DoubleDown Interactive Co. Ltd. American Depository Shares (DDI)

Fast Grower

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

Current Price$12
Market Cap$442M
P/E Ratio5.22
ROE12.35%
Dividend Yield—%
SectorCommunication Services

Strengths

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