DATADOG INC - CLASS A (DDOG) Stock Fundamental Analysis
NASDAQ:DDOG - Nasdaq - US23804L1035 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to DDOG. DDOG was compared to 285 industry peers in the Software industry. DDOG has an average financial health and profitability rating. DDOG is valued quite expensive, but it does show an excellent growth. These ratings would make DDOG suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year DDOG was profitable.
DDOG had a positive operating cash flow in the past year.
In multiple years DDOG reported negative net income over the last 5 years.
DDOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DDOG has a Return On Assets of 3.18%. This is in the better half of the industry: DDOG outperforms 70.88% of its industry peers.
DDOG has a better Return On Equity (6.77%) than 72.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.18%, DDOG is in the better half of the industry, outperforming 67.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.77% | ||
| ROIC | 1.18% |
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
Looking at the Profit Margin, with a value of 6.85%, DDOG is in the better half of the industry, outperforming 71.93% of the companies in the same industry.
DDOG has a better Operating Margin (2.02%) than 67.02% of its industry peers.
The Gross Margin of DDOG (80.79%) is better than 83.86% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.02% | ||
| PM (TTM) | 6.85% | ||
| GM | 80.79% |
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.
The number of shares outstanding for DDOG has been increased compared to 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
DDOG has an Altman-Z score of 7.24. This indicates that DDOG is financially healthy and has little risk of bankruptcy at the moment.
DDOG has a better Altman-Z score (7.24) than 79.65% of its industry peers.
DDOG has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as DDOG would need 2.08 years to pay back of all of its debts.
The Debt to FCF ratio of DDOG (2.08) is better than 67.02% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that DDOG is not too dependend on debt financing.
DDOG's Debt to Equity ratio of 0.36 is on the low side compared to the rest of the industry. DDOG is outperformed by 61.05% of its industry peers.
Even though the debt/equity ratio score it not favorable for DDOG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 7.24 |
ROIC/WACC0.11
WACC10.94%
2.3 Liquidity
A Current Ratio of 2.64 indicates that DDOG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.64, DDOG is in the better half of the industry, outperforming 69.12% of the companies in the same industry.
A Quick Ratio of 2.64 indicates that DDOG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.64, DDOG is in the better half of the industry, outperforming 69.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.64 |
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.
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 26.12%.
DDOG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 49.22% yearly.
EPS 1Y (TTM)10.98%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%-10.91%
Revenue 1Y (TTM)26.12%
Revenue growth 3Y37.67%
Revenue growth 5Y49.22%
Sales Q2Q%25.11%
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 19.43% on average per year.
DDOG is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.11% yearly.
EPS Next Y-1.76%
EPS Next 2Y9.72%
EPS Next 3Y14.77%
EPS Next 5Y19.43%
Revenue Next Year20.38%
Revenue Next 2Y20.12%
Revenue Next 3Y21.01%
Revenue Next 5Y20.11%
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
A Price/Earnings ratio of 48.86 indicates a quite expensive valuation of DDOG.
The rest of the industry has a similar Price/Earnings ratio as DDOG.
When comparing the Price/Earnings ratio of DDOG to the average of the S&P500 Index (28.29), we can say DDOG is valued expensively.
Based on the Price/Forward Earnings ratio of 49.73, the valuation of DDOG can be described as expensive.
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 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.86 | ||
| Fwd PE | 49.73 |
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.
Based on the Price/Free Cash Flow ratio, DDOG is valued a bit cheaper than 61.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.32 | ||
| EV/EBITDA | 235.63 |
4.3 Compensation for Growth
DDOG's earnings are expected to grow with 14.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.72%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
DDOG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
88.92
-2.26 (-2.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.58%
Inst Owner Change0.77%
Ins Owners2.83%
Ins Owner Change13.99%
Market Cap30.48B
Analysts80.82
Price Target161.17 (81.25%)
Short Float %4.22%
Short Ratio2.42
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)11.5%
Min EPS beat(2)10.09%
Max EPS beat(2)12.91%
EPS beat(4)4
Avg EPS beat(4)15.36%
Min EPS beat(4)10.09%
Max EPS beat(4)23.78%
EPS beat(8)8
Avg EPS beat(8)19.38%
EPS beat(12)12
Avg EPS beat(12)31.64%
EPS beat(16)16
Avg EPS beat(16)52.64%
Revenue beat(2)2
Avg Revenue beat(2)1.53%
Min Revenue beat(2)1.22%
Max Revenue beat(2)1.83%
Revenue beat(4)4
Avg Revenue beat(4)1.42%
Min Revenue beat(4)1.22%
Max Revenue beat(4)1.83%
Revenue beat(8)7
Avg Revenue beat(8)1.3%
Revenue beat(12)11
Avg Revenue beat(12)2.17%
Revenue beat(16)15
Avg Revenue beat(16)3.45%
PT rev (1m)-1.47%
PT rev (3m)-1.39%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-5.62%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)-14.25%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.86 | ||
| Fwd PE | 49.73 | ||
| P/S | 11.35 | ||
| P/FCF | 39.32 | ||
| P/OCF | 35.01 | ||
| P/B | 11.23 | ||
| P/tB | 12.97 | ||
| EV/EBITDA | 235.63 |
EPS(TTM)1.82
EY2.05%
EPS(NY)1.79
Fwd EY2.01%
FCF(TTM)2.26
FCFY2.54%
OCF(TTM)2.54
OCFY2.86%
SpS7.83
BVpS7.92
TBVpS6.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.77% | ||
| ROCE | 1.38% | ||
| ROIC | 1.18% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 2.02% | ||
| PM (TTM) | 6.85% | ||
| GM | 80.79% | ||
| FCFM | 28.88% |
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-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.08 | ||
| Debt/EBITDA | 8.97 | ||
| Cap/Depr | 173.85% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 797.13% | ||
| Profit Quality | 421.83% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.64 | ||
| Altman-Z | 7.24 |
F-Score6
WACC10.94%
ROIC/WACC0.11
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)10.98%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%-10.91%
EPS Next Y-1.76%
EPS Next 2Y9.72%
EPS Next 3Y14.77%
EPS Next 5Y19.43%
Revenue 1Y (TTM)26.12%
Revenue growth 3Y37.67%
Revenue growth 5Y49.22%
Sales Q2Q%25.11%
Revenue Next Year20.38%
Revenue Next 2Y20.12%
Revenue Next 3Y21.01%
Revenue Next 5Y20.11%
EBIT growth 1Y262.25%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year18.05%
EBIT Next 3Y24.09%
EBIT Next 5Y22.11%
FCF growth 1Y29.71%
FCF growth 3Y45.72%
FCF growth 5Y295.6%
OCF growth 1Y31.92%
OCF growth 3Y44.84%
OCF growth 5Y104.74%