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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.20
DGI's Cash to Debt is ranked lower than
63% of the 1620 Companies
in the Global Information Technology Services industry.

( Industry Median: 27.13 vs. DGI: 0.20 )
DGI' s 10-Year Cash to Debt Range
Min: 0.1   Max: 0.52
Current: 0.2

0.1
0.52
Equity to Asset 0.43
DGI's Equity to Asset is ranked lower than
51% of the 1591 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.60 vs. DGI: 0.43 )
DGI' s 10-Year Equity to Asset Range
Min: 0.34   Max: 0.43
Current: 0.43

0.34
0.43
F-Score: 3
Z-Score: 0.79
M-Score: -1.09
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) -13.84
DGI's Operating margin (%) is ranked lower than
57% of the 1594 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.57 vs. DGI: -13.84 )
DGI' s 10-Year Operating margin (%) Range
Min: -13.84   Max: 34.48
Current: -13.84

-13.84
34.48
Net-margin (%) -11.15
DGI's Net-margin (%) is ranked lower than
55% of the 1592 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.70 vs. DGI: -11.15 )
DGI' s 10-Year Net-margin (%) Range
Min: -11.15   Max: 63.15
Current: -11.15

-11.15
63.15
ROE (%) -4.94
DGI's ROE (%) is ranked lower than
51% of the 1553 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.88 vs. DGI: -4.94 )
DGI' s 10-Year ROE (%) Range
Min: -5.77   Max: 27.8
Current: -4.94

-5.77
27.8
ROA (%) -2.13
DGI's ROA (%) is ranked higher than
51% of the 1605 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.73 vs. DGI: -2.13 )
DGI' s 10-Year ROA (%) Range
Min: -2.13   Max: 10.56
Current: -2.13

-2.13
10.56
ROC (Joel Greenblatt) (%) -3.86
DGI's ROC (Joel Greenblatt) (%) is ranked higher than
51% of the 1589 Companies
in the Global Information Technology Services industry.

( Industry Median: 31.80 vs. DGI: -3.86 )
DGI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -3.86   Max: 11.57
Current: -3.86

-3.86
11.57
Revenue Growth (%) 6.80
DGI's Revenue Growth (%) is ranked higher than
71% of the 1208 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.40 vs. DGI: 6.80 )
DGI' s 10-Year Revenue Growth (%) Range
Min: 5.8   Max: 26.6
Current: 6.8

5.8
26.6
EBITDA Growth (%) -19.90
DGI's EBITDA Growth (%) is ranked higher than
51% of the 957 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.60 vs. DGI: -19.90 )
DGI' s 10-Year EBITDA Growth (%) Range
Min: -19.9   Max: 24
Current: -19.9

-19.9
24
» DGI's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

DGI Guru Trades in Q1 2013

Steven Cohen 22,418 sh (New)
Ron Baron 1,599,820 sh (New)
Mario Gabelli 38,510 sh (+54.04%)
Pioneer Investments 501,303 sh (+1.91%)
Mariko Gordon 1,400,312 sh (unchged)
Jim Simons 28,894 sh (-83.51%)
» More
Q2 2013

DGI Guru Trades in Q2 2013

Julian Robertson 769,500 sh (New)
Jim Simons 69,675 sh (+141.14%)
Ron Baron 2,052,047 sh (+28.27%)
Mario Gabelli 39,664 sh (+3%)
Mariko Gordon 1,438,057 sh (+2.7%)
Steven Cohen Sold Out
Pioneer Investments 155,792 sh (-68.92%)
» More
Q3 2013

DGI Guru Trades in Q3 2013

Steven Cohen 845,263 sh (New)
Mario Gabelli 50,664 sh (+27.73%)
Ron Baron 2,339,546 sh (+14.01%)
Julian Robertson 769,500 sh (unchged)
Jim Simons Sold Out
Mariko Gordon 1,340,158 sh (-6.81%)
Pioneer Investments 49,746 sh (-68.07%)
» More
Q4 2013

