DoubleDown Interactive Co. Ltd. American Depository Shares (DDI)
Fast GrowerFairStock Score: 77/100 — HIGH CONVICTION
Key Financials
| Current Price | $12 |
| Market Cap | $442M |
| P/E Ratio | 5.22 |
| ROE | 12.35% |
| Dividend Yield | —% |
| Sector | Communication Services |
Strengths
- Generates $101 million in annual free cash flow (22.8% yield on market cap)
- Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
- Solid return on equity of 11.4% above cost of capital
- Conservative balance sheet with debt-to-equity of just 0.04, providing financial flexibility
- Altman Z-Score of 4.5 confirms minimal bankruptcy risk and strong solvency
AI Analysis
DoubleDown Interactive Co. Ltd. American Depository Shares is a micro-cap communication services company valued at $442 million. The business generates $360 million in annual revenue with a 6.7% net margin and $101 million in free cash flow. From a quality standpoint, DoubleDown shows solid Piotroski F-Score of 7/9 and healthy Altman Z-Score of 4.5. On valuation, the stock is deeply undervalued on a P/E basis at 4.2x, with offers a 93% margin of safety vs Graham Number of $134. Growth dynamics show revenue growing at 16.9% and profit growth of -32.3%. Our composite FairStock Score of 77/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
DoubleDown's 17% revenue growth trajectory could accelerate as it captures additional market share in the communication services sector. With $101 million in annual free cash flow (22.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the communication services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer