NYSE:DT stands out as a growth opportunity that won't break the bank.

Last update: Feb 9, 2024

Take a closer look at DYNATRACE INC (NYSE:DT), an affordable growth stock uncovered by our stock screener. NYSE:DT boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

A Closer Look at Growth for NYSE:DT

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. NYSE:DT has earned a 9 for growth:

DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.00%, which is quite impressive.
The Earnings Per Share has been growing by 65.28% on average over the past years. This is a very strong growth
The Revenue has grown by 24.67% in the past year. This is a very strong growth!
The Revenue has been growing by 23.82% on average over the past years. This is a very strong growth!
Based on estimates for the next years, DT will show a very strong growth in Earnings Per Share. The EPS will grow by 20.42% on average per year.
DT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.41% yearly.

Valuation Analysis for NYSE:DT

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:DT, the assigned 5 reflects its valuation:

Compared to the rest of the industry, the Price/Earnings ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 68.23% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 64.62% of the companies listed in the same industry.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 67.15% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 66.06% 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.
DT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DT's earnings are expected to grow with 17.61% in the coming years.

Deciphering NYSE:DT's Health Rating

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:

DT has an Altman-Z score of 10.68. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DT (10.68) is better than 87.00% of its industry peers.
DT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

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

The Return On Assets of DT (6.09%) is better than 85.92% of its industry peers.
DT's Return On Equity of 9.40% is amongst the best of the industry. DT outperforms 84.84% of its industry peers.
The Return On Invested Capital of DT (4.68%) is better than 79.78% of its industry peers.
The last Return On Invested Capital (4.68%) for DT is above the 3 year average (3.89%), which is a sign of increasing profitability.
DT's Profit Margin of 13.06% is amongst the best of the industry. DT outperforms 86.64% of its industry peers.
DT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 9.49%, DT belongs to the best of the industry, outperforming 81.59% of the companies in the same industry.
With an excellent Gross Margin value of 81.31%, DT belongs to the best of the industry, outperforming 87.36% of the companies in the same industry.

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

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

Keep in mind

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.