Direct Finance (DIFI) AI Stock Analysis

• Market Cap: 1.50B
• Dividend Yield: 0.04%
• Average Volume (3M): 4.68K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.15
• Revenue Growth: 14.62%
• EPS Growth: -12.09%
• Country: IL
• Employees: 758
• Sector: Financial
• Sector Strength: 74
• Industry: Financial - Credit Services
• EPS (TTM): 1129.70
• Shares Outstanding: 2,957,256
• 10 Day Avg. Volume: 2,461
• 30 Day Avg. Volume: 4,677
• PEG Ratio: 0.17
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.34
• 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: 61 Neutral
• Price Target: 55,562.00 ▲(8.39%Upside)

Direct Finance's overall stock score reflects strong revenue growth and attractive valuation, counterbalanced by high leverage, negative cash flows, and bearish technical indicators. While the low P/E ratio and dividend yield provide valuation support, operational and liquidity concerns may limit upside potential in the near term.

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 profitability, with notable improvements in net income. However, high leverage and negative operating cash flows pose potential risks. The company must address cash flow challenges to ensure 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.51B	761.64M	1.37B	844.47M	477.57M
	Gross Profit
688.46M	684.76M	725.82M	491.44M	299.01M
	EBIT
234.36M	268.05M	389.14M	290.64M	109.38M
	EBITDA
279.15M	252.92M	425.80M	321.15M	136.17M
	Net Income Common Stockholders
141.10M	132.47M	244.46M	181.32M	70.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.93M	12.58M	10.56M	80.20M	3.11M
	Total Assets
8.57B	7.83B	6.74B	4.26B	3.68B
	Total Debt
6.82B	6.24B	5.21B	3.03B	2.77B
	Net Debt
6.81B	6.23B	5.20B	2.95B	2.77B
	Total Liabilities
7.19B	6.56B	5.56B	3.31B	3.00B
	Stockholders Equity
1.32B	1.24B	1.18B	956.01M	679.14M
Cash Flow		Free Cash Flow
-622.12M	-928.26M	-1.10B	-1.53B	-310.42M
	Operating Cash Flow
-576.45M	-872.07M	-1.05B	-1.51B	-293.10M
	Investing Cash Flow
-46.59M	-56.30M	-62.00M	-24.91M	-17.06M
	Financing Cash Flow
624.39M	932.25M	1.04B	1.61B	306.21M

Direct Finance Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 51260.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 51260 is below the 20-day moving average (MA) of 53279.02, below the 50-day MA of 54051.80, and below the 200-day MA of 54666.84, indicating a bearish trend. The MACD of -1359.09 indicates Positive momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 70.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:DIFI.

Direct Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIBI	84 Outperform	$22.03B	9.45	17.88%	3.85%	14.92%	9.16%
ICL	70 Neutral	$8.74B	22.45	6.70%	2.54%	-3.48%	-18.34%
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%
DIFI	61 Neutral	1.50B	13.01		0.04%	14.62%	-12.09%