DoubleDown Interactive (NasdaqGS:DDI) - Share price, News & Analysis

DDI fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

DDI Stock Overview

DoubleDown Interactive Co., Ltd. engages in the development and publishing of digital games on mobile and web-based platforms for casual players in South Korea.

Rewards

Trading at 65% below our estimate of its fair value

Earnings grew by 28.4% over the past year

Risk Analysis

Revenue has declined by 7.1% over the past year

DoubleDown Interactive Competitors

Activision Blizzard

NasdaqGS:ATVI

US$61.4b

Electronic Arts

NasdaqGS:EA

US$36.1b

Take-Two Interactive Software

NasdaqGS:TTWO

US$13.6b

Zynga

NasdaqGS:ZNGA

US$9.6b

Price History & Performance

Summary of all time highs, changes and price drops for DoubleDown Interactive
Historical stock prices
Current Share Price	US$10.70
52 Week High	US$18.50
52 Week Low	US$8.75
Beta	0
1 Month Change	-6.22%
3 Month Change	-16.14%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-39.72%

Shareholder Returns

	DDI	US Entertainment	US Market
7D	22.3%	6.2%	0.5%
1Y	n/a	-46.9%	-11.5%

Return vs Industry: Insufficient data to determine how DDI performed against the US Entertainment industry.

Return vs Market: Insufficient data to determine how DDI performed against the US Market.

Price Volatility

Is DDI's price volatile compared to industry and market?
DDI volatility
DDI Average Weekly Movement	7.6%
Entertainment Industry Average Movement	12.7%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: DDI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: DDI's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2008	281	In Keuk Kim	https://www.doubledowninteractive.com

DoubleDown Interactive Co., Ltd. engages in the development and publishing of digital games on mobile and web-based platforms for casual players in South Korea. The company offers DoubleDown Casino, DoubleDown Classic, DoubleDown Fort Knox, and Undead World: Hero Survival games. Its games are primarily distributed, marketed, and promoted through third party platform providers.

DoubleDown Interactive Fundamentals Summary

How do DoubleDown Interactive's earnings and revenue compare to its market cap?
DDI fundamental statistics
Market Cap	US$530.22m
Earnings (TTM)	US$77.30m
Revenue (TTM)	US$352.02m

6.9x

P/E Ratio

1.5x

P/S Ratio

Is DDI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DDI income statement (TTM)
Revenue	US$352.02m
Cost of Revenue	US$121.61m
Gross Profit	US$230.41m
Other Expenses	US$153.11m
Earnings	US$77.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.56
Gross Margin	65.45%
Net Profit Margin	21.96%
Debt/Equity Ratio	4.7%

How did DDI perform over the long term?

See historical performance and comparison

Valuation

Is DoubleDown Interactive undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: DDI ($10.7) is trading below our estimate of fair value ($30.59)

Significantly Below Fair Value: DDI is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: DDI is good value based on its PE Ratio (6.9x) compared to the US Entertainment industry average (24.8x).

PE vs Market: DDI is good value based on its PE Ratio (6.9x) compared to the US market (16x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DDI's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: DDI is good value based on its PB Ratio (0.6x) compared to the US Entertainment industry average (2x).

Future Growth

How is DoubleDown Interactive forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

5.4%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DDI's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if DDI's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DDI's revenue (5.4% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: DDI's revenue (5.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if DDI's Return on Equity is forecast to be high in 3 years time

Past Performance

How has DoubleDown Interactive performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

28.4%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: DDI has high quality earnings.

Growing Profit Margin: DDI's current net profit margins (22%) are higher than last year (15.9%).

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if DDI's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare DDI's past year earnings growth to its 5-year average.

Earnings vs Industry: DDI earnings growth over the past year (28.4%) exceeded the Entertainment industry 23.3%.

Return on Equity

High ROE: DDI's Return on Equity (8.8%) is considered low.

Financial Health

How is DoubleDown Interactive's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DDI's short term assets ($292.5M) exceed its short term liabilities ($20.7M).

Long Term Liabilities: DDI's short term assets ($292.5M) exceed its long term liabilities ($87.1M).

Debt to Equity History and Analysis

Debt Level: DDI has more cash than its total debt.

Reducing Debt: Insufficient data to determine if DDI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: DDI's debt is well covered by operating cash flow (248.1%).

Interest Coverage: DDI's interest payments on its debt are well covered by EBIT (60.9x coverage).

Balance Sheet

Dividend

What is DoubleDown Interactive current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate DDI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DDI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DDI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DDI's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DDI has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure

CEO

In Keuk Kim (43 yo)

2.5yrs

Tenure

Mr. In Keuk Kim has been Chief Executive Officer and Director of Double Down Interactive Co., Ltd. since November 2019 and has served as the Chief Executive Officer of DUD since May 2017. He has been on th...

Leadership Team

Experienced Management: DDI's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: DDI's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: DDI only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31