Directa Plus (DCTA) AI Stock Analysis

• Market Cap: £8.09M
• Dividend Yield: N/A
• Average Volume (3M): 59.65K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.39
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: 8.00p ▲(3.23% Upside)

Directa Plus faces significant financial and technical challenges, with declining revenues and bearish technical indicators. The stock's valuation is unattractive due to negative earnings. While the earnings call provided some positive strategic insights, these are overshadowed by the current financial and technical weaknesses.

Directa Plus Business Overview & Revenue Model

Company Description

Directa Plus (DCTA) is a leading producer and supplier of graphene-based products, headquartered in Italy. The company operates in multiple sectors, including textiles, composites, and environmental applications, focusing on developing innovative solutions that leverage the unique properties of graphene. Directa Plus specializes in advanced materials that enhance the performance of products across various industries, aiming to provide sustainable and high-performance alternatives.

How the Company Makes Money

Directa Plus generates revenue primarily through the sale of its graphene-based products and solutions to various industries. The company has established key partnerships with manufacturers in sectors such as textiles, where its graphene-enhanced materials improve durability, thermal conductivity, and other performance attributes. Additionally, Directa Plus engages in research and development collaborations, which can also provide funding and support for new product innovations. The firm's revenue model includes direct sales, long-term contracts with clients, and potential licensing agreements for its proprietary technologies, all contributing to its financial growth.

Directa Plus Financial Statement Overview

Summary

Directa Plus is facing financial challenges with declining revenues and consistent losses. Despite stable gross profit margins and manageable debt levels, the reliance on financing for cash flow support and negative net profit margins 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.66M	10.53M	10.86M	8.62M	6.43M
Gross Profit	3.80M	4.65M	4.81M	4.99M	4.08M
EBITDA	-4.03M	-2.84M	-3.81M	-3.09M	-2.89M
Net Income	-5.14M	-3.86M	-4.82M	-3.65M	-4.20M
Balance Sheet
Total Assets	11.74M	12.56M	16.56M	21.77M	17.71M
Cash, Cash Equivalents and Short-Term Investments	4.98M	2.39M	5.73M	11.13M	7.08M
Total Debt	2.33M	2.66M	2.78M	3.15M	2.84M
Total Liabilities	4.59M	5.98M	5.74M	5.74M	7.04M
Stockholders Equity	7.08M	5.46M	9.28M	13.99M	9.76M
Cash Flow
Free Cash Flow	-2.69M	-3.12M	-4.35M	-4.28M	-4.27M
Operating Cash Flow	-2.35M	-2.63M	-3.59M	-3.52M	-4.07M
Investing Cash Flow	-1.76M	-438.71K	-1.17M	-1.64M	-837.81K
Financing Cash Flow	6.58M	-278.79K	-430.02K	8.98M	1.37M

Directa Plus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.75
• 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 GB:DCTA, the sentiment is Negative. The current price of 7.75 is below the 20-day moving average (MA) of 8.11, below the 50-day MA of 9.40, and below the 200-day MA of 9.09, indicating a bearish trend. The MACD of -0.48 indicates Negative momentum. The RSI at 39.31 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	£28.10M	-1.76	―	―	-27.64%	35.09%
HDD	53 Neutral	£5.22M	-12.73	-11.10%	―	14.51%	77.27%
ITX	50 Neutral	£14.30M	-14.83	-12.88%	―	25.56%	35.12%
DCTA	45 Neutral	£8.09M	-2.23	-78.76%	―	-24.85%	40.28%
VRS	39 Underperform	£661.10K	-0.08	-235.32%	―	-38.73%	96.64%
GEX	31 Underperform	£6.24M	-0.80	―	―	―	―

Directa Plus Corporate Events

Directa Plus Earnings Call: Growth Amid Challenges

The recent earnings call for Directa Plus conveyed an optimistic outlook, highlighting notable achievements in revenue growth, cost reduction, and strategic partnerships. Despite these successes, the company faces challenges, including workforce reductions and contract delays.

Directa Plus Reports Revenue Growth and Operational Advancements in H1 2025

Directa Plus reported a 15% increase in revenue to €3.90m for the first half of 2025, alongside a significant improvement in EBITDA loss, reflecting strategic focus on high-margin contracts and operational efficiencies. The company is nearing completion of a production system upgrade, expected to enhance scalability and reduce costs, positioning it to capture new market opportunities. With key contract renewals and new project wins, particularly in environmental remediation and textiles, Directa Plus is poised for future growth, although challenges such as competitive contract renewals may impact forecasts.

The most recent analyst rating on (GB:DCTA) stock is a Hold with a £10.00 price target. To see the full list of analyst forecasts on Directa Plus stock, see the GB:DCTA Stock Forecast page.

Directa Plus CEO Increases Stake, Signaling Confidence in Company’s Future

Directa Plus announced that its CEO, Giulio Cesareo, has acquired 28,600 ordinary shares, increasing his total interest to 4.24% of the company’s voting rights. This transaction underscores Cesareo’s confidence in the company’s future and may positively influence stakeholder perceptions, reinforcing Directa Plus’s position in the graphene industry.

Directa Plus Sees Revenue Growth and Operational Efficiencies in H1 2025

Directa Plus reported a 15% revenue increase to approximately €3.9 million for the first half of 2025, along with a 40% reduction in EBITDA losses, reflecting strategic focus on high-value contracts and operational efficiencies. The company secured significant contract renewals and new agreements, including a major deal with OMV Petrom and a distribution agreement in the U.S. environmental market. Upcoming production upgrades are expected to enhance capabilities and expand market reach, particularly in the nano-graphite sector, supporting further growth and operational reliability.