Davis Commodities Limited (DTCK) AI Stock Analysis

• Market Cap: $8.09M
• Dividend Yield: N/A
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: -30.27%
• EPS Growth: -398.63%
• Country: US
• Employees: 22
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): -0.15
• Shares Outstanding: 24,500,626
• 10 Day Avg. Volume: 1,660,269
• 30 Day Avg. Volume: 3,141,549
• PEG Ratio: 0.02
• Price to Book (P/B): 3.79
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -32.58
• Enterprise Value/Market Cap: 3.29
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 15.46
• Enterprise Value/Ebitda: -11.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.50 ▲(56.25% Upside)

Davis Commodities Limited's overall stock score reflects significant financial and technical challenges. The company's declining financial performance, coupled with bearish technical indicators, suggests a cautious outlook. The negative P/E ratio and lack of dividend yield further detract from its attractiveness as an investment. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Low Leverage

Maintaining low leverage provides financial flexibility and reduces risk, allowing the company to navigate economic fluctuations more effectively.

Strategic Partnerships

Strategic partnerships can enhance market reach and operational efficiency, providing a competitive edge in sourcing and distribution.

Nasdaq Compliance Efforts

Efforts to regain Nasdaq compliance reflect management's commitment to maintaining market presence and investor confidence, which is crucial for long-term stability.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in maintaining sales momentum, which could impact long-term profitability and market position.

Negative Cash Flow

Negative cash flow limits the company's ability to reinvest in growth opportunities and service debt, posing risks to financial health.

Decreasing Profit Margins

Decreasing profit margins suggest inefficiencies in operations and pricing power, which can erode competitive advantage and shareholder value.

Davis Commodities Limited Business Overview & Revenue Model

Company Description

Davis Commodities Limited (DTCK) is a leading player in the commodities trading sector, specializing in the procurement and distribution of agricultural products, metals, and energy resources. With a global presence, the company operates in various markets, leveraging its expertise to connect producers and consumers effectively. DTCK is committed to sustainability and ethical sourcing, ensuring that its core offerings meet the demands of an increasingly environmentally conscious marketplace.

How the Company Makes Money

Davis Commodities Limited generates revenue primarily through the trading of commodities, which includes buying and selling agricultural products, metals, and energy resources at competitive prices. The company earns money by taking advantage of price fluctuations in the commodities market, benefiting from both bulk sales to industrial clients and smaller transactions with retailers. Key revenue streams include trade commissions, margin income from speculative trading activities, and long-term contracts with suppliers and buyers that provide stability and predictability in earnings. Additionally, DTCK may engage in strategic partnerships with producers and logistics companies to optimize supply chains and expand market reach, further enhancing its profitability.

Davis Commodities Limited Financial Statement Overview

Summary

Davis Commodities Limited faces significant financial challenges, with declining revenue and profitability, coupled with negative cash flow trends. While the balance sheet shows low leverage, the negative return on equity and reduced cash flow generation are concerning. The company needs to address its operational inefficiencies and improve its cash flow management to enhance financial health.

Income Statement

The income statement shows a concerning trend, with declining revenue and profitability. Gross profit margins have decreased from 3.69% in 2023 to 1.76% in 2024, indicating reduced efficiency in converting revenue into profit. Additionally, the company reported negative EBIT and EBITDA margins in 2024, reflecting operational challenges. The net profit margin has also turned negative, from 0.76% in 2023 to -2.67% in 2024.

Balance Sheet

The balance sheet highlights a mixed financial position. The debt-to-equity ratio has improved from 0.07 in 2023 to 0.07 in 2024, maintaining a low leverage level. However, the equity ratio decreased from 34.33% in 2023 to 34.17% in 2024, which suggests a slight decrease in financial stability. ROE has turned negative, indicating a loss in shareholder value.

Cash Flow

The cash flow statement reveals deterioration in cash flow generation. Free cash flow decreased significantly from $1.51 million in 2023 to -$782,000 in 2024, indicating reduced cash availability for reinvestment and debt servicing. Operating cash flow to net income ratio is negative, reflecting challenges in converting income into cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	132.37M	190.72M	206.72M	194.24M	131.63M
Gross Profit	2.33M	5.23M	12.88M	12.24M	5.86M
EBITDA	-3.12M	1.41M	5.63M	5.70M	594.00K
Net Income	-3.53M	1.09M	4.62M	4.70M	456.00K
Balance Sheet
Total Assets	19.69M	29.88M	17.90M	24.66M	12.65M
Cash, Cash Equivalents and Short-Term Investments	678.00K	1.33M	2.54M	7.09M	5.86M
Total Debt	460.00K	734.00K	685.00K	294.00K	2.12M
Total Liabilities	12.96M	19.62M	11.89M	22.59M	10.22M
Stockholders Equity	6.73M	10.26M	6.01M	2.07M	2.43M
Cash Flow
Free Cash Flow	-782.00K	1.51M	-1.96M	3.20M	2.94M
Operating Cash Flow	-777.00K	1.81M	-1.95M	3.21M	2.94M
Investing Cash Flow	-5.00K	-208.00K	42.00K	42.00K	-2.00K
Financing Cash Flow	130.00K	-2.81M	-2.64M	-2.03M	1.67M

Davis Commodities Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTCK, the sentiment is Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 1.16, and below the 200-day MA of 0.87, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 39.19 is Neutral, neither overbought nor oversold. The STOCH value of 25.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DTCK.

Davis Commodities Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AGRO	52 Neutral	$713.62M	30.54	1.69%	4.61%	-7.37%	-84.53%
SDOT	50 Neutral	$4.15M	-0.15	-46.64%	―	-29.40%	-535.63%
DTCK	45 Neutral	$8.09M	-2.97	―	―	-30.27%	-398.63%
AQB	43 Neutral	$3.59M	-0.05	―	―	―	―
LOCL	43 Neutral	$57.24M	-0.22	―	―	31.61%	37.02%
EDBL	41 Neutral	$6.66M	-0.06	-179.10%	―	-10.77%	97.27%

Davis Commodities Limited Corporate Events

Davis Commodities Granted Extension to Regain Nasdaq Compliance

On September 16, 2025, Davis Commodities Limited received a notification from Nasdaq granting an additional 180-day period to meet the $1.00 minimum bid price requirement for its shares. The initial compliance period ended on September 15, 2025, without meeting the requirement. The company plans to address this issue, potentially through a reverse stock split, to maintain its Nasdaq listing. Failure to comply by March 16, 2026, could result in delisting, but the company remains committed to compliance and transparency, actively exploring options to rectify the deficiency.