# dotdigital Group Plc (DOTD.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Technology / Software. Price 50p, market value 152 millionp.

## Valuation
- **P/E (trailing): 16.7×** (5-yr avg 3036.5×, 3-yr avg 2264.4×). dotdigital Group Plc trades at 16.7× trailing earnings, well below its own five-year average of 3036.5×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 8.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.4×**. The shares trade at 1.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 2.3×**. Enterprise value is 2.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 28.7%** (5-yr avg 0.1%). Free cash flow equals 28.7% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 6.0%**. The inverse of the P/E: 6.0% of the price is earned each year.

## Profitability
- **Gross margin: 65.8%**. dotdigital Group Plc keeps 65.8% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 15.9%**. 15.9% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 13.4%**. 13.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.9%**. 10.9% on shareholders' equity is solid.
- **Return on invested capital: 29.7%**. Return on all capital, debt included, is 29.7%: comfortably above what that capital costs.
- **Return on assets: 14.5%**. Each dollar of assets produces 14.5% of profit.

## Growth
- **Revenue growth (1 yr): 6.3%** (3-yr 10.1%/yr, 5-yr 12.1%/yr). Revenue grew 6.3% over the last year, against 12.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 0.3%** (3-yr -2.9%/yr, 5-yr 0.3%/yr). Earnings per share rose 0.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 15.7%/yr**. Free cash flow has compounded at 15.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.02**. Debt is 0.02 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. dotdigital Group Plc holds more cash than debt.
- **Interest coverage: 36.7×**. Operating profit covers interest 36.7× over, a safe margin.
- **Current ratio: 2.57** (quick 2.57). Current assets cover the next year's liabilities 2.57 times.
- **Altman Z-score: 4.58**. A Z-score of 4.58 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.39%** (0p per share, trailing). dotdigital Group Plc yields 2.39%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 30%** (15% of free cash flow). 30% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 7**. 7 straight years of increases.
- **Dividend growth (5 yr): 10.4%/yr** (1-yr 10.0%). The dividend has compounded at 10.4% a year over five years, doubling roughly every 7 years at that pace.
- **Shareholder yield: 3.2%**. Dividends plus net buybacks return 3.2% of the market value a year.

## Price and momentum
- **Total return (1 yr): -23.9%** (YTD -24.8%, 3-mo 5.9%). The shares are down 23.9% over twelve months including dividends.
- **From 52-week high: -34.0%** (22.9% above the low). Trading 34% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 0.34** (volatility 36%). Beta of 0.34 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DOTD.L · Page: https://foliofundamentals.com/stocks/dotd.l

Not investment advice.