DRCT Fundamental Analysis - DIRECT DIGITAL HOLDINGS IN-A

Name: DIRECT DIGITAL HOLDINGS IN-A (DRCT) Stock
Brand: DIRECT DIGITAL HOLDINGS IN-A
Rating: 3.5 (3 reviews)

Fundamental Rating

DRCT gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 94 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.

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1. Profitability

1.1 Basic Checks

DRCT had negative earnings in the past year.

DRCT had a negative operating cash flow in the past year.

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

DRCT has a worse Return On Assets (-40.62%) than 81.91% of its industry peers.

		Industry Rank	Sector Rank
ROA	-40.62%
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's Gross Margin of 34.05% is in line compared to the rest of the industry. DRCT outperforms 42.55% of its industry peers.

In the last couple of years the Gross Margin of DRCT has declined.

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	34.05%

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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

The number of shares outstanding for DRCT has been increased compared to 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 -1.51. This is a bad value and indicates that DRCT is not financially healthy and even has some risk of bankruptcy.

DRCT's Altman-Z score of -1.51 is on the low side compared to the rest of the industry. DRCT is outperformed by 77.66% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	N/A
Altman-Z	-1.51

ROIC/WACCN/A

WACC11.28%

2.3 Liquidity

A Current Ratio of 0.49 indicates that DRCT may have some problems paying its short term obligations.

Looking at the Current ratio, with a value of 0.49, DRCT is doing worse than 85.11% of the companies in the same industry.

DRCT has a Quick Ratio of 0.49. This is a bad value and indicates that DRCT is not financially healthy enough and could expect problems in meeting its short term obligations.

Looking at the Quick ratio, with a value of 0.49, DRCT is doing worse than 85.11% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.49
Quick Ratio	0.49

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

DRCT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -2208.27%.

Looking at the last year, DRCT shows a very negative growth in Revenue. The Revenue has decreased by -74.79% in the last year.

The Revenue has been growing by 17.76% on average over the past years. This is quite good.

EPS 1Y (TTM)-2208.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-43.75%

Revenue 1Y (TTM)-74.79%

Revenue growth 3Y17.76%

Revenue growth 5YN/A

Sales Q2Q%-53.58%

3.2 Future

The Earnings Per Share is expected to grow by 47.45% on average over the next years. This is a very strong growth

Based on estimates for the next years, DRCT will show a quite strong growth in Revenue. The Revenue will grow by 20.00% on average per year.

EPS Next Y87.74%

EPS Next 2Y47.45%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year6.44%

Revenue Next 2Y20%

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 stable.

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4. Valuation

4.1 Price/Earnings Ratio

DRCT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

The Price/Forward Earnings ratio is 0.75, which indicates a rather cheap valuation of DRCT.

Based on the Price/Forward Earnings ratio, DRCT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.

Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, DRCT is valued rather cheaply.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	0.75

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

DRCT's 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 47.45% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y47.45%

EPS Next 3YN/A

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

No dividends for DRCT!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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DIRECT DIGITAL HOLDINGS IN-A

NASDAQ:DRCT (10/30/2025, 11:39:51 AM)

0.3746

+0.01 (+2.91%)

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupMedia & Entertainment

GICS IndustryMedia

Earnings (Last)08-05 2025-08-05/amc

Earnings (Next)11-06 2025-11-06

Inst Owners3.64%

Inst Owner Change0%

Ins Owners3.63%

Ins Owner Change16.87%

Market Cap9.60M

Revenue(TTM)36.46M

Net Income(TTM)-9475000

Analysts80

Price Target6.12 (1533.74%)

Short Float %17.39%

Short Ratio0.91

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)-3354.62%

Min EPS beat(2)-6762.75%

Max EPS beat(2)53.51%

EPS beat(4)1

Avg EPS beat(4)-2084.79%

Min EPS beat(4)-6762.75%

Max EPS beat(4)53.51%

EPS beat(8)2

Avg EPS beat(8)-1048.56%

EPS beat(12)3

Avg EPS beat(12)-707.85%

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)0

Avg Revenue beat(2)-15.43%

Min Revenue beat(2)-15.98%

Max Revenue beat(2)-14.88%

Revenue beat(4)0

Avg Revenue beat(4)-37.87%

Min Revenue beat(4)-85.1%

Max Revenue beat(4)-14.88%

Revenue beat(8)1

Avg Revenue beat(8)-22.07%

Revenue beat(12)5

Avg Revenue beat(12)-7.76%

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)0%

PT rev (3m)0%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-108.82%

EPS NY rev (1m)0%

EPS NY rev (3m)45.67%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-36.16%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-22.49%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	0.75
P/S	0.26
P/FCF	N/A
P/OCF	N/A
P/B	N/A
P/tB	N/A
EV/EBITDA	N/A

EPS(TTM)-3.07

EYN/A

EPS(NY)0.5

Fwd EY133.42%

FCF(TTM)-0.16

FCFYN/A

OCF(TTM)-0.15

OCFYN/A

SpS1.42

BVpS-0.41

TBVpS-1.01

PEG (NY)N/A

PEG (5Y)N/A

Graham NumberN/A

Profitability

		Industry Rank	Sector Rank
ROA	-40.62%
ROE	N/A
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	N/A
GM	34.05%
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

ROICexgc growth 3YN/A

ROICexgc 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 Turnover1.56

Health

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	1.87%
Cap/Sales	0.12%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	0.49
Quick Ratio	0.49
Altman-Z	-1.51

F-Score2

WACC11.28%

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)-2208.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-43.75%

EPS Next Y87.74%

EPS Next 2Y47.45%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-74.79%

Revenue growth 3Y17.76%

Revenue growth 5YN/A

Sales Q2Q%-53.58%

Revenue Next Year6.44%

Revenue Next 2Y20%

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y-60.37%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year91.3%

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y-190.25%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-175.09%

OCF growth 3YN/A

OCF growth 5YN/A

DIRECT DIGITAL HOLDINGS IN-A / DRCT FAQ

What is the fundamental rating for DRCT stock?

ChartMill assigns a fundamental rating of 2 / 10 to DRCT.

Can you provide the valuation status for DIRECT DIGITAL HOLDINGS IN-A?

ChartMill assigns a valuation rating of 4 / 10 to DIRECT DIGITAL HOLDINGS IN-A (DRCT). This can be considered as Fairly Valued.

What is the profitability of DRCT stock?

DIRECT DIGITAL HOLDINGS IN-A (DRCT) has a profitability rating of 1 / 10.

Can you provide the expected EPS growth for DRCT stock?

The Earnings per Share (EPS) of DIRECT DIGITAL HOLDINGS IN-A (DRCT) is expected to grow by 87.74% in the next year.

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

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

More info and screens

DIRECT DIGITAL HOLDINGS IN-A / DRCT FAQ

What is the fundamental rating for DRCT stock?

Can you provide the valuation status for DIRECT DIGITAL HOLDINGS IN-A?

What is the profitability of DRCT stock?

Can you provide the expected EPS growth for DRCT stock?