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SOLO BRANDS INC - CLASS A (DTC) Stock Fundamental Analysis

NYSE:DTC - New York Stock Exchange, Inc. - US83425V1044 - Common Stock - Currency: USD

0.83  -0.04 (-4.88%)

After market: 0.8051 -0.02 (-3%)

Fundamental Rating

2

Overall DTC gets a fundamental rating of 2 out of 10. We evaluated DTC against 30 industry peers in the Leisure Products industry. DTC may be in some trouble as it scores bad on both profitability and health. DTC is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

DTC had positive earnings in the past year.
In the past year DTC had a positive cash flow from operations.
DTC had negative earnings in 4 of the past 5 years.
In multiple years DTC reported negative operating cash flow during the last 5 years.
DTC Yearly Net Income VS EBIT VS OCF VS FCFDTC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 50M -50M -100M

1.2 Ratios

With a Return On Assets value of -36.19%, DTC is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -119.16%, DTC is doing worse than 76.67% of the companies in the same industry.
Industry RankSector Rank
ROA -36.19%
ROE -119.16%
ROIC N/A
ROA(3y)-5.39%
ROA(5y)-9.72%
ROE(3y)-14.85%
ROE(5y)-18.32%
ROIC(3y)N/A
ROIC(5y)N/A
DTC Yearly ROA, ROE, ROICDTC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 -10 -20 -30 -40

1.3 Margins

DTC has a Gross Margin of 56.46%. This is amongst the best in the industry. DTC outperforms 86.67% of its industry peers.
DTC's Gross Margin has declined in the last couple of years.
DTC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 56.46%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.17%
GM growth 5YN/A
DTC Yearly Profit, Operating, Gross MarginsDTC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 -20 40 -40 60 -60

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1

2. Health

2.1 Basic Checks

DTC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for DTC has been reduced compared to 1 year ago.
The debt/assets ratio for DTC is higher compared to a year ago.
DTC Yearly Shares OutstandingDTC Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M 80M
DTC Yearly Total Debt VS Total AssetsDTC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

Based on the Altman-Z score of 0.47, we must say that DTC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DTC (0.47) is worse than 70.00% of its industry peers.
DTC has a debt to FCF ratio of 22.61. This is a negative value and a sign of low solvency as DTC would need 22.61 years to pay back of all of its debts.
DTC's Debt to FCF ratio of 22.61 is on the low side compared to the rest of the industry. DTC is outperformed by 60.00% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that DTC is somewhat dependend on debt financing.
DTC has a worse Debt to Equity ratio (0.90) than 70.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 22.61
Altman-Z 0.47
ROIC/WACCN/A
WACC9.01%
DTC Yearly LT Debt VS Equity VS FCFDTC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 1.57 indicates that DTC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, DTC is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.59 indicates that DTC may have some problems paying its short term obligations.
DTC has a worse Quick ratio (0.59) than 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.57
Quick Ratio 0.59
DTC Yearly Current Assets VS Current LiabilitesDTC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 50M 100M 150M

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3

3. Growth

3.1 Past

DTC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.78%.
DTC shows a decrease in Revenue. In the last year, the revenue decreased by -9.55%.
DTC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 54.79% yearly.
EPS 1Y (TTM)-77.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-92.86%
Revenue 1Y (TTM)-9.55%
Revenue growth 3Y54.79%
Revenue growth 5YN/A
Sales Q2Q%-14.67%

3.2 Future

The Earnings Per Share is expected to decrease by -18.80% on average over the next years. This is quite bad
The Revenue is expected to grow by 2.85% on average over the next years.
EPS Next Y-72.13%
EPS Next 2Y-44.12%
EPS Next 3Y-34.09%
EPS Next 5Y-18.8%
Revenue Next Year-4.51%
Revenue Next 2Y-1.49%
Revenue Next 3Y1.3%
Revenue Next 5Y2.85%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
DTC Yearly Revenue VS EstimatesDTC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M 500M
DTC Yearly EPS VS EstimatesDTC Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 3.77, the valuation of DTC can be described as very cheap.
100.00% of the companies in the same industry are more expensive than DTC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. DTC is valued rather cheaply when compared to this.
DTC is valuated cheaply with a Price/Forward Earnings ratio of 3.37.
Based on the Price/Forward Earnings ratio, DTC is valued cheaper than 96.67% of the companies in the same industry.
DTC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
Industry RankSector Rank
PE 3.77
Fwd PE 3.37
DTC Price Earnings VS Forward Price EarningsDTC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

