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

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

0.5458  +0 (+0.44%)

After market: 0.524 -0.02 (-3.99%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to DRCT. DRCT was compared to 98 industry peers in the Media industry. DRCT has a bad profitability rating. Also its financial health evaluation is rather negative. DRCT is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

DRCT had negative earnings in the past year.
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.
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 2024 0 5M -5M -10M

1.2 Ratios

DRCT has a worse Return On Assets (-32.82%) than 85.71% of its industry peers.
Industry RankSector Rank
ROA -32.82%
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
DRCT Yearly ROA, ROE, ROICDRCT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 0 200 -200 400 -400

1.3 Margins

The Gross Margin of DRCT (30.69%) is worse than 61.22% 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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 30.69%
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
DRCT Yearly Profit, Operating, Gross MarginsDRCT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 0 20 -20 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.
Compared to 1 year ago, DRCT has more shares outstanding
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 2024 5M 10M 15M
DRCT Yearly Total Debt VS Total AssetsDRCT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 20M 40M 60M

2.2 Solvency

Based on the Altman-Z score of -0.75, we must say that DRCT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.75, DRCT is not doing good in the industry: 76.53% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -0.75
ROIC/WACCN/A
WACC11.45%
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 2024 0 10M 20M 30M

2.3 Liquidity

A Current Ratio of 0.51 indicates that DRCT may have some problems paying its short term obligations.
DRCT has a worse Current ratio (0.51) than 84.69% of its industry peers.
DRCT has a Quick Ratio of 0.51. 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 0.51 is on the low side compared to the rest of the industry. DRCT is outperformed by 84.69% of its industry peers.
Industry RankSector Rank
Current Ratio 0.51
Quick Ratio 0.51
DRCT Yearly Current Assets VS Current LiabilitesDRCT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 10M 20M 30M 40M

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5

3. Growth

3.1 Past

DRCT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -2903.74%.
The Revenue for DRCT has decreased by -69.54% in the past year. This is quite bad
Measured over the past years, DRCT shows a quite strong growth in Revenue. The Revenue has been growing by 17.76% on average per year.
EPS 1Y (TTM)-2903.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-59.09%
Revenue 1Y (TTM)-69.54%
Revenue growth 3Y17.76%
Revenue growth 5YN/A
Sales Q2Q%-63.38%

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 42.17% on average per year.
Based on estimates for the next years, DRCT will show a very strong growth in Revenue. The Revenue will grow by 31.70% on average per year.
EPS Next Y106.22%
EPS Next 2Y42.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year38.3%
Revenue Next 2Y31.7%
Revenue Next 3YN/A
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 accelerating.
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 2021 2022 2023 2024 2025 2026 0 -1 -2

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DRCT. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 8.92, the valuation of DRCT can be described as very reasonable.
74.49% of the companies in the same industry are more expensive than DRCT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, DRCT is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 8.92
DRCT Price Earnings VS Forward Price EarningsDRCT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30 40

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 1 -1 2 -2

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DRCT's earnings are expected to grow with 42.17% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.17%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

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

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DIRECT DIGITAL HOLDINGS IN-A

NASDAQ:DRCT (6/11/2025, 5:29:00 PM)

After market: 0.524 -0.02 (-3.99%)

0.5458

+0 (+0.44%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)10-13 2025-10-13
Inst Owners4.4%
Inst Owner Change6.71%
Ins Owners6.97%
Ins Owner Change21.3%
Market Cap10.32M
Analysts80
Price Target6.12 (1021.29%)
Short Float %3.1%
Short Ratio0.12
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)-3381.62%
Min EPS beat(2)-6762.75%
Max EPS beat(2)-0.49%
EPS beat(4)0
Avg EPS beat(4)-2153.34%
Min EPS beat(4)-6762.75%
Max EPS beat(4)-0.49%
EPS beat(8)1
Avg EPS beat(8)-1058.56%
EPS beat(12)3
Avg EPS beat(12)-697.42%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-25.21%
Min Revenue beat(2)-35.54%
Max Revenue beat(2)-14.88%
Revenue beat(4)0
Avg Revenue beat(4)-45.93%
Min Revenue beat(4)-85.1%
Max Revenue beat(4)-14.88%
Revenue beat(8)2
Avg Revenue beat(8)-17.61%
Revenue beat(12)6
Avg Revenue beat(12)-2.67%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-25%
PT rev (3m)14.29%
EPS NQ rev (1m)80%
EPS NQ rev (3m)80%
EPS NY rev (1m)179.55%
EPS NY rev (3m)112.87%
Revenue NQ rev (1m)-7.74%
Revenue NQ rev (3m)-7.74%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)3.09%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 8.92
P/S 0.21
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-3
EYN/A
EPS(NY)0.06
Fwd EY11.21%
FCF(TTM)-0.3
FCFYN/A
OCF(TTM)-0.3
OCFYN/A
SpS2.55
BVpS-0.39
TBVpS-1.22
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -32.82%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 30.69%
FCFM 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
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-16.71%
GM growth 5YN/A
F-Score2
Asset Turnover2.02
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 1.32%
Cap/Sales 0.07%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.51
Quick Ratio 0.51
Altman-Z -0.75
F-Score2
WACC11.45%
ROIC/WACCN/A
Cap/Depr(3y)14.3%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.3%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2903.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-59.09%
EPS Next Y106.22%
EPS Next 2Y42.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-69.54%
Revenue growth 3Y17.76%
Revenue growth 5YN/A
Sales Q2Q%-63.38%
Revenue Next Year38.3%
Revenue Next 2Y31.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-195.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year103.2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-205.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-192.05%
OCF growth 3YN/A
OCF growth 5YN/A