DATADOG INC - CLASS A (DDOG) Stock Fundamental Analysis
NASDAQ:DDOG - Nasdaq - US23804L1035 - Common Stock - Currency: USD
Taking everything into account, DDOG scores 5 out of 10 in our fundamental rating. DDOG was compared to 282 industry peers in the Software industry. DDOG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DDOG shows excellent growth, but is valued quite expensive already. These ratings could make DDOG a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
DDOG had positive earnings in the past year.
DDOG had a positive operating cash flow in the past year.
In multiple years DDOG reported negative net income over the last 5 years.
Each year in the past 5 years DDOG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.76%, DDOG is in the better half of the industry, outperforming 71.63% of the companies in the same industry.
DDOG has a Return On Equity of 5.68%. This is in the better half of the industry: DDOG outperforms 73.76% of its industry peers.
With a decent Return On Invested Capital value of 0.61%, DDOG is doing good in the industry, outperforming 64.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 5.68% | ||
| ROIC | 0.61% |
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
DDOG has a better Profit Margin (5.85%) than 72.69% of its industry peers.
The Operating Margin of DDOG (1.05%) is better than 63.83% of its industry peers.
With an excellent Gross Margin value of 80.14%, DDOG belongs to the best of the industry, outperforming 81.21% of the companies in the same industry.
DDOG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.05% | ||
| PM (TTM) | 5.85% | ||
| GM | 80.14% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.52%
GM growth 5Y1.37%
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 more shares outstanding than it did 1 year ago.
The number of shares outstanding for DDOG has been increased compared to 5 years ago.
DDOG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.35 indicates that DDOG is not in any danger for bankruptcy at the moment.
DDOG has a better Altman-Z score (10.35) than 84.75% of its industry peers.
The Debt to FCF ratio of DDOG is 1.94, which is an excellent value as it means it would take DDOG, only 1.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DDOG (1.94) is better than 68.09% of its industry peers.
DDOG has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.34, DDOG is not doing good in the industry: 60.99% of the companies in the same industry are doing better.
Although DDOG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 10.35 |
ROIC/WACC0.06
WACC10.92%
2.3 Liquidity
A Current Ratio of 2.74 indicates that DDOG has no problem at all paying its short term obligations.
The Current ratio of DDOG (2.74) is better than 74.82% of its industry peers.
A Quick Ratio of 2.74 indicates that DDOG has no problem at all paying its short term obligations.
DDOG has a better Quick ratio (2.74) than 75.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.22% over the past year.
DDOG 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 25.54% in the past year. This is a very strong growth!
Measured over the past years, DDOG shows a very strong growth in Revenue. The Revenue has been growing by 49.22% on average per year.
EPS 1Y (TTM)2.22%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%4.55%
Revenue 1Y (TTM)25.54%
Revenue growth 3Y37.67%
Revenue growth 5Y49.22%
Sales Q2Q%24.59%
3.2 Future
The Earnings Per Share is expected to grow by 9.35% on average over the next years. This is quite good.
DDOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.67% yearly.
EPS Next Y-3.44%
EPS Next 2Y8.97%
EPS Next 3Y16.61%
EPS Next 5Y9.35%
Revenue Next Year21.59%
Revenue Next 2Y20.26%
Revenue Next 3Y20.76%
Revenue Next 5Y18.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 74.66, the valuation of DDOG can be described as expensive.
DDOG's Price/Earnings ratio is in line with the industry average.
DDOG is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 63.57, which means the current valuation is very expensive for DDOG.
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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.66 | ||
| Fwd PE | 63.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DDOG is on the same level as its industry peers.
DDOG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.97 | ||
| EV/EBITDA | 496.36 |
4.3 Compensation for Growth
DDOG's earnings are expected to grow with 16.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.97%
EPS Next 3Y16.61%
5. Dividend
5.1 Amount
DDOG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
137.37
-0.12 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.65%
Inst Owner Change0%
Ins Owners2.46%
Ins Owner Change14.81%
Market Cap47.44B
Analysts81.6
Price Target141.89 (3.29%)
Short Float %2.46%
Short Ratio1.63
Dividend
| Industry Rank | Sector 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)7.32%
Min EPS beat(2)4.55%
Max EPS beat(2)10.09%
EPS beat(4)4
Avg EPS beat(4)10.55%
Min EPS beat(4)4.55%
Max EPS beat(4)14.67%
EPS beat(8)8
Avg EPS beat(8)17.92%
EPS beat(12)12
Avg EPS beat(12)23.92%
EPS beat(16)16
Avg EPS beat(16)47.33%
Revenue beat(2)2
Avg Revenue beat(2)0.95%
Min Revenue beat(2)0.69%
Max Revenue beat(2)1.22%
Revenue beat(4)4
Avg Revenue beat(4)1.26%
Min Revenue beat(4)0.69%
Max Revenue beat(4)1.83%
Revenue beat(8)7
Avg Revenue beat(8)1.28%
Revenue beat(12)11
Avg Revenue beat(12)1.78%
Revenue beat(16)15
Avg Revenue beat(16)3.23%
PT rev (1m)-1.66%
PT rev (3m)-11.96%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.66 | ||
| Fwd PE | 63.57 | ||
| P/S | 16.74 | ||
| P/FCF | 56.97 | ||
| P/OCF | 51.02 | ||
| P/B | 16.27 | ||
| P/tB | 18.59 | ||
| EV/EBITDA | 496.36 |
EPS(TTM)1.84
EY1.34%
EPS(NY)2.16
Fwd EY1.57%
FCF(TTM)2.41
FCFY1.76%
OCF(TTM)2.69
OCFY1.96%
SpS8.21
BVpS8.45
TBVpS7.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 5.68% | ||
| ROCE | 0.72% | ||
| ROIC | 0.61% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 1.05% | ||
| PM (TTM) | 5.85% | ||
| GM | 80.14% | ||
| FCFM | 29.38% |
ROA(3y)0.91%
ROA(5y)0.11%
ROE(3y)1.87%
ROE(5y)0.21%
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 3Y1.52%
GM growth 5Y1.37%
F-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | 11.79 | ||
| Cap/Depr | 182.25% | ||
| Cap/Sales | 3.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 1118.16% | ||
| Profit Quality | 502.39% | ||
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z | 10.35 |
F-Score4
WACC10.92%
ROIC/WACC0.06
Cap/Depr(3y)167.26%
Cap/Depr(5y)165.21%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.22%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%4.55%
EPS Next Y-3.44%
EPS Next 2Y8.97%
EPS Next 3Y16.61%
EPS Next 5Y9.35%
Revenue 1Y (TTM)25.54%
Revenue growth 3Y37.67%
Revenue growth 5Y49.22%
Sales Q2Q%24.59%
Revenue Next Year21.59%
Revenue Next 2Y20.26%
Revenue Next 3Y20.76%
Revenue Next 5Y18.67%
EBIT growth 1Y120.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year10.09%
EBIT Next 3Y21.58%
EBIT Next 5Y22.11%
FCF growth 1Y145%
FCF growth 3Y45.72%
FCF growth 5Y295.6%
OCF growth 1Y129.71%
OCF growth 3Y44.84%
OCF growth 5Y104.74%