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Digital Ally (DGLY)
NASDAQ:DGLY
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Digital Ally
(NASDAQ:DGLY)
15Underperform
Digital Ally (DGLY) vs. S&P 500 (SPY)
Market Cap
$2.18M
Dividend YieldN/A
Average Volume (3M)84.95M
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth-32.26%
EPS Growth39.17%
CountryUS
Employees170
SectorCommunication Services
Sector Strength79
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-6.69
Shares Outstanding79,251,320
10 Day Avg. Volume158,609,307
30 Day Avg. Volume84,948,409
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.02
Price to Cash Flow (P/CF)-0.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Digital Ally Business Overview & Revenue Model
Company DescriptionDigital Ally, Inc. (DGLY) is a technology company that specializes in the development, manufacture, and distribution of advanced video surveillance and analytical solutions specifically designed for law enforcement, emergency management, and commercial applications. The company's core products and services include body-worn cameras, in-car video systems, and cloud-based digital evidence management software that enhances the capability of its clients to manage and utilize digital evidence effectively.
How the Company Makes MoneyDigital Ally generates revenue through the sale of its hardware products, such as body-worn cameras and in-car video systems, which are primarily marketed to law enforcement agencies and other public safety organizations. Additionally, the company offers subscription-based services for its cloud-based digital evidence management system, which provides clients with a secure and efficient way to store and analyze video footage. Digital Ally also enters into strategic partnerships and collaborations to expand its market reach and enhance its product offerings, contributing to its revenue streams. The company's earnings are further supported by providing after-sales support and maintenance services, ensuring ongoing client engagement and satisfaction.
Digital Ally Financial Statement Overview
Summary
Digital Ally is facing significant financial stress with declining revenues, persistent losses, and increasing debt levels. The negative equity position is a major concern, highlighting solvency risks. While there were temporary improvements in the past, consistent cash flow deficits and reliance on financing for liquidity are unsustainable.Income Statement
Digital Ally's income statement reveals significant challenges. The company has faced declining revenues over the recent years, with a notable drop from $37 million in 2022 to $21 million TTM (Trailing-Twelve-Months) in 2024. Gross profit margins are low, and both EBIT and net profit margins are negative, indicating persistent losses. The revenue growth rate has been negative, reflecting a concerning trend. Despite these issues, the company managed a positive EBITDA margin in 2021, which was an anomaly due to high non-operating income.21
Negative
Balance Sheet
The balance sheet highlights a precarious financial position. The company's stockholders' equity turned negative in 2024, indicating potential insolvency issues. The debt-to-equity ratio is not calculable due to negative equity. Previously, the company had a manageable debt level but recent increases in liabilities are concerning. Return on equity is negative, driven by continuous losses. Equity ratio has deteriorated, reflecting diminished asset stability and increasing leverage risks.15
Very Negative
Cash Flow
Cash flow analysis underscores severe liquidity challenges. Operating cash flows have been consistently negative, indicating inefficient operations and cash burn. Free cash flow is also negative, and the free cash flow growth rate is worsening. The operating cash flow to net income ratio is unfavorably negative, reflecting poor cash conversion. Financing activities have provided temporary relief through increased debt, but this is not sustainable long-term.10
Very Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 21.13M | 28.25M | 37.01M | 21.41M | 10.51M | 10.44M | Gross Profit |
| 3.42M | 5.76M | 2.32M | 5.66M | 4.06M | 3.23M | EBIT |
| -20.91M | -22.24M | -29.73M | -14.76M | -7.66M | -12.03M | EBITDA |
| -16.61M | -20.11M | -16.66M | 26.38M | -2.00M | -9.57M | Net Income Common Stockholders |
| -19.97M | -25.69M | -6.11M | 25.47M | -1.42M | -9.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 834.02K | 680.55K | 3.53M | 32.01M | 4.36M | 359.69K | Total Assets |
| 21.59M | 47.03M | 56.67M | 82.99M | 20.80M | 8.92M | Total Debt |
| 0.00 | 9.92M | 1.78M | 2.18M | 996.75K | 2.03M | Net Debt |
| -834.02K | 9.24M | -1.75M | -29.83M | -3.37M | 1.67M | Total Liabilities |
| 3.84M | 35.58M | 20.33M | 27.13M | 6.44M | 15.23M | Stockholders Equity |
| 17.75M | 10.78M | 35.89M | 55.81M | 14.36M | -6.32M |
| Cash Flow | Free Cash Flow | ||||
| -8.20M | -10.13M | -20.77M | -25.44M | -13.97M | -1.39M | Operating Cash Flow |
| -8.14M | -9.89M | -18.58M | -17.83M | -13.27M | -1.12M | Investing Cash Flow |
| 349.06K | -240.71K | -2.94M | -19.12M | -1.50M | -266.14K | Financing Cash Flow |
| 6.00M | 7.38M | -6.95M | 64.60M | 18.78M | -1.85M |
Digital Ally Technical Analysis
Negative
0.03
Price Trends
0.08
Negative
0.33
Negative
0.83
Negative
Market Momentum
-0.03
Negative
29.09
Positive
2.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DGLY, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.08, and below the 200-day MA of 0.83, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 29.09 is Positive, neither overbought nor oversold. The STOCH value of 2.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DGLY.
