DIRECT DIGITAL HOLDINGS IN-A (DRCT)
US25461T1051 - Common Stock
We assign a fundamental rating of 4 out of 10 to DRCT. DRCT was compared to 96 industry peers in the Media industry. Both the profitability and the financial health of DRCT get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, DRCT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DRCT was profitable.
DRCT had a positive operating cash flow in the past year.
1.2 Ratios
The Return On Assets of DRCT (2.87%) is better than 72.63% of its industry peers.
DRCT has a better Return On Equity (85.22%) than 98.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.43%, DRCT belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
DRCT had an Average Return On Invested Capital over the past 3 years of 16.84%. This is significantly above the industry average of 7.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 85.22% | ||
| ROIC | 15.43% |
ROA(3y)1.95%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.84%
ROIC(5y)N/A
1.3 Margins
DRCT has a Profit Margin of 1.26%. This is comparable to the rest of the industry: DRCT outperforms 55.79% of its industry peers.
DRCT has a Operating Margin (4.23%) which is in line with its industry peers.
DRCT has a Gross Margin of 23.91%. This is in the lower half of the industry: DRCT underperforms 72.63% of its industry peers.
In the last couple of years the Gross Margin of DRCT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.23% | ||
| PM (TTM) | 1.26% | ||
| GM | 23.91% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.73%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DRCT is still creating some value.
The number of shares outstanding for DRCT has been reduced compared to 1 year ago.
The debt/assets ratio for DRCT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.39 indicates that DRCT is not in any danger for bankruptcy at the moment.
DRCT has a better Altman-Z score (3.39) than 84.21% of its industry peers.
The Debt to FCF ratio of DRCT is 11.39, which is on the high side as it means it would take DRCT, 11.39 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 11.39, DRCT is doing good in the industry, outperforming 62.11% of the companies in the same industry.
A Debt/Equity ratio of 12.28 is on the high side and indicates that DRCT has dependencies on debt financing.
DRCT's Debt to Equity ratio of 12.28 is on the low side compared to the rest of the industry. DRCT is outperformed by 90.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.28 | ||
| Debt/FCF | 11.39 | ||
| Altman-Z | 3.39 |
ROIC/WACC1.55
WACC9.94%
2.3 Liquidity
DRCT has a Current Ratio of 1.33. This is a normal value and indicates that DRCT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DRCT (1.33) is worse than 65.26% of its industry peers.
A Quick Ratio of 1.33 indicates that DRCT should not have too much problems paying its short term obligations.
DRCT has a Quick ratio of 1.33. This is in the lower half of the industry: DRCT underperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.13% over the past year.
The Revenue has grown by 75.81% in the past year. This is a very strong growth!
DRCT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 132.63% yearly.
EPS 1Y (TTM)48.13%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q70%
Revenue 1Y (TTM)75.81%
Revenue growth 3Y132.63%
Revenue growth 5YN/A
Revenue growth Q2Q33.42%
3.2 Future
DRCT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.30% yearly.
DRCT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.89% yearly.
EPS Next Y-23.96%
EPS Next 2Y32.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.01%
Revenue Next 2Y5.89%
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
Based on the Price/Earnings ratio of 22.42, the valuation of DRCT can be described as rather expensive.
Based on the Price/Earnings ratio, DRCT is valued a bit cheaper than the industry average as 62.11% of the companies are valued more expensively.
DRCT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.86, the valuation of DRCT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DRCT is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.92. DRCT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 29.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRCT is on the same level as its industry peers.
DRCT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.27 | ||
| EV/EBITDA | 11.39 |
4.3 Compensation for Growth
DRCT's earnings are expected to grow with 32.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DRCT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DIRECT DIGITAL HOLDINGS IN-A
NASDAQ:DRCT (5/2/2024, 1:02:07 PM)
5.38
+0.1 (+1.89%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap77.20M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 29.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 85.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.23% | ||
| PM (TTM) | 1.26% | ||
| GM | 23.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)48.13%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-23.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)75.81%
Revenue growth 3Y132.63%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y