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DIRECT DIGITAL HOLDINGS IN-A (DRCT) Stock Fundamental Analysis

NASDAQ:DRCT - Nasdaq - US25461T1051 - Common Stock - Currency: USD

1.13  -0.02 (-1.74%)

Fundamental Rating

1

We assign a fundamental rating of 1 out of 10 to DRCT. DRCT was compared to 93 industry peers in the Media industry. DRCT has a bad profitability rating. Also its financial health evaluation is rather negative. DRCT has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

DRCT had positive earnings in the past year.
In the past year DRCT has reported a negative cash flow from operations.
DRCT Yearly Net Income VS EBIT VS OCF VS FCFDRCT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 0 2M -2M 4M 6M

1.2 Ratios

DRCT's Return On Assets of -30.24% is on the low side compared to the rest of the industry. DRCT is outperformed by 89.66% of its industry peers.
Industry RankSector Rank
ROA -30.24%
ROE N/A
ROIC N/A
ROA(3y)-0.04%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
DRCT Yearly ROA, ROE, ROICDRCT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 0 200 -200 400 -400

1.3 Margins

With a Gross Margin value of 25.22%, DRCT is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
DRCT's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for DRCT so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 25.22%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.73%
GM growth 5YN/A
DRCT Yearly Profit, Operating, Gross MarginsDRCT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 0 10 20 30 40

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2. Health

2.1 Basic Checks

DRCT does not have a ROIC to compare to the WACC, probably because it is not profitable.
DRCT has less shares outstanding than it did 1 year ago.
The debt/assets ratio for DRCT is higher compared to a year ago.
DRCT Yearly Shares OutstandingDRCT Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 5M 10M
DRCT Yearly Total Debt VS Total AssetsDRCT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 20M 40M 60M

2.2 Solvency

Based on the Altman-Z score of -0.11, we must say that DRCT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.11, DRCT is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -0.11
ROIC/WACCN/A
WACC10.28%
DRCT Yearly LT Debt VS Equity VS FCFDRCT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 0 5M 10M 15M 20M 25M

2.3 Liquidity

A Current Ratio of 0.25 indicates that DRCT may have some problems paying its short term obligations.
With a Current ratio value of 0.25, DRCT is not doing good in the industry: 98.85% of the companies in the same industry are doing better.
A Quick Ratio of 0.25 indicates that DRCT may have some problems paying its short term obligations.
DRCT has a Quick ratio of 0.25. This is amonst the worse of the industry: DRCT underperforms 98.85% of its industry peers.
Industry RankSector Rank
Current Ratio 0.25
Quick Ratio 0.25
DRCT Yearly Current Assets VS Current LiabilitesDRCT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 10M 20M 30M 40M

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3

3. Growth

3.1 Past

DRCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.13%, which is quite impressive.
DRCT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -35.83%.
Measured over the past years, DRCT shows a very strong growth in Revenue. The Revenue has been growing by 132.63% on average per year.
EPS 1Y (TTM)29.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%186.96%
Revenue 1Y (TTM)-35.83%
Revenue growth 3Y132.63%
Revenue growth 5YN/A
Sales Q2Q%-84.74%

3.2 Future

Based on estimates for the next years, DRCT will show a very negative growth in Earnings Per Share. The EPS will decrease by -110.74% on average per year.
The Revenue is expected to decrease by -17.07% on average over the next years. This is quite bad
EPS Next Y-868.95%
EPS Next 2Y-180.23%
EPS Next 3Y-110.74%
EPS Next 5YN/A
Revenue Next Year-64.01%
Revenue Next 2Y-29.73%
Revenue Next 3Y-17.07%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
DRCT Yearly Revenue VS EstimatesDRCT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M
DRCT Yearly EPS VS EstimatesDRCT Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 0 -0.5 -1 -1.5

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 3.77, the valuation of DRCT can be described as very cheap.
Based on the Price/Earnings ratio, DRCT is valued cheaply inside the industry as 95.40% of the companies are valued more expensively.
DRCT is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for DRCT. No positive earnings are expected for the next year.
Industry RankSector Rank
PE 3.77
Fwd PE N/A
DRCT Price Earnings VS Forward Price EarningsDRCT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
DRCT Per share dataDRCT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

A cheap valuation may be justified as DRCT's earnings are expected to decrease with -110.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-180.23%
EPS Next 3Y-110.74%

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5. Dividend

5.1 Amount

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

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DIRECT DIGITAL HOLDINGS IN-A

NASDAQ:DRCT (2/5/2025, 12:49:19 PM)

1.13

-0.02 (-1.74%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)11-12 2024-11-12/amc
Earnings (Next)N/A N/A
Inst Owners8.84%
Inst Owner Change0%
Ins Owners7.53%
Ins Owner Change-7.53%
Market Cap16.83M
Analysts80
Price Target5.36 (374.34%)
Short Float %21.19%
Short Ratio0.22
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)82.32%
Min EPS beat(2)-220.66%
Max EPS beat(2)385.31%
EPS beat(4)1
Avg EPS beat(4)3.29%
Min EPS beat(4)-220.66%
Max EPS beat(4)385.31%
EPS beat(8)2
Avg EPS beat(8)26.58%
EPS beat(12)5
Avg EPS beat(12)31.64%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-66.64%
Min Revenue beat(2)-85.1%
Max Revenue beat(2)-48.18%
Revenue beat(4)0
Avg Revenue beat(4)-44.81%
Min Revenue beat(4)-85.1%
Max Revenue beat(4)-6.91%
Revenue beat(8)4
Avg Revenue beat(8)-7.96%
Revenue beat(12)6
Avg Revenue beat(12)1.12%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-66.84%
EPS NQ rev (1m)-1433.34%
EPS NQ rev (3m)-1433.34%
EPS NY rev (1m)-800.65%
EPS NY rev (3m)-800.65%
Revenue NQ rev (1m)-77.9%
Revenue NQ rev (3m)-77.9%
Revenue NY rev (1m)-63.65%
Revenue NY rev (3m)-63.65%
Valuation
Industry RankSector Rank
PE 3.77
Fwd PE N/A
P/S 0.18
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.3
EY26.55%
EPS(NY)-1.39
Fwd EYN/A
FCF(TTM)-0.62
FCFYN/A
OCF(TTM)-0.62
OCFYN/A
SpS6.33
BVpS-0.21
TBVpS-1.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -30.24%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 25.22%
FCFM N/A
ROA(3y)-0.04%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.73%
GM growth 5YN/A
F-Score5
Asset Turnover3.01
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 2.48%
Cap/Sales 0.06%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.25
Quick Ratio 0.25
Altman-Z -0.11
F-Score5
WACC10.28%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%186.96%
EPS Next Y-868.95%
EPS Next 2Y-180.23%
EPS Next 3Y-110.74%
EPS Next 5YN/A
Revenue 1Y (TTM)-35.83%
Revenue growth 3Y132.63%
Revenue growth 5YN/A
Sales Q2Q%-84.74%
Revenue Next Year-64.01%
Revenue Next 2Y-29.73%
Revenue Next 3Y-17.07%
Revenue Next 5YN/A
EBIT growth 1Y-290.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-172.52%
EBIT Next 3Y-27.9%
EBIT Next 5YN/A
FCF growth 1Y-334.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-333.09%
OCF growth 3YN/A
OCF growth 5YN/A