Davis Commodities Limited (DTCK) AI Stock Analysis

• Market Cap: $2.55M
• Dividend Yield: N/A
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• 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: 3.36
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: -2.45
• 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 ▼(-36.39% Downside)

The score is held down primarily by deteriorating financial performance (margins turning negative and free cash flow flipping to negative) and clearly bearish technicals (price below major moving averages with negative MACD). Valuation provides only limited support because the negative P/E reflects losses and there is no dividend yield data.

Positive Factors

Diversified global footprint and strong revenue growth

Rapid top-line expansion into Africa and China shows durable market penetration and product diversification across geographies. Growing presence in higher-growth regions reduces single-market dependency and supports sustained revenue opportunities over the medium term.

Conservative leverage and balance sheet flexibility

Very low debt levels provide structural financial flexibility for a commodities trader that needs to fund working capital and absorb price swings. Low leverage reduces interest burden and bankruptcy risk, supporting resilience through commodity cycles.

Established access to equity capital via ATM facility

An active ATM program creates a durable, on-demand funding mechanism to support working capital, operations, and strategic initiatives. Continuous access to equity reduces reliance on short-term credit and enables management to address capital needs without one-off financings.

Negative Factors

Margin compression and negative profitability

Sustained margin erosion undermines the core trading business, shrinking cash available for reinvestment and eroding returns. If structural, compressed gross and net margins threaten long-term viability of trade economics and reduce ability to scale profitably.

Free cash flow turned negative

Negative free cash flow indicates the business is not generating excess cash to fund capex, inventory or debt service. Over months this increases reliance on external financing or equity raises, raising dilution risk and constraining the company's ability to invest in growth.

Exposure to commodity, shipping and regulatory volatility

The business model is structurally exposed to commodity price swings, logistics cost shocks and policy changes in key markets. Persistent volatility or adverse regulation can cause recurring margin pressure and geographic revenue shifts, impairing forecastability and long-term stability.

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

Weak profitability and cash generation drive a below-average score: gross margin fell (3.69% to 1.76%), EBIT/EBITDA and net margin turned negative (net margin to -2.67%), and free cash flow declined from $1.51M to -$0.782M. Low leverage helps, but ROE turning negative signals eroding shareholder value.

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	-814.00	-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: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 0.36 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.35, and below the 200-day MA of 0.79, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 38.38 is Neutral, neither overbought nor oversold. The STOCH value of 8.93 is Positive, 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	$1.25B	37.94	1.69%	4.40%	-7.37%	-84.53%
DTCK	46 Neutral	$2.55M	-1.64	―	―	2.26%	-1137.76%
AQB	46 Neutral	$3.53M	-0.05	―	―	―	―
LOCL	43 Neutral	$46.77M	-0.19	―	―	31.61%	37.02%
SDOT	41 Neutral	$4.86M	-0.23	-46.64%	―	-29.40%	-535.63%
EDBL	41 Neutral	$2.49M	-0.02	-179.10%	―	-10.77%	97.27%

Davis Commodities Limited Corporate Events

Davis Commodities Reshapes Board Committees With New Independent Director

On January 31, 2026, Davis Commodities Limited’s board accepted the resignation of independent non-executive director Wang Rui, who also stepped down as chair of the nominating and corporate governance committee and as a member of the audit and compensation committees, citing personal reasons and no disagreements with the company. On the same day, the board appointed finance and accounting professional Leyng Thai Weng as an independent non-executive director, member of the nominating and corporate governance, audit, and compensation committees, and chair of the compensation committee, while naming Long Jia Kwang chair of the nominating and corporate governance committee; the moves are intended to preserve Nasdaq independence requirements and strengthen the company’s governance structure with Leyng’s more than 18 years of corporate finance and governance experience.

The most recent analyst rating on (DTCK) stock is a Hold with a $0.23 price target. To see the full list of analyst forecasts on Davis Commodities Limited stock, see the DTCK Stock Forecast page.

Davis Commodities Calls February 4 EGM to Approve Flexible Share Consolidation Plan

On January 23, 2026, Davis Commodities Limited filed a Form 6-K announcing that it has called an extraordinary general meeting of shareholders for February 4, 2026, in Singapore. Shareholders of record as of January 9, 2026, will be asked to approve an ordinary resolution authorizing a share consolidation of both Class A and Class B ordinary shares at a ratio between 1-for-10 and 1-for-20, with the exact split and effective date to be set by the board within one year of the meeting. The proposal would also empower the board to address fractional share entitlements, including by capitalizing reserves to issue additional shares to round up fractions, and to take all necessary actions to implement the consolidation and update corporate records. The move, if approved, would give the board significant flexibility to restructure the company’s share capital, potentially affecting the trading dynamics of its dual-class share structure and the voting power mechanics between Class A and Class B shareholders.

The most recent analyst rating on (DTCK) stock is a Hold with a $0.30 price target. To see the full list of analyst forecasts on Davis Commodities Limited stock, see the DTCK Stock Forecast page.

Davis Commodities Updates SEC Disclosure on Dual-Class Shareholder Rights After 2025 Governance Changes

On June 23, 2025, Davis Commodities Limited shareholders approved a Third Amended and Restated Memorandum and Articles of Association, and on January 14, 2026, the company filed an updated description of the rights attached to its Nasdaq‑listed Class A ordinary shares with the U.S. Securities and Exchange Commission. The updated disclosure, which supersedes prior descriptions, details the company’s dual‑class structure giving one vote per Class A share and 30 votes per Class B share, the absence of pre-emptive rights, rules for dividends, shareholder meetings and requisitions, and conditions under which the board may decline to register share transfers, thereby clarifying the governance framework and voting dynamics that affect existing and prospective investors.

The most recent analyst rating on (DTCK) stock is a Hold with a $0.38 price target. To see the full list of analyst forecasts on Davis Commodities Limited stock, see the DTCK Stock Forecast page.

Davis Commodities Executive Director Resigns, No Immediate Successor Planned

On January 6, 2026, the board of Davis Commodities Limited accepted the resignation of Executive Director Zhu Meiju, who stepped down for personal reasons and not due to any disagreement over the company’s operations, policies or practices. The company stated it does not plan to appoint an immediate replacement, indicating a near-term adjustment in board composition that may concentrate responsibilities among remaining directors but is not being presented as a signal of strategic or governance conflict.

The most recent analyst rating on (DTCK) stock is a Hold with a $0.38 price target. To see the full list of analyst forecasts on Davis Commodities Limited stock, see the DTCK Stock Forecast page.

Davis Commodities Launches $17 Million At-the-Market Share Offering with A.G.P.

On January 5, 2026, Davis Commodities Limited entered into a sales agreement with A.G.P/Alliance Global Partners to launch an at-the-market equity offering of its Class A ordinary shares, allowing the company to issue and sell shares from time to time with A.G.P. acting as sales agent and/or principal. The offering, registered under an existing Form F-3 shelf and supported by a prospectus supplement dated January 5, 2026, provides for the sale of up to $17 million of Class A ordinary shares, with a 4% commission payable to the agent and customary conditions, indemnities and termination rights, and is intended to fund general corporate purposes including operations, capital expenditures and business development, thereby enhancing the company’s financial flexibility and access to incremental equity capital.

The most recent analyst rating on (DTCK) stock is a Hold with a $0.23 price target. To see the full list of analyst forecasts on Davis Commodities Limited stock, see the DTCK Stock Forecast page.

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.