Post by
Investor10X on May 02, 2022 9:46pm
More DM metrics to consider...
Now that we have the year-end financials we can now look at a few other metrics that institutions and companies like to use to make comparisons.
From what I can see from the financials I've calculated the Enterprise Value (EV) of DM to be $44.98 million and the EBITDA is given as $15 million which gives DM an enterprise-value-to-EBITDA of 3. Values below 10 are considered healthy and DM is way under 10. Someone else can now take this number and compare it to others in the industry and I wouldn't be surprised to see DM valued way better than the majority.
Average P/E ratio's tend to range between 20 - 25. Over 25 and the company is often consider overvalued. Under 20 and the company is often viewed as undervalued. DM has a P/E of 6.1x. Again this number can be used to compare to other companies in the industry which I have in a past post and DM was again way undervalued. The industry average is 49.5x.
P/E ratio's and EV/EBITDA values are all relative to the industry, and DM is one of the most undervalued companies in their industry.
Together both of these popular metrics continue to show that DM remains undervalued.
Another metric I used in an earlier post was price-to-book ratio. DM's is 1.8x and the industry average is 12.4x. I also believe DM has one of the highest return on equity (ROE). Somewhere in the range of 42% where as the industry average is about 21%.
The net profit margin for DM is about 16 - 17% and the industry average is about -23%. Yes, negative 23%
Yes, those financials are outstanding! That's why MG was excited to present them. Again, no matter what metric one uses, every metric points to this stock being undervalued. Well done management and hopefully the market will finally begin to value this stock fairly.
As for Q1, I would expect to see a higher AI and Tech revenue and a lower covid revenue. The company is averging about $12.5 million per quarter. If DM can continue that average for Q1 that would be outstanding, but I could see Q1 being a little lower. It would still be a fantastic quarter if they can get around $10 million. I don't mind that the company was slightly under my expectation for the year-end financials because it will make it easier to match or beat the year-over-year growth for next year. It's all good according to the math, the company is doing extremely well.
Comment by
Thecook100 on May 02, 2022 10:00pm
Great post. Well thought out metrics showing how undervalued DM is. Thanks. I will take 12.5 million quarter average anyday. Pretty excited to be in this stock as the growth will continue stronger into 2023 :) GL all
Comment by
Shlinker_ on May 02, 2022 10:14pm
Revenue and EPS have more or less dropped quarter by quarter since Q1, 2021. Don't get ready to refinance the mortgage. Keep a hold of reality, and be smart. Until they prove consistent EPS, not worth getting a boner over.
Comment by
dirtydzn on May 02, 2022 10:27pm
For someone doling out boner advice, you sure have a hard on for bashing.
Comment by
astutein on May 02, 2022 10:47pm
Shlinker - factual results support your post. Profit has dropped marginally from end of Q3 to end of Q4. Q1 should be interesting and out by end of MAY
Comment by
Shlinker_ on May 02, 2022 11:12pm
You can go look at fins yourself. It's an extremely simple google search. DM posted amazeballs revenue 19.1M and earnings of 9M then it dropped from there for the last 3 quarters. Testing has maybe increased from Q4, so that's good I guess. But down alot since Q1. AI revs in Q1 well who the 'blip' knows. NDA, NDA, NDA,. Burn rate is surprising high for running PCs.
Comment by
astutein on May 02, 2022 11:39pm
investorx- Market cap today is 60.37 million, Our cash and marketable securities =17 Therefore the market is pricing 43.37 of value for other issues. InvestorX Please take run to show undervalued with 43.37 million priced.in at 17 cents.to substantiate your claim undervalued.
Comment by
Investor10X on May 02, 2022 11:56pm
The EV/EBITDA is valued at 3. The company is extremely healthy and would be viewed as underpriced and undervalued. You're out of your league playing here. You have nothing! lol Go play somewhere else. The numbers are on DM's side. Run along little boy!
Comment by
astutein on May 03, 2022 12:06am
investorx- Nice to see you are more knowledgeble than market and its pricing.
Comment by
Investor10X on May 03, 2022 9:35am
He's exactly right? Ha,ha,ha, based on what numbers? You're more clueless than he is. You guys/girls have yet to provide any numbers to the contrary, because you can't. DM is undervalued by every metric that you throw at it.
Comment by
Shlinker_ on May 02, 2022 11:55pm
Don't be bashful. It appears you are filled with anger and hate investor10x. it's those "values" that you will pass onto your children. Hate is the part of humanity. Get over it. You seem to think this stock is the next best.thing to sliced bread. Congratulations, your stock is red, but your anger is unwarranted.
Comment by
astutein on May 02, 2022 10:41pm
INVESTO10X--ON jAN 14 /2022 dmTRADING AT .24 CENTS. ANDYOUR POSTSTATED " Nice to see stock eventually climb to around $2.00at least by the time it up list onto the TSX. May post of yours states Enterprise Value of $44.98 Investorx- You are completely clueless on DM valuation and your posts are a complete JOKE.