Latest Ratios: P/E Ratio -5.3x · EV/EBITDA N/A · ROE -63.6%. (2006–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $174M | $142M | $796M | $734M | $354M | $650M | $610M | $395M | $165M | $382M | $276M |
| Enterprise Value | $170M | $138M | $790M | $719M | $326M | $637M | $597M | $386M | $137M | $341M | $264M |
| P/E Ratio → | -5.25 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 5.14 | 4.19 | 20.73 | 21.06 | 11.72 | 24.51 | 25.41 | 17.17 | 7.77 | 15.16 | 12.65 |
| P/B Ratio | 4.22 | 3.53 | 12.98 | 11.85 | 3.63 | 11.74 | 7.27 | 7.98 | 2.91 | 4.64 | 3.76 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.05 | 20.56 | 20.62 | 10.80 | 24.03 | 24.88 | 16.79 | 6.49 | 13.54 | 12.11 |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 53.7% | 53.7% | 63.1% | 57.9% | 50.7% | 66.9% | 66.9% | 65.0% | 60.2% | 66.1% | 61.0% |
| Operating Margin | -98.3% | -98.3% | -107.5% | -138.3% | -204.7% | -150.3% | -136.8% | -146.7% | -158.2% | -105.4% | -100.6% |
| Net Profit Margin | -95.3% | -95.3% | -101.5% | -131.9% | -198.0% | -131.1% | -135.6% | -142.9% | -153.4% | -102.2% | -99.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -63.6% | -63.6% | -63.3% | -57.6% | -78.2% | -49.9% | -48.8% | -61.9% | -46.8% | -33.1% | -34.7% |
| ROA | -50.2% | -50.2% | -49.9% | -47.3% | -66.9% | -42.9% | -42.1% | -55.1% | -43.3% | -30.8% | -32.1% |
| ROIC | -55.2% | -55.2% | -61.1% | -62.1% | -82.3% | -52.6% | -44.1% | -72.2% | -71.0% | -38.6% | -29.9% |
| ROCE | -60.0% | -60.0% | -61.4% | -56.2% | -76.9% | -55.2% | -47.1% | -61.7% | -47.6% | -33.7% | -34.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.13 | 0.13 | 0.10 | 0.10 | 0.06 | 0.02 | 0.08 | 0.05 | — | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.11 | -0.10 | -0.25 | -0.28 | -0.23 | -0.15 | -0.18 | -0.48 | -0.50 | -0.16 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($10M) exceeds total debt ($5M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.56 | 2.56 | 4.30 | 2.96 | 6.33 | 5.70 | 8.58 | 7.95 | 11.50 | 15.15 | 14.15 |
| Quick Ratio | 2.56 | 2.56 | 4.30 | 2.96 | 6.33 | 5.70 | 8.58 | 7.95 | 11.50 | 15.15 | 14.15 |
| Cash Ratio | 1.54 | 1.54 | 3.14 | 2.17 | 5.18 | 4.32 | 7.95 | 6.76 | 10.11 | 13.45 | 12.63 |
| Asset Turnover | — | 0.64 | 0.51 | 0.43 | 0.27 | 0.41 | 0.25 | 0.40 | 0.34 | 0.29 | 0.28 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 70.10 | 60.92 | 60.88 | 65.60 | 115.18 | 59.44 | 63.85 | 66.96 | 92.71 | 85.05 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 1.7% | 2.0% | 0.4% | 0.4% | 0.7% | 0.9% | 0.6% | 0.9% | 1.3% | 0.8% | 0.9% |
| Total Shareholder Yield | 1.7% | 2.0% | 0.4% | 0.4% | 0.7% | 0.9% | 0.6% | 0.9% | 1.3% | 0.8% | 0.9% |
| Shares Outstanding | — | $22M | $21M | $20M | $19M | $16M | $13M | $12M | $11M | $11M | $9M |
Insufficient liquidity runway
Based on reported figures, Digimarc trades at a 5.04x price-to-sales multiple, a valuation that appears disconnected from the company's -11.73% revenue growth trend and suggests investors are pricing the stock as a high-risk option on future regulatory mandates rather than a functional, cash-generative software enterprise.
The absence of positive earnings or EBITDA multiples renders traditional valuation metrics largely irrelevant, forcing a reliance on revenue-based multiples that remain elevated relative to the company's shrinking top line. This premium suggests the market is assigning significant weight to the 'HolyGrail 2.0' initiative, yet the current valuation may be vulnerable to downward revision if the commercial pivot fails to demonstrate a clear path to scale.
According to historical financial data, Digimarc's ROIC has remained consistently negative, reaching -16.5% in 2026Q1, which indicates that the company is currently destroying shareholder value by deploying capital into projects that fail to generate returns exceeding the cost of the underlying investment.
The persistent negative return on capital reflects a structural inability to convert heavy R&D spending into profitable growth. This trend warrants further investigation into whether the company's intellectual property portfolio can ever achieve the necessary commercial throughput to turn these returns positive, or if the current business model is fundamentally incapable of compounding capital.
As reported in recent quarterly filings, Digimarc's asset turnover ratio has stagnated at approximately 0.15, a figure that highlights the company's extreme difficulty in generating meaningful revenue from its existing asset base compared to more efficient peers in the information technology services sector.
The low asset turnover suggests that the company's specialized technology is not yet achieving the widespread adoption required to optimize its capital intensity. Furthermore, the variability in DSO, which reached 81 days in 2026Q1, may indicate potential friction in the collection process or a shift in customer payment terms that could further pressure the company's already limited liquidity.
Based on the latest balance sheet, the company's cash and equivalents have declined to approximately $9.8 million, a level that appears increasingly inadequate given the persistent quarterly operating losses and the absence of a clear, near-term path to positive free cash flow generation.
While the current ratio of 1.86 might suggest a degree of short-term stability, the rapid depletion of cash reserves indicates that the company may soon face a liquidity crunch. Investors should monitor the potential for dilutive financing, as the current burn rate leaves little room for operational errors or delays in the commercial rollout.
The market's reliance on the price-to-sales ratio as a primary valuation metric for Digimarc is fundamentally flawed, as it obscures the company's massive operating losses and the high probability that current revenue streams are not yet representative of a sustainable, long-term commercial software business model.
Analysts should instead focus on the 'cash burn per unit of revenue' or the 'customer acquisition cost' relative to the lifetime value of the Illuminate platform. Using P/S in this context ignores the reality that every dollar of revenue currently comes at a significant cost to the balance sheet, making the metric a poor proxy for true enterprise value.
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Quick answers to the most common questions about buying DMRC stock.
Digimarc Corporation's current P/E ratio is -5.3x. The historical average is 38.0x.
Digimarc Corporation's return on equity (ROE) is -63.6%. The historical average is -28.8%.
Based on historical data, Digimarc Corporation is trading at a P/E of -5.3x. Compare with industry peers and growth rates for a complete picture.
Digimarc Corporation has 53.7% gross margin and -98.3% operating margin.