Dotdigital Share Discussion Threads

[quant_investor] 22/12/2017 19:28

2.94 this year and 3.84 for next are the numbers I'm seeing.

Looks a pretty solid growth story hence the rating.

[srichardson8] 22/12/2017 18:56

I think you may be looking at the June 19 estimates...but I hope you are right anyway!

[pentangle] 22/12/2017 18:42

Actually I think Shares Magazine have got it wrong regarding the year to 6/2018 forecast PER which they reckon is 32.3.

The consensus forecast is 3.84p which at a share price of 96p I make the prospective PER 25 on the nail! Not ridiculously expensive I think.

[pentangle] 22/12/2017 18:30

Named as one of Share Magazines ten picks for 2018. Conclusions are:

If there is a potential sticking point it’s the already racy rating. A year-end 30 June 2018 price-to-earnings multiple of 32.3 suggests that a fair bit of excitement is already in the price.

But we can think of many UK-quoted technology companies trading on far heftier ratings, many of them without the growth profile, cash generation or dividends of DotDigital.

In 2017 rankings from research consultancy Megabuyte, DotDigital came in the top 10 of all UK-quoted technology businesses.

We could see the shares hitting levels around 150p over the coming 12 months. (SF)

I would settle for that!!

[dannyt90] 20/12/2017 18:01

This has to be one of the best companies around in regards to its finances? No debt, money in the bank, raising dividend. Very promising

[apad] 20/12/2017 06:38

Great post rosco40.
Thanks
apad

[rosco40] 19/12/2017 17:50

The fact that Dotmailer will now be bundled with Magento 2.2.2 is potentially highly significant for customer uptake in the US market. It means that new users can trial the software simply by going to Settings > Configuration > Dotmailer. Email software integration with CMSes can be a real headache, particularly when migrating to/upgrading or learning new systems. This ease of use has effectively removed a massive technical barrier for new users. Good stuff.

[2vdm] 19/12/2017 09:51

Valhamos,caffeine now in my system and yes it's a good point you are making. My only concern is that were there to be a general correction in the market,as is frequently talked about now, then this leaves the company with relatively little by way of actual reserves. It is a racehorse, albeit a very good one imo. I'll feel happier when we get the next set of results, which will hopefully not only confirm DOTD's generic progress, but also Comapi's integration into it, and the initial effects of the latter's new contract per today's RNS. Hopefully the integration will allow DOTD to increase Comapi's margins.

[valhamos] 19/12/2017 08:40

2vdm, I was particularly aware of the cash because significant cash on the balance sheet was one of the attractions for me(currently largest holding) in the sense that DOTD with good return on capital (including that cash) meant that return on capital actually invested in the business rather than stuck in a bank account was considerably higher. That high return on invested capital allied to strong growth indicates something special.

[2vdm] 19/12/2017 08:08

Valhamos, you are quite right.Apologies for my mistake here. I'm not quite sure why I thought they had, which is worrying!I think I'd better get have my first shot of caffeine for the day!

[valhamos] 19/12/2017 07:48

Very confident statement. However there isn't any debt. At 30 June 2017 DOTD had £20m cash and no debt and has since spent £11m on the Comapi acquisition.

[2vdm] 19/12/2017 07:40

A strong statement of where DOTD stands and that Comapi has won a significant contract. I hope that as revenue comes in the BOD will consider reducing some of the debt, but I think that they see growth as the priority.

[srichardson8] 15/12/2017 19:21

Is anyone going to the AGM by any chance? Next Tuesday 19th December at No 1 London Bridge, aka in the past as Fahd's Thumb after the CEO of the Kuwait Investment Authority Fahd Jaffar. Any comment would be much appreciated.
For the record if we assume the £11mn Comapi acquisition was paid for from the cash pile of £20mn the current EV might be around £270mn and the company should remain debt free. The Comapi EBITDA margin is around 15% which looks quite a bit lower than dot which has had an operating margin of a pretty juicy 25% and RoCE/RoE of about the same (all last year). What I like to hear in the acquisition comment is that they consider the Comapi business scaleable.
I am not pretending the company is cheap - I wish it were - but the record is outstanding and l-t prospects appear to be extremely good. That is why they have a fine shareholder register and the liquidity is poor - no-one seems to want to sell. I wonder why?

[pentangle] 14/12/2017 09:01

It's hard to value a company which has grown at a compound 30% per annum for the last ten years and where growth appears to be accelerating. Unsurprisingly a lot of people want it in their portfolio so the share price is supply/demand at work as for any share. Of course a highly rated share like this will be punished severely if management slip up, but it shows every sign of being well managed.

I would not disagree that it looks expensive currently, but then it did when it was 20, 30 or 50p. You may or may not have some short term success shorting DOTD, but as a long term holder (nearly 7 years), I feel comfortable about prospects over the next few years.

Incidentally you focus on the historical figures, but the likely turnover in excess of £50m and profit of £13m plus for the year starting next July is what the market is looking at. I am sure you would say that it will still be expensive but then it will probably continue to be unless growth falters or there is a severe stock market reversal.

[malcolmmm] 14/12/2017 08:05

Stockopedia, market capital is £289m

[eastbourne1982] 13/12/2017 20:58

Where are you getting an enterprise value of that figure from ?

Market cap just shy of 300 million.

Revenues of circa 32 million, profit of 8 million.

Net assets of less than 30 million.

This is so overvalued it's unreal.

[malcolmmm] 13/12/2017 19:56

Market Cap £289.9m

Enterprise Value £269.5m

Revenue £32.0m

[eastbourne1982] 13/12/2017 11:24

At nearly £1 a share and a market cap of not far off 300 million these look seriously overvalued, have decided to go short today.

[malcolmmm] 08/12/2017 11:03

Added a few more for Xmas, my best performing share

[volsung] 08/12/2017 08:45

At 96p. Come on sweetie you know you want to!

[metis20] 29/11/2017 12:17

Interesting to see if it manages to get through the 96p resistance this time.

[pentangle] 23/11/2017 22:39

N+1 Singer and Finncap have revised forecasts out and it appears that the new consensus is EPS of 2.95p for the current year and 3.84p next year which is an uplift of 0.18p and 0.44p presumably as a result of this acquisition. DOTD always like to surprise on the upside so maybe we will get close to 4p next year.

[valhamos] 23/11/2017 17:13

Agreed. It fits perfectly with their previously stated acquisition criteria. As well as being a good profitable acquisition in its own right the real bonus will be if it helps DOTD crack the Asia market as referred to in the RNS.

[sspurt] 23/11/2017 16:26

Happy with this acquisition. Stacks up from a number of angles incl meaningful earnings upgrades plus v limited dilution. What is not to like.

[volsung] 23/11/2017 11:14

Bought some of these for the SIPP