dotdigital Group

DOTD.L

Software - Application · Technology

Price

53.80 GBp

+0.30 (+0.56%)

Market Cap

£163.1M

Exchange

London Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Good

Growth

Weak

Cash Flow

Exceptional

Stability

Good

Valuation

Strong

Dividends

Strong

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Share count rising — dilution

+4.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 302.9M (2021) → 316.1M (2025)

Winston Score History

The full picture

dotdigital is a UK-based software company that helps businesses send marketing messages to their customers. Its main product is a platform that lets companies create and send emails, SMS texts, and automated marketing campaigns. Typical customers are mid-sized online retailers and e-commerce businesses that want to reach shoppers without building their own technology.

The company charges customers a recurring subscription fee to use its platform, which gives it fairly predictable revenue. dotdigital operates mainly in the UK, Europe, and Australia, with some presence in North America, and generates roughly $80–90 million in annual revenue. Its main competitive advantage is deep integration with popular e-commerce platforms like Shopify and Magento, which makes it harder for customers to switch. The key risk is competition from much larger marketing software providers, such as Klaviyo and HubSpot, which have significantly more resources and brand recognition in the same target market.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-2.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

£0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

14.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

£36M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

dotdigital Group is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

64.8%

Premium pricing power — 64.8% gross margin

Profit after running costs

Operating Margin

14.1%

Healthy — 14.1% operating margin

Return on the money invested

ROCE

12.3%

Good — 12.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+3.8%

Slow sales growth (+3.8% YoY)

Profit growth

EPS YoY

-17.3%

Earnings shrinking (-17.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

239%

Turns 239% of profit into real cash

Spare cash per sale

FCF Margin

25.2%

Converts sales into free cash efficiently (25.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

112.43x

Comfortably covers interest (112.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

17.9x

Fair value — P/E 17.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+8.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (17.9 → 8.9)

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Dividends

Dividend

Dividend Yield

2.39%

Moderate income — 2.39% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+41.6%

Dividend growing fast (41.6% YoY)

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