DBGI:NASDAQDigital Brands Group, Inc. Analysis
Data as of 2026-06-07 - not real-time
$0.86
Latest Price
8/10Risk
Risk Level: High
Executive Summary
Digital Brands Group (DBGI) trades at $0.86, essentially flat to its 20‑day SMA (0.86) but well below the 50‑day (1.34) and 200‑day (6.32) averages, confirming a bearish price trend. Volatility is extreme at 365% over the past 30 days and beta exceeds 1.8, indicating the stock moves sharply with the market. The balance sheet is strained – cash of $5.1M is dwarfed by debt of $10.2M, yielding a debt‑to‑equity ratio of over 286%, while operating cash flow and free cash flow are deeply negative. Fundamentals are weak with revenue down ~30%, gross margin under 4%, and an operating loss of more than $27M. Nonetheless, recent news outlines a strategic pivot: an AI‑enabled brand‑protection partnership and guidance for 2026 revenue of $55‑65M with positive free cash flow, plus a 2027 outlook of $100‑115M revenue and $10‑12M free cash flow. The market sentiment is currently “Extreme Greed” (Fear & Greed Index 83), but the technical and financial backdrop remains highly risky.
Market Outlook
Short Term
< 1 yearCautious
Model confidence: 7/10
Key Factors
- Price below key moving averages (50‑day, 200‑day)
- Extreme short‑term volatility and high beta
- Negative cash flow and high debt burden
Medium Term
1–3 yearsNeutral
Model confidence: 6/10
Key Factors
- Guidance indicating revenue and free cash flow improvement
- Strategic AI partnership that could unlock new revenue streams
- Continued balance‑sheet weakness and elevated leverage
Long Term
> 3 yearsPositive
Model confidence: 5/10
Key Factors
- Potential secular growth in AI‑driven commerce
- Projected multi‑year revenue expansion to $100‑115M
- Opportunity to re‑value the company if debt is reduced and cash flow turns positive
Key Metrics & Analysis
Financial Health
Revenue Growth-29.70%
ROE-766.22%
ROA-49.09%
Debt/Equity286.33
P/B Ratio3.6
Op. Cash Flow$-16080891
Free Cash Flow$-13493180
Technical Analysis
TrendBearish
RSI46.0
Support$0.26
Resistance$1.75
MA 20$0.86
MA 50$1.34
MA 200$6.32
MACDBullish
VolumeIncreasing
Fear & Greed Index83.02
Valuation
GradeOvervalued
TypeGrowth
Risk Assessment
Beta1.82
Volatility365.06%
Sector RiskHigh
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.