DGI

DigitalGlobe Inc

TMT, Industrial/Transportation


Presented:10/06/2015
Price:$21.25
Cap:$1.55B
Current Price:$34.40
Cap:$2.14B

Presented

Date10/06/2015
Price$21.25
Market Cap$1.55B
Ent Value$3.02B
P/E Ratio142.91x
Book Value$18.20
Div Yield0%
Shares O/S72.80M
Ave Daily Vol632,859
Short Int9.17%

Current

Price$34.40
Market Cap$2.14B
DigitalGlobe, Inc. provides geospatial information products and services. Its products and services support a wide variety of uses, including defense, intelligence and homeland security applications, mapping and analysis, environmental monitoring, oil and gas exploration and infrastructure management. The company provides imagery and imagery information products and services to customers around the world. It sells products and services through a combination of direct and indirect channels, consisting of a global network of resellers, strategic partners, direct enterprise sales and web services to two groups of customers: U.S. Government and Diversified Commercial. DigitalGlobe was founded by Walter S. Scott in January 1992 and is headquartered in Longmont, CO.

Publicly traded companies mentioned herein: DigitalGlobe (DGI) and Google (GOOGL)

Highlights

DigitalGlobe operates four satellites that take extremely high resolution images of the Earth, with the ability to pick up license plates and even facial recognition in some cases. More than 50% of revenues derive from US government use of the company’s satellites, with the government typically having priority use of the satellites as they pass over high value areas. DGI’s EBITDA margins on government revenues are believed to be less than 15 percent, according to the presenter, operating under 10 year rolling contracts. Additionally, the government has the right to cancel those contracts at its discretion at any time.

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Idea Discussion

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