MeritValue

Digital Brands Group, Inc.

DBGIdata completeness 88%6 fiscal years on file

Data notes: no data for concept 'pretaxIncome'

The thesis, from the filings

Digital Brands Group, Inc. earns about -481% on equity, but has diluted owners by 18195% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$7.58M1$10.3M2$14.9M3$11.6M4$7.38M4
Net income−$32.4M5−$38M6−$10.2M7−$13.1M8−$28.3M8
Operating cash flow−$14.2M9−$10.8M10−$6.01M11−$6.15M12−$15.9M12
Capital expenditure$43,17913$61,28614$29,67515——
Free cash flow (derived)−$14.3M9−$10.8M10−$6.04M11——
Total debt$2.5M16$1.83M17$2.33M18$15.9M19$12.2M20
Cash & equivalents$528,39421$1.28M22$20,77323$164,43124$1.93M24
Diluted shares76,28930,85222,385170,85314.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$6.28
your share of equity
Profit it earned you last year
−$20.24
Free cash flow it threw off
—
Debt you’d be carrying
$8.78

10 shares is a claim on $6.28 of net worth that earned you −$20.24 last year, against $8.78 of debt.

iii. Is this a good business?
Moat signal · return on equity
-481% avg · 5y
FY21 —FY22 —FY23 -639%FY24 —FY25 -322%

It earned an average -481% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+18195% shares · 5y

Share count is up 18195% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 390% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001104659-23-046250 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K/A · period ending 2022-12-31 · accession 0001493152-24-022425 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001641172-25-003320 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001493152-26-016851 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001104659-23-046250 (NetIncomeLoss)
  6. 10-K/A · period ending 2022-12-31 · accession 0001493152-24-022425 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001641172-25-003320 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001493152-26-016851 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001104659-23-046250 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K/A · period ending 2022-12-31 · accession 0001493152-24-022425 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001641172-25-003320 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001493152-26-016851 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001104659-23-046250 (PaymentsToAcquireProductiveAssets)
  14. 10-K/A · period ending 2022-12-31 · accession 0001493152-24-022425 (PaymentsToAcquireProductiveAssets)
  15. 10-K · period ending 2023-12-31 · accession 0001641172-25-003320 (PaymentsToAcquireProductiveAssets)
  16. 10-K · period ending 2021-12-31 · accession 0001104659-23-046250 (ShortTermBorrowings)
  17. 10-K/A · period ending 2022-12-31 · accession 0001493152-24-022425 (ShortTermBorrowings)
  18. 10-K · period ending 2023-12-31 · accession 0001641172-25-003320 (ShortTermBorrowings)
  19. 10-K · period ending 2024-12-31 · accession 0001493152-26-016851 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2025-12-31 · accession 0001493152-26-016851 (LongTermDebtCurrent)
  21. 10-K · period ending 2021-12-31 · accession 0001104659-23-046250 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K/A · period ending 2022-12-31 · accession 0001493152-24-022425 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2023-12-31 · accession 0001641172-25-003320 (CashAndCashEquivalentsAtCarryingValue)
  24. 10-K · period ending 2024-12-31 · accession 0001493152-26-016851 (CashAndCashEquivalentsAtCarryingValue)