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Digital Media Solutions, Inc. (DMSLQ)
:DMSLQ
US Market

Digital Media Solutions (DMSLQ) AI Stock Analysis

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Digital Media Solutions

(OTC:DMSLQ)

Rating:35Underperform
Price Target:
Digital Media Solutions faces critical financial instability with declining income, negative margins, and high leverage. Technical analysis supports a bearish outlook, and valuation metrics are unattractive due to ongoing losses. The lack of new insights from the earnings call and absence of notable corporate events further contribute to a low overall stock score.

Digital Media Solutions (DMSLQ) vs. SPDR S&P 500 ETF (SPY)

Digital Media Solutions Business Overview & Revenue Model

Company DescriptionDigital Media Solutions (DMSLQ) is a leading provider in the digital marketing sector, specializing in performance marketing solutions. The company offers a range of services designed to optimize customer acquisition and engagement, leveraging data-driven strategies and technology to deliver measurable results for its clients across various industries.
How the Company Makes MoneyDigital Media Solutions generates revenue primarily through performance-based marketing services. The company partners with advertisers to deliver customer acquisition campaigns, earning money based on the leads or sales generated through its efforts. Key revenue streams include cost-per-action (CPA) and cost-per-lead (CPL) models. Additionally, DMSLQ may engage in strategic partnerships with technology platforms and media agencies to enhance its service offerings and reach, further contributing to its earnings.

Digital Media Solutions Financial Statement Overview

Summary
Digital Media Solutions faces significant financial challenges with declining revenues, negative profit margins, and high financial leverage. The company's negative equity and persistent cash flow issues highlight its financial instability, leading to a low financial performance score.
Income Statement
35
Negative
Digital Media Solutions has experienced a consistent decline in revenue over the years, with a significant drop from $427.9 million in 2021 to $334.9 million in 2023. Gross profit margin has decreased from 29.2% in 2021 to 24.8% in 2023. The net profit margin is negative, indicating losses, and it has worsened to -24.4% in 2023. EBIT and EBITDA margins are also negative, highlighting operational challenges.
Balance Sheet
25
Negative
The company's balance sheet reveals high financial risk, with a negative stockholders' equity of -$206.98 million in 2023 and a high debt-to-equity ratio. Equity has been negative for several years, indicating insolvency. Total liabilities exceed total assets, and the debt-to-equity ratio is not meaningful due to negative equity.
Cash Flow
30
Negative
The cash flow statement shows negative operating and free cash flows over the years, indicating the company struggles to generate sufficient cash from operations. Free cash flow has been negative, with a significant decline observed in 2023. The operating cash flow to net income ratio is negative, reflecting issues in converting income into cash flow.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
Gross Profit
82.90M103.33M124.91M98.13M76.72M
EBIT
-94.04M-42.47M8.38M11.95M19.07M
EBITDA
-64.74M-10.06M65.07M21.07M10.21M
Net Income Common Stockholders
-81.68M-31.95M2.20M-8.70M-11.23M
Balance SheetCash, Cash Equivalents and Short-Term Investments
Total Assets
147.29M227.62M246.59M202.42M144.10M
Total Debt
291.45M261.23M217.75M201.56M205.20M
Net Debt
272.98M212.39M191.36M170.16M202.19M
Total Liabilities
345.30M311.57M294.41M298.11M250.36M
Stockholders Equity
Cash FlowFree Cash Flow
-14.50M-7.06M9.67M6.64M-29.88M
Operating Cash Flow
-7.88M-315.00K18.79M17.01M-23.35M
Investing Cash Flow
Financing Cash Flow

Digital Media Solutions Risk Analysis

Digital Media Solutions disclosed 56 risk factors in its most recent earnings report. Digital Media Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our inability to comply with the continued listing requirements of the NYSE could result in our common stock being delisted, which could affect its market price and liquidity and reduce our ability to raise capital. Q4, 2022
2.
We may be required to record a significant charge to earnings if our goodwill or intangible assets become impaired. Q4, 2022
3.
Customer Concentration Creates Risk for Our Business. Q4, 2022

Digital Media Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$563.96M137.031.94%3.62%-53.21%
66
Neutral
$462.08M41.65-1.03%-43.13%-107.18%
63
Neutral
$316.29M13.94-25.83%-8.14%-258.98%
62
Neutral
$903.83M-0.29%88.81%99.16%
61
Neutral
$14.78B5.89-4.32%3.67%2.75%-30.30%
41
Neutral
$37.82M-123.16%-15.07%33.40%
38
Underperform
$2.91M-80.78%-49.52%-86.35%
35
Underperform
$444.0038.05%-15.31%-131.03%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DMSLQ
Digital Media Solutions
0.05
-0.46
-90.20%
AMCX
AMC Networks
7.04
-8.86
-55.72%
CNET
ZW Data Action Technologies
1.26
-2.19
-63.48%
PERI
Perion Network
10.21
1.36
15.37%
QNST
Quinstreet
15.87
-0.96
-5.70%
FLNT
Fluent
1.86
-1.53
-45.13%
PUBM
PubMatic
11.54
-10.12
-46.72%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.