NASDAQ:DBX: good value for what you're paying.

Last update: Feb 1, 2024

Consider DROPBOX INC-CLASS A (NASDAQ:DBX) as a top value stock, identified by our stock screening tool. NASDAQ:DBX shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Unpacking NASDAQ:DBX's Valuation Rating

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:DBX has received a 8 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 89.93% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.93. DBX is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 89.57% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DBX to the average of the S&P500 Index (21.16), we can say DBX is valued slightly cheaper.
DBX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DBX is cheaper than 85.97% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 92.09% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DBX may justify a higher PE ratio.
A more expensive valuation may be justified as DBX's earnings are expected to grow with 13.12% in the coming years.

What does the Profitability looks like for NASDAQ:DBX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:DBX scores a 7 out of 10:

DBX's Return On Assets of 18.42% is amongst the best of the industry. DBX outperforms 97.84% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.54%, DBX belongs to the top of the industry, outperforming 94.96% of the companies in the same industry.
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 Profit Margin of 22.50%. This is amongst the best in the industry. DBX outperforms 94.24% of its industry peers.
With an excellent Operating Margin value of 14.48%, DBX belongs to the best of the industry, outperforming 86.33% of the companies in the same industry.
DBX has a Gross Margin of 80.84%. This is amongst the best in the industry. DBX outperforms 85.97% of its industry peers.
In the last couple of years the Gross Margin of DBX has grown nicely.

What does the Health looks like for NASDAQ:DBX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:DBX was assigned a score of 5 for health:

DBX has a debt to FCF ratio of 2.19. This is a good value and a sign of high solvency as DBX would need 2.19 years to pay back of all of its debts.
DBX's Debt to FCF ratio of 2.19 is fine compared to the rest of the industry. DBX outperforms 73.02% of its industry peers.

Growth Examination 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:

The Earnings Per Share has grown by an nice 18.13% over the past year.
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.

Every day, new Decent Value stocks can be found on ChartMill 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.