DG FASTCHANNEL INC COM USD0.001 (NASDAQ:DGIT)

Growth stock on sale at trailing P/E of 11.4, EV/EBITDA of 6.3. Revenue run-rate is looking to be around 20% y-o-y (avg of last 4 quarters) or 36% if based on 9/30/11 quarterly revenue.

However, margins look to be hurting as EBITDA has declined due to some recent acquisitions. Still, this is a small cap I'm willing to bet on in a growth industry.

Magic Formula stats:

Results for ticker 'DGIT' (DG FastChannel, Inc.):
Earnings Yield:   10.1%
MFI Return on Capital:   50.0%

MagicDiligence Research for 'DGIT':

No research available.

Instant Diligence:

The Earnings Yield of 10.1% is High.

The MFI Return on Capital of 50.0% is High.

Near-term Financial Health appears to be Excellent. The current ratio is 3.11.

Calculations:

(for quarter ended 2011-09-30)
Market Cap   =   Stock_Price * Shares
   =   14.39 * 27.49
   =   395.00

Excess Cash   =   Cash - MAX(0; (Current Liabilities - Current Assets + Cash))
   =   72.45 - MAX(0; (59.56 - 185.30 + 72.45))
   =   72.45

Enterprise Value   =   Market Cap + Total Debt - Excess Cash
   =   395.00 + 484.04 - 72.45
   =   806.59

MFI Invested Capital   =   Total Assets - Goodwill - Intangibles - Current Liabilities + Short Term Debt - Excess Cash
   =   1102.97 - 494.02 - 319.64 - 59.56 + 4.90 - 72.45
   =   162.20

Earnings Yield   =   Operating Earnings / Enterprise Value
   =   81.10 / 806.59
   =   0.101 (10.1%)

MFI Return on Capital   =   Operating Earnings / MFI Invested Capital
   =   81.10 / 162.20
   =   0.500 (50.0%)