Direct Finance (DIFI) AI Stock Analysis

• Market Cap: 1.72B
• Dividend Yield: 3.16%
• Average Volume (3M): 4.88K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.07
• Revenue Growth: 14.62%
• EPS Growth: -12.09%
• Country: IL
• Employees: 758
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Credit Services
• EPS (TTM): 1129.70
• Shares Outstanding: 2,957,256
• 10 Day Avg. Volume: 4,749
• 30 Day Avg. Volume: 4,881
• PEG Ratio: -0.78
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.64
• 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

• Rating: 69 Neutral
• Price Target: 59,519.00 ▲(16.11%Upside)

Direct Finance shows strong revenue growth and an attractive valuation, enhancing its investment appeal. However, high leverage and negative operating cash flows remain significant risks. The technical indicators suggest some caution due to potential bearish momentum.

Direct Finance Business Overview & Revenue Model

Company Description

Direct Finance (DIFI) is a financial services company specializing in providing direct lending solutions to individual and small business clients. Operating in the fintech sector, DIFI offers a range of products including personal loans, business loans, and refinancing options. The company leverages technology to streamline the loan application process, making it quicker and more accessible for clients seeking financial assistance.

How the Company Makes Money

DIFI generates revenue primarily through interest income on the loans it provides to its clients. This interest is calculated based on the loan amount, term, and risk profile of the borrower. Additionally, the company may charge origination fees for processing new loans, as well as late fees for delayed payments. DIFI also partners with financial institutions and investors to securitize parts of its loan portfolio, allowing it to generate additional income through asset sales and management fees. These partnerships help DIFI maintain liquidity and expand its lending capacity.

Direct Finance Financial Statement Overview

Summary

Direct Finance demonstrates strong revenue growth and improved profitability, but high leverage and negative operating cash flows pose potential risks. Addressing cash flow challenges is essential for sustainable financial health.

Income Statement

Direct Finance shows strong revenue growth with a substantial increase from $761.6M to $1.51B in the latest annual period. The gross profit margin remains healthy at 45.5%, and the net profit margin improved to 9.3%. However, EBIT and EBITDA margins have slightly decreased, indicating rising operational costs.

Balance Sheet

The company has a high debt-to-equity ratio of 5.16, highlighting significant leverage risk. However, stockholders' equity has increased, suggesting strengthening financial stability. The equity ratio of 15.4% is on the lower side, which is typical in financial services but indicates reliance on debt.

Cash Flow

The operating cash flow is negative, indicating challenges in generating cash from operations. Despite this, free cash flow improved slightly but remains negative, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, emphasizing the need for better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	1.51B	761.64M	1.37B	844.47M	477.57M
Gross Profit	654.63M	688.46M	684.76M	725.82M	491.44M	299.01M
EBITDA	239.37M	279.15M	252.92M	425.80M	321.15M	136.17M
Net Income	113.17M	141.10M	132.47M	244.46M	181.32M	70.93M
Balance Sheet
Total Assets	8.92B	8.57B	7.83B	6.74B	4.26B	3.68B
Cash, Cash Equivalents and Short-Term Investments	9.70M	13.93M	12.58M	10.56M	80.20M	3.11M
Total Debt	7.17B	6.82B	6.24B	5.21B	3.03B	2.77B
Total Liabilities	7.54B	7.19B	6.56B	5.56B	3.31B	3.00B
Stockholders Equity	1.32B	1.32B	1.24B	1.18B	956.01M	679.14M
Cash Flow
Free Cash Flow	-1.00B	-622.12M	-928.26M	-1.10B	-1.53B	-310.42M
Operating Cash Flow	-949.45M	-576.45M	-872.07M	-1.05B	-1.51B	-293.10M
Investing Cash Flow	-53.48M	-46.59M	-56.30M	-62.00M	-24.91M	-17.06M
Financing Cash Flow	1.00B	624.39M	932.25M	1.04B	1.61B	306.21M

Direct Finance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51260.00
• 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 IL:DIFI, the sentiment is Positive. The current price of 51260 is below the 20-day moving average (MA) of 54576.01, below the 50-day MA of 54988.83, and below the 200-day MA of 55089.25, indicating a bullish trend. The MACD of 911.30 indicates Negative momentum. The RSI at 61.45 is Neutral, neither overbought nor oversold. The STOCH value of 59.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:DIFI.

Direct Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCLL	80 Outperform	673.95M	13.30		1.48%	―	―
JCFN	80 Outperform	903.22M	12.43		―	―	―
MNIF	78 Outperform	1.51B	9.36		7.43%	24.68%	21.90%
PEN	73 Outperform	796.47M	13.55		5.36%	9.30%	-0.76%
NAWI	72 Outperform	2.14B	12.91		4.03%	―	―
DIFI	69 Neutral	1.72B	14.96		3.16%	14.62%	-12.09%
Sector *	67 Neutral	$16.92B	11.85	9.77%	3.75%	12.07%	-8.35%