DGTL Holdings (DGTL.H) AI Stock Analysis

• Market Cap: C$723.63K
• Dividend Yield: N/A
• Average Volume (3M): 648.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): N/A
• Shares Outstanding: 20,675,076
• 10 Day Avg. Volume: 745
• 30 Day Avg. Volume: 648
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 26 Underperform
• Price Target: ―

DGTL Holdings faces severe financial difficulties, highlighted by declining revenues, persistent losses, and poor cash generation. The technical analysis also indicates bearish momentum, while valuation metrics show unattractive investment prospects due to negative earnings and no dividends. The lack of earnings call data further limits any positive outlook. Without significant changes, the stock remains a high-risk proposition.

DGTL Holdings Business Overview & Revenue Model

Company Description

DGTL Holdings Inc. incubates digital media and advertising technology companies using artificial intelligence in Canada and internationally. The company accelerates commercialized enterprise level software as-a-service companies through capitalization structures, including investment, mergers and acquisitions, earnouts, and licensing structures. It also offers Hashoff, a software-as-a-service platform provides micro-influencer marketing for brands; and TotalSocial, a platform-as-a-service focuses on the entire social ecosystem by combining powerful on-line and off-line data with predictive analytics. In addition, the company provides social intelligence using proprietary data and methodology for various brands and companies. The company was formerly known as Conscience Capital Inc. and changed its name to DGTL Holdings Inc. in July 2020. DGTL Holdings Inc. was incorporated in 2018 and is headquartered in Toronto, Canada.

How the Company Makes Money

DGTL Holdings makes money primarily through the provision of its digital marketing services and solutions. The company's revenue model is centered around offering comprehensive marketing campaigns that leverage advanced technologies such as artificial intelligence and data analytics to optimize client engagement and advertising effectiveness. Key revenue streams include subscription fees for its digital platforms, service fees from managed marketing campaigns, and performance-based advertising revenue. Additionally, DGTL Holdings may benefit from strategic partnerships with technology providers and media companies, enhancing its service offerings and expanding its client base, thereby contributing to its earnings.

DGTL Holdings Financial Statement Overview

Summary

Overall, DGTL Holdings displays critical financial weaknesses across all verticals. The income statement reflects declining revenues and persistent losses, the balance sheet shows high leverage and negative equity, and cash flow statements indicate poor cash generation. These factors collectively point to substantial operational and financial challenges that threaten the company's viability without significant strategic improvements.

Income Statement

DGTL Holdings has experienced a significant decline in revenue over the past two years, dropping from $2,415,301 in 2023 to zero in 2024, indicating severe challenges in generating sales. The company consistently posts negative net income, resulting in highly negative net profit margins. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. These factors suggest a struggling business model with an urgent need for strategic turnaround.

Balance Sheet

DGTL Holdings' balance sheet reveals high financial risk, with negative stockholders' equity indicating insolvency. The debt-to-equity ratio is irrelevant with negative equity, but the absolute level of debt is concerning given the lack of assets to cover it. The equity ratio is negative, showing liabilities exceed assets. These elements highlight significant financial instability and potential liquidity issues.

Cash Flow

The company has persistently negative operating and free cash flows, with a deterioration in cash generation capabilities. The operating cash flow to net income ratio is negative due to both figures being negative, indicating cash flow issues in covering net losses. However, the rate of cash outflow has decreased slightly, which is a marginal positive but insufficient to offset the overall weak cash flow position.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	0.00	2.41M	2.52M	3.98M	503.21K
Gross Profit	0.00	955.86K	910.20K	1.07M	-61.66K
EBITDA	-399.34K	-2.12M	-4.07M	-6.44M	-1.23M
Net Income	-985.21K	-2.52M	-4.49M	-6.82M	-1.05M
Balance Sheet
Total Assets	200.82K	1.07M	4.52M	6.17M	10.89M
Cash, Cash Equivalents and Short-Term Investments	103.60K	405.79K	1.41M	1.11M	958.16K
Total Debt	482.75K	1.30M	1.28M	171.42K	670.62K
Total Liabilities	2.25M	2.95M	4.71M	3.07M	5.10M
Stockholders Equity	-2.05M	-1.88M	-188.48K	3.10M	5.79M
Cash Flow
Free Cash Flow	-302.19K	-1.72M	-1.34M	-2.74M	-1.26M
Operating Cash Flow	-302.19K	-1.72M	-1.16M	-2.42M	-1.25M
Investing Cash Flow	0.00	0.00	478.03K	-319.55K	-573.46K
Financing Cash Flow	0.00	719.20K	1.02M	2.76M	2.43M

DGTL Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DGTL.H, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.05, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 10.29 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DGTL.H.

DGTL Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELL	69 Neutral	C$2.78M	9.62	8.66%	―	4.74%	4.00%
ZOMD	67 Neutral	C$130.02M	5.20	81.28%	―	50.79%	213.45%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DGTL.H	26 Underperform	C$723.63K	-0.95	―	―	―	―