Davis Commodities Limited (DTCK) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 107.12K
• Price to Earnings (P/E): 42.5
• Beta (1Y): 1.08
• Revenue Growth: -30.27%
• EPS Growth: -398.63%
• Country: US
• Employees: 22
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural Farm Products
• EPS (TTM): -0.15
• Shares Outstanding: 24,500,626
• 10 Day Avg. Volume: 38,684
• 30 Day Avg. Volume: 107,118
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 6.28
• Enterprise Value/Ebitda: 45.19
• 1Y Price Target: $1.00
• Price Target Upside: 16.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $1.00 ▲(16.28% Upside)

The overall stock score of 51 reflects significant financial challenges, including declining revenue and profitability, and negative cash flow trends. Technical analysis shows some short-term bullish signals, but valuation metrics are weak with a negative P/E ratio and no dividend yield. The absence of earnings call data and corporate events limits additional insights.

Davis Commodities Limited Business Overview & Revenue Model

Company Description

Davis Commodities Limited (DTCK) is a diversified trading and investment company specializing in the procurement, distribution, and marketing of a wide range of commodities. Operating across various sectors including agriculture, energy, and metals, DTCK sources high-quality products from global suppliers to meet the needs of its clients. The company's core services involve commodity trading, risk management, and logistics solutions, ensuring seamless supply chain operations for its partners and customers.

How the Company Makes Money

Davis Commodities Limited generates revenue primarily through the trading of commodities, wherein it buys products at lower prices and sells them at a markup to clients in different industries. Key revenue streams include profit margins on commodity sales, fees for risk management services provided to clients, and logistics services revenue from facilitating transportation and storage of commodities. The company may also engage in strategic partnerships with suppliers and buyers, enhancing its market reach and operational efficiency, which further contributes to its earnings.

Davis Commodities Limited Financial Statement Overview

Summary

Davis Commodities Limited's financial performance is concerning, with declining revenue and profitability. The income statement reflects negative EBIT and EBITDA margins, while the balance sheet shows a slight decrease in financial stability. Additionally, cash flow generation has deteriorated significantly.

Income Statement

The income statement shows a concerning trend, with declining revenue and profitability. Gross profit margins have decreased from 3.69% in 2023 to 1.76% in 2024, indicating reduced efficiency in converting revenue into profit. Additionally, the company reported negative EBIT and EBITDA margins in 2024, reflecting operational challenges. The net profit margin has also turned negative, from 0.76% in 2023 to -2.67% in 2024.

Balance Sheet

The balance sheet highlights a mixed financial position. The debt-to-equity ratio has improved from 0.07 in 2023 to 0.07 in 2024, maintaining a low leverage level. However, the equity ratio decreased from 34.33% in 2023 to 34.17% in 2024, which suggests a slight decrease in financial stability. ROE has turned negative, indicating a loss in shareholder value.

Cash Flow

The cash flow statement reveals deterioration in cash flow generation. Free cash flow decreased significantly from $1.51 million in 2023 to -$782,000 in 2024, indicating reduced cash availability for reinvestment and debt servicing. Operating cash flow to net income ratio is negative, reflecting challenges in converting income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	118.51M	132.37M	142.00M	206.72M	194.24M	131.63M
Gross Profit	4.23M	2.33M	5.23M	12.88M	12.24M	5.86M
EBITDA	587.95K	-3.12M	1.41M	5.63M	5.70M	594.00K
Net Income	349.50K	-3.53M	1.09M	4.62M	4.70M	456.00K
Balance Sheet
Total Assets	28.71M	19.69M	29.88M	17.90M	24.66M	12.65M
Cash, Cash Equivalents and Short-Term Investments	1.36M	678.00K	1.33M	2.54M	7.09M	5.86M
Total Debt	598.00K	460.00K	734.00K	685.00K	294.00K	2.12M
Total Liabilities	17.12M	12.96M	19.62M	11.89M	22.59M	10.22M
Stockholders Equity	11.59M	6.73M	10.26M	6.01M	2.07M	2.43M
Cash Flow
Free Cash Flow	1.46M	-782.00K	1.51M	-1.96M	3.20M	2.94M
Operating Cash Flow	1.46M	-777.00K	1.81M	-1.95M	3.21M	2.94M
Investing Cash Flow	―	-5.00K	-208.00K	42.00K	42.00K	-2.00K
Financing Cash Flow	-2.31M	130.00K	-2.81M	-2.64M	-2.03M	1.67M

Davis Commodities Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.86
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 0.86 is above the 20-day moving average (MA) of 0.86, below the 50-day MA of 0.87, and above the 200-day MA of 0.85, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 24.35 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
LMNR	62 Neutral	272.35M	-27.78	4.02%	1.99%	-14.97%	-278.36%
SDOT	56 Neutral	7.57M	1.24	13.67%	―	4.42%	0.00%
LOCL	53 Neutral	75.66M	-0.24	119.31%	―	39.74%	16.76%
DTCK	51 Neutral		42.52	-42.14%	―	-30.27%	-398.63%
SANW	42 Neutral	751.38K	-0.03	0.00%	―	-45.02%	-7.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Davis Commodities Limited Corporate Events

Davis Commodities Granted Extension to Regain Nasdaq Compliance

On September 16, 2025, Davis Commodities Limited received a notification from Nasdaq granting an additional 180-day period to meet the $1.00 minimum bid price requirement for its shares. The initial compliance period ended on September 15, 2025, without meeting the requirement. The company plans to address this issue, potentially through a reverse stock split, to maintain its Nasdaq listing. Failure to comply by March 16, 2026, could result in delisting, but the company remains committed to compliance and transparency, actively exploring options to rectify the deficiency.

Davis Commodities Limited Appoints New Executive Director

On August 1, 2025, Davis Commodities Limited appointed Ms. Zhu Meiju as an executive director. Ms. Zhu, with a background in administration and financial services, is expected to contribute significantly to the company’s operational and strategic development, leveraging her expertise in budget oversight, team leadership, and client relations.

Davis Commodities Limited Announces Share Capital Reclassification

On June 24, 2025, Davis Commodities Limited announced that during its Extraordinary General Meeting held on June 23, 2025, shareholders approved key resolutions. These included the reclassification and redesignation of the company’s share capital, creating Class A and Class B ordinary shares, and the adoption of a third amended memorandum and articles of association. These changes are expected to impact the company’s governance structure and potentially its market operations.