Directa Plus (DCTA) AI Stock Analysis

• Market Cap: £13.57M
• Dividend Yield: N/A
• Average Volume (3M): 59.65K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.09
• Revenue Growth: -24.85%
• EPS Growth: 40.28%
• Country: UK
• Employees: 187
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.01
• Shares Outstanding: 104,418,755
• 10 Day Avg. Volume: 48,963
• 30 Day Avg. Volume: 59,648
• PEG Ratio: -0.02
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.73
• P/FCF Ratio: -1.80
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: 11.00p ▲(4.76% Upside)

The score is held back primarily by weak financial performance (declining revenues, continued losses, and negative free cash flow). Technicals are supportive with strong trend signals but tempered by an overbought RSI. The latest earnings call was constructive (revenue growth, cost reduction, automation and partnerships), while valuation remains challenged due to ongoing losses and no dividend support.

Positive Factors

Strategic Partnerships

Securing a sole-source contract with a governmental agency strengthens market position and provides a stable revenue stream, enhancing long-term growth prospects.

Production Line Automation

Full automation of the production line reduces operational costs and accelerates time-to-market, improving efficiency and competitive advantage.

Intellectual Property Portfolio

A strong patent portfolio protects innovations and provides potential licensing revenue, supporting long-term competitive positioning and growth.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in market demand or competitive positioning, potentially impacting long-term financial stability and growth.

Negative Free Cash Flow

Negative free cash flow suggests reliance on external financing, which can limit financial flexibility and pose risks to long-term sustainability.

Workforce Reduction

Workforce reductions may indicate restructuring challenges and can impact operational capacity and employee morale, affecting long-term performance.

Directa Plus Business Overview & Revenue Model

Company Description

Directa Plus Plc manufactures and sells graphene-based products for industrial and commercial applications in Italy and internationally. It operates through Textile, Environmental, and Others segments. The company offers its products under the G+ brand name. Its products are used in environment, elastomers, textiles, composite materials, golf balls, footwear, and tyre applications. The company was incorporated in 2003 and is based in Lomazzo, Italy.

How the Company Makes Money

Directa Plus generates revenue through the sale of graphene-based products and materials to a diverse range of industries including textiles, automotive, and construction. Its primary revenue streams include the direct sale of its graphene additives, which are integrated into customers' products to enhance performance and functionality. Additionally, the company engages in partnerships and collaborations with various enterprises to develop bespoke applications of its graphene technology, which can lead to licensing agreements and joint ventures. These strategic partnerships are crucial for expanding market reach and driving innovation, thereby contributing significantly to the company's earnings.

Directa Plus Financial Statement Overview

Summary

Directa Plus is facing financial challenges with declining revenues and consistent losses. Despite manageable debt levels and stable gross profit margins, the company's reliance on financing for cash flow and negative net income highlight significant profitability issues.

Income Statement

Directa Plus has seen declining revenues over the past year, with a sharp drop from 2023 to 2024. The company is facing continuous losses with negative net income and EBIT margins, indicating challenges in achieving profitability. Gross profit margins have been moderately stable, but the significant negative net profit margin reflects continued operational inefficiencies.

Balance Sheet

The balance sheet shows moderate financial stability with a relatively low debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio has been declining, indicating reduced asset financing by equity. The company's equity has decreased over time, but it remains above liabilities, providing some level of financial stability.

Cash Flow

The cash flow statement indicates ongoing challenges with negative free cash flow, although there was an improvement in operating cash flow to net income ratio. The company has been relying on financing activities to support cash flows, which could pose risks if continued reliance persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.17M	6.66M	10.53M	10.86M	8.62M	6.43M
Gross Profit	3.76M	3.80M	4.65M	4.81M	4.99M	4.08M
EBITDA	-3.84M	-4.03M	-2.84M	-3.81M	-3.09M	-2.89M
Net Income	-4.32M	-5.14M	-3.86M	-4.82M	-3.65M	-4.20M
Balance Sheet
Total Assets	9.25M	11.74M	12.56M	16.56M	21.77M	17.71M
Cash, Cash Equivalents and Short-Term Investments	2.97M	4.98M	2.39M	5.73M	11.13M	7.08M
Total Debt	1.93M	2.33M	2.66M	2.78M	3.15M	2.84M
Total Liabilities	3.80M	4.59M	5.98M	5.74M	5.74M	7.04M
Stockholders Equity	5.40M	7.08M	5.46M	9.28M	13.99M	9.76M
Cash Flow
Free Cash Flow	-3.52M	-2.69M	-3.12M	-4.35M	-4.28M	-4.27M
Operating Cash Flow	-3.43M	-2.35M	-2.63M	-3.59M	-3.52M	-4.07M
Investing Cash Flow	-168.08K	-1.76M	-438.71K	-1.17M	-1.64M	-837.81K
Financing Cash Flow	5.70M	6.58M	-278.79K	-430.02K	8.98M	1.37M

Directa Plus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DCTA, the sentiment is Positive. The current price of 10.5 is above the 20-day moving average (MA) of 9.02, above the 50-day MA of 7.99, and above the 200-day MA of 9.38, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 67.72 is Neutral, neither overbought nor oversold. The STOCH value of 72.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DCTA.

Directa Plus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HAYD	55 Neutral	£39.26M	-1.32	―	―	-27.64%	35.09%
ITX	54 Neutral	£14.50M	-16.78	-12.88%	―	25.56%	35.12%
DCTA	53 Neutral	£13.57M	-3.60	-78.76%	―	-24.85%	40.28%
HDD	53 Neutral	£13.00M	-30.91	-11.10%	―	14.51%	77.27%
ZED	46 Neutral	£761.53K	-0.30	―	―	―	―
VRS	39 Underperform	£601.00K	-0.07	-235.32%	―	-38.73%	96.64%

Directa Plus Corporate Events

Directa Plus narrows losses, streamlines Setcar and targets graphene growth amid board changes

Directa Plus reported a modest rise in 2025 revenues to €7.0m and a roughly 30% year-on-year improvement in adjusted LBITDA to about €2.5m, driven by cost control and operational efficiencies, while advancing its technology to produce interlocked and blended graphene materials aimed at fast-growing applications in PFAS-related fields, defence and other highly regulated industries. The Group continued restructuring its Setcar subsidiary, securing at least €0.7m in annualised cost savings, winning a €1.5m Total Waste Management tender with Ford, and initiating a potential sale of non-strategic land, as it seeks to enhance capital allocation and shareholder value; with year-end cash of €1.5m and an active pipeline, the Board is pursuing partnerships, joint ventures and licensing to monetise its patent portfolio and plans to secure additional funding in 2026, alongside leadership changes including the departure of Chairman Richard Hickinbotham and the appointment of CEO Giulio Cesareo as interim chairman while CEO succession progresses.

The most recent analyst rating on (GB:DCTA) stock is a Hold with a £10.50 price target. To see the full list of analyst forecasts on Directa Plus stock, see the GB:DCTA Stock Forecast page.