Davis Commodities Limited (DTCK) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 60.44K
• Price to Earnings (P/E): 42.5
• Beta (1Y): 1.35
• Revenue Growth: -20.62%
• EPS Growth: -91.30%
• Country: US
• Employees: 22
• Sector: Industrials
• Sector Strength: 90
• Industry: Agricultural Farm Products
• EPS (TTM): -0.15
• Shares Outstanding: 24,500,626
• 10 Day Avg. Volume: 82,809
• 30 Day Avg. Volume: 60,439
• PEG Ratio: -0.26
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Davis Commodities Limited's overall score reflects a mix of financial resilience and operational challenges. The company's strength in cash flow management and improved leverage are offset by declining revenue and profitability. Technical indicators show weak momentum, and a high P/E ratio indicates valuation concerns. Focus on improving operational efficiency and revenue growth is essential for better long-term performance.

Davis Commodities Limited Business Overview & Revenue Model

Company Description

Davis Commodities Limited (DTCK) is a company engaged in the commodities sector, focusing on the trading and distribution of agricultural products. The company specializes in the procurement and supply of essential commodities such as grains, pulses, and other agricultural produce to various markets around the world.

How the Company Makes Money

Davis Commodities Limited makes money primarily through the trading and distribution of agricultural commodities. The company sources agricultural products from producers and sells them to wholesalers, retailers, and other end-users. Revenue is generated through the margin between the purchase price and the selling price of these commodities. The company may also engage in hedging and other financial activities related to commodity trading to protect against price volatility, which can contribute to its earnings. Significant partnerships with producers and distributors, as well as an extensive logistics network, are key factors that enhance the company's ability to efficiently manage its supply chain and maximize profitability.

Davis Commodities Limited Financial Statement Overview

Summary

Davis Commodities Limited has demonstrated notable improvements in leverage management and cash flow, with the operating cash flow turning positive and free cash flow growing significantly. However, the company faces operational challenges with declining revenue and profit margins. The balance sheet shows enhanced stability, but maintaining high equity levels remains a concern.

Income Statement

Davis Commodities Limited has seen fluctuating revenue with a significant drop from 2022 to 2023. The gross profit margin decreased to 3.7% in 2023 from 6.2% in 2022, indicating reduced efficiency in managing production costs. The net profit margin also declined to 0.8% in 2023 from 2.2% in 2022, reflecting lower overall profitability. However, the company has managed to maintain a positive EBIT and EBITDA margin despite the challenges, showing resilience in core operations.

Balance Sheet

The debt-to-equity ratio improved to 0.07 in 2023 from 0.11 in 2022, indicating better leverage management. Return on equity increased significantly to 10.6% in 2023 from 7.7% in 2022, suggesting enhanced shareholder value creation. The equity ratio also improved to 34.3% in 2023 from 33.6% in 2022, highlighting strengthened financial stability. Despite these improvements, the company still faces challenges in maintaining a high level of equity.

Cash Flow

Operating cash flow turned positive in 2023, reaching $1.81 million from a negative $1.95 million in 2022, indicating improved cash management. Free cash flow grew considerably by 177% from 2022 to 2023, enhancing financial flexibility. The operating cash flow to net income ratio is 1.67 in 2023, showing strong cash generation relative to net income. However, the historical volatility in free cash flow poses a potential risk.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
142.00M	206.72M	194.24M	131.63M
	Gross Profit
5.23M	12.88M	12.24M	5.86M
	EBIT
1.15M	5.28M	4.98M	-75.00K
	EBITDA
1.41M	5.63M	5.70M	594.00K
	Net Income Common Stockholders
1.09M	4.62M	4.70M	456.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.33M	2.54M	7.09M	5.86M
	Total Assets
29.88M	17.90M	24.66M	12.65M
	Total Debt
734.00K	685.00K	294.00K	2.12M
	Net Debt
-596.00K	-1.85M	-6.79M	-3.74M
	Total Liabilities
19.62M	11.89M	22.59M	10.22M
	Stockholders Equity
10.26M	6.01M	2.07M	2.43M
Cash Flow		Free Cash Flow
1.51M	-1.96M	3.20M	2.94M
	Operating Cash Flow
1.81M	-1.95M	3.21M	2.94M
	Investing Cash Flow
-208.00K	42.00K	42.00K	-2.00K
	Financing Cash Flow
-2.81M	-2.64M	-2.03M	1.67M

Davis Commodities Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTCK, the sentiment is Neutral. The current price of 0.65 is above the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.73, and below the 200-day MA of 0.99, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.15 is Neutral, neither overbought nor oversold. The STOCH value of 42.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DTCK.

Davis Commodities Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INGR	76 Outperform	$8.83B	14.48	16.31%	2.32%	-6.88%	-4.93%
ADM	73 Outperform	$23.97B	17.79	6.03%	4.03%	-8.59%	-50.72%
BG	72 Outperform	$10.77B	10.16	10.36%	3.39%	-10.90%	-36.54%
CARG	66 Neutral	$3.26B	94.19	7.98%	―	0.63%	15.34%
Sector *	64 Neutral	$4.38B	12.03	5.25%	249.91%	4.11%	-11.02%
DTCK	60 Neutral		42.52	-42.14%	―	-20.62%	-91.30%
TITN	46 Neutral	$467.94M	11.08	-5.81%	―	-2.04%	-133.17%