1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year.
Direct Digital Holdings's 1-Year ROIIC % for the quarter that ended in Mar. 2026 was -32.47%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Direct Digital Holdings's 1-Year ROIIC % or its related term are showing as below:
DRCT's 1-Year ROIIC % is ranked worse than 76.99% of 982
companies
in the Media - Diversified industry
Industry Median: 0.385
vs DRCT: -32.47
Direct Digital Holdings (NAS:DRCT) 1-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Direct Digital Holdings 1-Year ROIIC % Related Terms
Direct Digital Holdings 1-Year ROIIC % 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.
DRCT vs HAO, DBMM, CNET: 1-Year ROIIC % Comparison
For the Advertising Agencies subindustry, Direct Digital Holdings's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % 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 1-Year ROIIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Direct Digital Holdings's 1-Year ROIIC % falls into.
Direct Digital Holdings 1-Year ROIIC % Calculation
Direct Digital Holdings's 1-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( -14.083 (Mar. 2026) - -10.5274 (Mar. 2025) )
/
( 32.811 (Mar. 2026) - 21.859 (Mar. 2025) )
=
-3.5556
/
10.952
=
-32.47%***
* 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.
** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Direct Digital Holdings (DRCT) has a 1-Year ROIIC % of -32.47 as of Mar. 2026. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on Direct Digital Holdings and its competitors. According to the industry distribution chart, Direct Digital Holdings ranks #756 out of 982 companies in the Media - Diversified industry, placing it in the top 77%.
Is Direct Digital Holdings' 1-Year ROIIC % too high?
Direct Digital Holdings' current 1-Year ROIIC % is -32.47. Based on the distribution chart, Direct Digital Holdings ranks #756 out of 982 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' 1-Year ROIIC % compare to HAO and DBMM?
According to the Media - Diversified industry distribution chart, Direct Digital Holdings ranks #756 out of 982 companies for 1-Year ROIIC %. This places Direct Digital Holdings in the lower half of its industry. The industry median 1-Year ROIIC % is 0.39. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year ROIIC % for a Media - Diversified company?
The median 1-Year ROIIC % among Media - Diversified companies is 0.39, based on 982 companies in the industry. Companies in the top quartile (top 25%) have a 1-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 1-Year ROIIC % 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 1-Year ROIIC % mean?
A high 1-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on Direct Digital Holdings and its competitors. For the Media - Diversified industry, the median 1-Year ROIIC % is 0.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Direct Digital Holdings's current 1-Year ROIIC % is -32.47. 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 $20.83, compared to a current price of $2.76 — trading 86.7% below its estimated fair value. The current 1-Year ROIIC % is -32.47. 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 1-Year ROIIC % calculated?
1-Year ROIIC % is calculated from a company's financial statements. For Direct Digital Holdings (DRCT), the current 1-Year ROIIC % is -32.47 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 $2.76 is trading 86.7% below its estimated GF Value™ of $20.83.
GuruFocus considers Direct Digital Holdings to be Possible Value Trap.
Key valuation signals for DRCT:
1-Year ROIIC %: -32.47
GF Value™: $20.83 vs. price of $2.76 (86.7% 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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