8.81 USD
+0.35 (+4.14%)
Last: Feb 2, 2026, 08:00 PM
We assign a fundamental rating of 7 out of 10 to DDI. DDI was compared to 80 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making DDI a very profitable company, without any liquidiy or solvency issues. DDI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make DDI suitable for value and quality investing!
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.
- DDI had positive earnings in 4 of the past 5 years.
- DDI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DDI's Return On Assets of 19.91% is amongst the best of the industry. DDI outperforms 95.00% of its industry peers.
- Looking at the Return On Equity, with a value of 21.88%, DDI belongs to the top of the industry, outperforming 88.75% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 18.91%, DDI belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
- DDI had an Average Return On Invested Capital over the past 3 years of 11.78%. This is above the industry average of 8.74%.
- The 3 year average ROIC (11.78%) for DDI is below the current ROIC(18.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.91% | ||
| ROE | 21.88% | ||
| ROIC | 18.91% |
ROA(3y)-1.09%
ROA(5y)2.29%
ROE(3y)-2.91%
ROE(5y)1.59%
ROIC(3y)11.78%
ROIC(5y)10.41%
1.3 Margins
- Looking at the Profit Margin, with a value of 33.45%, DDI belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
- In the last couple of years the Profit Margin of DDI has grown nicely.
- DDI has a better Operating Margin (38.63%) than 100.00% of its industry peers.
- DDI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 70.40%, DDI is in the better half of the industry, outperforming 78.75% of the companies in the same industry.
- In the last couple of years the Gross Margin of DDI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.63% | ||
| PM (TTM) | 33.45% | ||
| GM | 70.4% |
OM growth 3Y13.84%
OM growth 5Y9.94%
PM growth 3Y19.13%
PM growth 5Y22.34%
GM growth 3Y2.26%
GM growth 5Y1.84%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DDI is creating value.
- Compared to 1 year ago, DDI has about the same amount of shares outstanding.
- DDI has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DDI has an improved debt to assets ratio.
2.2 Solvency
- DDI has an Altman-Z score of 5.35. This indicates that DDI is financially healthy and has little risk of bankruptcy at the moment.
- DDI's Altman-Z score of 5.35 is amongst the best of the industry. DDI outperforms 83.75% of its industry peers.
- 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 88.75% of its industry peers.
- DDI has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
- DDI's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. DDI outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 5.35 |
ROIC/WACC1.85
WACC10.23%
2.3 Liquidity
- DDI has a Current Ratio of 7.05. This indicates that DDI is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 7.05, DDI belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
- A Quick Ratio of 7.05 indicates that DDI has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 7.05, DDI belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.05 | ||
| Quick Ratio | 7.05 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.09% over the past year.
- The Earnings Per Share has been growing by 28.10% on average over the past years. This is a very strong growth
- Looking at the last year, DDI shows a very strong growth in Revenue. The Revenue has grown by 76.80%.
- Measured over the past years, DDI shows a small growth in Revenue. The Revenue has been growing by 4.52% on average per year.
EPS 1Y (TTM)0.09%
EPS 3Y13.84%
EPS 5Y28.1%
EPS Q2Q%29.61%
Revenue 1Y (TTM)76.8%
Revenue growth 3Y-2.05%
Revenue growth 5Y4.52%
Sales Q2Q%15.5%
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 0.02% on average per year.
- The Revenue is expected to grow by 5.57% on average over the next years.
EPS Next Y-11.3%
EPS Next 2Y-2.73%
EPS Next 3Y0.02%
EPS Next 5YN/A
Revenue Next Year5.39%
Revenue Next 2Y6.63%
Revenue Next 3Y5.57%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 3.83 indicates a rather cheap valuation of DDI.
- Compared to the rest of the industry, the Price/Earnings ratio of DDI indicates a rather cheap valuation: DDI is cheaper than 98.75% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.41. DDI is valued rather cheaply when compared to this.
- DDI is valuated cheaply with a Price/Forward Earnings ratio of 3.71.
- Based on the Price/Forward Earnings ratio, DDI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- DDI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.83 | ||
| Fwd PE | 3.71 |
4.2 Price Multiples
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.1 | ||
| EV/EBITDA | -0.29 |
4.3 Compensation for Growth
- The excellent profitability rating of DDI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-2.73%
EPS Next 3Y0.02%
5. Dividend
5.1 Amount
- DDI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DOUBLEDOWN INTERACTIVE -ADR / DDI FAQ
Can you provide the ChartMill fundamental rating for DOUBLEDOWN INTERACTIVE -ADR?
ChartMill assigns a fundamental rating of 7 / 10 to DDI.
Can you provide the valuation status for DOUBLEDOWN INTERACTIVE -ADR?
ChartMill assigns a valuation rating of 7 / 10 to DOUBLEDOWN INTERACTIVE -ADR (DDI). This can be considered as Undervalued.
How profitable is DOUBLEDOWN INTERACTIVE -ADR (DDI) stock?
DOUBLEDOWN INTERACTIVE -ADR (DDI) has a profitability rating of 9 / 10.
What is the financial health of DOUBLEDOWN INTERACTIVE -ADR (DDI) stock?
The financial health rating of DOUBLEDOWN INTERACTIVE -ADR (DDI) is 9 / 10.