DATADOG INC - CLASS A (DDOG)
US23804L1035 - Common Stock
Taking everything into account, DDOG scores 6 out of 10 in our fundamental rating. DDOG was compared to 277 industry peers in the Software industry. DDOG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DDOG is valued quite expensive, but it does show an excellent growth. These ratings would make DDOG suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year DDOG was profitable.
DDOG had a positive operating cash flow in the past year.
In the past 5 years DDOG reported 4 times negative net income.
DDOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DDOG has a Return On Assets of 2.78%. This is in the better half of the industry: DDOG outperforms 72.46% of its industry peers.
DDOG has a better Return On Equity (5.23%) than 75.36% of its industry peers.
DDOG's Return On Invested Capital of 0.34% is fine compared to the rest of the industry. DDOG outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 5.23% | ||
| ROIC | 0.34% |
ROA(3y)-0.44%
ROA(5y)-0.84%
ROE(3y)-1.05%
ROE(5y)-1.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DDOG's Profit Margin of 5.10% is fine compared to the rest of the industry. DDOG outperforms 74.28% of its industry peers.
DDOG has a better Operating Margin (0.60%) than 66.67% of its industry peers.
DDOG's Gross Margin of 81.39% is amongst the best of the industry. DDOG outperforms 86.59% of its industry peers.
DDOG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.6% | ||
| PM (TTM) | 5.1% | ||
| GM | 81.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.97%
GM growth 5Y1.09%
2. Health
2.1 Basic Checks
DDOG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DDOG has more shares outstanding
The number of shares outstanding for DDOG has been increased compared to 5 years ago.
DDOG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 13.62 indicates that DDOG is not in any danger for bankruptcy at the moment.
The Altman-Z score of DDOG (13.62) is better than 91.30% of its industry peers.
DDOG has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.11, DDOG is doing good in the industry, outperforming 74.64% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that DDOG is not too dependend on debt financing.
DDOG's Debt to Equity ratio of 0.34 is on the low side compared to the rest of the industry. DDOG is outperformed by 61.59% of its industry peers.
Although DDOG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 13.62 |
ROIC/WACC0.03
WACC9.88%
2.3 Liquidity
A Current Ratio of 3.43 indicates that DDOG has no problem at all paying its short term obligations.
The Current ratio of DDOG (3.43) is better than 76.81% of its industry peers.
DDOG has a Quick Ratio of 3.43. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.43, DDOG is doing good in the industry, outperforming 76.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.43 | ||
| Quick Ratio | 3.43 |
3. Growth
3.1 Past
DDOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 78.22%, which is quite impressive.
DDOG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 95.35% yearly.
DDOG shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.88%.
Measured over the past years, DDOG shows a very strong growth in Revenue. The Revenue has been growing by 60.78% on average per year.
EPS 1Y (TTM)78.22%
EPS 3Y95.35%
EPS 5YN/A
EPS growth Q2Q57.14%
Revenue 1Y (TTM)25.88%
Revenue growth 3Y52.21%
Revenue growth 5Y60.78%
Revenue growth Q2Q26.89%
3.2 Future
DDOG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.95% yearly.
Based on estimates for the next years, DDOG will show a very strong growth in Revenue. The Revenue will grow by 24.84% on average per year.
EPS Next Y-8.71%
EPS Next 2Y7.35%
EPS Next 3Y15.32%
EPS Next 5Y21.95%
Revenue Next Year22.43%
Revenue Next 2Y22.86%
Revenue Next 3Y25.17%
Revenue Next 5Y24.84%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
DDOG is valuated quite expensively with a Price/Earnings ratio of 66.71.
Compared to the rest of the industry, the Price/Earnings ratio of DDOG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.60, DDOG is valued quite expensively.
With a Price/Forward Earnings ratio of 63.53, DDOG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DDOG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of DDOG to the average of the S&P500 Index (20.15), we can say DDOG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.71 | ||
| Fwd PE | 63.53 |
4.2 Price Multiples
DDOG's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DDOG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.07 | ||
| EV/EBITDA | 587.33 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DDOG's earnings are expected to grow with 15.32% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.35%
EPS Next 3Y15.32%
5. Dividend
5.1 Amount
DDOG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DATADOG INC - CLASS A
NASDAQ:DDOG (5/17/2024, 7:00:01 PM)
After market: 120.376 +0.31 (+0.25%)120.07
-0.54 (-0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.71 | ||
| Fwd PE | 63.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 5.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.6% | ||
| PM (TTM) | 5.1% | ||
| GM | 81.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.43 | ||
| Quick Ratio | 3.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)78.22%
EPS 3Y95.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.88%
Revenue growth 3Y52.21%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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