DoubleVerify Holdings Inc (DV, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $6.52 billion. The current price of the stock is $38.38, reflecting a 7.33% gain over the past week and an impressive 32.99% gain over the past three months. According to the GF Value, which is currently set at $39.65, DoubleVerify is considered to be fairly valued. This valuation comes despite the absence of a past GF Value, indicating a recent reassessment of the company's 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 that digital ads are delivered in a safe environment, are fully viewable, and reach real individuals within the targeted geography. The company monetizes its services by charging a Measured Transaction Fee based on the volume of Media Transactions Measured on its platform. This business model has proven to be effective, as evidenced by the company's recent stock performance.
Assessing DoubleVerify's Profitability
DoubleVerify's Profitability Rank stands at 4/10, which may seem modest but is supported by strong underlying metrics. The company's Operating Margin is 14.36%, outperforming 81.55% of its industry peers. Its ROE is 6.18%, ROA is 5.26%, and ROIC is 6.70%, each surpassing more than half of the competition. Over the past decade, DoubleVerify has maintained profitability for five years, which is better than 45.33% of companies in the industry.
Growth Trajectory of DoubleVerify
DoubleVerify's growth metrics are particularly strong. The company's 3-Year Revenue Growth Rate per Share is an impressive 31.10%, which is higher than 84.89% of its industry peers. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 22.23%, surpassing 86.26% of competitors. The company's 3-Year EPS without NRI Growth Rate stands at 18.60%, which is better than 64.27% of the industry. These figures suggest that DoubleVerify is not only growing but doing so at a rate that outpaces many of its competitors.
Notable Shareholders in DoubleVerify
Among the notable shareholders of DoubleVerify, Steven Cohen (Trades, Portfolio) leads with 1,501,100 shares, representing a 0.88% stake in the company. Following him is Joel Greenblatt (Trades, Portfolio), holding 60,765 shares, which translates to a 0.04% share percentage. The involvement of these prominent investors underscores the confidence in DoubleVerify's business model and future prospects.
Competitive Landscape
When compared to its closest competitors, DoubleVerify holds a strong market position. Workiva Inc (WK, Financial) has a market cap of $5.11 billion, ZoomInfo Technologies Inc (ZI, Financial) is valued at $6 billion, and Braze Inc (BRZE, Financial) stands at $5.38 billion. DoubleVerify's market cap of $6.52 billion not only places it at the higher end of this spectrum but also reflects its robust performance and growth potential within the software industry.
Conclusion
In summary, DoubleVerify Holdings Inc's recent stock performance has been impressive, with a 33% surge over the last quarter and a current valuation that suggests the stock is fairly priced. The company's profitability and growth prospects are solid, with several financial metrics outperforming a majority of its industry peers. The confidence of notable shareholders and the company's competitive market position further reinforce the positive outlook for DoubleVerify. Investors and market watchers alike will be keen to see if the company can maintain this momentum in the coming quarters.
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.
