DATADOG INC - CLASS A (DDOG) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:DDOG • US23804L1035

115.22 USD
-4.44 (-3.71%)
Last: Feb 4, 2026, 02:39 PM
Fundamental Rating

5

Taking everything into account, DDOG scores 5 out of 10 in our fundamental rating. DDOG was compared to 278 industry peers in the Software industry. While DDOG has a great health rating, its profitability is only average at the moment. DDOG is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

4

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 multiple years DDOG reported negative net income over the last 5 years.
  • In the past 5 years DDOG always reported a positive cash flow from operatings.
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 2024 0 200M 400M 600M 800M

1.2 Ratios

  • DDOG's Return On Assets of 1.76% is fine compared to the rest of the industry. DDOG outperforms 60.79% of its industry peers.
  • DDOG's Return On Equity of 3.10% is fine compared to the rest of the industry. DDOG outperforms 63.31% of its industry peers.
Industry RankSector 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
DDOG Yearly ROA, ROE, ROICDDOG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10 -15

1.3 Margins

  • DDOG has a better Profit Margin (3.32%) than 61.51% of its industry peers.
  • DDOG has a better Gross Margin (79.94%) than 81.30% of its industry peers.
  • In the last couple of years the Gross Margin of DDOG has remained more or less at the same level.
Industry RankSector 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%
DDOG Yearly Profit, Operating, Gross MarginsDDOG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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7

2. Health

2.1 Basic Checks

  • DDOG does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • 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.
  • The debt/assets ratio for DDOG is higher compared to a year ago.
DDOG Yearly Shares OutstandingDDOG Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 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 2024 1B 2B 3B 4B 5B

2.2 Solvency

  • DDOG has an Altman-Z score of 10.86. This indicates that DDOG is financially healthy and has little risk of bankruptcy at the moment.
  • DDOG has a Altman-Z score of 10.86. This is amongst the best in the industry. DDOG outperforms 92.45% of its industry peers.
  • The Debt to FCF ratio of DDOG is 1.14, which is an excellent value as it means it would take DDOG, only 1.14 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.14, DDOG is in the better half of the industry, outperforming 74.10% of the companies in the same industry.
  • DDOG has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of DDOG (0.29) is worse than 60.07% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.14
Altman-Z 10.86
ROIC/WACCN/A
WACC11.13%
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 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 3.66 indicates that DDOG has no problem at all paying its short term obligations.
  • DDOG's Current ratio of 3.66 is fine compared to the rest of the industry. DDOG outperforms 79.86% of its industry peers.
  • A Quick Ratio of 3.66 indicates that DDOG has no problem at all paying its short term obligations.
  • With a decent Quick ratio value of 3.66, DDOG is doing good in the industry, outperforming 79.86% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.66
Quick Ratio 3.66
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 2024 1B 2B 3B 4B

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9

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 10.73% 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 54.87% on average per year.
  • DDOG shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.63%.
  • 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)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, DDOG will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.92% 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 21.44% on average per year.
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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
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 2033 5B 10B
DDOG Yearly EPS VS EstimatesDDOG Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 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 58.79, 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 28.18, DDOG is valued quite expensively.
  • A Price/Forward Earnings ratio of 47.88 indicates a quite expensive valuation of DDOG.
  • The rest of the industry has a similar Price/Forward Earnings ratio as DDOG.
  • When comparing the Price/Forward Earnings ratio of DDOG to the average of the S&P500 Index (25.51), we can say DDOG is valued expensively.
Industry RankSector Rank
PE 58.79
Fwd PE 47.88
DDOG Price Earnings VS Forward Price EarningsDDOG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 46.73
EV/EBITDA 2966.5
DDOG Per share dataDDOG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • DDOG's earnings are expected to grow with 17.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.23
PEG (5Y)N/A
EPS Next 2Y14.99%
EPS Next 3Y17.31%

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0

5. Dividend

5.1 Amount

  • No dividends for DDOG!.
Industry RankSector Rank
Dividend Yield 0%

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DATADOG INC - CLASS A

NASDAQ:DDOG (2/4/2026, 2:39:53 PM)

