-0.08 | -1.04%
Sales and net income have dropped, underperforming the average competitor within its industry.
At the same time, stockholders' equity ("net worth") has significantly decreased by 43.46% from the same quarter last year.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 91.98 | 92.85 |
| EBITDA ($mil) | 0.0 | 25.09 |
| EBIT ($mil) | 0.0 | 11.87 |
| Net Income ($mil) | -1.13 | 0.99 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 47.33 | 61.09 |
| Total Assets ($mil) | 783.54 | 1029.34 |
| Total Debt ($mil) | 0.0 | 457.02 |
| Equity ($mil) | 291.69 | 515.96 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 0.0 | 64.48 |
| EBITDA Margin | 0.0 | 27.02 |
| Operating Margin | 0.0 | 12.78 |
| Sales Turnover | 0.49 | 0.34 |
| Return on Assets | -30.87 | 1.24 |
| Return on Equity | -82.67 | 2.89 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 0.0 | 2.75 |
| Debt/Capital | 0.0 | 0.47 |
| Interest Expense | 7.58 | 8.09 |
| Interest Coverage | 0.0 | 1.47 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 27.66 | 27.21 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.04 | 0.05 |
| Book value / share | 10.55 | 18.96 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 765968.0 | 511514.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.67 indicates a significant discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 5.05. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, DIGITAL GENERATION INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DGIT NM | Peers 19.25 | DGIT 2.30 | Peers 13.61 | |||||||||||||||||||||
|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. DGIT's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. DGIT is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| DGIT 14.66 | Peers 20.77 | DGIT NA | Peers 0.80 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. DGIT is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| DGIT 0.67 | Peers 5.05 | DGIT -1687.27 | Peers 99.30 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. DGIT is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, DGIT is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| DGIT 0.51 | Peers 2.69 | DGIT 9.09 | Peers 4.76 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. DGIT is trading at a significant discount to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. DGIT has a sales growth rate that significantly exceeds its peers. |
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