Digimarc Corp

Technology
EDP Services
www.digimarc.com

Moat Score

Market Cap $268.53M
PE -7
Debt -
Cash $12.37M
EV -
FCF -$26.78M

Earnings

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Sales & Net Margins

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Earnings	-$39.01M
EBIT	-$38.97M
ROE	-64%
ROA	-51%
FCF	-$26.78M
Equity	$61.36M
Growth Stability	1
PE	-6.88
PB	4.38
P/FCF	-10.03
P/S	6.99
Price/Cash	0.05
Net Margins	-102%
Gross Margins	63%
Op. Margins	-101%
Sales Growth YoY	-7%
Sales Growth QoQ	-8%
Sales CAGR	7%
Equity CAGR	3%
Earnings Growth YoY	-18%

Earnings Growth QoQ	-20%
Sales CAGR 5Y	13%
Equity CAGR 5Y	7%
Earnings CAGR 3Y	15%
Sales CAGR 3Y	15%
Equity CAGR 3Y	-13%
Market Cap	$268.53M
Revenue	$38.42M
Assets	$75.77M
Cash	$12.37M
Shares Outstanding	21.26M
Moat Score	1%
Working Capital	30.19M
Current Ratio	4.3
Gross Profit	$24.24M
Shares Growth 3y	7%
Equity Growth QoQ	-13%
Equity Growth YoY	-1%

Assets & ROA

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Stockholders Equity & ROE

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Digimarc Corp provides automatic identification solutions to commercial and government customers and license technology and patented inventions to solution providers. Its Digimarc Platform applies a unique identifier to virtually all media objects including product packaging, commercial print, audio and video that can be automatically identified by an enabled ecosystem of industrial scanners, smartphones and other interfaces. The company generates revenue through commercial and government applications of its technology. It serves three primary markets: Government, Retail, and Media. The company derives its revenue primarily from software development services, subscriptions for products and related services, and licensing of patents.

SEC Filings

Direct access to Digimarc Corp (DMRC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Digimarc Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Digimarc Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

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Digimarc Corp Discounted Cash Flow

Fully customizable DCF calculator online for Digimarc Corp.

Years

Calculation mode

= -$268M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$27M	-$27M	-$27M	-$27M	-$27M	-$27M	-$27M	-$27M	-$27M	-$27M	-$27M	-$268M
DCF		-$24M	-$22M	-$20M	-$18M	-$17M	-$15M	-$14M	-$12M	-$11M	-$10M	-$103M
Value	-$268M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	-81%	-99%	-102%	-153%	-143%	-183%	-131%	-198%	-132%	-102%	-102%
ROA	-	-28%	-29%	-53%	-57%	-34%	-54%	-52%	-57%	-51%	-51%
ROE	-	-30%	-31%	-57%	-66%	-52%	-63%	-61%	-74%	-64%	-64%

Bad Net Margins (-101.54%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-	-	-	-0	-0.42	-	-	-	-	-
Debt over Equity	-	-	-	-	0	0.11	-	-	-	-	-
Growth Stability	-	-	-	-	-	-	-	-	-	-	1

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-2%	16%	-16%	8%	4%	11%	14%	15%	10%	13%
Earnings YoY growth	-	21%	19%	26%	1%	34%	-21%	72%	-23%	-15%	-
Equity YoY growth	-	43%	12%	-31%	-13%	70%	-34%	76%	-37%	-1%	7%
FCF YoY growth	-	43%	26%	14%	4%	-9%	27%	67%	-51%	20%	-