Dotdigital (DOTD) AI Stock Analysis

• Market Cap: £222.16M
• Dividend Yield: 1.52%
• Average Volume (3M): 763.02K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.63
• Revenue Growth: 14.08%
• EPS Growth: -14.01%
• Country: UK
• Employees: 451
• Sector: Technology
• Sector Strength: 48
• Industry: Software
• EPS (TTM): 0.04
• Shares Outstanding: 306,848,360
• 10 Day Avg. Volume: 773,547
• 30 Day Avg. Volume: 763,021
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.68
• Price to Cash Flow (P/CF): 13.40
• P/FCF Ratio: 34.60
• 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: 150.00p
• Price Target Upside: 107.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Dotdigital demonstrates strong financial performance with consistent revenue growth and a robust balance sheet. Technical indicators are mixed, but corporate events highlight continued growth and strategic expansion. Valuation is moderate, supporting a solid stock outlook.

Dotdigital Business Overview & Revenue Model

Company Description

Dotdigital Group Plc (DOTD) is a leading provider of omnichannel marketing automation technology. The company specializes in delivering a cloud-based platform that enables marketers to create, manage, and optimize marketing campaigns across multiple channels, including email, SMS, social media, and more. Dotdigital primarily serves industries such as retail, eCommerce, and B2B, providing solutions that enhance customer engagement and drive business growth.

How the Company Makes Money

Dotdigital generates revenue primarily through its subscription-based software-as-a-service (SaaS) model. Customers pay recurring fees to access the platform's marketing automation tools and services. The company also earns income from professional services, including consulting, training, and support, which help clients effectively implement and utilize their marketing solutions. Additionally, Dotdigital benefits from strategic partnerships and integrations with eCommerce platforms and other technology providers, expanding its customer base and enhancing its service offerings.

Dotdigital Financial Statement Overview

Summary

Dotdigital's financial health is strong, with consistent revenue growth and robust profit margins. The balance sheet is solid, though there is a decrease in cash reserves requiring attention. Cash flow remains strong, supporting future investments.

Income Statement

Dotdigital exhibits a strong financial performance with a consistent revenue growth trend over the years, evidenced by a 14.1% growth from 2023 to 2024. The company's gross profit margin remains robust, supported by an improvement in net profit margin. However, EBIT margin saw a slight decline, indicating increased operational costs. EBITDA margin remains solid, showcasing effective cost management.

Balance Sheet

The balance sheet reflects stability with a healthy debt-to-equity ratio, indicating low leverage. The company maintains a strong equity ratio, highlighting a solid capital structure. However, there is a notable decrease in cash and equivalents, signaling potential liquidity management attention.

Cash Flow

Dotdigital demonstrates strong cash flow generation capabilities, with significant free cash flow growth. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion. Despite a decline in net income, free cash flow remains strong, supporting future investments and debt servicing.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
78.97M	69.23M	62.83M	58.12M	47.40M
	Gross Profit
52.67M	47.26M	44.02M	41.68M	38.38M
	EBIT
13.46M	14.24M	13.46M	13.47M	12.14M
	EBITDA
23.40M	22.05M	20.86M	18.97M	17.41M
	Net Income Common Stockholders
11.07M	12.60M	11.83M	10.59M	10.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.16M	52.68M	43.92M	31.95M	25.38M
	Total Assets
123.57M	100.17M	87.79M	75.09M	67.37M
	Total Debt
3.08M	2.14M	2.58M	3.42M	4.47M
	Net Debt
-39.08M	-50.53M	-41.34M	-28.53M	-20.92M
	Total Liabilities
28.37M	19.86M	17.98M	14.05M	16.30M
	Stockholders Equity
95.20M	80.31M	69.81M	61.03M	51.07M
Cash Flow		Free Cash Flow
22.22M	12.64M	15.31M	9.97M	9.04M
	Operating Cash Flow
22.42M	21.70M	23.46M	17.01M	15.82M
	Investing Cash Flow
-28.84M	-9.07M	-8.15M	-7.04M	-6.78M
	Financing Cash Flow
-4.07M	-3.84M	-3.67M	-3.50M	-2.94M

Dotdigital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.40
• 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 GB:DOTD, the sentiment is Negative. The current price of 72.4 is below the 20-day moving average (MA) of 83.35, below the 50-day MA of 83.42, and below the 200-day MA of 88.77, indicating a bearish trend. The MACD of -3.43 indicates Positive momentum. The RSI at 25.74 is Positive, neither overbought nor oversold. The STOCH value of 5.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DOTD.

Dotdigital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOTD	78 Outperform	£222.16M	19.62	11.66%	1.52%	14.08%	-14.01%
YOU	64 Neutral	£385.52M	―	-1.26%	2.73%	29.81%	-106.55%
Sector *	59 Neutral	$22.39B	11.53	-18.05%	2.31%	5.00%	-25.89%
FDEV	55 Neutral	£71.95M	4.49	21.85%	―	-6.57%	―