Digital Turbine, headquartered in Austin, Texas, offers end-to-end mobile communication solutions for operators and developers, employing 754 staff since its IPO on June 30, 2006. Their services include On Device Solutions and App Growth Platform for app discovery and monetization.
Based on our analysis, Digital Turbine appears significantly undervalued, earning a rating of 5 out of 5 stars from Cashu. Several key financial ratios indicate that the company is trading at a discount compared to its sector peers, suggesting potential for future growth.
The company's Price-to-Book (PB) ratio stands at 1.15, well below the sector average of 3.23. A lower PB ratio can imply that the stock is undervalued relative to its book value, indicating that investors may be paying less for each dollar of net assets.
Digital Turbine’s net profit margin is notably negative at -77.18, compared to the sector's -18.03. While a negative margin signals challenges in profitability, it also highlights potential for improvement. If the company can stabilize its operations and reduce costs, its profitability could improve, leading to a potential increase in stock value.
The Return on Equity (ROE) for Digital Turbine is -196.43, far worse than the sector's -24.93. This negative return suggests that the company is not generating profit from its equity, but it also presents an opportunity for better management to enhance returns in the future.
Additionally, the Return on Assets (ROA) is -48.55 compared to the sector's -13.90, indicating inefficiencies in asset utilization. However, this also implies that there is room for operational improvements, which can positively affect future performance.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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