DGI Guru Trades in Q4 2013

Jim Simons 361,075 sh (New)
Mariko Gordon 1,403,563 sh (+4.73%)
Ron Baron 2,346,546 sh (+0.3%)
Julian Robertson Sold Out
Pioneer Investments Sold Out
Mario Gabelli 50,100 sh (-1.11%)
Steven Cohen 5,576 sh (-99.34%)
» More
» Details

Insider Trades

Latest Guru Trades with DGI

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Julian Robertson 2013-12-31 Sold Out 3.7%$29.72 - $42.09 $ 29.6-18%0
Mariko Gordon 2013-12-31 Add 4.73%0.11%$29.72 - $42.09 $ 29.6-18%1403563
Mariko Gordon 2013-09-30 Reduce -6.81%0.15%$30.2 - $34.07 $ 29.6-8%1340158
Mario Gabelli 2013-09-30 Add 27.73%$30.2 - $34.07 $ 29.6-8%50664
Julian Robertson 2013-06-30 New Buy3%$26.5 - $32.05 $ 29.62%769500
Ron Baron 2013-06-30 Add 28.27%0.07%$26.5 - $32.05 $ 29.62%2052047
Ron Baron 2013-03-31 New Buy0.25%$24.44 - $29.68 $ 29.66%1599820
Mario Gabelli 2013-03-31 Add 54.04%$24.44 - $29.68 $ 29.66%38510
Michael Price 2012-09-30 Sold Out 0.13%$14.22 - $21.74 $ 29.658%0
Mario Gabelli 2012-09-30 Add 92.31%$14.22 - $21.74 $ 29.658%25000
Michael Price 2012-06-30 New Buy0.13%$11.9 - $16.92 $ 29.6104%57500
Julian Robertson 2012-03-31 Sold Out 4.2%$11.8 - $17.27 $ 29.6195%0
Mario Gabelli 2012-03-31 New Buy$11.8 - $17.27 $ 29.6195%13000
Julian Robertson 2011-12-31 Add 21.91%0.75%$14.02 - $21.88 $ 29.668%586331
Lee Ainslie 2011-12-31 Sold Out 0.3%$14.02 - $21.88 $ 29.6230%0
Julian Robertson 2011-03-31 Add 43.24%1.24%$28.29 - $32.5 $ 29.6-2%565862
Lee Ainslie 2011-03-31 Add 26.28%0.1%$28.29 - $32.5 $ 29.6-2%1664952
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on DigitalGlobe Inc

Baron Funds Comments on DigitalGlobe Inc. - Jun 10, 2013

DigitalGlobe, Inc. (DGI) operates a fleet of high orbit satellites that sell high resolution unclassified earth images to government and commercial clients. In early 2013, DGI completed the acquisition of its direct competitor (GeoEye) to create a dominant position in its niche. We believe there are enormous cost savings from combining two like companies and future capital requirements will be greatly reduced as well, since the company owns extra spare capacity that will be needed for growth and replacement.

An important element of our excitement is the new management team that joined DGI a year ago and is overseeing the company. The CEO is a former senior executive at a very well-respected database company (owned by the Baron Funds) and we believe he will transition the business from being primarily a provider of one-off services for governments to selling unique subscription services to government and commercial ventures. We believe that the company will be able to organically grow its revenues by a third and double its cash flow. Applying a higher trading multiple, halfway between satellite info services businesses, we can see a stock price target twice where we purchased our position. The stock was already a winner prior to our purchase, but better late than never.

From Baron Funds’ first quarter 2013 commentary.
Check out Ron Baron latest stock trades

Top Ranked Articles about DigitalGlobe Inc

Julian Robertson Buys DigitalGlobe, Howard Hughes, Realogy Holdings, Sells HCA, Berkshire Hathaway, ADT
Julian Robertson is considered the father of hedge fund, as many of today’s large hedge funds were founded by the people who learned investing from him. Julian Robertson generated astonishing track record in 1990s but couldn’t participate the tech bubble. Today he mainly manages his own money with Tiger Management. Read more...
Baron Funds Comments on DigitalGlobe Inc.
DigitalGlobe, Inc. (DGI) operates a fleet of high orbit satellites that sell high resolution unclassified earth images to government and commercial clients. In early 2013, DGI completed the acquisition of its direct competitor (GeoEye) to create a dominant position in its niche. We believe there are enormous cost savings from combining two like companies and future capital requirements will be greatly reduced as well, since the company owns extra spare capacity that will be needed for growth and replacement. Read more...

