DATADOG INC - CLASS A (DDOG)
US23804L1035 - Common Stock
We assign a fundamental rating of 6 out of 10 to DDOG. DDOG was compared to 279 industry peers in the Software industry. DDOG has an excellent financial health rating, but there are some minor concerns on its profitability. DDOG shows excellent growth, but is valued quite expensive already. This makes DDOG very considerable for growth investing!
1. Profitability
1.1 Basic Checks
DDOG had positive earnings in the past year.
In the past year DDOG had a positive cash flow from operations.
In the past 5 years DDOG reported 4 times negative net income.
Each year in the past 5 years DDOG had a positive operating cash flow.
1.2 Ratios
DDOG has a Return On Assets of 4.15%. This is in the better half of the industry: DDOG outperforms 73.84% of its industry peers.
DDOG has a Return On Equity of 7.31%. This is in the better half of the industry: DDOG outperforms 74.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.05%, DDOG is in the better half of the industry, outperforming 69.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 7.31% | ||
| ROIC | 2.05% |
ROA(3y)-0.44%
ROA(5y)-0.84%
ROE(3y)-1.05%
ROE(5y)-1.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DDOG (7.58%) is better than 74.55% of its industry peers.
DDOG's Operating Margin of 2.86% is fine compared to the rest of the industry. DDOG outperforms 66.67% of its industry peers.
With an excellent Gross Margin value of 81.22%, DDOG belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
In the last couple of years the Gross Margin of DDOG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.86% | ||
| PM (TTM) | 7.58% | ||
| GM | 81.22% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.97%
GM growth 5Y1.09%
2. Health
2.1 Basic Checks
DDOG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DDOG has more shares outstanding
The number of shares outstanding for DDOG has been increased compared to 5 years ago.
DDOG has a better debt/assets ratio than last year.
2.2 Solvency
DDOG has an Altman-Z score of 13.85. This indicates that DDOG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.85, DDOG belongs to the top of the industry, outperforming 89.25% of the companies in the same industry.
There is no outstanding debt for DDOG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 13.85 |
ROIC/WACC0.17
WACC11.81%
2.3 Liquidity
A Current Ratio of 2.13 indicates that DDOG has no problem at all paying its short term obligations.
The Current ratio of DDOG (2.13) is better than 62.72% of its industry peers.
DDOG has a Quick Ratio of 2.13. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of DDOG (2.13) is better than 63.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.26% over the past year.
Measured over the past years, DDOG shows a very strong growth in Earnings Per Share. The EPS has been growing by 95.35% on average per year.
DDOG shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.30%.
The Revenue has been growing by 60.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)39.26%
EPS 3Y95.35%
EPS 5YN/A
EPS Q2Q%2.22%
Revenue 1Y (TTM)26.3%
Revenue growth 3Y52.21%
Revenue growth 5Y60.78%
Sales Q2Q%26.02%
3.2 Future
The Earnings Per Share is expected to grow by 22.91% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 24.62% on average over the next years. This is a very strong growth
EPS Next Y5.22%
EPS Next 2Y11.5%
EPS Next 3Y15.21%
EPS Next 5Y22.91%
Revenue Next Year25.78%
Revenue Next 2Y23.88%
Revenue Next 3Y23.68%
Revenue Next 5Y24.62%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
DDOG is valuated quite expensively with a Price/Earnings ratio of 67.01.
DDOG's Price/Earnings ratio is in line with the industry average.
DDOG is valuated expensively when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 61.79, DDOG can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as DDOG.
DDOG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.01 | ||
| Fwd PE | 61.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DDOG.
DDOG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DDOG is cheaper than 60.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.75 | ||
| EV/EBITDA | 300.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DDOG does not grow enough to justify the current Price/Earnings ratio.
DDOG's earnings are expected to grow with 15.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)12.83
PEG (5Y)N/A
EPS Next 2Y11.5%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
No dividends for DDOG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DATADOG INC - CLASS A
NASDAQ:DDOG (11/18/2024, 8:17:42 PM)
After market: 126 +0.03 (+0.02%)125.97
-0.12 (-0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap42.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.01 | ||
| Fwd PE | 61.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)12.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 7.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.86% | ||
| PM (TTM) | 7.58% | ||
| GM | 81.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)39.26%
EPS 3Y95.35%
EPS 5Y
EPS Q2Q%
EPS Next Y5.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.3%
Revenue growth 3Y52.21%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y