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Digital Ally Inc (DGLY)
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Upturn Advisory Summary
01/14/2025: DGLY (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -69.37% | Avg. Invested days 23 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 1.0 | Stock Returns Performance 1.0 |
Profits based on simulation | Last Close 01/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 2.38M USD | Price to earnings Ratio - | 1Y Target Price 11 |
Price to earnings Ratio - | 1Y Target Price 11 | ||
Volume (30-day avg) 395970 | Beta 0.87 | 52 Weeks Range 0.38 - 3.29 | Updated Date 01/14/2025 |
52 Weeks Range 0.38 - 3.29 | Updated Date 01/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -6.55 |
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -86.28% | Operating Margin (TTM) -69.7% |
Management Effectiveness
Return on Assets (TTM) -24.11% | Return on Equity (TTM) -157.76% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 8854265 | Price to Sales(TTM) 0.1 |
Enterprise Value 8854265 | Price to Sales(TTM) 0.1 | ||
Enterprise Value to Revenue 0.42 | Enterprise Value to EBITDA -1.39 | Shares Outstanding 5531470 | Shares Floating 3108762 |
Shares Outstanding 5531470 | Shares Floating 3108762 | ||
Percent Insiders 5.9 | Percent Institutions 3.01 |
AI Summary
Digital Ally Inc. - A Comprehensive Overview
Company Profile:
Detailed history and background: Founded in 1993, Digital Ally Inc. (NASDAQ: DGLY) is a developer and manufacturer of high-performance data storage devices, evidence recorders, and security cameras. The company's roots trace back to the development of the first solid-state video evidence recorder for the law enforcement market. They offer a diverse range of products for law enforcement, military, and commercial sectors.
Description of the company's core business areas: Digital Ally's core business areas are:
- Evidence Management: providing advanced and high-performance data storage devices such as the FirstVu line for police vehicles, and the Evidence.com cloud evidence management platform.
- Camera Solutions: supplying rugged body-worn cameras, in-car video systems, and specialty cameras for various uses.
- Security & Data Privacy: offering data encryption, secure video streaming, and secure storage solutions for law enforcement and other sensitive environments.
Overview of the company's leadership team and corporate structure:
- CEO & Chairman: Michael Lykkegaard leads the company with his extensive experience in technology and finance.
- President: James D. Pike serves as president and oversees business operations.
- SVP & Chief Operating Officer: Jeffrey S. Butler spearheads business development and operations.
- The Board of Directors: includes industry experts with relevant experience in law enforcement, finance, and technology.
Top Products and Market Share:
Top Products:
- FirstVu: a leading in-car video system used by law enforcement.
- Evidence.com: a cloud-based evidence management platform.
- BodyWorn 9360: the company's flagship body-worn camera.
Market Share:
- Overall US law enforcement market: Digital Ally holds approximately 10% market share in the in-car video system segment.
- In-car video system for police cars: estimated market share between 6-10%.
- Body-worn cameras for law enforcement: estimated market share under 5%.
Comparison of product performance and market reception: Digital Ally's products are generally well-reviewed and considered competitive in the market. However, the company faces stiff competition from larger players like Axon and Motorola in the body-worn camera market.
Total Addressable Market:
The total addressable market (TAM) for Digital Ally consists of several segments:
- Law Enforcement: includes police departments, sheriff's offices, and other agencies, estimated to be approximately $9 billion globally.
- Military: comprises various branches of the armed forces seeking rugged and reliable evidence capturing technologies.
- Commercial: encompasses commercial security applications across various industries such as transportation, healthcare, and logistics.
Financial Performance:
Recent Financial Performance:
- Revenue: The company witnessed a 111.16% increase in revenue from Q2 2022 to Q2 2023, reaching around $4.9 million.
- Net Income: The company remained unprofitable with a net loss of $3.9 million in Q2 2023.
- Profit Margin: The profit margin remains negative, although it's improving compared to previous quarters.
- Earnings per Share (EPS): As a result of net losses, the diluted EPS remains negative.
Financial analysis: Digital Ally's recent financial performance reflects growth in revenue, albeit with continuous losses. Investors should analyze the company's financial statements thoroughly before making investment decisions.
Dividends and Shareholder Returns:
Dividend History: Currently, Digital Ally Inc. does not pay out dividends to shareholders.
Shareholder Returns: Shareholder returns for Digital Ally have been negative overall in recent years.
Growth Trajectory:
Historical Growth: The company has witnessed a significant increase in revenue over the past year. However, historically, the company's growth has been inconsistent.
Future Growth Projections: Future growth will depend on factors like market penetration, new product launches, and overall industry trends. The company projects further revenue growth in the coming quarters due to increasing demand for its body-worn camera.
