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Dotdigital Group PLC (GB:DOTD)
LSE:DOTD

Dotdigital (DOTD) AI Stock Analysis

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GB

Dotdigital

(LSE:DOTD)

75Outperform
Dotdigital's overall stock performance is rated as moderately attractive, driven by strong financial performance and positive corporate events. However, bearish technical indicators and liquidity concerns temper the outlook. The stock is reasonably valued, making it a balanced investment opportunity.

Dotdigital (DOTD) vs. S&P 500 (SPY)

Dotdigital Business Overview & Revenue Model

Company Descriptiondotdigital Group Plc provides intuitive software as a service (SaaS) and managed services to digital marketing professionals worldwide. The company offers Engagement Cloud, a SaaS-based omni-channel marketing automation platform that enables companies to create, test, and send data-driven automated campaigns and communications across channels, such as email, SMS, social, push, etc. dotdigital Group Plc was founded in 1999 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyDotdigital 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 shows strong financial health with consistent revenue growth, solid profitability, and effective cash flow management. However, attention to liquidity management is recommended due to decreased cash reserves.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
82.59M78.97M69.23M62.83M58.12M47.40M
Gross Profit
59.70M62.80M47.26M44.02M41.68M38.38M
EBIT
13.68M11.92M14.24M13.46M13.47M12.14M
EBITDA
25.17M23.40M22.05M20.86M18.97M17.41M
Net Income Common Stockholders
11.34M11.07M12.60M11.83M10.59M10.59M
Balance SheetCash, Cash Equivalents and Short-Term Investments
45.68M42.16M52.68M43.92M31.95M25.38M
Total Assets
126.95M123.57M100.17M87.79M75.09M67.37M
Total Debt
1.90M3.08M2.14M2.58M3.42M4.47M
Net Debt
-43.78M-39.08M-50.53M-41.34M-28.53M-20.92M
Total Liabilities
24.93M28.37M19.86M17.98M14.05M16.30M
Stockholders Equity
102.03M95.20M80.31M69.81M61.03M51.07M
Cash FlowFree Cash Flow
22.10M22.22M12.64M15.31M9.97M9.04M
Operating Cash Flow
22.29M21.07M21.70M23.46M17.01M15.82M
Investing Cash Flow
-9.71M-27.48M-9.07M-8.15M-7.04M-6.78M
Financing Cash Flow
-4.06M-4.07M-3.84M-3.67M-3.50M-2.94M

Dotdigital Technical Analysis

Technical Analysis Sentiment
Positive
Last Price87.40
Price Trends
50DMA
74.23
Positive
100DMA
79.76
Positive
200DMA
84.80
Positive
Market Momentum
MACD
3.48
Negative
RSI
66.22
Neutral
STOCH
80.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DOTD, the sentiment is Positive. The current price of 87.4 is above the 20-day moving average (MA) of 77.98, above the 50-day MA of 74.23, and above the 200-day MA of 84.80, indicating a bullish trend. The MACD of 3.48 indicates Negative momentum. The RSI at 66.22 is Neutral, neither overbought nor oversold. The STOCH value of 80.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DOTD.

Dotdigital Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBNET
79
Outperform
£187.83M36.2212.87%0.79%15.40%-6.59%
78
Outperform
£194.33M27.914.56%-0.90%15.22%
75
Outperform
£262.05M23.1411.66%1.29%11.38%-8.44%
71
Outperform
£264.47M50.006.94%1.21%19.55%-6.45%
70
Outperform
£166.41M34.138.42%1.81%-6.21%21.39%
GBAOM
64
Neutral
£79.21M94.079.60%
60
Neutral
$11.39B10.50-6.42%2.97%7.77%-11.17%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DOTD
Dotdigital
87.40
-6.16
-6.58%
GB:ACSO
accesso Technology
484.00
-262.00
-35.12%
GB:IDOX
Idox plc
56.20
-7.02
-11.10%
GB:APTD
Aptitude Software Group plc
298.00
-2.49
-0.83%
GB:NET
Netcall
113.00
26.27
30.29%
GB:AOM
ActiveOps plc
111.00
10.00
9.90%

Dotdigital Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Dotdigital Announces Change in Major Shareholder Holdings
Neutral
Apr 25, 2025

Dotdigital Group PLC has announced a change in its major holdings, with Canaccord Genuity Group Inc. increasing its voting rights to 5.0388% as of April 23, 2025. This acquisition of voting rights signifies a strategic move by Canaccord Genuity, potentially impacting Dotdigital’s shareholder dynamics and indicating confidence in the company’s market position.

