Direct Digital Holdings, Inc. (DRCT) is a Advertising Agencies company in the Communication Services sector, currently trading at $0.69. It has a SharesGrow Score of 39/100, indicating a weak investment profile with 2 out of 7 criteria passed.
Analyst consensus target is DRCT = $8 (+1066.4% upside).
Valuation: DRCT trades at a trailing Price-to-Earnings (P/E) of -0 (S&P 500 average ~25).
Financials: revenue is $35M, -8.7%/yr average growth. Net income is $19M (loss), growing at -187.7%/yr. Net profit margin is -54.6% (negative). Gross margin is 30% (-1.8 pp trend).
Balance sheet: total debt is $13M with negative equity of -$7M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 0.18 (tight liquidity). Debt-to-assets is 63.7%. Total assets: $20M.
Analyst outlook: 4 / 5 analysts rate DRCT as buy (80%) — strong consensus.
SharesGrow 7-Criteria breakdown: Value 100/100 (Pass), Growth 15/100 (Fail), Past 25/100 (Fail), Health 0/100 (Fail), Moat 32/100 (Fail), Future 94/100 (Pass), Income 10/100 (Fail).
