FinancialsI like the financials. The financial health of the company is outstanding for miro/small cap company, especially if you want to compare it to others in the same sector. DM continues with a 0.00 EPS with an extremely small loss of $5282, which is negligible and P/E ratios are never comprehesive enough to get a true value of a company and need to be compared within it's sector to get a better idea (DM falls below the industry average, in otherwords undervalued)
For a small/micro cap company that is growing and expanding, these financials remain very impressive. The company carries no debt that needs to be paid back to institutional lenders. The only debt it carries is a loan that they secured under the Canadian Emergency Business Account Program which again is a negligible amount. In otherwords DM maintains a clean balance sheet with $14 million cash in the bank.
It's clear that many of the bashers don't have a clue what they are talking about and are completely clueless in how to value a company. And as usual swyint whines and complains about every single news release 100% of the time, but he does continue to provide a good laugh with his calls to replace Marshall or his email complaint to the company. If he actually did send an email to DM, I'm sure they all had a good laugh in the office today. LOL
The holy grail of numbers used by financial institutions to compare companies is the EBITDA, and DM remains EBITDA positive. Granted it's not a great cash flow, but what do you expect from a micro/smallcap company when 99.9% are negative with high amounts of losses. So this is very good to have a microcap company EBITDA positive. The Enterprise value (EV) of this company is currently sitting at $25.49 million. This is what it would cost to buy the company at its current market cap by adding its debt to the market cap and subtracting its cash. Yes, DM would be a very cheap company to buy at the moment. In otherwords great value or underpriced when compared to others in the sector, as we will see below.
If you want to start comparing companies more accurately than one popular metric that is used by analysts and institutions is to look at the EV/EBITDA and DM is currently trading at 7.8x EBITDA. Anything under 10x is considered a very healthy company. DM is a healthy company.
FOBI for example which is another AI company has according to their last financials $2.3 million in cash and cash equilvalents (DM $14.9 million), revenue of $1.8 million 9 months ended (DM $18.3 million 6 months ended), a net loss of $14.8 million (DM net loss of $5 282, yes that is correct only five thousand dollars!), total shareholder equity of $10.7 million (DM $42.8 million), - 0.04 EPS (DM 0.00).
Based on what I could see in FOBI's financials it doesn't look like FOBI has any debt loan repayments and their lease liability is negligible. So the EV of FOBI would be around $59.75 million to buy this company and they have mounting losses of $14.8 million. Now compare that to DM, which company is the better value? I can't do EV/EBITDA comparison as FOBI is EBITDA negative. I think that also tells you which is by far the better company. Yet FOBI's market cap and EV value are about twice that of DM's.
Now I could do this with other micro/small cap companies in the tech sector or health sector and most don't come close to the value of DM. Keep in mind that DM is still considered a micro/small cap company with financials that continues to waaaay outperform other small/micro cap companies and even some more established companies in the same sectors. I would actually expect to see losses from a growing and expanding micro/small cap company, but DM continues to beat my expectations and remains with a net loss of around zero, that's awesome!!!!