Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Direct Digital Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $-21.00 Mil. Direct Digital Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was $5.54 Mil. Therefore, Direct Digital Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was -378.89%.
The historical rank and industry rank for Direct Digital Holdings's Return-on-Tangible-Asset or its related term are showing as below:
DRCT'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -312.52 Med: -20.62 Max: 0.79
Current: -312.52
During the past 7 years, Direct Digital Holdings's highest Return-on-Tangible-Asset was 0.79%. The lowest was -312.52%. And the median was -20.62%.
DRCT's Return-on-Tangible-Asset is ranked worse than 97.67% of 1030
companies
in the Media - Diversified industry
Industry Median: 0.755
vs DRCT: -312.52
Direct Digital Holdings (NAS:DRCT) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Direct Digital Holdings Return-on-Tangible-Asset Related Terms
Direct Digital Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Direct Digital Holdings's Return-on-Tangible-Asset can be seen below:
* 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 Return-on-Tangible-Asset Chart
DRCT vs HAO, DBMM, CNET: Return-on-Tangible-Asset Comparison
For the Advertising Agencies subindustry, Direct Digital Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Direct Digital Holdings's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of -378.89% mean?
Direct Digital Holdings (DRCT) has a Return-on-Tangible-Asset of -378.89% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Direct Digital Holdings and its competitors. According to the industry distribution chart, Direct Digital Holdings ranks #1006 out of 1030 companies in the Media - Diversified industry, placing it in the top 97.7%.
Is Direct Digital Holdings' Return-on-Tangible-Asset too high?
Direct Digital Holdings' current Return-on-Tangible-Asset is -378.89%. Based on the distribution chart, Direct Digital Holdings ranks #1006 out of 1030 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Direct Digital Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Direct Digital Holdings' Return-on-Tangible-Asset compare to HAO and DBMM?
According to the Media - Diversified industry distribution chart, Direct Digital Holdings ranks #1006 out of 1030 companies for Return-on-Tangible-Asset. This places Direct Digital Holdings in the lower half of its industry. The industry median Return-on-Tangible-Asset is 0.76. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Media - Diversified company?
The median Return-on-Tangible-Asset among Media - Diversified companies is 0.76, based on 1,030 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Direct Digital Holdings and its competitors. For the Media - Diversified industry, the median Return-on-Tangible-Asset is 0.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Direct Digital Holdings's current Return-on-Tangible-Asset is -378.89%. 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 $20.75, compared to a current price of $2.62 — trading 87.4% below its estimated fair value. The current Return-on-Tangible-Asset is -378.89%. Direct Digital Holdings' overall GF Score™ is 43/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Direct Digital Holdings (DRCT), the current Return-on-Tangible-Asset is -378.89% as of Mar. 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 $2.62 is trading 87.4% below its estimated GF Value™ of $20.75.
GuruFocus considers Direct Digital Holdings to be Possible Value Trap.
Key valuation signals for DRCT:
Return-on-Tangible-Asset: -378.89%
GF Value™: $20.75 vs. price of $2.62 (87.4% below fair value)
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.
43GF Score
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