Fundamental analysis: Direct Digital Holdings, Inc. (DRCT)

Awarener score: 10.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (could not be estimated), the business stability (unknown) and growth (unknown), and the company's inclination to return cash to the stockholders (unknown).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: a result could not be reached

Business growth could not be estimated, due to not enough input data. It's been unavailable to compare with peer companies.
Direct Digital Holdings, Inc. business stability could not be estimated, due to insufficient input data. It looks we cannot compare it to rivals.

Margins score: 6.0

DRCT profit margins -on goods and services sold- are usually sufficient. They stand somewhat worse than rival companies.
Business profit on sales tends to be very good. It's great when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain in good shape compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still better than most similar companies.
Profits -before income taxes- are usually hardly sufficient considering total sales, and remain encouraging in relation to rivals.
Total net profit tends to be hardly sufficient when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 1.0

Direct Digital Holdings, Inc. has an unknown gross margin growth, as there is not enough data to analyze. It's been impossible to compare to competitors.
There is not sufficient data to estimate the operating income margin trend, which has been therefore unknown against comparable firms.
EBITDA growth is unknown due to insufficient inputs, which compares unknown against peer enterprises.
We were not able to provide an estimate for EBIT growth, because of lacking data. It turns to be not yet known in relation to similar stocks.
Profit before income tax growth was not estimated, on insufficient history. It was impossible to measure against rivals.
Net income growth could not be estimated, and so it is unknown against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 4.0

DRCT had to pay substantial income taxes in relation to profits made in the past years. It's been slightly worse than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.8

Direct Digital Holdings, Inc. usually gets excellent returns on the resources it controls. It proves great when measured against peer firms.
The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks more than average in relation to competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 6.0

DRCT remains pending of analysis regarding capital expenditures, due to data unavailable. It stands great when measured against rival firms.
The company is usually not replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is last-in-rank when measured against industry peers.
In the past twelve months it paid good dividends, considering the current stock price. It came mediocre against competitors.
Has recently started or restarted paying dividends to stockholders. Business prospects are most likely good. The company has behaved impressive in relation to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
Shares count analysis is unavailable, on lacking data. It remains we cannot compare it with peer enterprises.
We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.4

Direct Digital Holdings, Inc. intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be lacking compared to similar firms.
A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains worse than most rival firms.
Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks similar to rivals.
For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's close to average when compared to peer firms.
For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is mediocre against similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks weak when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes higher than four months from the purchase to charging customers. It happens to be mediocre against peers.
On average pays suppliers approximately four months or higher after the purchase. It ranks encouraging in relation to industry peers.
The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's rather normal in relation to similar companies.
Usual business earnings barely cover net interest expenses. Creditors may be earning money by assuming risks, but hardly shareholders. Situation is risky, profitability must increase, or additional stockholders' funding will eventually be required. It stands mediocre against rival firms.
Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks impressive in relation to similar firms.
Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 5.6

Direct Digital Holdings, Inc. looks heavily expensive in relation to profits and financial position. It happens to be below average when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
There is insufficient information on the genuine funds generation capability showed in the past twelve months, which stands as an incognita in relation to similar companies.
Unfortunately, lack of enough yearly data impaired our ability to estimate the normal earnings power. It's still an unknown variable to measure against industry firms.
A conclusion regarding usual company rewards to stockholders was impossible to reach with data available. It came up also not enough to relate to peer ventures.
The company is drowned in loans. It almost belongs more to the creditors than the stockholders. The situation may be dire. It looks worse than most similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks below average when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks excellent in relation to rival firms.
The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still impressive in relation to peer companies.

Total score: 5.2

Company at a glance: Direct Digital Holdings, Inc. (DRCT)

Sector, industry: Communication Services, Advertising Agencies

Market Cap: 0.01 billions

Revenues TTM: 0.07 billions

Direct Digital Holdings, Inc. operates as an end-to-end full-service programmatic advertising platform. The company's platform primarily focuses on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy- and sell-side of the digital advertising ecosystem. It serves various industry verticals, such as travel, healthcare, education, financial services, consumer products, etc. with focus on small- and mid-sized businesses. The company was founded in 2018 and is headquartered in Houston, Texas.