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DATADOG INC - CLASS A (DDOG) Stock Fundamental Analysis

NASDAQ:DDOG - Nasdaq - US23804L1035 - Common Stock - Currency: USD

119.64  -6.6 (-5.23%)

After market: 119.654 +0.01 (+0.01%)

Fundamental Rating

5

DDOG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. DDOG has an excellent financial health rating, but there are some minor concerns on its profitability. DDOG is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year DDOG was profitable.
DDOG had a positive operating cash flow in the past year.
DDOG had negative earnings in 4 of the past 5 years.
Of the past 5 years DDOG 4 years had a positive operating cash flow.
DDOG Yearly Net Income VS EBIT VS OCF VS FCFDDOG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

1.2 Ratios

DDOG's Return On Assets of 4.15% is fine compared to the rest of the industry. DDOG outperforms 73.55% of its industry peers.
With a decent Return On Equity value of 7.31%, DDOG is doing good in the industry, outperforming 73.19% of the companies in the same industry.
DDOG's Return On Invested Capital of 2.05% is fine compared to the rest of the industry. DDOG outperforms 68.12% of its industry peers.
Industry RankSector 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
DDOG Yearly ROA, ROE, ROICDDOG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 -5 -10 -15

1.3 Margins

DDOG has a Profit Margin of 7.58%. This is in the better half of the industry: DDOG outperforms 73.55% of its industry peers.
The Operating Margin of DDOG (2.86%) is better than 66.30% of its industry peers.
Looking at the Gross Margin, with a value of 81.22%, DDOG belongs to the top of the industry, outperforming 84.42% 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 RankSector 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%
DDOG Yearly Profit, Operating, Gross MarginsDDOG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

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8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DDOG is destroying value.
DDOG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
DDOG Yearly Shares OutstandingDDOG Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
DDOG Yearly Total Debt VS Total AssetsDDOG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

An Altman-Z score of 13.29 indicates that DDOG is not in any danger for bankruptcy at the moment.
DDOG has a better Altman-Z score (13.29) than 88.77% of its industry peers.
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 RankSector Rank
Debt/Equity 0
Debt/FCF 1.01
Altman-Z 13.29
ROIC/WACC0.15
WACC13.95%
DDOG Yearly LT Debt VS Equity VS FCFDDOG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

DDOG has a Current Ratio of 2.13. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
DDOG has a Current ratio of 2.13. This is in the better half of the industry: DDOG outperforms 62.32% 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.
Looking at the Quick ratio, with a value of 2.13, DDOG is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.13
Quick Ratio 2.13
DDOG Yearly Current Assets VS Current LiabilitesDDOG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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5

3. Growth

3.1 Past

DDOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.98%, which is quite good.
The Earnings Per Share has been growing by 54.87% on average over the past years. This is a very strong growth
EPS 1Y (TTM)10.98%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%-10.91%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%25.11%

3.2 Future

Based on estimates for the next years, DDOG will show a very strong growth in Earnings Per Share. The EPS will grow by 29.14% on average per year.
Based on estimates for the next years, DDOG will show a very strong growth in Revenue. The Revenue will grow by 22.32% on average per year.
EPS Next Y-1.08%
EPS Next 2Y10.2%
EPS Next 3Y15.36%
EPS Next 5Y29.14%
Revenue Next Year20.45%
Revenue Next 2Y20.21%
Revenue Next 3Y21%
Revenue Next 5Y22.32%

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.
DDOG Yearly Revenue VS EstimatesDDOG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
DDOG Yearly EPS VS EstimatesDDOG Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 2 4 6 8 10

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 65.74, the valuation of DDOG can be described as expensive.
DDOG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.62, DDOG is valued quite expensively.
DDOG is valuated quite expensively with a Price/Forward Earnings ratio of 66.45.
DDOG's Price/Forward Earnings is on the same level as the industry average.
DDOG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.70.
Industry RankSector Rank
PE 65.74
Fwd PE 66.45
DDOG Price Earnings VS Forward Price EarningsDDOG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 55.26
EV/EBITDA 285.08
DDOG Per share dataDDOG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

