Digital Media Solutions (DMSLQ) AI Stock Analysis

• Market Cap: $444.00
• Dividend Yield: N/A
• Average Volume (3M): 85.00
• Price to Earnings (P/E): ―
• Beta (1Y): -35.64
• Revenue Growth: -15.31%
• EPS Growth: -131.03%
• Country: US
• Employees: 337
• Sector: Communication Services
• Sector Strength: 89
• Industry: Traditional Media
• EPS (TTM): -35.66
• Shares Outstanding: 4,442,000
• 10 Day Avg. Volume: 209
• 30 Day Avg. Volume: 85
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 35 Underperform
• 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 Business Overview & Revenue Model

Company Description

Digital 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 Money

Digital 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

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

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

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 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
―	―	―	―	―
	Gross Profit
82.90M	103.33M	124.91M	98.13M	76.72M
	EBIT
-94.04M	-42.47M	8.38M	11.95M	19.07M
	EBITDA
-64.74M	-10.06M	65.07M	21.07M	10.21M
	Net Income Common Stockholders
-81.68M	-31.95M	2.20M	-8.70M	-11.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
―	―	―	―	―
	Total Assets
147.29M	227.62M	246.59M	202.42M	144.10M
	Total Debt
291.45M	261.23M	217.75M	201.56M	205.20M
	Net Debt
272.98M	212.39M	191.36M	170.16M	202.19M
	Total Liabilities
345.30M	311.57M	294.41M	298.11M	250.36M
	Stockholders Equity
―	―	―	―	―
Cash Flow		Free Cash Flow
-14.50M	-7.06M	9.67M	6.64M	-29.88M
	Operating Cash Flow
-7.88M	-315.00K	18.79M	17.01M	-23.35M
	Investing Cash Flow
―	―	―	―	―
	Financing Cash Flow
―	―	―	―	―

Digital Media Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PUBM	70 Outperform	$563.96M	137.03	1.94%	―	3.62%	-53.21%
PERI	66 Neutral	$462.08M	41.65	-1.03%	―	-43.13%	-107.18%
AMCX	63 Neutral	$316.29M	13.94	-25.83%	―	-8.14%	-258.98%
QNST	62 Neutral	$903.83M	―	-0.29%	―	88.81%	99.16%
Sector *	61 Neutral	$14.78B	5.89	-4.32%	3.67%	2.75%	-30.30%
FLNT	41 Neutral	$37.82M	―	-123.16%	―	-15.07%	33.40%
CNET	38 Underperform	$2.91M	―	-80.78%	―	-49.52%	-86.35%
DMSLQ	35 Underperform	$444.00	―	38.05%	―	-15.31%	-131.03%