DOMH

We rate Dominari Holdings Inc. (DOMH) as Avoid with a composite score of 28.9/100 at a current price of $3.30. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.

The rating is primarily driven by strength in quality (48th percentile) and value (29th percentile), which together account for the majority of the composite score. Offsetting weakness in momentum (5th percentile) and stability (6th percentile) tempers our overall conviction. We assign a Narrow Moat rating (46/100), Very High uncertainty, and Exemplary capital allocation.

Key items to watch: momentum to confirm whether the current price trend has legs; sustainability of the current growth rate; the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is widening, which provides additional comfort in the durability of the competitive position.

Dominari Holdings Inc. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 28.9/100 places it at rank #4596 in our full 7,333-stock universe. At $111M in market capitalization, Dominari Holdings Inc. is a small-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue is growing at 723%, though momentum at the 5th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.

The margin cascade tells an important story: gross margins of 100% (+23.5pp vs sector) narrow to operating margins of -133% (-150.5pp vs sector) and net margins of -51.2%, yielding a gross-to-net conversion rate of -51%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $3.30, Dominari Holdings Inc. is trading at a premium to fundamental value. Our value factor score of 29/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.

The stock currently trades at a P/E of 0.5x (a 96% discount to the sector median of 11.9x), P/B of 0.3x, P/S of 0.6x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a Very High uncertainty rating to Dominari Holdings Inc.. The stock exhibits multiple compounding risk factors: elevated market sensitivity (beta of 1.90), current negative profitability (net margin -51.2%), below-average price stability (6th percentile). The extreme uncertainty around future cash flows makes precise valuation difficult, and the range of outcomes is exceptionally wide. Only investors with high risk tolerance and extended time horizons should consider this name.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.90); current negative profitability (net margin -51.2%); below-average price stability (6th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 6th percentile and quality factor at the 48th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 100% provide a buffer against cost pressures; conservative leverage (6% D/E) limits balance sheet risk; a 8.36% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate Dominari Holdings Inc.'s capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 50.9%, disciplined leverage (6% D/E), a 8.36% dividend yield. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — Dominari Holdings Inc. meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. The company returns capital via a 8.36% dividend yield, and the combination of 47.9% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, Dominari Holdings Inc. receives a Avoid rating with a composite score of 28.9/100 (rank #4596 of 7,333). Our quantitative framework assigns a Narrow Moat (46/100, trend: widening), Very High uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 22/100.

Our analysis does not support a constructive view on Dominari Holdings Inc. at this time. The combination of the current quantitative profile, very high uncertainty, and exemplary capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.