Digital Brands Group Inc. Common Stock (DBGI)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable competitive advantages, honest accounting, and a margin of safety. Digital Brands Group fails most of those tests. It sells apparel under Bailey 44, Stateside, DSTLD, Sundry, and AVO Studios through direct-to-consumer and wholesale channels, but apparel retail is brutally competitive and this company has no demonstrated pricing power. In fiscal Q2 2026, the quarter ended 2026-06-30, filed revenue was $1.2 million and net loss was $9.0 million, a -743.56% net margin. Full-year fiscal 2025 revenue was $7.4 million with a $28.3 million net loss. Fiscal 2024 revenue was $11.6 million with a $13.1 million net loss, and fiscal 2023 revenue was $14.9 million with a $10.2 million net loss. Revenue is shrinking, not compounding. At the 2026-10-13 close of $3.81, FairStock's calculations show a $25.6 million market cap, a 3.85 price-to-book, a P/E of -0.05, return on equity of -1,161.90%, ROCE of -58.34%, and a -78.7% free cash flow yield on -$20.2 million trailing free cash flow. Debt-to-equity is 40.04, the Altman Z-Score is -5.77, and the Piotroski F-Score is 3/9. The FairStock score is 36/100, and its computed Lynch category is none because the company lost money in each of the last four years. A negative beta of -0.03 is not a moat. Graham would demand tangible assets and earnings; Buffett would ask for durable economics. I see neither at this price. Without a credible path to profits and positive cash flow, the equity is a lottery ticket, not a value investment.

In plain English: Digital Brands Group sells clothing under several brand names, mostly direct to consumers and through wholesale. The business looks very weak: it is losing large amounts of money, sales are shrinking, and its finances are fragile. The stock price of $3.81 looks expensive compared with those weak results, not cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer