Digital Turbine, Inc. (APPS)

Business overview

The company operates in the Patent Owners & Lessors industry and achieves a solid gross margin of 56.9%, demonstrating healthy basic product profitability. However, its operating margin drops significantly to 6%, contributing to a low Financial Quality score pillar of 19 out of 100. This drop indicates that operational overhead absorbs most gross profit, creating uncertainty regarding operational efficiency.

Financial health

Digital Turbine displays fundamental balance sheet constraints, indicated by a low Balance Sheet pillar score of 15 out of 100. Free cash flow generation is constrained, evidenced by a thin free cash flow margin of 2% and an FCF yield of 3.3%. These low cash conversion metrics highlight uncertainty regarding the company's capital buffer against financial stress.

Gross Margin

56.9%

Operating Margin

6.0%

Current Ratio

1.2x

Debt / Equity

1.84

Free Cash Flow (TTM)

$0.0B

Interest Coverage

1x

Valuation

Digital Turbine carries a Valuation pillar score of 52 out of 100, trading at an EV/EBITDA of 11.57 and a Price-to-Sales ratio of 1.75. P/E valuation data is unavailable. The current FCF yield of 3.3% reflects moderate valuation, balancing recent earnings growth against lower cash flow conversion.

P/E (TTM)

Data unavailable

Forward P/E

Data unavailable

Price / Sales

1.8x

EV / EBITDA

11.6x

FCF Yield

3.3%

Key risks

• Weak Balance Sheet pillar score of 15 out of 100 indicates leverage or liquidity vulnerability.
• Overbought technical conditions reflected by a high RSI reading of 79.91.
• Low free cash flow margin of 2% limits financial flexibility.