NYSE:DT: a strong growth stock preparing for the next leg up?.

Last update: Oct 4, 2023

In this article we will dive into DYNATRACE INC (NYSE:DT) as a possible candidate for growth investing. Investors should always do their own research, but we noticed DYNATRACE INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Examination for NYSE:DT

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:DT was assigned a score of 9 for growth:

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

How We Gauge Health for NYSE:DT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:DT has received a 6 out of 10:

An Altman-Z score of 8.37 indicates that DT is not in any danger for bankruptcy at the moment.
DT's Altman-Z score of 8.37 is amongst the best of the industry. DT outperforms 86.48% 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.

Evaluating Profitability: NYSE:DT

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 NYSE:DT, the assigned 7 is a significant indicator of profitability:

With an excellent Return On Assets value of 5.28%, DT belongs to the best of the industry, outperforming 86.48% of the companies in the same industry.
With an excellent Return On Equity value of 8.45%, DT belongs to the best of the industry, outperforming 86.12% of the companies in the same industry.
The Return On Invested Capital of DT (4.33%) is better than 80.43% 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.
DT has a better Profit Margin (11.77%) than 87.54% of its industry peers.
DT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 8.84%, DT belongs to the best of the industry, outperforming 81.49% of the companies in the same industry.
DT has a Gross Margin of 80.93%. This is amongst the best in the industry. DT outperforms 86.12% of its industry peers.

How do we evaluate the setup for NYSE:DT?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:DT is 8:

Although the technical rating is bad, DT does present a nice setup opportunity. Prices have been consolidating lately. There is a support zone below the current price at 45.77, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

For an up to date full technical analysis you can check the technical report of DT

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.