DouYu International Holdings (DOYU) AI Stock Analysis

• Market Cap: $230.57M
• Dividend Yield: N/A
• Average Volume (3M): 79.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: -10.98%
• EPS Growth: -71.11%
• Country: US
• Employees: 819
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.18
• Shares Outstanding: 30,178,860
• 10 Day Avg. Volume: 78,229
• 30 Day Avg. Volume: 79,011
• PEG Ratio: 0.09
• Price to Book (P/B): 5.98
• Price to Sales (P/S): 5.91
• P/FCF Ratio: -100.09
• Enterprise Value/Market Cap: -0.43
• Enterprise Value/Revenue: -0.02
• Enterprise Value/Gross Profit: -0.30
• Enterprise Value/Ebitda: 0.25
• 1Y Price Target: $7.95
• Price Target Upside: 5.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: $7.50 ▼(-0.66% Downside)

DouYu International Holdings faces significant financial challenges, particularly in revenue generation and cash flow, which are the most significant factors impacting the score. Technical analysis provides a mixed outlook, with short-term bearish signals but some longer-term support. The negative P/E ratio and lack of dividend yield further weigh down the overall score, reflecting concerns over valuation and profitability.

Positive Factors

Revenue Diversification

DouYu's focus on diversifying its revenue streams through innovative business and advertising revenues enhances its resilience against market fluctuations and reduces dependency on livestreaming revenue.

Gross Profit Improvement

The substantial increase in gross profit indicates improved cost efficiency and operational adjustments, which can contribute to long-term financial stability and profitability.

Financial Stability

A strong balance sheet with low leverage risk provides DouYu with financial stability, enabling it to withstand operational challenges and invest in growth opportunities.

Negative Factors

Declining Revenue Growth

The trend of declining revenue growth poses a challenge to DouYu's market position and long-term growth prospects, necessitating strategic initiatives to reverse this trend.

Negative Cash Flow

Negative cash flow from operations suggests liquidity risks and potential challenges in sustaining business operations, impacting DouYu's ability to finance growth and innovation.

Profitability Challenges

Ongoing profitability challenges, as indicated by negative net income and EBIT margins, highlight the need for DouYu to enhance its cost management and revenue generation strategies to achieve sustainable profitability.

DouYu International Holdings Business Overview & Revenue Model

Company Description

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People's Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors eSports teams and organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and allows viewers and streamers to edit and upload short video clips by themselves. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People's Republic of China.

How the Company Makes Money

DouYu generates revenue through multiple streams, primarily from virtual gifts and subscriptions. Users can purchase virtual items to gift to streamers during live broadcasts, with DouYu taking a percentage of these transactions. Additionally, the company earns money through advertising partnerships, where advertisers pay to promote their products or services on the platform. DouYu also engages in sponsorship deals and collaborations with gaming companies and esports organizations, further enhancing its revenue. Furthermore, the company has expanded its offerings by providing premium subscription services that grant users access to exclusive content and features, contributing to its earnings.

DouYu International Holdings Financial Statement Overview

Summary

DouYu International Holdings shows financial stability through its balance sheet but faces significant challenges in generating revenue, profitability, and cash flow. The declining revenue and profitability margins, combined with negative cash flows, indicate operational difficulties and potential liquidity risks. The company's strong equity and cash reserves may provide some buffer, but strategic improvements are necessary for long-term sustainability.

Income Statement

DouYu International Holdings has experienced declining revenue and profitability over recent years, with significant negative net income and EBIT margins. The gross profit margin has decreased, reflecting challenges in maintaining cost efficiency. Recent revenue figures show a downward trend, indicating potential challenges in growth and market position.

Balance Sheet

The balance sheet is strong with a high equity ratio and low debt levels, suggesting financial stability and low leverage risk. However, declining equity over the years indicates some erosion of value. The consistent cash and short-term investments provide a cushion against operational challenges.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating cash flow indicating issues in generating cash from core operations. Free cash flow has been negative, highlighting difficulties in sustaining cash generation after capital expenditures. These factors suggest liquidity risks and potential challenges in financing operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.18B	4.27B	5.53B	7.11B	9.17B	9.60B
Gross Profit	328.34M	323.83M	684.03M	990.11M	1.09B	1.56B
EBITDA	-399.21M	-467.38M	-53.23M	-109.87M	-559.92M	238.53M
Net Income	-289.10M	-297.44M	35.52M	-152.81M	-338.79M	762.17M
Balance Sheet
Total Assets	3.20B	5.45B	8.07B	8.15B	8.16B	8.91B
Cash, Cash Equivalents and Short-Term Investments	1.93B	4.09B	6.16B	6.55B	6.53B	7.51B
Total Debt	12.51M	15.68M	21.47M	47.05M	61.70M	53.23M
Total Liabilities	1.23B	1.24B	1.38B	1.58B	1.90B	1.93B
Stockholders Equity	1.97B	4.22B	6.69B	6.56B	6.33B	6.94B
Cash Flow
Free Cash Flow	0.00	-251.97M	-63.99M	-630.38M	-708.76M	585.29M
Operating Cash Flow	0.00	-238.85M	-47.69M	-464.79M	-586.26M	667.65M
Investing Cash Flow	0.00	-1.07B	414.18M	-4.17B	-19.13M	-2.61B
Financing Cash Flow	0.00	-2.21B	-965.00	-746.64M	-107.15M	-479.19M

DouYu International Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.55
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOYU, the sentiment is Neutral. The current price of 7.55 is below the 20-day moving average (MA) of 7.80, below the 50-day MA of 7.96, and above the 200-day MA of 6.82, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 20.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DOYU.

DouYu International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	75 Outperform	1.72B	23.41	8.43%	4.07%	29.62%	-19.65%
EVER	74 Outperform	862.80M	19.03	27.34%	―	92.91%	―
FVRR	73 Outperform	923.45M	52.75	4.49%	―	12.60%	64.81%
ZH	63 Neutral	445.24M	22.45	-4.15%	―	-22.16%	―
CCG	58 Neutral	114.70M	-12.74	-17.21%	―	105.31%	95.66%
DOYU	46 Neutral	$230.57M	―	-4.77%	―	-10.98%	-71.11%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

DouYu International Holdings Corporate Events

DouYu Reports Strong Q2 2025 Financial Turnaround

DouYu International Holdings Limited reported its unaudited financial results for the second quarter of 2025, showing a notable turnaround with a net income of RMB37.8 million compared to a net loss in the same period of 2024. The company achieved a 2.1% increase in total net revenues, driven by a significant rise in innovative business and advertising revenues, despite a decrease in livestreaming revenues. The company focused on revenue diversification and cost efficiency, leading to a 68.5% increase in gross profit and a return to profitability. DouYu’s strategic adjustments in its operational activities and content offerings are aimed at navigating the evolving macro conditions and ensuring sustainable platform development.