Digital Ally, Inc. (NASDAQ: KUST)

Sector: Communication Services Industry: Entertainment CIK: 0001342958
Market Cap 1,281.28
P/B 0.00
P/E 0.00
P/S 0.00
ROIC (Qtr) -50.24
Div Yield % 0.00
Rev 1y % (Qtr) 11.98
Total Debt (Qtr) 4.04 Mn
Debt/Equity (Qtr) 0.47

About

Digital Ally, Inc., under the ticker symbol DGLY, operates in the technology industry, specializing in digital video imaging, storage products, and related safety solutions. These offerings cater to law enforcement, security, and commercial sectors, with services spanning development, manufacturing, and sales. The company's operations are divided into three segments: Video Solutions, Revenue Cycle Management, and Entertainment. The Video Solutions segment, Digital Ally's original business, encompasses digital video imaging, storage products, and...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 15.46M provides 3.83x coverage of total debt 4.04M, indicating robust asset backing and low credit risk.
  • Operating cash flow of (10.03M) fully covers other non-current liabilities (3.72M) by 2.69x, showing strong long-term stability.
  • Cash reserves of 793360 provide comfortable 75.99x coverage of tax obligations 10441, showing strong fiscal management.
  • Operating cash flow of (10.03M) exceeds working capital of (115393) by 86.88x, showing strong operational efficiency.
  • Strong R&D investment of 501596 at 1.42x of capex 354293 shows balanced investment in innovation and infrastructure.

Bear case

  • Investment activities of (354293) provide weak support for R&D spending of 501596, which is -0.71x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (10.03M) provides insufficient coverage of deferred revenue obligations of 8.93M, which is -1.12x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (10.03M) shows concerning coverage of stock compensation expenses of 87291, with a -114.85 ratio indicating potential earnings quality issues.
  • Free cash flow of (10.38M) provides weak coverage of capital expenditures of 354293, with a -29.30 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (6.39M) show weak coverage of depreciation charges of 1.72M, with a -3.72 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Entertainment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NFLX Netflix Inc 349.87 Bn 31.86 7.74 14.46 Bn
2 DIS Walt Disney Co 195.56 Bn 15.96 2.04 46.64 Bn
3 WBD Warner Bros. Discovery, Inc. 66.35 Bn 136.80 1.75 33.52 Bn
4 FWONA Liberty Media Corp 46.91 Bn -352.74 11.61 7.04 Bn
5 LYV Live Nation Entertainment, Inc. 32.65 Bn 101.32 1.33 9.39 Bn
6 FOXA Fox Corp 29.03 Bn 15.35 1.75 6.60 Bn
7 TKO TKO Group Holdings, Inc. 17.65 Bn -220.73 5.07 4.04 Bn
8 WMG Warner Music Group Corp. 15.37 Bn 768.35 4.64 4.61 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.13 1.60
EV to Cash from Ops. EV/CFO -0.32 74.22
EV to Debt EV to Debt 0.78 109.74
EV to EBIT EV/EBIT -0.49 24.34
EV to EBITDA EV/EBITDA -0.67 31.84
EV to Free Cash Flow [EV/FCF] EV/FCF -0.30 -338.96
EV to Market Cap EV to Market Cap 2,465.28 62.35
EV to Revenue EV/Rev 0.17 9.43
Price to Book Value [P/B] P/B 0.00 3.87
Price to Earnings [P/E] P/E 0.00 -61.07
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.25
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -16.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.14
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.95
Interest Coverage Int. cover (Qtr) -2.82 -7.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -143.82 -46.16
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 91.11 2,379.93
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.45
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 62.02 -74.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 74.77 3.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 62.02 -56.93
EBT Growth (1y) % EBT 1y % (Qtr) 56.67 11.72
EPS Growth (1y) % EPS 1y % (Qtr) 75.92 23.88
FCF Growth (1y) % FCF 1y % (Qtr) -41.62 -92.46
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.04 0.48
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.76 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.08 0.48
Current Ratio Curr Ratio (Qtr) 0.99 1.22
Debt to Equity Ratio Debt/Equity (Qtr) 0.47 1.03
Interest Cover Ratio Int Coverage (Qtr) -2.82 -7.86
Times Interest Earned Times Interest Earned (Qtr) -2.82 -7.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -24.50 -64.95
EBIT Margin % EBIT Margin % (Qtr) -33.47 -79.29
EBT Margin % EBT Margin % (Qtr) -45.36 -82.30
Gross Margin % Gross Margin % (Qtr) 22.70 35.55
Net Profit Margin % Net Margin % (Qtr) -45.40 -82.96