DOCEBO INC (DCBO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DCBO - CA25609L1058 - Common Stock
25.49 CAD
+0.16 (+0.63%)
We assign a fundamental rating of 6 out of 10 to DCBO. DCBO was compared to 68 industry peers in the Software industry. DCBO has only an average score on both its financial health and profitability. An interesting combination arises when we look at growth and value: DCBO is growing strongly while it also seems undervalued. This makes DCBO very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
- DCBO had positive earnings in the past year.
- DCBO had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: DCBO reported negative net income in multiple years.
- Of the past 5 years DCBO 4 years had a positive operating cash flow.
1.2 Ratios
- DCBO has a Return On Assets of 13.03%. This is amongst the best in the industry. DCBO outperforms 91.18% of its industry peers.
- DCBO's Return On Equity of 49.89% is amongst the best of the industry. DCBO outperforms 94.12% of its industry peers.
- With an excellent Return On Invested Capital value of 29.21%, DCBO belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 49.89% | ||
| ROIC | 29.21% |
ROA(3y)6.1%
ROA(5y)2.04%
ROE(3y)18.51%
ROE(5y)8.92%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a decent Profit Margin value of 9.54%, DCBO is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- Looking at the Operating Margin, with a value of 10.98%, DCBO is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- DCBO has a Gross Margin of 80.80%. This is amongst the best in the industry. DCBO outperforms 86.76% of its industry peers.
- In the last couple of years the Gross Margin of DCBO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.98% | ||
| PM (TTM) | 9.54% | ||
| GM | 80.8% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.38%
GM growth 5Y0.22%
2. Health
2.1 Basic Checks
- DCBO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for DCBO remains at a similar level compared to 1 year ago.
- DCBO has more shares outstanding than it did 5 years ago.
- DCBO has a better debt/assets ratio than last year.
2.2 Solvency
- DCBO has an Altman-Z score of 2.77. This is not the best score and indicates that DCBO is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of DCBO (2.77) is comparable to the rest of the industry.
- The Debt to FCF ratio of DCBO is 0.10, which is an excellent value as it means it would take DCBO, only 0.10 years of fcf income to pay off all of its debts.
- DCBO's Debt to FCF ratio of 0.10 is amongst the best of the industry. DCBO outperforms 89.71% of its industry peers.
- A Debt/Equity ratio of 0.05 indicates that DCBO is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.05, DCBO is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 2.77 |
ROIC/WACC2.85
WACC10.24%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that DCBO should not have too much problems paying its short term obligations.
- DCBO has a Current ratio (1.13) which is comparable to the rest of the industry.
- DCBO has a Quick Ratio of 1.13. This is a normal value and indicates that DCBO is financially healthy and should not expect problems in meeting its short term obligations.
- DCBO has a Quick ratio of 1.13. This is comparable to the rest of the industry: DCBO outperforms 54.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 120.69% over the past year.
- DCBO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.16%.
- DCBO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.25% yearly.
EPS 1Y (TTM)120.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%112.5%
Revenue 1Y (TTM)13.16%
Revenue growth 3Y27.67%
Revenue growth 5Y39.25%
Sales Q2Q%11.16%
3.2 Future
- Based on estimates for the next years, DCBO will show a very strong growth in Earnings Per Share. The EPS will grow by 27.76% on average per year.
- Based on estimates for the next years, DCBO will show a very strong growth in Revenue. The Revenue will grow by 24.94% on average per year.
EPS Next Y52.01%
EPS Next 2Y33.13%
EPS Next 3Y24.83%
EPS Next 5Y27.76%
Revenue Next Year11.86%
Revenue Next 2Y9.62%
Revenue Next 3Y9.58%
Revenue Next 5Y24.94%
3.3 Evolution
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- DCBO is valuated correctly with a Price/Earnings ratio of 14.48.
- Based on the Price/Earnings ratio, DCBO is valued cheaply inside the industry as 83.82% of the companies are valued more expensively.
- DCBO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- DCBO is valuated correctly with a Price/Forward Earnings ratio of 12.15.
- Based on the Price/Forward Earnings ratio, DCBO is valued a bit cheaper than 79.41% of the companies in the same industry.
- DCBO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DCBO is valued a bit cheaper than 69.12% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DCBO is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.93 | ||
| EV/EBITDA | 16.03 |
4.3 Compensation for Growth
- 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 DCBO may justify a higher PE ratio.
- A more expensive valuation may be justified as DCBO's earnings are expected to grow with 24.83% in the coming years.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y33.13%
EPS Next 3Y24.83%
5. Dividend
5.1 Amount
- DCBO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DOCEBO INC / DCBO.CA FAQ
Can you provide the ChartMill fundamental rating for DOCEBO INC?
ChartMill assigns a fundamental rating of 6 / 10 to DCBO.CA.
What is the valuation status of DOCEBO INC (DCBO.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to DOCEBO INC (DCBO.CA). This can be considered as Undervalued.
How profitable is DOCEBO INC (DCBO.CA) stock?
DOCEBO INC (DCBO.CA) has a profitability rating of 6 / 10.
How financially healthy is DOCEBO INC?
The financial health rating of DOCEBO INC (DCBO.CA) is 6 / 10.