Ratios

vs
industry
vs
history
P/B 1.50
DGI's P/B is ranked higher than
78% of the 1505 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.45 vs. DGI: 1.50 )
DGI' s 10-Year P/B Range
Min: 1.15   Max: 3.02
Current: 1.5

1.15
3.02
P/S 3.50
DGI's P/S is ranked lower than
64% of the 1660 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.00 vs. DGI: 3.50 )
DGI' s 10-Year P/S Range
Min: 1.61   Max: 5.01
Current: 3.5

1.61
5.01
EV-to-EBIT 333.30
DGI's EV-to-EBIT is ranked lower than
81% of the 1286 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.42 vs. DGI: 333.30 )
DGI' s 10-Year EV-to-EBIT Range
Min: 11.2   Max: 539.9
Current: 333.3

11.2
539.9
Shiller P/E 111.30
DGI's Shiller P/E is ranked lower than
70% of the 617 Companies
in the Global Information Technology Services industry.

( Industry Median: 29.33 vs. DGI: 111.30 )
DGI' s 10-Year Shiller P/E Range
Min: 96.5   Max: 152.39
Current: 111.3

96.5
152.39

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.50
DGI's Price/Tangible Book is ranked higher than
66% of the 1230 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.00 vs. DGI: 2.50 )
DGI' s 10-Year Price/Tangible Book Range
Min: 1.7   Max: 3.54
Current: 2.5

1.7
3.54
Price/DCF (Projected) 3.00
DGI's Price/DCF (Projected) is ranked lower than
64% of the 743 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.50 vs. DGI: 3.00 )
DGI' s 10-Year Price/DCF (Projected) Range
Min: 4.12   Max: 4.12
Current: 3

Price/Median PS Value 1.00
DGI's Price/Median PS Value is ranked higher than
70% of the 1501 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.10 vs. DGI: 1.00 )
DGI' s 10-Year Price/Median PS Value Range
Min: 0.67   Max: 1.39
Current: 1

0.67
1.39
Earnings Yield (Greenblatt) 0.30
DGI's Earnings Yield (Greenblatt) is ranked lower than
74% of the 1328 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.40 vs. DGI: 0.30 )
DGI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 8.9
Current: 0.3

0.2
8.9
Forward Rate of Return (Yacktman) -12.62
DGI's Forward Rate of Return (Yacktman) is ranked lower than
51% of the 1009 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.44 vs. DGI: -12.62 )
DGI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 49.2   Max: 52
Current: -12.62

49.2
52

Business Description

Industry: Application Software » Information Technology Services
Compare: » details
Traded in other countries:P06.Germany
DigitalGlobe Inc was originally incorporated as EarthWatch, Incorporated on September 30, 1994 under the laws of the State of Colorado. It completed its initial public offering on May 14, 2009. It commenced development stage operations on March 31, 1995 with the contribution of the net assets of WorldView Imaging Corporation and certain assets of Ball Corporation. On August 22, 2002, the Company changed its name to DigitalGlobe, Inc. It is a provider of commercial high resolution earth imagery products and services. The Company conducts its business through two segments: (i) defense and intelligence and (ii) commercial. Its imagery products and services are comprised of imagery that is processed to varying levels of resolution according to the customer's specifications. The Company's products and services support different uses such as defense and intelligence initiatives, mapping and analysis, environmental monitoring, oil and gas exploration, and infrastructure management. It offer a range of on- and off-line distribution options designed to enable customers to easily access and integrate its imagery into its business operations and applications. There are two different tools offered by the Company which are used to find the imagery: ImageFinder and Aerial Imagery Coverage. The Company's main customers include U.S. and foreign defense and intelligence agencies and commercial customers, such as internet portals, companies in the energy, telecommunications, utility and agricultural industries, and foreign civil government agencies.

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