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Digital Turbine, Inc. (APPS) stock analysis

APPSNasdaqPatent Owners & LessorsFiscal year ends March 31
Financials through Q2 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 9, 2026Score 7/3014% below fair value
$7.76+0.51 (+7.03%)

Close on Nov 11, 2026Market cap $939.09MP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value2Growth3Performance1Health1Dividend0

Weak7 of 30 checks passed

Digital Turbine passes 7 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
2/6
Growth
3/6
Past performance
1/6
Financial health
1/6
Dividend
0/6

What stands out

  • Trading below fair value

    The share price of $7.76 is below our fair value estimate of $9.06.

  • Guidance raised

    Digital Turbine raised its fiscal year 2027 Revenue outlook on Aug 4, 2026.

  • EV/EBITDA below its 5-year median

    Digital Turbine's EV/EBITDA of 8.8 is below its 5-year median of 13.3.

  • Growing faster than the industry

    Revenue grew 21.6% over the last twelve months; the Miscellaneous Investing median is 4.6%.

What to watch

  • Margin of safety under 20%

    The price is 14.3% below fair value, less than the 20% cushion we look for.

  • Return on equity under 15%

    Return on equity was -3.0% over the last twelve months and averaged -31.8% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 7.3%, below the 10% that usually covers the cost of capital.

  • High debt

    Debt is 180% of shareholders' equity, above the 40% we consider low.

Valuation2/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA below its 5-year median

    Digital Turbine's EV/EBITDA of 8.8 is below its 5-year median of 13.3.

  • P/B above the industry

    Digital Turbine's price-to-book of 4.77 is above the Miscellaneous Investing median of 1.20.

  • Trading below fair value

    The share price of $7.76 is below our fair value estimate of $9.06.

  • Margin of safety under 20%

    The price is 14.3% below fair value, less than the 20% cushion we look for.

Growth3/6

  • Revenue growing under 10% a year

    Revenue grew -5.3% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 21.6% over the last twelve months; the Miscellaneous Investing median is 4.6%.

  • Guidance raised

    Digital Turbine raised its fiscal year 2027 Revenue outlook on Aug 4, 2026.

  • Gross margin improving

    Gross margin was 56.0% over the last twelve months, against 53.5% a year earlier.

Past performance1/6

  • Return on equity under 15%

    Return on equity was -3.0% over the last twelve months and averaged -31.8% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 7.3%, below the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Digital Turbine's return on equity of -3.0% is below the Miscellaneous Investing median of 3.1%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was -0.8% over the last twelve months, against a 5-year average of -19.1%.

  • Net margin below the industry

    Digital Turbine's net margin of -0.8% is below the Miscellaneous Investing median of 10.3%.

Financial health1/6

  • High debt

    Debt is 180% of shareholders' equity, above the 40% we consider low.

  • Debt rising against equity

    Debt to equity rose from 10.0% five years ago to 180%.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals 15.6% of total debt; we look for at least 20%.

  • Interest not well covered

    Operating income covers interest expense 1.1 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 1.25 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is 0.81; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Digital Turbine has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$9.06

The share price is 14% below this estimate.

20%+ below
Near fair value
20%+ above
$7.76Price$9.06Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
EV/EBITDA11.4×13.3×9.5×$10.7778%
P/B1.9×2.5×1.2×$3.0422%
Fair value$9.06100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Miscellaneous Investing median 26.3

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$34.66M
Value traded per 1% price move
$6.90M

Downside

High risk

Typical loss in a bad month
32.5%
Volatility (annualized)
104%
Sharpe ratio, 1 year
0.26
Beta to the S&P 500 (5Y)
2.53

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

56.9%+13.9 pts over 5 years

Operating margin

6.0%−12.9 pts over 5 years

Net margin

-6.7%−24.2 pts over 5 years

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