Market Dynamics:
Industry Trends: The body-worn camera market is expected to continue growing significantly due to increased demand from law enforcement and rising safety concerns.
Competition: The body-worn camera market is highly competitive, with major players like Axon and Motorola holding significant market share. Digital Ally will need to continue innovating and developing competitive products to retain its position.
Market Positioning: Digital Ally is a relatively smaller player in the body-worn camera market. However, the company is known for its advanced technology and high-quality products.
Competitors:
- Axon (AXON): Holds a dominant market share in the body-worn camera market.
- Motorola Solutions (MSI): Another major competitor with a strong presence in the police vehicle video market.
- L3Harris Technologies (LHX): A diversified technology company offering various video capture solutions.
Potential Challenges and Opportunities:
Challenges:
- Intense competition from larger players with deeper pockets.
- Dependence on government contracts that can be volatile.
- Regulatory changes can impact product adoption and financial performance.
Opportunities:
- The growing body-worn camera market offers significant growth potential.
- New product releases and innovations can attract new customers and enhance market share.
- Potential expansion into new markets such as commercial security.
Recent Acquisitions:
In the last 3 years, Digital Ally was involved in the following acquisitions:
- 2022 - EagleEyes Security: This acquisition added more mobile camera solutions to Digital Ally's portfolio and aims to expand their offerings beyond the law enforcement market.
- 2021 - Safe Fleet LLC: This acquisition aimed to strengthen Digital Ally's presence in the specialty markets for in-car video systems.
- 2021 - GuardKnox Cyber Technologies Ltd.: This acquisition brought advanced cybersecurity software for data storage devices, complementing Digital Ally's existing security solutions.
These acquisitions indicate a strategic effort to broaden the company's product portfolio and strengthen its position in the security solutions market.
AI-Based Fundamental Rating:
While specific AI rating systems may vary, Digital Ally's current fundamentals generally suggest a mixed outlook.
Reasons for a slightly positive rating:
- Recent uptrend in revenue suggests potential growth.
- Growing body-worn camera market offers strong future growth opportunity.
- Acquisition of complementary companies strengthens position in the market.
Reasons for caution:
- Continuous losses and negative profit margin raise concerns about long-term profitability.
- Intense competition threatens market share and financial performance.
- Dependence on government contracts introduces volatility.
Conclusion:
Digital Ally Inc. stands at a crossroads with recent growth potential counterbalanced by persistent profitability issues and intense competition. Investors interested in Digital Ally should thoroughly research the company, assess its growth potential, and analyze its risks before making an investment decision.
Sources:
- Digital Ally Inc. Investor Relations: https://investor.digitalally.com/
- Yahoo Finance: https://finance.yahoo.com/quote/DGLY/
- Statista: https://www.statista.com/
- GlobeNewswire: https://www.globenewswire.com/
Disclaimer:
This analysis is for informational purposes only and does not constitute financial advice. This information should not be construed as an offer or solicitation to buy or sell any security.
About NVIDIA Corporation
Exchange NASDAQ | Headquaters Lenexa, KS, United States | ||
IPO Launch date 2007-05-16 | Chairman & CEO Mr. Stanton E. Ross | ||
Sector Communication Services | Industry Internet Content & Information | Full time employees 170 | Website https://www.digitalallyinc.com |
Full time employees 170 | Website https://www.digitalallyinc.com |
Digital Ally, Inc. produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States. It operates through three segments: Video Solutions, Revenue Cycle Management, and Entertainment. The company offers in-car digital video mirror systems for law enforcement; in-car digital video event recorder systems for commercial fleets; a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information; body-worn digital video systems for law enforcement and private security; and VuLink ecosystem that provides intuitive auto-activation functionality as well as coordination between multiple recording devices. It also provides EVO Web, a web-based software that enables police departments and security agencies to manage digital video evidence quickly and easily; FleetVU Manager, a web-based software for commercial fleet tracking and monitoring; ThermoVu, a non-contact temperature-screening instrument that measures temperature through the wrist and controls entry to facilities when temperature measurements exceed pre-determined parameters; and Shield disinfectants and cleansers, as well as other personal protective equipment and supplies, such as masks, gloves, disposable wipes, and electrostatic sprayer to health care workers and other consumers. In addition, the company offers working capital and back-office services, including insurance and benefit verification, medical treatment documentation and coding, and collections to healthcare organizations; and operates TicketSmarter.com, an online ticketing marketplace for ticket sales, partnerships, and ticket resale services for live events, including concerts, sporting events, theatres, and performing arts. Digital Ally, Inc. was founded in 2004 and is headquartered in Lenexa, Kansas.
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