dotdigital Group Plc
dotdigital Group Plc Fundamental Analysis
dotdigital Group Plc (DOTDF) shows moderate financial fundamentals with a PE ratio of 18.26, profit margin of 13.12%, and ROE of 10.71%. The company generates $0.1B in annual revenue with strong year-over-year growth of 14.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DOTDF's fundamental strength across five key dimensions:
Efficiency Score
WeakDOTDF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDOTDF trades at attractive valuation levels.
Growth Score
ModerateDOTDF shows steady but slowing expansion.
Financial Health Score
ExcellentDOTDF maintains a strong and stable balance sheet.
Profitability Score
WeakDOTDF struggles to sustain strong margins.
Key Financial Metrics
Is DOTDF Expensive or Cheap?
P/E Ratio
DOTDF trades at 18.26 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DOTDF's PEG of 1.11 indicates fair valuation.
Price to Book
The market values dotdigital Group Plc at 1.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.74 times EBITDA. This is generally considered low.
How Well Does DOTDF Make Money?
Net Profit Margin
For every $100 in sales, dotdigital Group Plc keeps $13.12 as profit after all expenses.
Operating Margin
Core operations generate 17.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.71 in profit for every $100 of shareholder equity.
ROA
dotdigital Group Plc generates $6.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
dotdigital Group Plc generates strong operating cash flow of $28.30M, reflecting robust business health.
Free Cash Flow
dotdigital Group Plc generates strong free cash flow of $27.89M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.09 in free cash annually.
FCF Yield
DOTDF converts 12.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How DOTDF Stacks Against Its Sector Peers
| Metric | DOTDF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.26 | 35.87 | Better (Cheaper) |
| ROE | 10.71% | 1175.00% | Weak |
| Net Margin | 13.12% | -136937.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 2.57 | 4.81 | Strong Liquidity |
| ROA | 6.75% | -312685.00% (disorted) | Weak |
DOTDF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews dotdigital Group Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.20%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
26.64%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
67.29%
Industry Style: Growth, Innovation, High Beta
High Growth