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DOUBLEDOWN INTERACTIVE -ADR (DDI) Stock Fundamental Analysis

NASDAQ:DDI - Nasdaq - US25862B1098 - ADR

10.48  -0.07 (-0.66%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to DDI. DDI was compared to 72 industry peers in the Entertainment industry. DDI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DDI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make DDI a good candidate for value investing.


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

In the past year DDI was profitable.
In the past year DDI had a positive cash flow from operations.
Of the past 5 years DDI 4 years were profitable.
In the past 5 years DDI always reported a positive cash flow from operatings.
DDI Yearly Net Income VS EBIT VS OCF VS FCFDDI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 100M -100M -200M

1.2 Ratios

Looking at the Return On Assets, with a value of 13.01%, DDI belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.
With an excellent Return On Equity value of 14.03%, DDI belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
DDI has a better Return On Invested Capital (12.35%) than 89.39% of its industry peers.
DDI had an Average Return On Invested Capital over the past 3 years of 10.50%. This is significantly below the industry average of 94.24%.
The last Return On Invested Capital (12.35%) for DDI is above the 3 year average (10.50%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 13.01%
ROE 14.03%
ROIC 12.35%
ROA(3y)-2.98%
ROA(5y)0.43%
ROE(3y)-4.82%
ROE(5y)0.55%
ROIC(3y)10.5%
ROIC(5y)9.37%
DDI Yearly ROA, ROE, ROICDDI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 10 -10 -20 -30

1.3 Margins

DDI's Profit Margin of 33.42% is amongst the best of the industry. DDI outperforms 96.97% of its industry peers.
DDI's Profit Margin has improved in the last couple of years.
DDI has a Operating Margin of 40.32%. This is amongst the best in the industry. DDI outperforms 100.00% of its industry peers.
DDI's Operating Margin has improved in the last couple of years.
DDI has a Gross Margin of 69.71%. This is amongst the best in the industry. DDI outperforms 83.33% of its industry peers.
DDI's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 40.32%
PM (TTM) 33.42%
GM 69.71%
OM growth 3Y15.58%
OM growth 5Y13.22%
PM growth 3Y29.73%
PM growth 5Y28.28%
GM growth 3Y1.59%
GM growth 5Y2.17%
DDI Yearly Profit, Operating, Gross MarginsDDI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 50 -50

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9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DDI is creating some value.
DDI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DDI has been reduced compared to 5 years ago.
Compared to 1 year ago, DDI has an improved debt to assets ratio.
DDI Yearly Shares OutstandingDDI Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
DDI Yearly Total Debt VS Total AssetsDDI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 6.99 indicates that DDI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.99, DDI belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
The Debt to FCF ratio of DDI is 0.29, which is an excellent value as it means it would take DDI, only 0.29 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DDI (0.29) is better than 90.91% of its industry peers.
DDI has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
DDI has a better Debt to Equity ratio (0.05) than 74.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.29
Altman-Z 6.99
ROIC/WACC1.73
WACC7.13%
DDI Yearly LT Debt VS Equity VS FCFDDI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.3 Liquidity

DDI has a Current Ratio of 21.25. This indicates that DDI is financially healthy and has no problem in meeting its short term obligations.
DDI has a better Current ratio (21.25) than 98.48% of its industry peers.
DDI has a Quick Ratio of 21.25. This indicates that DDI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 21.25, DDI belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 21.25
Quick Ratio 21.25
DDI Yearly Current Assets VS Current LiabilitesDDI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 100M 200M 300M

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4

3. Growth

3.1 Past

The earnings per share for DDI have decreased strongly by -24.09% in the last year.
DDI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.26% yearly.
DDI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.42%.
The Revenue has been growing slightly by 2.96% on average over the past years.
EPS 1Y (TTM)-24.09%
EPS 3Y16.85%
EPS 5Y32.26%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y-4.83%
Revenue growth 5Y2.96%
Sales Q2Q%13.7%

3.2 Future

Based on estimates for the next years, DDI will show a small growth in Earnings Per Share. The EPS will grow by 4.84% on average per year.
DDI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.99% yearly.
EPS Next Y17.25%
EPS Next 2Y7.12%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue Next Year14.14%
Revenue Next 2Y7.53%
Revenue Next 3Y5.99%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
DDI Yearly Revenue VS EstimatesDDI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
DDI Yearly EPS VS EstimatesDDI Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1 1.5 2

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9

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 4.56, the valuation of DDI can be described as very cheap.
Based on the Price/Earnings ratio, DDI is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DDI to the average of the S&P500 Index (27.96), we can say DDI is valued rather cheaply.
A Price/Forward Earnings ratio of 4.52 indicates a rather cheap valuation of DDI.
Based on the Price/Forward Earnings ratio, DDI is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.11. DDI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 4.56
Fwd PE 4.52
DDI Price Earnings VS Forward Price EarningsDDI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