Digital Ally Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $43.52B | 118.86 | 19.10% | ― | 33.32% | 111.64% | |
58 Neutral | $26.33B | 3.17 | -10.68% | 4.33% | 2.16% | -43.07% | |
46 Neutral | $346.96M | ― | -63.44% | ― | 9.23% | 51.61% | |
45 Neutral | $84.75M | ― | -181.93% | ― | 31.76% | 2.90% | |
34 Underperform | $10.32M | ― | -34.59% | ― | -78.87% | 85.62% | |
15 Underperform | $2.18M | ― | -234.89% | ― | -32.26% | 39.17% |
* Communication Services Sector Average
Performance Comparison
DGLY
Digital Ally
0.03
-2.18
-98.64%
AXON
Axon Enterprise
567.98
264.67
87.26%
REKR
Rekor Systems
0.76
-1.18
-60.82%
KULR
KULR Technology Group
1.22
0.64
110.34%
VS
Versus Systems
2.10
0.70
50.00%
Digital Ally Earnings Call Summary
Earnings Call Date: Apr 7, 2025 | % Change Since: -25.00% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a challenging quarter financially, with significant losses and asset value decreases. However, there were positive notes in deferred revenue growth, upcoming dividends, and successful events in the entertainment segment.Highlights
Deferred Revenue Growth
Deferred revenue continues to grow, reaching over $10.5 million, reflecting successful execution of the subscription model strategy.
Upcoming Stock Dividends
Digital Ally shareholders will receive approximately 2.3 million shares of Clover Leaf Capital, potentially valued at $7.70 per share post-merger.
Successful Festival Events
Kustom Entertainment successfully hosted the Country Stampede festival, indicating strong performance in the entertainment segment.
Lowlights
Decreasing Asset Values
Total assets decreased from $47 million at year-end to $43.3 million by June 30, 2024, with current assets down by $1.3 million.
Increased Liabilities
Current liabilities increased to $27.6 million, with total liabilities reaching $40.3 million, partly due to non-cash warrant derivative liabilities.
Operating and Net Losses
The company reported an operating loss of $3.9 million and a net loss of $5 million for the quarter, with a net loss per share of $1.74.
Company Guidance
During the Digital Ally Q2 2024 earnings call, the executives provided guidance on several key financial metrics. As of June 30, 2024, the company reported current assets of $14.2 million, a decrease of $1.3 million from the year-end, and total assets of $43.3 million, down from $47 million on December 31. Total current liabilities increased to $27.6 million, with a significant portion attributed to warrant derivative liabilities. The company's total liabilities stood at $40.3 million, while contract liabilities were $3.1 million as current and $7 million long-term. Stockholders' equity was slightly over $3 million at the end of the quarter. The quarter's total revenue reached $5.6 million, with a gross profit of $242,000, leading to an operating loss of $3.9 million and a net loss of $5 million, or $1.74 per share. The company had 3.5 million shares outstanding at quarter-end. Notably, deferred revenue grew to over $10.5 million, reflecting the success of their subscription model strategy. Additionally, the company discussed the impending merger of Kustom Entertainment with Clover Leaf Group, which is expected to deliver significant value to shareholders.Digital Ally Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Digital Ally Faces Nasdaq Compliance Challenge
Neutral
Nov 27, 2024
Digital Ally, Inc. faces a compliance challenge with Nasdaq due to a delay in filing its quarterly report, which has no immediate impact on its stock listing. The company has until January 2025 to submit a compliance plan, potentially extending to May 2025. Digital Ally is actively working to resolve the issue and aims to normalize its filing schedule by next year.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.