DTC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DTC is cheaper than 83.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.67
EV/EBITDA N/A
DTC Per share dataDTC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4

4.3 Compensation for Growth

A cheap valuation may be justified as DTC's earnings are expected to decrease with -34.09% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-44.12%
EPS Next 3Y-34.09%

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0

5. Dividend

5.1 Amount

No dividends for DTC!.
Industry RankSector Rank
Dividend Yield N/A

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SOLO BRANDS INC - CLASS A

NYSE:DTC (2/21/2025, 8:14:33 PM)

After market: 0.8051 -0.02 (-3%)

0.83

-0.04 (-4.88%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)03-12 2025-03-12/amc
Inst Owners33.32%
Inst Owner Change-89.52%
Ins Owners1.67%
Ins Owner Change3.2%
Market Cap76.09M
Analysts51.43
Price Target2.18 (162.65%)
Short Float %17.1%
Short Ratio8.92
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)0
Avg EPS beat(2)-45.23%
Min EPS beat(2)-69.23%
Max EPS beat(2)-21.23%
EPS beat(4)1
Avg EPS beat(4)274.58%
Min EPS beat(4)-69.23%
Max EPS beat(4)1212.47%
EPS beat(8)5
Avg EPS beat(8)170.49%
EPS beat(12)9
Avg EPS beat(12)140.88%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.99%
Min Revenue beat(2)0.64%
Max Revenue beat(2)1.34%
Revenue beat(4)3
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-1.49%
Max Revenue beat(4)6.55%
Revenue beat(8)6
Avg Revenue beat(8)4.85%
Revenue beat(12)9
Avg Revenue beat(12)5.16%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)6.31%
PT rev (3m)6.31%
EPS NQ rev (1m)-6.38%
EPS NQ rev (3m)-6.38%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-17.42%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.33%
Valuation
Industry RankSector Rank
PE 3.77
Fwd PE 3.37
P/S 0.16
P/FCF 10.67
P/OCF 3.66
P/B 0.45
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.22
EY26.51%
EPS(NY)0.25
Fwd EY29.72%
FCF(TTM)0.08
FCFY9.37%
OCF(TTM)0.23
OCFY27.33%
SpS5.2
BVpS1.83
TBVpS-1.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -36.19%
ROE -119.16%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 56.46%
FCFM 1.5%
ROA(3y)-5.39%
ROA(5y)-9.72%
ROE(3y)-14.85%
ROE(5y)-18.32%
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)5.56%
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-2.17%
GM growth 5YN/A
F-Score3
Asset Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 22.61
Debt/EBITDA N/A
Cap/Depr 50.29%
Cap/Sales 2.87%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.57
Quick Ratio 0.59
Altman-Z 0.47
F-Score3
WACC9.01%
ROIC/WACCN/A
Cap/Depr(3y)43.08%
Cap/Depr(5y)32.17%
Cap/Sales(3y)2.09%
Cap/Sales(5y)1.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-77.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-92.86%
EPS Next Y-72.13%
EPS Next 2Y-44.12%
EPS Next 3Y-34.09%
EPS Next 5Y-18.8%
Revenue 1Y (TTM)-9.55%
Revenue growth 3Y54.79%
Revenue growth 5YN/A
Sales Q2Q%-14.67%
Revenue Next Year-4.51%
Revenue Next 2Y-1.49%
Revenue Next 3Y1.3%
Revenue Next 5Y2.85%
EBIT growth 1Y-169.35%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-29.44%
EBIT Next 3Y1.69%
EBIT Next 5YN/A
FCF growth 1Y202.12%
FCF growth 3Y18.91%
FCF growth 5YN/A
OCF growth 1Y241.99%
OCF growth 3Y24.08%
OCF growth 5YN/A