DOUBLEDOWN INTERACTIVE -ADR (DDI) Stock Fundamental Analysis
NASDAQ:DDI - Nasdaq - US25862B1098 - ADR - Currency: USD
Overall DDI gets a fundamental rating of 7 out of 10. We evaluated DDI against 73 industry peers in the Entertainment industry. DDI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DDI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, DDI could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year DDI was profitable.
DDI had a positive operating cash flow in the past year.
Of the past 5 years DDI 4 years were profitable.
Each year in the past 5 years DDI had a positive operating cash flow.
1.2 Ratios
DDI has a Return On Assets of 21.89%. This is amongst the best in the industry. DDI outperforms 98.63% of its industry peers.
DDI has a Return On Equity of 23.77%. This is amongst the best in the industry. DDI outperforms 91.78% of its industry peers.
DDI has a Return On Invested Capital of 20.02%. This is amongst the best in the industry. DDI outperforms 94.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DDI is significantly below the industry average of 24.03%.
The last Return On Invested Capital (20.02%) for DDI is above the 3 year average (11.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.89% | ||
| ROE | 23.77% | ||
| ROIC | 20.02% |
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 34.59%, DDI belongs to the top of the industry, outperforming 98.63% of the companies in the same industry.
In the last couple of years the Profit Margin of DDI has grown nicely.
The Operating Margin of DDI (39.91%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of DDI has grown nicely.
With an excellent Gross Margin value of 69.93%, DDI belongs to the best of the industry, outperforming 83.56% 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 | 39.91% | ||
| PM (TTM) | 34.59% | ||
| GM | 69.93% |
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.
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.
DDI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.57 indicates that DDI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.57, DDI belongs to the best of the industry, outperforming 87.67% of the companies in the same industry.
DDI has a debt to FCF ratio of 0.25. This is a very positive value and a sign of high solvency as it would only need 0.25 years to pay back of all of its debts.
DDI has a better Debt to FCF ratio (0.25) than 89.04% of its industry peers.
DDI has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.04, DDI is in the better half of the industry, outperforming 68.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 6.57 |
ROIC/WACC2.35
WACC8.51%
2.3 Liquidity
A Current Ratio of 16.04 indicates that DDI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 16.04, DDI belongs to the best of the industry, outperforming 97.26% of the companies in the same industry.
DDI has a Quick Ratio of 16.04. This indicates that DDI is financially healthy and has no problem in meeting its short term obligations.
DDI's Quick ratio of 16.04 is amongst the best of the industry. DDI outperforms 97.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 16.04 | ||
| Quick Ratio | 16.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.70% over the past year.
DDI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.10% yearly.
DDI shows a strong growth in Revenue. In the last year, the Revenue has grown by 86.60%.
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)10.7%
EPS 3Y13.84%
EPS 5Y28.1%
EPS Q2Q%-21.31%
Revenue 1Y (TTM)86.6%
Revenue growth 3Y-2.05%
Revenue growth 5Y4.52%
Sales Q2Q%-5.28%
3.2 Future
Based on estimates for the next years, DDI will show a decrease in Earnings Per Share. The EPS will decrease by -2.27% on average per year.
The Revenue is expected to grow by 0.88% on average over the next years.
EPS Next Y-15.9%
EPS Next 2Y-6.66%
EPS Next 3Y-2.27%
EPS Next 5YN/A
Revenue Next Year-1.58%
Revenue Next 2Y0.22%
Revenue Next 3Y0.88%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.00, the valuation of DDI can be described as very cheap.
Based on the Price/Earnings ratio, DDI is valued cheaply inside the industry as 98.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.73, DDI is valued rather cheaply.
A Price/Forward Earnings ratio of 4.35 indicates a rather cheap valuation of DDI.
Based on the Price/Forward Earnings ratio, DDI is valued cheaply inside the industry as 95.89% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DDI to the average of the S&P500 Index (34.61), we can say DDI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4 | ||
| Fwd PE | 4.35 |
4.2 Price Multiples
DDI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DDI is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.07 | ||
| EV/EBITDA | -0.15 |
4.3 Compensation for Growth
DDI has an outstanding profitability rating, which may justify a higher PE ratio.
