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SOLO BRANDS INC - CLASS A (DTC) Stock Fundamental Analysis

NYSE:DTC - New York Stock Exchange, Inc. - US83425V1044 - Common Stock - Currency: USD

0.094  -0.01 (-7.93%)

Fundamental Rating

2

DTC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 31 industry peers in the Leisure Products industry. Both the profitability and financial health of DTC have multiple concerns. DTC is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year DTC was profitable.
In the past year DTC had a positive cash flow from operations.
DTC had negative earnings in 4 of the past 5 years.
Of the past 5 years DTC 4 years had a positive operating cash flow.
DTC Yearly Net Income VS EBIT VS OCF VS FCFDTC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 50M -50M -100M

1.2 Ratios

Looking at the Return On Assets, with a value of -22.90%, DTC is doing worse than 77.42% of the companies in the same industry.
With a Return On Equity value of -84.78%, DTC is not doing good in the industry: 83.87% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -22.9%
ROE -84.78%
ROIC N/A
ROA(3y)-13.45%
ROA(5y)-8.71%
ROE(3y)-44.09%
ROE(5y)-27.32%
ROIC(3y)N/A
ROIC(5y)N/A
DTC Yearly ROA, ROE, ROICDTC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80

1.3 Margins

With an excellent Gross Margin value of 57.26%, DTC belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
DTC's Gross Margin has been stable in the last couple of years.
DTC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 57.26%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.71%
GM growth 5Y0.22%
DTC Yearly Profit, Operating, Gross MarginsDTC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60 -60

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1

2. Health

2.1 Basic Checks

DTC does not have a ROIC to compare to the WACC, probably because it is not profitable.
DTC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DTC has been reduced compared to 5 years ago.
The debt/assets ratio for DTC is higher compared to a year ago.
DTC Yearly Shares OutstandingDTC Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
DTC Yearly Total Debt VS Total AssetsDTC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

Based on the Altman-Z score of 0.15, we must say that DTC is in the distress zone and has some risk of bankruptcy.
DTC has a worse Altman-Z score (0.15) than 70.97% of its industry peers.
DTC has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
DTC has a Debt to Equity ratio of 1.07. This is in the lower half of the industry: DTC underperforms 74.19% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF N/A
Altman-Z 0.15
ROIC/WACCN/A
WACC7.52%
DTC Yearly LT Debt VS Equity VS FCFDTC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

DTC has a Current Ratio of 1.41. This is a normal value and indicates that DTC is financially healthy and should not expect problems in meeting its short term obligations.
DTC's Current ratio of 1.41 is on the low side compared to the rest of the industry. DTC is outperformed by 77.42% of its industry peers.
DTC has a Quick Ratio of 1.41. This is a bad value and indicates that DTC is not financially healthy enough and could expect problems in meeting its short term obligations.
DTC's Quick ratio of 0.51 is on the low side compared to the rest of the industry. DTC is outperformed by 83.87% of its industry peers.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 0.51
DTC Yearly Current Assets VS Current LiabilitesDTC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 50M 100M 150M

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3. Growth

3.1 Past

DTC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -84.81%.
Looking at the last year, DTC shows a decrease in Revenue. The Revenue has decreased by -8.12% in the last year.
Measured over the past years, DTC shows a very strong growth in Revenue. The Revenue has been growing by 62.68% on average per year.
EPS 1Y (TTM)-84.81%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-76.92%
Revenue 1Y (TTM)-8.12%
Revenue growth 3Y4.03%
Revenue growth 5Y62.68%
Sales Q2Q%-13.18%

3.2 Future

The Earnings Per Share is expected to grow by 34.64% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.13% on average over the next years.
EPS Next Y-158.92%
EPS Next 2Y14.22%
EPS Next 3Y34.64%
EPS Next 5YN/A
Revenue Next Year-5.54%
Revenue Next 2Y-1.29%
Revenue Next 3Y1.13%
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 decreasing.
DTC Yearly Revenue VS EstimatesDTC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M 500M
DTC Yearly EPS VS EstimatesDTC Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0 0.2 0.4 0.6 0.8 1