DDOG's earnings are expected to grow with 15.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.2%
EPS Next 3Y15.36%

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0

5. Dividend

5.1 Amount

DDOG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DATADOG INC - CLASS A

NASDAQ:DDOG (2/21/2025, 8:13:21 PM)

After market: 119.654 +0.01 (+0.01%)

119.64

-6.6 (-5.23%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-13 2025-02-13/bmo
Earnings (Next)05-05 2025-05-05/bmo
Inst Owners88.58%
Inst Owner Change-85.7%
Ins Owners2.83%
Ins Owner Change-4.05%
Market Cap40.64B
Analysts82.45
Price Target163.58 (36.73%)
Short Float %4.37%
Short Ratio2.73
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.79%
Min EPS beat(2)12.91%
Max EPS beat(2)14.67%
EPS beat(4)4
Avg EPS beat(4)18.68%
Min EPS beat(4)12.91%
Max EPS beat(4)23.78%
EPS beat(8)8
Avg EPS beat(8)22.25%
EPS beat(12)12
Avg EPS beat(12)36.63%
EPS beat(16)16
Avg EPS beat(16)66.66%
Revenue beat(2)2
Avg Revenue beat(2)1.56%
Min Revenue beat(2)1.29%
Max Revenue beat(2)1.83%
Revenue beat(4)4
Avg Revenue beat(4)1.53%
Min Revenue beat(4)1.29%
Max Revenue beat(4)1.83%
Revenue beat(8)7
Avg Revenue beat(8)1.45%
Revenue beat(12)11
Avg Revenue beat(12)2.91%
Revenue beat(16)15
Avg Revenue beat(16)3.77%
PT rev (1m)0.08%
PT rev (3m)8.48%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)7.73%
EPS NY rev (1m)0.01%
EPS NY rev (3m)5.45%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
Industry RankSector Rank
PE 65.74
Fwd PE 66.45
P/S 16.03
P/FCF 55.26
P/OCF 49.23
P/B 15.46
P/tB 17.89
EV/EBITDA 285.08
EPS(TTM)1.82
EY1.52%
EPS(NY)1.8
Fwd EY1.5%
FCF(TTM)2.16
FCFY1.81%
OCF(TTM)2.43
OCFY2.03%
SpS7.47
BVpS7.74
TBVpS6.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.15%
ROE 7.31%
ROCE 2.55%
ROIC 2.05%
ROICexc N/A
ROICexgc N/A
OM 2.86%
PM (TTM) 7.58%
GM 81.22%
FCFM 29%
ROA(3y)-0.44%
ROA(5y)-0.84%
ROE(3y)-1.05%
ROE(5y)-1.57%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.97%
GM growth 5Y1.09%
F-Score6
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.01
Debt/EBITDA 0
Cap/Depr 175.76%
Cap/Sales 3.55%
Interest Coverage 250
Cash Conversion 666.23%
Profit Quality 382.77%
Current Ratio 2.13
Quick Ratio 2.13
Altman-Z 13.29
F-Score6
WACC13.95%
ROIC/WACC0.15
Cap/Depr(3y)161.71%
Cap/Depr(5y)168.19%
Cap/Sales(3y)3.44%
Cap/Sales(5y)4.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.98%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%-10.91%
EPS Next Y-1.08%
EPS Next 2Y10.2%
EPS Next 3Y15.36%
EPS Next 5Y29.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%25.11%
Revenue Next Year20.45%
Revenue Next 2Y20.21%
Revenue Next 3Y21%
Revenue Next 5Y22.32%
EBIT growth 1Y175.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year58.08%
EBIT Next 3Y34.3%
EBIT Next 5Y31.21%
FCF growth 1Y102.17%
FCF growth 3Y92.94%
FCF growth 5YN/A
OCF growth 1Y96.72%
OCF growth 3Y82.21%
OCF growth 5Y127.62%