NASDAQ:DBX appears to be flying under the radar despite its strong fundamentals.

Last update: Jan 10, 2024

Discover DROPBOX INC-CLASS A (NASDAQ:DBX)—an undervalued stock our stock screener has picked out. NASDAQ:DBX demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Understanding NASDAQ:DBX's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:DBX has earned a 8 for valuation:

Based on the Price/Earnings ratio, DBX is valued cheaper than 89.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of DBX to the average of the S&P500 Index (25.84), we can say DBX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio, DBX is valued cheaply inside the industry as 89.53% of the companies are valued more expensively.
DBX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.76.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 87.00% of the companies listed in the same industry.
92.42% of the companies in the same industry are more expensive than DBX, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DBX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DBX's earnings are expected to grow with 13.01% in the coming years.

Understanding NASDAQ:DBX's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:DBX, the assigned 7 is a significant indicator of profitability:

DBX has a better Return On Assets (18.42%) than 98.19% of its industry peers.
DBX has a better Return On Invested Capital (15.54%) than 94.95% of its industry peers.
The 3 year average ROIC (11.60%) for DBX is below the current ROIC(15.54%), indicating increased profibility in the last year.
DBX has a better Profit Margin (22.50%) than 94.58% of its industry peers.
DBX's Operating Margin of 14.48% is amongst the best of the industry. DBX outperforms 86.28% of its industry peers.
DBX has a better Gross Margin (80.84%) than 85.56% of its industry peers.
DBX's Gross Margin has improved in the last couple of years.

Exploring NASDAQ:DBX's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:DBX, the assigned 5 reflects its health status:

The Debt to FCF ratio of DBX is 2.19, which is a good value as it means it would take DBX, 2.19 years of fcf income to pay off all of its debts.
DBX has a better Debt to FCF ratio (2.19) than 72.92% of its industry peers.

Assessing Growth for NASDAQ:DBX

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:DBX has earned a 5 for growth:

DBX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.13%, which is quite good.
The Earnings Per Share has been growing by 48.05% on average over the past years. This is a very strong growth
Measured over the past years, DBX shows a quite strong growth in Revenue. The Revenue has been growing by 16.00% on average per year.
DBX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.98% yearly.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of DBX contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.