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Digital Generation Inc
DGIT : NASDAQ : Services

$7.60 -0.08 | -1.04%
Today's Range: 7.58 - 7.74
Avg. Daily Volume: 641,200
05/22/13 - 10:50 AM ET

Financial Analysis


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 ($mil)91.9892.85
EBITDA ($mil)0.025.09
EBIT ($mil)0.011.87
Net Income ($mil)-1.130.99


Balance Sheet Q1 FY13 Q1 FY12
Cash & Equiv. ($mil)47.3361.09
Total Assets ($mil)783.541029.34
Total Debt ($mil)0.0457.02
Equity ($mil)291.69515.96


Profitability Q1 FY13 Q1 FY12
Gross Profit Margin0.064.48
EBITDA Margin0.027.02
Operating Margin0.012.78
Sales Turnover0.490.34
Return on Assets-30.871.24
Return on Equity-82.672.89
Debt Q1 FY13 Q1 FY12
Current Ratio0.02.75
Debt/Capital0.00.47
Interest Expense7.588.09
Interest Coverage0.01.47


Share Data Q1 FY13 Q1 FY12
Shares outstanding (mil)27.6627.21
Div / share0.00.0
EPS-0.040.05
Book value / share10.5518.96
Institutional Own % n/a n/a
Avg Daily Volume765968.0511514.0

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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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