DDI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DDI is cheaper than 95.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DDI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.98
EV/EBITDA 0.77
DDI Per share dataDDI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

DDI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of DDI may justify a higher PE ratio.
PEG (NY)0.26
PEG (5Y)0.14
EPS Next 2Y7.12%
EPS Next 3Y4.84%

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0

5. Dividend

5.1 Amount

DDI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DOUBLEDOWN INTERACTIVE -ADR

NASDAQ:DDI (1/17/2025, 8:00:01 PM)

10.48

-0.07 (-0.66%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-11 2024-11-11/amc
Earnings (Next)N/A N/A
Inst Owners9.68%
Inst Owner Change0%
Ins Owners0.57%
Ins Owner ChangeN/A
Market Cap519.32M
Analysts82.5
Price Target22.19 (111.74%)
Short Float %0.01%
Short Ratio1.63
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.18%
Min EPS beat(2)-9.02%
Max EPS beat(2)35.38%
EPS beat(4)2
Avg EPS beat(4)12.32%
Min EPS beat(4)-9.02%
Max EPS beat(4)35.38%
EPS beat(8)6
Avg EPS beat(8)56.05%
EPS beat(12)6
Avg EPS beat(12)-8.63%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.22%
Min Revenue beat(2)-3.83%
Max Revenue beat(2)4.26%
Revenue beat(4)3
Avg Revenue beat(4)3.53%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)7.64%
Revenue beat(8)4
Avg Revenue beat(8)1.06%
Revenue beat(12)4
Avg Revenue beat(12)-0.11%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)12.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
Industry RankSector Rank
PE 4.56
Fwd PE 4.52
P/S 1.52
P/FCF 3.98
P/OCF 3.97
P/B 0.64
P/tB 1.41
EV/EBITDA 0.77
EPS(TTM)2.3
EY21.95%
EPS(NY)2.32
Fwd EY22.12%
FCF(TTM)2.63
FCFY25.13%
OCF(TTM)2.64
OCFY25.19%
SpS6.91
BVpS16.46
TBVpS7.45
PEG (NY)0.26
PEG (5Y)0.14
Profitability
Industry RankSector Rank
ROA 13.01%
ROE 14.03%
ROCE 16.05%
ROIC 12.35%
ROICexc 21.79%
ROICexgc 256.91%
OM 40.32%
PM (TTM) 33.42%
GM 69.71%
FCFM 38.11%
ROA(3y)-2.98%
ROA(5y)0.43%
ROE(3y)-4.82%
ROE(5y)0.55%
ROIC(3y)10.5%
ROIC(5y)9.37%
ROICexc(3y)16.59%
ROICexc(5y)13.25%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.65%
ROCE(5y)12.25%
ROICexcg growth 3Y12.12%
ROICexcg growth 5Y-44.16%
ROICexc growth 3Y27.58%
ROICexc growth 5Y29.22%
OM growth 3Y15.58%
OM growth 5Y13.22%
PM growth 3Y29.73%
PM growth 5Y28.28%
GM growth 3Y1.59%
GM growth 5Y2.17%
F-Score6
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.29
Debt/EBITDA 0.27
Cap/Depr 10.52%
Cap/Sales 0.09%
Interest Coverage 13.66
Cash Conversion 92.71%
Profit Quality 114.04%
Current Ratio 21.25
Quick Ratio 21.25
Altman-Z 6.99
F-Score6
WACC7.13%
ROIC/WACC1.73
Cap/Depr(3y)11.94%
Cap/Depr(5y)7.42%
Cap/Sales(3y)0.07%
Cap/Sales(5y)0.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.09%
EPS 3Y16.85%
EPS 5Y32.26%
EPS Q2Q%-5.56%
EPS Next Y17.25%
EPS Next 2Y7.12%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue 1Y (TTM)13.42%
Revenue growth 3Y-4.83%
Revenue growth 5Y2.96%
Sales Q2Q%13.7%
Revenue Next Year14.14%
Revenue Next 2Y7.53%
Revenue Next 3Y5.99%
Revenue Next 5YN/A
EBIT growth 1Y28.75%
EBIT growth 3Y10%
EBIT growth 5Y16.57%
EBIT Next Year26.49%
EBIT Next 3Y7.2%
EBIT Next 5YN/A
FCF growth 1Y45.17%
FCF growth 3Y-40.83%
FCF growth 5Y-21.97%
OCF growth 1Y45.01%
OCF growth 3Y-40.69%
OCF growth 5Y-22.5%