4.11 USD
+1.8 (+77.92%)
4.0384 USD
-0.07 (-1.74%)
Taking everything into account, DRCT scores 1 out of 10 in our fundamental rating. DRCT was compared to 92 industry peers in the Media industry. DRCT has a bad profitability rating. Also its financial health evaluation is rather negative. DRCT does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year DRCT has reported negative net income.
- In the past year DRCT has reported a negative cash flow from operations.
- In the past 5 years DRCT reported 4 times negative net income.
- In multiple years DRCT reported negative operating cash flow during the last 5 years.
1.2 Ratios
- The Return On Assets of DRCT (-42.00%) is worse than 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -42% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-6.66%
ROA(5y)-5.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- DRCT has a Gross Margin of 31.43%. This is comparable to the rest of the industry: DRCT outperforms 41.30% 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 | 31.43% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.71%
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.
- Compared to 1 year ago, DRCT has more shares outstanding
- The debt/assets ratio for DRCT is higher compared to a year ago.
2.2 Solvency
- DRCT has an Altman-Z score of 0.92. This is a bad value and indicates that DRCT is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.92, DRCT perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.92 |
ROIC/WACCN/A
WACC9.2%
2.3 Liquidity
- A Current Ratio of 0.37 indicates that DRCT may have some problems paying its short term obligations.
- DRCT's Current ratio of 0.37 is on the low side compared to the rest of the industry. DRCT is outperformed by 84.78% of its industry peers.
- DRCT has a Quick Ratio of 0.37. This is a bad value and indicates that DRCT is not financially healthy enough and could expect problems in meeting its short term obligations.
- DRCT's Quick ratio of 0.37 is on the low side compared to the rest of the industry. DRCT is outperformed by 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
- The earnings per share for DRCT have decreased strongly by -1762.87% in the last year.
- DRCT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -62.46%.
- The Revenue has been growing by 17.76% on average over the past years. This is quite good.
EPS 1Y (TTM)-1762.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-534.62%
Revenue 1Y (TTM)-62.46%
Revenue growth 3Y17.76%
Revenue growth 5YN/A
Sales Q2Q%-12.02%
3.2 Future
- Based on estimates for the next years, DRCT will show a very strong growth in Earnings Per Share. The EPS will grow by 34.33% 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 -10.39% on average per year.
EPS Next Y-1659.23%
EPS Next 2Y34.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-35.97%
Revenue Next 2Y-10.39%
Revenue Next 3YN/A
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
- DRCT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for DRCT. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| 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
- DRCT's earnings are expected to grow with 34.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- DRCT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DIRECT DIGITAL HOLDINGS IN-A / DRCT FAQ
What is the fundamental rating for DRCT stock?
ChartMill assigns a fundamental rating of 1 / 10 to DRCT.
What is the valuation status of DIRECT DIGITAL HOLDINGS IN-A (DRCT) stock?
ChartMill assigns a valuation rating of 1 / 10 to DIRECT DIGITAL HOLDINGS IN-A (DRCT). This can be considered as Overvalued.
What is the profitability of DRCT stock?
DIRECT DIGITAL HOLDINGS IN-A (DRCT) has a profitability rating of 1 / 10.
Can you provide the financial health for DRCT stock?
The financial health rating of DIRECT DIGITAL HOLDINGS IN-A (DRCT) is 0 / 10.