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Direct Digital HoldingsDRCT +5.59%40 Cash-to-Debt is 0.03 as of Jun. 2026, which is 79% below its 10-year median of 0.14. GuruFocus rates DRCT with a GF Score™ of 40/100 and a GF Value™ of $6.95 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,010 Media - Diversified companies, Direct Digital Holdings ranks worse than 94.06% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Direct Digital Holdings's cash to debt ratio for the quarter that ended in Jun. 2026 was 0.03.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Direct Digital Holdingscouldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for Direct Digital Holdings's Cash-to-Debt or its related term are showing as below:
DRCT'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.03 Med: 0.14 Max: 0.7
Current: 0.03
During the past 7 years, Direct Digital Holdings's highest Cash to Debt Ratio was 0.70. The lowest was 0.03. And the median was 0.14.
DRCT's Cash-to-Debt is ranked worse than 94.06% of 1010
companies
in the Media - Diversified industry
Industry Median: 1.41
vs DRCT: 0.03
Direct Digital Holdings (NAS:DRCT) Cash-to-Debt Explanation
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Direct Digital Holdings Cash-to-Debt Related Terms
Direct Digital Holdings Cash-to-Debt Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Advertising Agencies subindustry, Direct Digital Holdings's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Direct Digital Holdings Cash-to-Debt vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Direct Digital Holdings's Cash-to-Debt falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Direct Digital Holdings (DRCT) has a Cash-to-Debt of 0.03 as of Jun. 2026. This is 79% below median its historical median of 0.14. Over the past decade, Direct Digital Holdings' Cash-to-Debt has ranged from 0.03 to 0.70. According to the industry distribution chart, Direct Digital Holdings ranks #950 out of 1010 companies in the Media - Diversified industry, placing it in the top 94.1%.
Is Direct Digital Holdings' Cash-to-Debt too high?
Direct Digital Holdings' current Cash-to-Debt of 0.03 is 79% below median its 10-year median of 0.14. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.70. The Media - Diversified industry median Cash-to-Debt is 1.41. Direct Digital Holdings' value of 0.03 is 97.9% below this industry median. Based on the distribution chart, Direct Digital Holdings ranks #950 out of 1010 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Direct Digital Holdings has a GF Score™ of 40/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Direct Digital Holdings' Cash-to-Debt compare to HAO and DBMM?
According to the Media - Diversified industry distribution chart, Direct Digital Holdings ranks #950 out of 1010 companies for Cash-to-Debt. This places Direct Digital Holdings in the lower half of its industry. The industry median Cash-to-Debt is 1.41. Direct Digital Holdings' value of 0.03 is 97.9% below this benchmark. Historically, Direct Digital Holdings' own Cash-to-Debt has ranged from 0.03 to 0.70 over the past decade. While the company's 10-year median is 0.14 vs. the industry median of 1.41, Direct Digital Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for a Media - Diversified company?
The median Cash-to-Debt among Media - Diversified companies is 1.41, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Direct Digital Holdings's current Cash-to-Debt of 0.03 is 97.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Media - Diversified industry, the median Cash-to-Debt is 1.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Direct Digital Holdings's current Cash-to-Debt is 0.03, which is 79% below median its own 10-year median of 0.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Direct Digital Holdings stock overvalued right now?
Based on GuruFocus' analysis, Direct Digital Holdings (DRCT) is currently considered Possible Value Trap. The stock's GF Value™ is $6.95, compared to a current price of $1.70 — trading 75.5% below its estimated fair value. The current Cash-to-Debt is 0.03, which is 79% below median its 10-year median of 0.14 and 97.9% below the Media - Diversified industry median of 1.41. Direct Digital Holdings' overall GF Score™ is 40/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Direct Digital Holdings (DRCT), the current Cash-to-Debt is 0.03 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Direct Digital Holdings (DRCT) Overvalued in 2026?
Based on GuruFocus' analysis, Direct Digital Holdings stock appears to be undervalued.
The current stock price of $1.70 is trading 75.5% below its estimated GF Value™ of $6.95.
GuruFocus considers Direct Digital Holdings to be Possible Value Trap.
Key valuation signals for DRCT:
Cash-to-Debt: 0.03 (79% below median its 10-year median of 0.14)
GF Value™: $6.95 vs. price of $1.70 (75.5% below fair value)
Industry Position: 97.9% below the Media - Diversified median (#950 of 1010)
No single metric tells the full story. See the DRCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform focused on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy-side and sell-side of the digital advertising ecosystem. The company operates two reportable segments: sell-side advertising, which includes the results of Colossus Media, and buy-side advertising, which includes the results of Orange 142 and Huddled Masses. All of the company's revenues are attributed to the United States.
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