Spark’s Take on GB:DOTD Stock

According to Spark, TipRanks’ AI Analyst, GB:DOTD is a Outperform.

Dotdigital’s strong financial performance and positive corporate events are tempered by bearish technical indicators. The company’s solid valuation metrics suggest moderate attractiveness, with potential headwinds due to liquidity concerns and technical momentum.

To see Spark’s full report on GB:DOTD stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Dotdigital CFO Designate Increases Stake in Company
Positive
Apr 23, 2025

Dotdigital Group plc announced that Tom Mullan, the designated Chief Financial Officer, has purchased 27,096 ordinary shares of the company, representing less than 0.1% of the company’s issued share capital. This move may indicate confidence in the company’s future prospects and could impact investor sentiment positively, reflecting on the company’s strategic positioning in the SaaS industry.

Spark’s Take on GB:DOTD Stock

According to Spark, TipRanks’ AI Analyst, GB:DOTD is a Outperform.

Dotdigital exhibits strong financial health with consistent revenue growth and profitability. The balance sheet is stable, though liquidity management should be watched. Technical analysis indicates a bearish trend, which is a key risk. Valuation metrics suggest the stock is reasonably priced, while recent corporate events, including a CFO appointment and strong revenue growth, bolster growth prospects. Overall, the stock is moderately attractive, with strong performance tempered by technical risks.

To see Spark’s full report on GB:DOTD stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Dotdigital Appoints New CFO to Drive Growth
Positive
Apr 14, 2025

Dotdigital Group plc has appointed Thomas Oliver Mullan as its new Chief Financial Officer, succeeding Alistair Gurney. Mullan brings extensive experience from his previous roles in the software sector, including his tenure at Gresham Technologies PLC, where he contributed to significant growth and strategic transitions. His appointment is expected to support Dotdigital’s long-term growth ambitions, leveraging his expertise in driving organic growth, international expansion, and mergers and acquisitions.

Spark’s Take on GB:DOTD Stock

According to Spark, TipRanks’ AI Analyst, GB:DOTD is a Neutral.

Dotdigital presents a strong financial performance with consistent growth, supported by strategic corporate initiatives. However, technical analysis indicates bearish momentum, which is a key consideration. Valuation remains reasonable, making the stock moderately attractive.

To see Spark’s full report on GB:DOTD stock, click here.

Business Operations and StrategyFinancial Disclosures
Dotdigital Reports Strong H1 FY25 Results with 10% Revenue Growth
Positive
Feb 25, 2025

Dotdigital Group plc reported a 10% increase in revenue to £42.4m for the first half of FY25, driven by strong demand for its customer experience and data platform. The company saw growth across all geographic regions, with international revenue now comprising 32% of total revenue. Dotdigital’s strategic focus on data, personalization, and AI has aligned well with market demand, resulting in significant customer wins and increased platform usage. The upcoming launch of a native WhatsApp channel is expected to further enhance customer engagement. Despite economic challenges, Dotdigital remains confident in its long-term growth prospects, supported by a robust cash position and plans for selective acquisitions to expand its offerings.

Business Operations and Strategy
Dotdigital Announces Change in Major Shareholding with Octopus Investments
Neutral
Feb 18, 2025

Dotdigital Group plc has announced a change in major holdings, with Octopus Investments Limited increasing its voting rights in the company to 13.24%, up from a previous 12.99%. This acquisition of voting rights reflects a growing interest and investment from Octopus Investments, potentially strengthening their influence and involvement in Dotdigital’s future strategic decisions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.