DIRECT DIGITAL HOLDINGS IN-A (DRCT) Stock Fundamental Analysis
NASDAQ:DRCT - Nasdaq - US25461T1051 - Common Stock - Currency: USD
We assign a fundamental rating of 1 out of 10 to DRCT. DRCT was compared to 92 industry peers in the Media industry. Both the profitability and financial health of DRCT have multiple concerns. DRCT does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
DRCT had positive earnings in the past year.
DRCT had a negative operating cash flow in the past year.
1.2 Ratios
With a Return On Assets value of -30.24%, DRCT is not doing good in the industry: 86.96% of the companies in the same industry are doing better.
| Industry Rank | Sector 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
1.3 Margins
DRCT has a worse Gross Margin (25.22%) than 70.65% of its industry peers.
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 Rank | Sector 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
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.
Compared to 1 year ago, DRCT has a worse debt to assets ratio.
2.2 Solvency
DRCT has an Altman-Z score of -0.13. This is a bad value and indicates that DRCT is not financially healthy and even has some risk of bankruptcy.
DRCT has a worse Altman-Z score (-0.13) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.13 |
ROIC/WACCN/A
WACC11.81%
2.3 Liquidity
A Current Ratio of 0.25 indicates that DRCT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.25, DRCT is doing worse than 92.39% of the companies in the same industry.
A Quick Ratio of 0.25 indicates that DRCT may have some problems paying its short term obligations.
DRCT has a worse Quick ratio (0.25) than 92.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.13% over the past year.
Looking at the last year, DRCT shows a very negative growth in Revenue. The Revenue has decreased by -35.83% in the last year.
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.
Based on estimates for the next years, DRCT will show a very negative growth in Revenue. The Revenue will decrease by -17.07% on average per year.
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 3.02, the valuation of DRCT can be described as very cheap.
Based on the Price/Earnings ratio, DRCT is valued cheaper than 94.57% of the companies in the same industry.
DRCT is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
DRCT is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.02 | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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%
5. Dividend
5.1 Amount
DRCT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:DRCT (3/7/2025, 8:20:15 PM)
0.9045
+0.01 (+1.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners4.4%
Inst Owner Change2.95%
Ins Owners6.97%
Ins Owner Change-9.23%
Market Cap15.67M
Analysts80
Price Target5.36 (492.59%)
Short Float %5.9%
Short Ratio0.1
Dividend
| Industry Rank | Sector 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)-42.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1433.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-800.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-77.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-63.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.02 | ||
| Fwd PE | N/A | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.3
EY33.17%
EPS(NY)-1.39
Fwd EYN/A
FCF(TTM)-0.53
FCFYN/A
OCF(TTM)-0.53
OCFYN/A
SpS5.44
BVpS-0.18
TBVpS-1.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | -0.13 |
F-Score5
WACC11.81%
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