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3

4. Valuation

4.1 Price/Earnings Ratio

DTC is valuated cheaply with a Price/Earnings ratio of 0.78.
DTC's Price/Earnings ratio is rather cheap when compared to the industry. DTC is cheaper than 100.00% of the companies in the same industry.
DTC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.22.
The Forward Price/Earnings Ratio is negative for DTC. No positive earnings are expected for the next year.
Industry RankSector Rank
PE 0.78
Fwd PE N/A
DTC Price Earnings VS Forward Price EarningsDTC 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
DTC Per share dataDTC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4

4.3 Compensation for Growth

A more expensive valuation may be justified as DTC's earnings are expected to grow with 34.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.22%
EPS Next 3Y34.64%

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0

5. Dividend

5.1 Amount

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

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SOLO BRANDS INC - CLASS A

NYSE:DTC (4/22/2025, 8:04:00 PM)

0.094

-0.01 (-7.93%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)03-12 2025-03-12/bmo
Earnings (Next)05-07 2025-05-07/bmo
Inst Owners33.32%
Inst Owner Change-0.13%
Ins Owners1.67%
Ins Owner Change4.13%
Market Cap8.67M
Analysts46
Price Target0.77 (719.15%)
Short Float %15.98%
Short Ratio2.07
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)-47.12%
Min EPS beat(2)-73%
Max EPS beat(2)-21.23%
EPS beat(4)1
Avg EPS beat(4)262.25%
Min EPS beat(4)-73%
Max EPS beat(4)1212.47%
EPS beat(8)4
Avg EPS beat(8)155.84%
EPS beat(12)8
Avg EPS beat(12)131.63%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-5.83%
Min Revenue beat(2)-12.31%
Max Revenue beat(2)0.64%
Revenue beat(4)3
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-12.31%
Max Revenue beat(4)6.55%
Revenue beat(8)5
Avg Revenue beat(8)0.21%
Revenue beat(12)8
Avg Revenue beat(12)4.11%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-62.28%
EPS NQ rev (1m)50%
EPS NQ rev (3m)-827.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-126.07%
Revenue NQ rev (1m)4.75%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)1.66%
Revenue NY rev (3m)-7.17%
Valuation
Industry RankSector Rank
PE 0.78
Fwd PE N/A
P/S 0.02
P/FCF N/A
P/OCF 0.82
P/B 0.06
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.12
EY127.66%
EPS(NY)-0.07
Fwd EYN/A
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)0.11
OCFY121.24%
SpS4.93
BVpS1.45
TBVpS-1.4
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -22.9%
ROE -84.78%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 57.26%
FCFM N/A
ROA(3y)-13.45%
ROA(5y)-8.71%
ROE(3y)-44.09%
ROE(5y)-27.32%
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-3.71%
GM growth 5Y0.22%
F-Score3
Asset Turnover0.92
Health
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 54.49%
Cap/Sales 3.19%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.41
Quick Ratio 0.51
Altman-Z 0.15
F-Score3
WACC7.52%
ROIC/WACCN/A
Cap/Depr(3y)41.77%
Cap/Depr(5y)40.14%
Cap/Sales(3y)2.27%
Cap/Sales(5y)2.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-84.81%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-76.92%
EPS Next Y-158.92%
EPS Next 2Y14.22%
EPS Next 3Y34.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.12%
Revenue growth 3Y4.03%
Revenue growth 5Y62.68%
Sales Q2Q%-13.18%
Revenue Next Year-5.54%
Revenue Next 2Y-1.29%
Revenue Next 3Y1.13%
Revenue Next 5YN/A
EBIT growth 1Y-281.88%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-18.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-107.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-83.15%
OCF growth 3YN/A
OCF growth 5YN/A