Digital Brands Group Inc (DBGI) Stock Analysis
Verdict: AVOID
Extreme cash burn and constant equity dilution dwarf a new $3.3M cash flow contract, making DBGI an existential insolvency risk.
Investment score: 17/100
Analysis as of
Is Digital Brands Group Inc stock worth reviewing? The TradeMates thesis
The model rates Digital Brands Group an AVOID due to severe cash burn, negative TTM gross margins (-7.8%), and massive historical equity dilution.
7-factor investment score
- Valuation: 15/100 (weight 20%)
- Financial Health: 5/100 (weight 15%)
- Technical Momentum: 10/100 (weight 15%)
- Earnings Quality: 5/100 (weight 15%)
- Insider Sentiment: 60/100 (weight 10%)
- Analyst Consensus: 30/100 (weight 10%)
- Risk-Adjusted Return: 10/100 (weight 15%)
Digital Brands Group Inc opportunities and risks
What speaks for DBGI
- Execution of $3.3M Guaranteed Cash Flow Contract
What speaks against DBGI
- Imminent Insolvency and Depleted Cash Runway
Peers and competitors
- DXLG
- LVLU
- TLF
- XELB
- CBKCQ
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| DBGI | n/a | 0.2x | n/a | -7.8% | -768.3% | -2205.2% |
| DXLG | n/a | 0.1x | n/a | 38.8% | -9.2% | -35.4% |
| LVLU | n/a | 0.1x | n/a | 45.1% | -3.0% | 4.2% |
| TLF | n/a | 0.3x | 6.8x | 57.3% | -2.1% | -10.8% |
| XELB | n/a | 1.2x | n/a | 81.5% | -343.7% | -113.8% |
| CBKCQ | n/a | 0.0x | n/a | 31.2% | -4.8% | -179766.5% |
| Peer median | n/a | 0.1x | n/a | 45.1% | -4.8% | -35.4% |
Frequently asked questions about Digital Brands Group Inc (DBGI)
Is DBGI stock a good investment?
The TradeMates model rates Digital Brands Group Inc as AVOID with an investment score of 17/100. The model rates Digital Brands Group an AVOID due to severe cash burn, negative TTM gross margins (-7.8%), and massive historical equity dilution. This is algorithmic model output, not personal investment advice.
Is DBGI stock a buy?
The TradeMates model verdict for DBGI is AVOID with an investment score of 17/100. Treat this as a model signal to review, not a personal buy recommendation.