Diginex Ltd (NASDAQ: DGNX)

Sector: Industrials Industry: Consulting Services CIK: 0002010499
Market Cap 105.04 Mn
P/B 9.65
P/E -10.66
P/S 29.46
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 229,384.00
Debt/Equity (Qtr) 0.02
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About

Investment thesis

Bull case

  • Healthy cash reserves of 2.23M provide 12.34x coverage of short-term debt 181091, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 15.09M provides 65.76x coverage of total debt 229384, indicating robust asset backing and low credit risk.
  • Tangible assets of 15.09M provide exceptional 24.68x coverage of deferred revenue 611260, showing strong service capability backing.
  • Operating cash flow of (8.63M) fully covers other non-current liabilities (611260) by 14.12x, showing strong long-term stability.
  • Tangible assets of 15.09M provide robust 24.68x coverage of other current liabilities 611260, indicating strong asset backing.

Bear case

  • Operating cash flow of (8.63M) barely covers its investment activities of (8.78M), with a coverage ratio of 0.98, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 2.23M provide limited coverage of acquisition spending of (8.76M), which is -0.26x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (8.63M) provides insufficient coverage of deferred revenue obligations of 611260, which is -14.12x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (8.63M) shows concerning coverage of stock compensation expenses of 1.13M, with a -7.65 ratio indicating potential earnings quality issues.
  • Operating cash flow of (8.63M) provides minimal -803.02x coverage of tax expenses of 10750, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Consulting Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRSK Verisk Analytics, Inc. 28.99 Bn 59.50 10.85 4.89 Bn
2 EFX Equifax Inc 23.01 Bn 48.18 7.65 4.81 Bn
3 BAH Booz Allen Hamilton Holding Corp 9.48 Bn 11.30 0.83 4.14 Bn
4 FCN Fti Consulting, Inc 5.36 Bn 20.13 1.45 0.74 Bn
5 HURN Huron Consulting Group Inc. 2.29 Bn 21.14 1.38 0.65 Bn
6 ICFI ICF International, Inc. 1.43 Bn 22.60 0.96 0.62 Bn
7 CRAI Cra International, Inc. 1.10 Bn 25.41 1.63 0.19 Bn
8 SBC SBC Medical Group Holdings Inc 0.48 Bn 11.17 2.71 0.03 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 6.75 1.96
EV to Cash from Ops. EV/CFO -11.79 5.36
EV to Debt EV to Debt 443.63 58.47
EV to EBIT EV/EBIT -10.52 18.59
EV to EBITDA EV/EBITDA -10.17 20.71
EV to Free Cash Flow [EV/FCF] EV/FCF -11.79 11.61
EV to Market Cap EV to Market Cap 0.97 -835.88
EV to Revenue EV/Rev 28.54 5.73
Price to Book Value [P/B] P/B 9.65 3.44
Price to Earnings [P/E] P/E -10.66 22.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.70
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.32
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 6.40
Interest Coverage Interest Coverage -55.60 92.47
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -330.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 126.66
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.43
EBIAT Growth (1y) % EBIAT Growth (1y) % 0.00 -18.91
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -12.32
EBIT Growth (1y) % EBIT Growth (1y) % 0.00 -132.53
EBT Growth (1y) % EBT Growth (1y) % 0.00 -937.51
EPS Growth (1y) % EPS Growth (1y) % 0.00 -76.24
FCF Growth (1y) % FCF Growth (1y) % 0.00 -11.33
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 12.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.24 0.77
Cash Payout Ratio Cash Payout Ratio 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 0.54 2.02
Current Ratio Curr Ratio (Qtr) 3.56 4.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.55
Interest Cover Ratio Interest Cover Ratio -55.60 92.47
Times Interest Earned Times Interest Earned -55.60 92.47
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -267.00 -16.97
EBIT Margin % EBIT Margin % -271.30 -96.24
EBT Margin % EBT Margin % -276.18 -22.60
Gross Margin % Gross Margin % 100.00 54.26
Net Profit Margin % Net Profit Margin % -276.50 -25.32