Davis Commodities Limited (DTCK) AI Stock Analysis

• Market Cap: $3.67M
• Dividend Yield: N/A
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: 2.26%
• EPS Growth: -1137.76%
• Country: US
• Employees: 22
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): <0.01
• Shares Outstanding: 10,855,694
• 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: 5.94
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 14.14
• Enterprise Value/Ebitda: -6.25
• 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: 46 Neutral
• Price Target: $0.23 ▼(-10.77% Downside)

The score is primarily weighed down by deteriorating profitability and negative free cash flow, supported only modestly by low leverage. Technicals add further pressure with a pronounced downtrend (price well below key moving averages and negative MACD). Valuation is also constrained by losses (negative P/E) and no dividend yield data.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong demand and market expansion, particularly in China and Africa, enhancing long-term prospects.

Market Expansion

Expansion into high-growth markets like Africa and China positions the company for sustained growth and diversification of revenue streams.

Low Leverage

Maintaining low leverage enhances financial stability and flexibility, allowing the company to navigate market fluctuations more effectively.

Negative Factors

Margin Pressure

Margin compression due to commodity price and shipping cost volatility may impact profitability, challenging long-term financial health.

Negative Cash Flow

Negative cash flow limits the ability to reinvest and service debt, potentially hindering growth and operational sustainability.

Declining Profitability

Sharp decline in net income reflects operational challenges and market pressures, which could undermine long-term profitability and shareholder value.

Davis Commodities Limited Business Overview & Revenue Model

Company Description

Davis Commodities Limited, an investment holding company, operates as an agricultural commodity trading company in Asia, Africa, and the Middle East. The company trades in agricultural commodities, including sugar, rice, and oil and fat products under the Maxwill, Lin, and Taffy brands. It also provides warehouse storage and logistic, as well as agency services. The company was founded in 1999 and is headquartered in Singapore. Davis Commodities Limited operates as a subsidiary of Davis & KT Holdings Pte. Ltd.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	121.18M	132.37M	190.72M	206.72M	194.24M	131.63M
Gross Profit	1.54M	2.33M	5.23M	12.88M	12.24M	5.86M
EBITDA	-3.49M	-3.12M	1.41M	5.63M	5.70M	594.00K
Net Income	-3.64M	-3.53M	1.09M	4.62M	4.70M	456.00K
Balance Sheet
Total Assets	31.84M	19.69M	29.88M	17.90M	24.66M	12.65M
Cash, Cash Equivalents and Short-Term Investments	1.30M	678.00K	1.33M	2.54M	7.09M	5.86M
Total Debt	3.98M	460.00K	734.00K	685.00K	294.00K	2.12M
Total Liabilities	26.53M	12.96M	19.62M	11.89M	22.59M	10.22M
Stockholders Equity	5.31M	6.73M	10.26M	6.01M	2.07M	2.43M
Cash Flow
Free Cash Flow	-2.52M	-782.00K	1.51M	-1.96M	3.20M	2.94M
Operating Cash Flow	-2.52M	-777.00K	1.81M	-1.95M	3.21M	2.94M
Investing Cash Flow	-755.00	-5.00K	-208.00K	42.00K	42.00K	-2.00K
Financing Cash Flow	2.75M	130.00K	-2.81M	-2.64M	-2.03M	1.67M

Davis Commodities Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 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 0.26 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.99, and below the 200-day MA of 0.82, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 27.20 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	$1.09B	33.88	1.69%	4.40%	-7.37%	-84.53%
DTCK	46 Neutral	$3.67M	-2.31	―	―	2.26%	-1137.76%
LOCL	43 Neutral	$49.44M	-0.19	―	―	31.61%	37.02%
AQB	42 Neutral	$3.43M	-0.05	―	―	―	―
SDOT	42 Neutral	$3.28M	-0.18	-46.64%	―	-29.40%	-535.63%
EDBL	42 Neutral	$4.02M	-0.03	-179.10%	―	-10.77%	97.27%

Davis Commodities Limited Corporate Events

Davis Commodities Posts Strong H1 2025 Revenue Growth but Profit Hit by Margin Pressure

On December 23, 2025, Davis Commodities Limited reported its unaudited results for the six months ended June 30, 2025, showing revenue up 42% year-on-year to $95.0 million, driven mainly by surging demand for liquid sugar in China and higher Brazilian sugar and rice sales into African markets. Despite the top-line growth, gross profit dipped to $2.6 million and net income slid sharply to $0.04 million from $1.3 million a year earlier as gross margins compressed across core product lines amid commodity price and shipping cost volatility, even though loss from operations narrowed. The geographic mix continued to shift toward Africa, where revenue jumped 64.9% to $66.2 million, and China, where revenue rose 164.4% to $15.2 million, while Vietnam and Thailand declined following regulatory changes and market shifts, underscoring both the company’s expanding footprint in higher-growth markets and its exposure to policy and price risks in the global agricultural trade.

The most recent analyst rating on (DTCK) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Davis Commodities Limited stock, see the DTCK Stock Forecast page.