DV Stock Report

2-Year Price History

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Ockham's Rating

DV Revenue

As we have often noted, in our valuation methodology, "Cash is King." Well, it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, DV the high and low end of the Price to Sales per share ratios are 3.15x and 1.75x respectively.

Notice that DV's current Price to Sales per share ratio is 2.47x, which is above its historical average only slightly. So, while not a major concern it is worth noting that from a value perspective DV does not look undervalued on a Price to Sales basis. However, were the Price to Sales ratio to drop by 0% (the historical average) then we would become more positive on this stock.

DV Cash Earnings

As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of DV, Ockham views their current Cash Earnings as below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for DV to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 22.58 and a 12.53 low over the same period.

At its current price of $46.96, the Price to Cash Earnings ratio of 16.83 per share for DV is relatively attractive. At current profitability levels, a drop in share price would only improve our future expectations. Again, Cash Earnings is an incredibly valuable metric, and management at DV must continue on its generation to improve our overall outlook for the stock.

DV Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

In DV’s case, the estimated annual dividend is $0.16 resulting in a current dividend yield of 0.34%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from DV against the historic high and low levels over the past 10 years. The highest dividend yield from DV over this period was 0.42% while the lowest dividend yield was 0.00% It's hard not to notice that DV pays a current dividend yield that is 61.90% above the historical median. This peaks our interest since our analysis is looks favorably upon dividend yields that are greater than the historical median.