NYSE:DT qualifies as a high growth stock and is consolidating.

Last update: Sep 22, 2023

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether DYNATRACE INC (NYSE:DT) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but DYNATRACE INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Exploring NYSE:DT's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:DT has received a 9 out of 10:

DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.89%, which is quite impressive.
The Earnings Per Share has been growing by 65.30% on average over the past years. This is a very strong growth
The Revenue has grown by 24.03% in the past year. This is a very strong growth!
DT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.82% yearly.
DT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.63% yearly.
The Revenue is expected to grow by 19.53% on average over the next years. This is quite good.

A Closer Look at Health for NYSE:DT

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:DT has earned a 6 out of 10:

An Altman-Z score of 8.48 indicates that DT is not in any danger for bankruptcy at the moment.
DT has a better Altman-Z score (8.48) than 86.45% of its industry peers.
There is no outstanding debt for DT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:DT was assigned a score of 7 for profitability:

DT's Return On Assets of 5.28% is amongst the best of the industry. DT outperforms 86.08% of its industry peers.
DT has a better Return On Equity (8.45%) than 85.71% of its industry peers.
The Return On Invested Capital of DT (4.33%) is better than 79.85% of its industry peers.
The 3 year average ROIC (3.89%) for DT is below the current ROIC(4.33%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 11.77%, DT belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
In the last couple of years the Profit Margin of DT has grown nicely.
The Operating Margin of DT (8.84%) is better than 81.32% of its industry peers.
DT has a Gross Margin of 80.93%. This is amongst the best in the industry. DT outperforms 85.71% of its industry peers.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:DT is 8:

DT has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 45.92, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

Our latest full technical report of DT contains the most current technical analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.