invest in growth or weather economic downturns.

Negative Net Profit Margin

A negative net profit margin highlights challenges in achieving profitability, which may hinder the company's ability to generate shareholder value and sustain operations.

Negative Return on Equity

Negative return on equity suggests inefficiencies in generating returns for shareholders, potentially impacting investor confidence and long-term capital raising abilities.

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 primarily through the provision of asset management and servicing solutions for non-performing loans (NPLs) and real estate assets. The company's revenue model is largely based on fees charged for managing loan portfolios, which include performance-based fees that incentivize successful recovery of debts. Additionally, doValue earns income from servicing agreements, where it manages the collections and recoveries of distressed assets on behalf of its clients. The company also benefits from long-term partnerships with banks and financial institutions, which provide a steady stream of business. Furthermore, doValue may engage in secondary market transactions involving NPLs, which can contribute to its earnings through gains on sales of financial assets.

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	571.26M	484.07M	481.70M	559.78M	565.14M	421.61M
Gross Profit	288.03M	246.83M	243.26M	294.07M	283.21M	197.87M
EBITDA	154.36M	91.97M	104.34M	133.45M	138.80M	83.55M
Net Income	-16.12M	1.90M	-18.33M	16.50M	23.74M	-30.41M
Balance Sheet
Total Assets	1.26B	1.45B	1.03B	1.13B	1.18B	1.12B
Cash, Cash Equivalents and Short-Term Investments	122.00M	232.17M	112.38M	134.26M	168.18M	132.49M
Total Debt	614.82M	776.83M	629.53M	618.44M	599.19M	571.85M
Total Liabilities	952.56M	1.14B	926.87M	945.68M	990.63M	937.73M
Stockholders Equity	194.72M	202.46M	53.03M	136.56M	156.65M	156.01M
Cash Flow
Free Cash Flow	97.46M	52.42M	69.51M	31.25M	58.40M	78.96M
Operating Cash Flow	127.64M	76.19M	71.51M	62.30M	123.60M	98.95M
Investing Cash Flow	-197.50M	-183.48M	-21.36M	-31.06M	-64.77M	-254.44M
Financing Cash Flow	101.35M	227.09M	-72.03M	-63.65M	-24.66M	159.81M

doValue S.p.A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 2.9 is above the 20-day moving average (MA) of 2.53, above the 50-day MA of 2.69, and above the 200-day MA of 2.38, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.66 is Neutral, neither overbought nor oversold. The STOCH value of 78.64 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
CE	73 Outperform	€4.67B	7.00	14.69%	6.46%	-7.81%	4.89%
IF	71 Outperform	€1.34B	7.57	8.85%	8.59%	-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%	8.18%	-19.12%	29.55%
ILTY	59 Neutral	―	―	―	―	―	―
DOV	54 Neutral	€509.98M	-14.85	-12.79%	―	22.48%	69.78%
BDB	53 Neutral	€1.14B	9.74	7.87%	5.06%	-5.81%	-11.05%