8.78 USD
-0.2 (-2.17%)
Taking everything into account, DDI scores 7 out of 10 in our fundamental rating. DDI was compared to 80 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on DDI. This makes DDI very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
- DDI had positive earnings in the past year.
- In the past year DDI had a positive cash flow from operations.
- DDI had positive earnings in 4 of the past 5 years.
- In the past 5 years DDI always reported a positive cash flow from operatings.
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.
- DDI's Return On Equity of 21.88% is amongst the best of the industry. DDI outperforms 88.75% of its industry peers.
- DDI has a better Return On Invested Capital (18.91%) than 95.00% of its industry peers.
- 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
- With an excellent Profit Margin value of 33.45%, DDI belongs to the best 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's Operating Margin of 38.63% is amongst the best of the industry. DDI outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of DDI has grown nicely.
- 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.
- DDI's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DDI is creating value.
- DDI has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DDI has less shares outstanding
- DDI has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.46 indicates that DDI is not in any danger for bankruptcy at the moment.
- DDI's Altman-Z score of 5.46 is amongst the best of the industry. DDI outperforms 83.75% of its industry peers.
- DDI has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.29, DDI belongs to the top of the industry, outperforming 88.75% of the companies in the same industry.
- DDI has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.00, DDI is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 5.46 |
ROIC/WACC1.83
WACC10.32%
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.
- DDI's Current ratio of 7.05 is amongst the best of the industry. DDI outperforms 95.00% of its industry peers.
- A Quick Ratio of 7.05 indicates that DDI has no problem at all paying its short term obligations.
- DDI's Quick ratio of 7.05 is amongst the best of the industry. DDI outperforms 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.05 | ||
| Quick Ratio | 7.05 |
3. Growth
3.1 Past
- DDI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.09%.
- Measured over the past years, DDI shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.10% on average per year.
- Looking at the last year, DDI shows a very strong growth in Revenue. The Revenue has grown by 76.80%.
- The Revenue has been growing slightly by 4.52% on average over the past years.
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
- DDI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.02% yearly.
- 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 3.82 indicates a rather cheap valuation of DDI.
- Based on the Price/Earnings ratio, DDI is valued cheaper than 98.75% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DDI to the average of the S&P500 Index (28.82), we can say DDI is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 3.70, the valuation of DDI can be described as very cheap.
- DDI's Price/Forward Earnings ratio is rather cheap when compared to the industry. DDI is cheaper than 100.00% of the companies in the same industry.
- DDI is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.82 | ||
| Fwd PE | 3.7 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, DDI is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.09 | ||
| EV/EBITDA | -0.22 |
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
- No dividends for DDI!.
| 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.