115.22

-4.44 (-3.71%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-06
Earnings (Next)02-10
Inst Owners93.36%
Inst Owner Change-2.93%
Ins Owners0.82%
Ins Owner Change-6.36%
Market Cap40.40B
Revenue(TTM)3.21B
Net Income(TTM)106.77M
Analysts82.69
Price Target207.96 (80.49%)
Short Float %2.69%
Short Ratio1.86
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)11.88%
Min EPS beat(2)7.9%
Max EPS beat(2)15.86%
EPS beat(4)4
Avg EPS beat(4)9.6%
Min EPS beat(4)4.55%
Max EPS beat(4)15.86%
EPS beat(8)7
Avg EPS beat(8)11.05%
EPS beat(12)11
Avg EPS beat(12)15.98%
EPS beat(16)15
Avg EPS beat(16)28.33%
Revenue beat(2)2
Avg Revenue beat(2)2.14%
Min Revenue beat(2)1.82%
Max Revenue beat(2)2.46%
Revenue beat(4)4
Avg Revenue beat(4)1.55%
Min Revenue beat(4)0.69%
Max Revenue beat(4)2.46%
Revenue beat(8)8
Avg Revenue beat(8)1.54%
Revenue beat(12)11
Avg Revenue beat(12)1.48%
Revenue beat(16)15
Avg Revenue beat(16)2.57%
PT rev (1m)-4.92%
PT rev (3m)22.66%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)20.53%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)10.5%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.94%
Valuation
Industry RankSector Rank
PE 58.79
Fwd PE 47.88
P/S 12.58
P/FCF 46.73
P/OCF 40.88
P/B 11.75
P/tB 13.97
EV/EBITDA 2966.5
EPS(TTM)1.96
EY1.7%
EPS(NY)2.41
Fwd EY2.09%
FCF(TTM)2.47
FCFY2.14%
OCF(TTM)2.82
OCFY2.45%
SpS9.16
BVpS9.81
TBVpS8.25
PEG (NY)4.23
PEG (5Y)N/A
Graham Number20.8
Profitability
Industry RankSector Rank
ROA 1.76%
ROE 3.1%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 3.32%
GM 79.94%
FCFM 26.92%
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.14
Debt/EBITDA 82.78
Cap/Depr 225.47%
Cap/Sales 3.85%
Interest Coverage N/A
Cash Conversion 8328.09%
Profit Quality 809.86%
Current Ratio 3.66
Quick Ratio 3.66
Altman-Z 10.86
F-Score4
WACC11.13%
ROIC/WACCN/A
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)10.73%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%19.57%
EPS Next Y13.9%
EPS Next 2Y14.99%
EPS Next 3Y17.31%
EPS Next 5Y19.92%
Revenue 1Y (TTM)26.63%
Revenue growth 3Y37.67%
Revenue growth 5Y49.22%
Sales Q2Q%28.35%
Revenue Next Year27.52%
Revenue Next 2Y24.25%
Revenue Next 3Y22.99%
Revenue Next 5Y21.44%
EBIT growth 1Y-159.15%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year23.73%
EBIT Next 3Y24.32%
EBIT Next 5Y22.11%
FCF growth 1Y75.57%
FCF growth 3Y45.72%
FCF growth 5Y295.6%
OCF growth 1Y78.36%
OCF growth 3Y44.84%
OCF growth 5Y104.74%

DATADOG INC - CLASS A / DDOG FAQ

What is the fundamental rating for DDOG stock?

ChartMill assigns a fundamental rating of 5 / 10 to DDOG.


What is the valuation status of DATADOG INC - CLASS A (DDOG) stock?

ChartMill assigns a valuation rating of 2 / 10 to DATADOG INC - CLASS A (DDOG). This can be considered as Overvalued.


What is the profitability of DDOG stock?

DATADOG INC - CLASS A (DDOG) has a profitability rating of 4 / 10.


What is the expected EPS growth for DATADOG INC - CLASS A (DDOG) stock?

The Earnings per Share (EPS) of DATADOG INC - CLASS A (DDOG) is expected to grow by 13.9% in the next year.