Last Updated: 15 Sep 2024
Executive Summary
Doubledown Interactive Co Ltd (DDI) is a leading developer and publisher of digital games for casual gamers in South Korea. The company has a strong financial position with a market capitalization of $649.65 million, EBITDA of $134.79 million, and EPS of $2.35. DDI's stock price is currently trading at $13.11, below its 52-week high of $15.96. The company's fundamentals are strong, with a trailing PE ratio of 5.58, a price-to-sales ratio of 1.954, and a price-to-book ratio of 0.826. Technical analysis suggests that the stock is in a bullish trend, with the 50-day moving average above the 200-day moving average. Analyst recommendations are positive, with a consensus rating of "Buy."
Company Overview
Doubledown Interactive Co Ltd is headquartered in Seoul, South Korea. The company develops and publishes digital games for mobile and web-based platforms. DDI's games are designed to be casual and easy to play, and they are targeted at a wide range of players. The company's most popular games include DoubleDown Casino, DoubleDown Fort Knox, and DoubleDown Bingo.
Fundamental Analysis
DDI's financial performance has been strong in recent years. The company's revenue has grown by an average of 17.4% per year over the past five years. In 2023, DDI reported revenue of $332.46 million, up from $283.37 million in 2022. The company's net income has also grown significantly in recent years, from $40.4 million in 2019 to $65.3 million in 2023.
DDI's financial ratios are also strong. The company has a trailing PE ratio of 5.58, which is below the industry average of 12.44. DDI also has a price-to-sales ratio of 1.954, which is below the industry average of 2.56. The company's price-to-book ratio of 0.826 is also below the industry average of 1.24.
Technical Analysis
DDI's stock price has been in a bullish trend since early 2023. The stock price broke above its 50-day moving average in March 2023 and has continued to trend higher since then. The stock price is currently trading above both its 50-day and 200-day moving averages, which is a bullish sign.
Short Term Outlook
DDI's stock price is expected to continue to trend higher in the short term. The company's fundamentals are strong, and the technical analysis suggests that the stock is in a bullish trend. The stock price is currently trading below its 52-week high, which provides some upside potential.
Long Term Outlook
DDI's long-term outlook is also positive. The company is a leader in the casual gaming market, and it has a strong track record of growth. The company's games are popular with a wide range of players, and they are likely to continue to be successful in the future.
Analyst Recommendations
Analysts are positive on DDI's stock. The consensus rating for the stock is "Buy," with a target price of $19.31. This target price represents a potential upside of 47.3% from the current stock price.
