One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Digital Brands Group, Inc.
DBGI · NCM · Consumer Cyclical · Apparel Retail
Current price
$4.73
52-week range
$3.14 - $720.00
Market cap
$2.72M
Balance sheet
Distressed
-46.37x Concerning
Net debt $20.24M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
3 Risks
0 rewards · 3 risks
- Risk Return on equity was -1161.9% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -146.6% to -618.6% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 12.5%).
What this company does
Digital Brands Group, Inc.
Digital Brands Group is a company that owns several different clothing brands, like Bailey 44 and Sundry. It makes money mainly in two ways: selling clothes directly to customers from its own websites and also selling in bulk to other stores (a method called wholesale), which helps its products reach a wider audience.
How the company got here
Digital Brands Group started in 2012, originally named Denim.LA, Inc. The company's main idea was to buy existing online clothing brands that already had a following but could be more profitable. By bringing these brands together, Digital Brands Group could share resources like technology, marketing, and shipping to lower costs for all of them. It grew by acquiring several brands over the years and became a publicly traded company on the Nasdaq stock exchange in May 2021. The company's strategy is to find brands with loyal customers and help them grow by running the business side of things more efficiently.
What it actually does
Digital Brands Group is a collection of different clothing brands that sell apparel for women and men. You can think of it as a parent company that owns several smaller fashion labels. It offers a variety of clothes like dresses, tops, sweaters, and premium denim. The company sells these clothes in two main ways: directly to shoppers through the brands' own websites, and by selling in bulk to other stores, including small specialty shops and some department stores (this is known as wholesale).
Direct-to-Consumer Sales
This is the company's primary way of making money, where it sells clothes from its family of brands directly to customers through each brand's website. This approach, often called DTC, allows the company to have a direct relationship with its shoppers and control the entire customer experience. The brands in its portfolio include names like Bailey 44, which focuses on contemporary womenswear, DSTLD, known for its premium denim, and Sundry, a brand with a coastal, casual style. By selling online, the company avoids the costs of running physical retail stores and can reach customers anywhere.
Wholesale
The company also generates a portion of its revenue (the money it brings in from sales) through its wholesale business. This means it sells its clothing in large quantities to other retailers, such as specialty boutiques and department stores, who then sell the items to the final customer. This allows the company's brands to be available in physical stores where shoppers can see and try on the clothes. While this is a smaller part of the business compared to direct online sales, it helps the brands reach a wider audience that may not shop online.
What management is betting on now
The company is currently focused on growing its AVO brand, which makes collegiate licensed apparel. Management has highlighted significant recent revenue growth (the total money earned from sales) from this brand while spending less on marketing. They are also launching a new e-commerce platform (the technology that runs an online store) to improve the online shopping experience and increase sales. Recently, the company's leadership announced they are exploring strategic alternatives, which is a business term for considering major changes like selling the company or merging with another business to increase value for its shareholders (the people who own stock in the company).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-541.62K
FY2026 Q1
$-4.83M
FY2026 Q2
$-5.63M
Revenue
$1.21M
Net income
$-8.98M
Diluted EPS
-13.59
Operating cash flow
$-5.59M
Free cash flow
$-5.63M
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Sources
Revenue
$1.32M
Net income
$-11.39M
Diluted EPS
-1.06
Operating cash flow
$-4.71M
Free cash flow
$-4.83M
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Sources
Revenue
$1.60M
Net income
$-20.59M
Diluted EPS
0.73
Operating cash flow
$-4.72M
Free cash flow
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Sources
Revenue
$1.65M
Net income
$-3.45M
Diluted EPS
-1.18
Operating cash flow
$-5.07M
Free cash flow
—
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Sources
Revenue
$2.25M
Net income
$-2.12M
Diluted EPS
-0.81
Operating cash flow
$-1.58M
Free cash flow
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Sources
Revenue
$1.87M
Net income
$-2.09M
Diluted EPS
-0.92
Operating cash flow
$-4.51M
Free cash flow
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Sources
Revenue
$2.14M
Net income
$-5.37M
Diluted EPS
-49.98
Operating cash flow
$-2.86M
Free cash flow
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Sources
Revenue
$2.44M
Net income
$-3.54M
Diluted EPS
-1.63
Operating cash flow
$-541.62K
Free cash flow
$-541.62K
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $4.73
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $20.2M. Interest coverage -46.4x.
Net debt
$20.24M
Interest coverage
-46.37x
Digital Brands Group, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
DBGI
BASELINE
Digital Brands Group, Inc.
Total debt $21.62M Interest coverage -46.37x This is the baseline the peer rows are being compared against.
Total debt $216.29M Interest coverage -1.81x Neither company has much profit cushion over interest right now.
Total debt $25.45M Interest coverage -5.12x Neither company has much profit cushion over interest right now.
Total debt $196.70M Interest coverage -2.83x Neither company has much profit cushion over interest right now.
Total debt $206.80M Interest coverage -54.67x Neither company has much profit cushion over interest right now.
Total debt $417.49M Interest coverage 0.67x This peer still has a real interest-payment cushion, while DBGI does not.
What you should know
The case for and against DBGI
0 Rewards
3 Risks
Rewards
Risks
-
Return on equity was -1161.9% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -146.6% to -618.6% over 3 years.
-
Insider ownership is only 0.0% (peer median: 12.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
—
P/B
4.80x
P/S
0.47x
EV/EBITDA
-0.74x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
-2.8%
Operating margin
-618.6%
Net margin
0.0%
ROE
-1,161.9%
ROA
-58.3%
Health
Liquidity and balance-sheet strength
Debt / equity
40.04x
Current ratio
0.58x
Quick ratio
0.06x
Total debt
$21.62M
Total cash
$1.39M
Growth
How the business has been compounding
Revenue TTM
$5.78M
Revenue 5Y CAGR
-0.7%
EPS TTM
-74.10
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-20.10M
Free CF TTM
$-6.18M
FCF margin
-106.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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