DATADOG INC - CLASS A (3QD.DE) Stock Fundamental Analysis

Europe - Frankfurt Stock Exchange - FRA:3QD - US23804L1035 - Common Stock

113.62 EUR

+3.08 (+2.79%)

Last: 1/26/2026, 7:00:00 PM

Fundamental Rating

We assign a fundamental rating of 5 out of 10 to 3QD. 3QD was compared to 114 industry peers in the Software industry. 3QD has a great financial health rating, but its profitability evaluates not so good. 3QD is valued quite expensive, but it does show an excellent growth.

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1. Profitability

1.1 Basic Checks

3QD had positive earnings in the past year.
In the past year 3QD had a positive cash flow from operations.
In multiple years 3QD reported negative net income over the last 5 years.
In the past 5 years 3QD always reported a positive cash flow from operatings.

1.2 Ratios

With a Return On Assets value of 1.76%, 3QD perfoms like the industry average, outperforming 44.74% of the companies in the same industry.
With a Return On Equity value of 3.10%, 3QD perfoms like the industry average, outperforming 44.74% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	1.76%
ROE	3.1%
ROIC	N/A

ROA(3y)0.91%

ROA(5y)0.11%

ROE(3y)1.87%

ROE(5y)0.21%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

3QD has a Profit Margin (3.32%) which is comparable to the rest of the industry.
With a decent Gross Margin value of 79.94%, 3QD is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of 3QD has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	3.32%
GM	79.94%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.52%

GM growth 5Y1.37%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

3QD does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, 3QD has more shares outstanding
3QD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 3QD has a worse debt to assets ratio.

2.2 Solvency

3QD has an Altman-Z score of 12.05. This indicates that 3QD is financially healthy and has little risk of bankruptcy at the moment.
3QD has a Altman-Z score of 12.05. This is amongst the best in the industry. 3QD outperforms 92.98% of its industry peers.
3QD has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of all of its debts.
3QD has a better Debt to FCF ratio (1.14) than 75.44% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that 3QD is not too dependend on debt financing.
3QD has a Debt to Equity ratio (0.29) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.29
Debt/FCF	1.14
Altman-Z	12.05

ROIC/WACCN/A

WACC11.07%

2.3 Liquidity

3QD has a Current Ratio of 3.66. This indicates that 3QD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of 3QD (3.66) is better than 86.84% of its industry peers.
A Quick Ratio of 3.66 indicates that 3QD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.66, 3QD belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	3.66
Quick Ratio	3.66

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

3QD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.73%, which is quite good.
3QD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 54.87% yearly.
The Revenue has grown by 26.63% in the past year. This is a very strong growth!
Measured over the past years, 3QD shows a very strong growth in Revenue. The Revenue has been growing by 49.22% on average per year.

EPS 1Y (TTM)10.73%

EPS 3Y54.87%

EPS 5YN/A

EPS Q2Q%19.57%

Revenue 1Y (TTM)26.63%

Revenue growth 3Y37.67%

Revenue growth 5Y49.22%

Sales Q2Q%28.35%

3.2 Future

Based on estimates for the next years, 3QD will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.92% on average per year.
3QD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.44% yearly.

EPS Next Y13.9%

EPS Next 2Y14.99%

EPS Next 3Y17.31%

EPS Next 5Y19.92%

Revenue Next Year27.52%

Revenue Next 2Y24.25%

Revenue Next 3Y22.99%

Revenue Next 5Y21.44%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 68.45 indicates a quite expensive valuation of 3QD.
Compared to the rest of the industry, the Price/Earnings ratio of 3QD is on the same level as its industry peers.
3QD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 55.89 indicates a quite expensive valuation of 3QD.
The rest of the industry has a similar Price/Forward Earnings ratio as 3QD.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 3QD is valued quite expensively.

		Industry Rank	Sector Rank
PE	68.45
Fwd PE	55.89

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, 3QD is valued a bit more expensive than 74.56% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 3QD is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	54.54
EV/EBITDA	3404.45

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 3QD does not grow enough to justify the current Price/Earnings ratio.
3QD's earnings are expected to grow with 17.31% in the coming years. This may justify a more expensive valuation.