DoubleVerify Holdings Inc (DV, Financial) has recently experienced a notable uptick in its stock performance. With a current market capitalization of $6.01 billion, the company's shares are trading at $35.37. Over the past week, the stock has seen a 4.45% gain, and looking at the past three months, there has been an impressive 21.77% increase in stock price. According to GuruFocus's valuation metrics, DoubleVerify is currently fairly valued, with a GF Value of $38.75, indicating that the stock is trading close to its intrinsic value.
Introduction to DoubleVerify Holdings Inc
DoubleVerify Holdings Inc operates within the software industry, specializing in digital media measurement and analytics. Its flagship solution, the Authentic Ad, ensures the delivery of digital advertisements in a secure, viewable, and accurate manner. The company's revenue model is based on a Measured Transaction Fee, which is applied to the volume of Media Transactions Measured on its platform. This innovative approach to digital advertising has positioned DoubleVerify as a key player in its sector.
Assessing DoubleVerify's Profitability
DoubleVerify's financial health can be gauged through its Profitability Rank of 5/10. The company's operating margin stands at 14.36%, which is higher than 81.67% of its industry peers. Its return on equity (ROE) is 6.18%, surpassing 58.87% of competitors, while the return on assets (ROA) at 5.26% is better than 69.74% of industry peers. Furthermore, DoubleVerify's return on invested capital (ROIC) is 6.70%, which is more favorable than 63.64% of companies in the same space. Over the past decade, DoubleVerify has maintained profitability for five years, showcasing its financial resilience.
DoubleVerify's Growth Trajectory
When it comes to growth, DoubleVerify has demonstrated strong performance. The company's 3-year revenue growth rate per share is an impressive 31.10%, outperforming 84.88% of its industry counterparts. Looking ahead, the estimated total revenue growth rate for the next three to five years is 22.23%, which is higher than 88.78% of its peers. Additionally, the 3-year EPS without NRI growth rate is 18.60%, better than 64.37% of industry competitors. These growth metrics underscore DoubleVerify's potential for continued expansion and profitability.
Notable Shareholders in DoubleVerify
Among the notable investors in DoubleVerify, Steven Cohen (Trades, Portfolio) stands out as the top holder with 1,501,100 shares, representing 0.88% of the company's shares. Following him is Joel Greenblatt (Trades, Portfolio), holding 60,765 shares, which accounts for 0.04% of the company's shares. The involvement of these prominent investors signals confidence in DoubleVerify's business model and future prospects.
Competitive Landscape
DoubleVerify operates in a competitive landscape, with key players such as Workiva Inc (WK, Financial) with a market cap of $5.16 billion, ZoomInfo Technologies Inc (ZI, Financial) valued at $6.1 billion, and Braze Inc (BRZE, Financial) with a market capitalization of $5.3 billion. These companies, along with DoubleVerify, form a closely contested space within the software industry, each vying for a significant share of the market.
Conclusion
In summary, DoubleVerify Holdings Inc's recent stock performance reflects a company that is fairly valued and poised for continued growth. The company's profitability metrics are solid, with an operating margin, ROE, ROA, and ROIC that are all above the median for its industry peers. The growth rates in revenue and EPS also suggest a strong upward trajectory. With significant investments from major holders and a competitive position in the market, DoubleVerify appears to be on a promising path. Investors and market watchers alike will be keen to see how the company leverages its strengths in the dynamic digital advertising space.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
