Posted On: 03/10/2012 10:43:13 PM
Post# of 7457
2011 TDGI FINANCIAL METRICS Take a Look TDGI Undervalued Compared to Similar Entertainment Companies
Company..................TDGI...................DISK.................NOOF....................PRVT................SAPX
Stock Price................$.0315.................$.09.................$1.22....................$.18.................$.25
Mkt Cap...................$15M....................$23M...............$19.75M...............$3.92M.............$3.90M
Revenue (2011)........$4.32M...............103.88M............$41.86M..............$26.66M...........$3.82M
YOY Rev.Gr.............+374%
YOY Income Gr.......+246%
GrossProfit(2011)....+$2.2M...............+$20.48M.........+$28.22...............+$8.62M.........-$119.61K
NetIncome(2011)....+$1.4M................-$4.40M...........-$1.40M................-$6.54M..........+1.23M
NI% to Revenue.......+32%...................-4%..................-3%.......................-24%.................+32%
EPS.(2011).............+$.003.................-$.02................-$.08....................-$.30...............+$.38
P/E..........................10.5
@ 25 P/E Multiple.....$.075 (Multiple for similar companies in the industry)
TDGI PPS Take Home Lesson Number 1
TDGI is only valued at 2.45 cents per share with POSITIVE EARNINGS PER SHARE
The stock price of three others ($.09, $1.22, and $.18) is a lot higher WITH NEGATIVE EARNINGS PER SHARE
Tells me that TDGI PPS should be A LOT HIGHER and more reflective of its POSITIVE EARNINGS PER SHARE
TDGI PPS Take Home lesson Number 2
TDGI has achieved POSITIVE EARNINGS PER SHARE with LESS REVENUE ($3.96M) than 3 other similar companies ($103.88M, $41.86M, and $26.66M)
Tells me that TDGI's PPS is very undervalued considering that they ARE GROWING THEIR REVENUE VERY QUICKLY (+595% Quarterly Revenue Growth Year over Year)
The valuation should increase proportionately with the SALES GROWTH we will continue to see (More videos into Walmart, Video on demand, theatrical releases)
Remember that they ACHIEVED A MAJORITY OF THIS SALES GROWTH FROM ITS CORE DVD business
Theatrical success has and always will be a plus
TDGI PPS Take Home Lesson Number 3
TDGI converts A LOT OF THEIR REVENUE TO NET INCOME (PROFIT)
TDGI's conversion rate is +35%
Compared to -4%, -3%, and -24% for 3 other similar companies
Tells me that their costs ARE BEING MANAGED VER WELL AND AS THEY GROW SALES, PROFITS WILL CONTINUE TO GROW EXPONENTIALLY.
Remember that TDGI is more than covering their FIXED COSTS (Rent, phone, utilities) with only $3.96M in Revenue. The MORE REVENUE THEY MAKE, THEY WILL MAKE A LOT MORE PROFIT. A LOT MORE Revenue WILL ADD EXPONENTIALLY TO PROFITS.
Company..................TDGI...................DISK.................NOOF....................PRVT................SAPX
Stock Price................$.0315.................$.09.................$1.22....................$.18.................$.25
Mkt Cap...................$15M....................$23M...............$19.75M...............$3.92M.............$3.90M
Revenue (2011)........$4.32M...............103.88M............$41.86M..............$26.66M...........$3.82M
YOY Rev.Gr.............+374%
YOY Income Gr.......+246%
GrossProfit(2011)....+$2.2M...............+$20.48M.........+$28.22...............+$8.62M.........-$119.61K
NetIncome(2011)....+$1.4M................-$4.40M...........-$1.40M................-$6.54M..........+1.23M
NI% to Revenue.......+32%...................-4%..................-3%.......................-24%.................+32%
EPS.(2011).............+$.003.................-$.02................-$.08....................-$.30...............+$.38
P/E..........................10.5
@ 25 P/E Multiple.....$.075 (Multiple for similar companies in the industry)
TDGI PPS Take Home Lesson Number 1
TDGI is only valued at 2.45 cents per share with POSITIVE EARNINGS PER SHARE
The stock price of three others ($.09, $1.22, and $.18) is a lot higher WITH NEGATIVE EARNINGS PER SHARE
Tells me that TDGI PPS should be A LOT HIGHER and more reflective of its POSITIVE EARNINGS PER SHARE
TDGI PPS Take Home lesson Number 2
TDGI has achieved POSITIVE EARNINGS PER SHARE with LESS REVENUE ($3.96M) than 3 other similar companies ($103.88M, $41.86M, and $26.66M)
Tells me that TDGI's PPS is very undervalued considering that they ARE GROWING THEIR REVENUE VERY QUICKLY (+595% Quarterly Revenue Growth Year over Year)
The valuation should increase proportionately with the SALES GROWTH we will continue to see (More videos into Walmart, Video on demand, theatrical releases)
Remember that they ACHIEVED A MAJORITY OF THIS SALES GROWTH FROM ITS CORE DVD business
Theatrical success has and always will be a plus
TDGI PPS Take Home Lesson Number 3
TDGI converts A LOT OF THEIR REVENUE TO NET INCOME (PROFIT)
TDGI's conversion rate is +35%
Compared to -4%, -3%, and -24% for 3 other similar companies
Tells me that their costs ARE BEING MANAGED VER WELL AND AS THEY GROW SALES, PROFITS WILL CONTINUE TO GROW EXPONENTIALLY.
Remember that TDGI is more than covering their FIXED COSTS (Rent, phone, utilities) with only $3.96M in Revenue. The MORE REVENUE THEY MAKE, THEY WILL MAKE A LOT MORE PROFIT. A LOT MORE Revenue WILL ADD EXPONENTIALLY TO PROFITS.
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