Direct Digital (DRCT) Fundamental Analysis: Revenue, Earnings & Valuation

1.02 / 10

Underperform

Fundamentally, DRCT scores 1/10, reflecting subpar quality. ROE and annualized returns are deeply negative, while interest coverage is modestly positive. Asset and profit metrics lag peers, resulting in an Underperform rating and a guarded investment case.

Analysis Checks(2/10)

Annualized return on equity (%)

Value-41.75

Score0/3

Weight14.40%

1M Return-7.52%

Net profit attributable to parent company shareholders / Net profit (%)

Value48.12

Score1/3

Weight14.27%

1M Return-5.91%

Profit-MV

Value0.40

Score1/3

Weight13.61%

1M Return-6.38%

Net income-Revenue

Value-0.15

Score1/3

Weight10.71%

1M Return-4.40%

Net cash flow from operating activities / Total liabilities (%)

Value-0.24

Score0/3

Weight12.40%

1M Return-4.93%

Annualized return on total assets (%)

Value-57.12

Score0/3

Weight12.13%

1M Return-5.19%

Interest coverage ratio (EBIT / Interest expense) (%)

Value15.64

Score2/3

Weight7.44%

1M Return-2.64%

ROE (diluted) (%)

Value-38.97

Score3/3

Weight-12.74%

1M Return3.46%

ROE (%)

Value-31.31

Score0/3

Weight14.40%

1M Return-7.52%

Asset-MV

Value-0.49

Score0/3

Weight13.40%

1M Return-5.63%

Is DRCT fundamentally strong?

DRCT scores 1.02/10 on fundamentals and holds a Premium valuation at present. Backed by its 0.00% ROE, -79.91% net margin, -0.24 P/E ratio, -0.34 P/B ratio, and 16.95% earnings growth, these metrics solidify its Underperform investment rating.