DDI's earnings are expected to decrease with -2.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-6.66%
EPS Next 3Y-2.27%
5. Dividend
5.1 Amount
No dividends for DDI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.52
+0.02 (+0.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners10.62%
Inst Owner Change2.73%
Ins Owners0.51%
Ins Owner ChangeN/A
Market Cap471.75M
Analysts82.22
Price Target19.79 (107.88%)
Short Float %0.01%
Short Ratio0.93
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)4.82%
Min EPS beat(2)-13.28%
Max EPS beat(2)22.91%
EPS beat(4)2
Avg EPS beat(4)9%
Min EPS beat(4)-13.28%
Max EPS beat(4)35.38%
EPS beat(8)5
Avg EPS beat(8)11.08%
EPS beat(12)7
Avg EPS beat(12)-6.69%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.9%
Min Revenue beat(2)-5.12%
Max Revenue beat(2)-2.68%
Revenue beat(4)1
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-5.12%
Max Revenue beat(4)4.26%
Revenue beat(8)3
Avg Revenue beat(8)-0.02%
Revenue beat(12)4
Avg Revenue beat(12)-0.35%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.77%
PT rev (3m)-7.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4 | ||
| Fwd PE | 4.35 | ||
| P/S | 0.79 | ||
| P/FCF | 3.07 | ||
| P/OCF | 3.05 | ||
| P/B | 0.54 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | -0.15 |
EPS(TTM)2.38
EY25%
EPS(NY)2.19
Fwd EY22.97%
FCF(TTM)3.1
FCFY32.58%
OCF(TTM)3.12
OCFY32.78%
SpS12.03
BVpS17.5
TBVpS8.55
PEG (NY)N/A
PEG (5Y)0.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.89% | ||
| ROE | 23.77% | ||
| ROCE | 26.1% | ||
| ROIC | 20.02% | ||
| ROICexc | 40.03% | ||
| ROICexgc | 1534.1% | ||
| OM | 39.91% | ||
| PM (TTM) | 34.59% | ||
| GM | 69.93% | ||
| FCFM | 25.78% |
ROA(3y)-1.09%
ROA(5y)2.29%
ROE(3y)-2.91%
ROE(5y)1.59%
ROIC(3y)11.78%
ROIC(5y)10.41%
ROICexc(3y)20.46%
ROICexc(5y)16.31%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)15.37%
ROCE(5y)13.57%
ROICexcg growth 3Y2.86%
ROICexcg growth 5Y10.7%
ROICexc growth 3Y27.95%
ROICexc growth 5Y26.51%
OM growth 3Y13.84%
OM growth 5Y9.94%
PM growth 3Y19.13%
PM growth 5Y22.34%
GM growth 3Y2.26%
GM growth 5Y1.84%
F-Score6
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.25 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 17.78% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 21.6 | ||
| Cash Conversion | 63.54% | ||
| Profit Quality | 74.54% | ||
| Current Ratio | 16.04 | ||
| Quick Ratio | 16.04 | ||
| Altman-Z | 6.57 |
F-Score6
WACC8.51%
ROIC/WACC2.35
Cap/Depr(3y)9.85%
Cap/Depr(5y)6.35%
Cap/Sales(3y)0.13%
Cap/Sales(5y)0.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.7%
EPS 3Y13.84%
EPS 5Y28.1%
EPS Q2Q%-21.31%
EPS Next Y-15.9%
EPS Next 2Y-6.66%
EPS Next 3Y-2.27%
EPS Next 5YN/A
Revenue 1Y (TTM)86.6%
Revenue growth 3Y-2.05%
Revenue growth 5Y4.52%
Sales Q2Q%-5.28%
Revenue Next Year-1.58%
Revenue Next 2Y0.22%
Revenue Next 3Y0.88%
Revenue Next 5YN/A
EBIT growth 1Y92.08%
EBIT growth 3Y11.51%
EBIT growth 5Y14.91%
EBIT Next Year-6.86%
EBIT Next 3Y0.45%
EBIT Next 5YN/A
FCF growth 1Y271.2%
FCF growth 3Y15.48%
FCF growth 5Y14.06%
OCF growth 1Y271.4%
OCF growth 3Y15.59%
OCF growth 5Y14.13%