Direct Digital Net Income vs. Return On Equity
| DRCT Stock | USD 2.97 0.43 12.65% |
Net Loss | First Reported 2020-12-31 | Previous Quarter -2.2 M | Current Value -2.7 M | Quarterly Volatility 1.5 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.37 | 0.32 |
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For Direct Digital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Direct Digital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Direct Digital Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Direct Digital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Direct Digital Holdings over time as well as its relative position and ranking within its peers.
Direct Digital's Revenue Breakdown by Earning Segment
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Direct Digital Revenue Breakdown by Earning Segment
By analyzing Direct Digital's earnings estimates, investors can diagnose different trends across Direct Digital's analyst sentiment over time as well as compare current estimates against different timeframes.
Is Movies & Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Direct Digital. If investors know Direct will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Direct Digital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 3.022 | Earnings Share (73.15) | Revenue Per Share | Quarterly Revenue Growth (0.12) | Return On Assets |
The market value of Direct Digital Holdings is measured differently than its book value, which is the value of Direct that is recorded on the company's balance sheet. Investors also form their own opinion of Direct Digital's value that differs from its market value or its book value, called intrinsic value, which is Direct Digital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Direct Digital's market value can be influenced by many factors that don't directly affect Direct Digital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Direct Digital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Direct Digital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Direct Digital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Direct Digital Holdings Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Direct Digital's current stock value. Our valuation model uses many indicators to compare Direct Digital value to that of its competitors to determine the firm's financial worth. Direct Digital Holdings is rated below average in net income category among its peers. It is one of the top stocks in return on equity category among its peers . At this time, Direct Digital's Net Loss is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Direct Digital by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Direct Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Direct Digital |
| = | (19.91 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Direct Digital |
| = | 0.57 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Direct Return On Equity Comparison
Direct Digital is currently under evaluation in return on equity category among its peers.
Direct Digital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Direct Digital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Direct Digital will eventually generate negative long term returns. The profitability progress is the general direction of Direct Digital's change in net profit over the period of time. It can combine multiple indicators of Direct Digital, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Net Interest Income | -4.9 M | -4.6 M | |
| Operating Income | -11.9 M | -11.3 M | |
| Net Loss | -17.9 M | -17 M | |
| Income Before Tax | -12.4 M | -11.8 M | |
| Total Other Income Expense Net | -487.8 K | -512.2 K | |
| Net Income Applicable To Common Shares | 4.8 M | 5 M | |
| Net Loss | -17.9 M | -17 M | |
| Income Tax Expense | 7.1 M | 7.4 M | |
| Non Operating Income Net Other | -3.1 M | -3.3 M | |
| Change To Netincome | 317.3 K | 301.4 K | |
| Net Loss | (1.91) | (1.81) | |
| Income Quality | 0.39 | 0.41 | |
| Net Income Per E B T | 0.52 | 0.73 |
Direct Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Direct Digital. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Direct Digital position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Direct Digital's important profitability drivers and their relationship over time.
Direct Digital Earnings Estimation Breakdown
The calculation of Direct Digital's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Direct Digital is estimated to be -0.1375 with the future projection ranging from a low of -0.1375 to a high of -0.1375. Please be aware that this consensus of annual earnings estimates for Direct Digital Holdings is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
-0.14 Lowest | Expected EPS | -0.14 Highest |
Direct Digital Earnings Projection Consensus
Suppose the current estimates of Direct Digital's value are higher than the current market price of the Direct Digital stock. In this case, investors may conclude that Direct Digital is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Direct Digital's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2026 | Current EPS (TTM) | |
| 2 | 60.29% | 0.0 | -0.1375 | -73.15 |
Direct Digital Earnings History
Earnings estimate consensus by Direct Digital Holdings analysts from Wall Street is used by the market to judge Direct Digital's stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we recommend analyzing not only Direct Digital's upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.Direct Digital Quarterly Gross Profit |
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Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Direct Digital's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Direct Digital Earnings per Share Projection vs Actual
Actual Earning per Share of Direct Digital refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Direct Digital Holdings predict the company's earnings will be in the future. The higher the earnings per share of Direct Digital, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.Direct Digital Estimated Months Earnings per Share
For an investor who is primarily interested in generating an income out of investing in entities such as Direct Digital, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Direct Digital should always be considered in relation to other companies to make a more educated investment decision.Direct Quarterly Analyst Estimates and Surprise Metrics
Earnings surprises can significantly impact Direct Digital's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
null | null | null | null | null | 0 | ||
null | null | null | null | null | 0 | ||
2025-11-06 | 2025-09-30 | -0.02 | -0.24 | -0.22 | 1100 | ||
2025-07-28 | 2025-06-30 | -0.05 | -0.23 | -0.18 | 360 | ||
2025-05-07 | 2025-03-31 | -0.41 | -0.35 | 0.06 | 14 | ||
2025-03-24 | 2024-12-31 | -0.4 | -0.4093 | -0.0093 | 2 | ||
2024-10-15 | 2024-09-30 | 0.13 | -0.22 | -0.35 | 269 | ||
2024-08-08 | 2024-06-30 | 0.19 | 0.19 | 0.0 | 0 | ||
2024-05-09 | 2024-03-31 | -0.11 | -0.11 | 0.0 | 0 | ||
2024-03-26 | 2023-12-31 | 0.26 | 0.02 | -0.24 | 92 | ||
2023-11-09 | 2023-09-30 | 0.05 | 0.23 | 0.18 | 360 | ||
2023-08-10 | 2023-06-30 | 0.11 | 0.08 | -0.03 | 27 | ||
2023-05-11 | 2023-03-31 | -0.08 | -0.09 | -0.01 | 12 | ||
2023-03-23 | 2022-12-31 | 0.1 | 0.01 | -0.09 | 90 | ||
2022-11-10 | 2022-09-30 | 0.05 | 0.06 | 0.01 | 20 | ||
2022-08-11 | 2022-06-30 | 0.06 | 0.18 | 0.12 | 200 | ||
2022-05-16 | 2022-03-31 | -0.06 | -0.09 | -0.03 | 50 | ||
2022-03-29 | 2021-12-31 | -0.06 | -0.06 | 0.0 | 0 | ||
2021-12-01 | 2021-09-30 | -0.01 | -0.02 | -0.01 | 100 |
Use Direct Digital in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Direct Digital position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Direct Digital will appreciate offsetting losses from the drop in the long position's value.Direct Digital Pair Trading
Direct Digital Holdings Pair Trading Analysis
The ability to find closely correlated positions to Direct Digital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Direct Digital when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Direct Digital - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Direct Digital Holdings to buy it.
The correlation of Direct Digital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Direct Digital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Direct Digital Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Direct Digital can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Direct Digital position
In addition to having Direct Digital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Direct Stock Analysis
When running Direct Digital's price analysis, check to measure Direct Digital's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Direct Digital is operating at the current time. Most of Direct Digital's value examination focuses on studying past and present price action to predict the probability of Direct Digital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Direct Digital's price. Additionally, you may evaluate how the addition of Direct Digital to your portfolios can decrease your overall portfolio volatility.