DATADOG INC - CLASS A (DDOG) Stock Fundamental Analysis
NASDAQ:DDOG • US23804L1035
122.75 USD
-2.45 (-1.96%)
Last: Feb 17, 2026, 03:53 PM
Taking everything into account, DDOG scores 5 out of 10 in our fundamental rating. DDOG was compared to 276 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 expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
- In the past year DDOG was profitable.
- 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.
- DDOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of DDOG (1.62%) is better than 60.87% of its industry peers.
- DDOG has a better Return On Equity (2.89%) than 62.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 2.89% | ||
| ROIC | N/A |
ROA(3y)2.01%
ROA(5y)0.7%
ROE(3y)4.02%
ROE(5y)1.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- DDOG has a Profit Margin of 3.14%. This is in the better half of the industry: DDOG outperforms 60.14% of its industry peers.
- Looking at the Gross Margin, with a value of 79.96%, DDOG belongs to the top of the industry, outperforming 81.16% 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 | N/A | ||
| PM (TTM) | 3.14% | ||
| GM | 79.96% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.27%
GM growth 5Y0.39%
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.
- Compared to 1 year ago, DDOG has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 10.26 indicates that DDOG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of DDOG (10.26) is better than 92.75% of its industry peers.
- The Debt to FCF ratio of DDOG is 1.08, which is an excellent value as it means it would take DDOG, only 1.08 years of fcf income to pay off all of its debts.
- DDOG has a Debt to FCF ratio of 1.08. This is in the better half of the industry: DDOG outperforms 73.91% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that DDOG is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.26, DDOG is in line with its industry, outperforming 40.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 10.26 |
ROIC/WACCN/A
WACC10.98%
2.3 Liquidity
- A Current Ratio of 3.38 indicates that DDOG has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.38, DDOG is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
- A Quick Ratio of 3.38 indicates that DDOG has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 3.38, DDOG is doing good in the industry, outperforming 78.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.38 | ||
| Quick Ratio | 3.38 |
3. Growth
3.1 Past
- DDOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.19%, which is quite good.
- DDOG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 56.42% yearly.
- DDOG shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.68%.
- DDOG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 41.53% yearly.
EPS 1Y (TTM)13.19%
EPS 3Y28.54%
EPS 5Y56.42%
EPS Q2Q%20.41%
Revenue 1Y (TTM)27.68%
Revenue growth 3Y26.95%
Revenue growth 5Y41.53%
Sales Q2Q%29.21%
3.2 Future
- DDOG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.52% yearly.
- DDOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.64% yearly.
EPS Next Y17.06%
EPS Next 2Y19.52%
EPS Next 3Y22.33%
EPS Next 5Y20.52%
Revenue Next Year21.61%
Revenue Next 2Y20.46%
Revenue Next 3Y20.13%
Revenue Next 5Y19.64%
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.
- 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 59.59.
- DDOG's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.19. DDOG is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 50.90, the valuation of DDOG can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DDOG is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. DDOG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.59 | ||
| Fwd PE | 50.9 |
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 | 47.06 | ||
| EV/EBITDA | 2848.77 |
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 22.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.49
PEG (5Y)1.06
EPS Next 2Y19.52%
EPS Next 3Y22.33%
5. Dividend
5.1 Amount
- No dividends for DDOG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:DDOG (2/17/2026, 3:53:07 PM)
122.75
-2.45 (-1.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-10 2026-02-10/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners93.36%
Inst Owner Change-3.97%
Ins Owners0.82%
Ins Owner Change14.04%
Market Cap43.04B
Revenue(TTM)3.43B
Net Income(TTM)107.74M
Analysts83.02
Price Target198.63 (61.82%)
Short Float %2.89%
Short Ratio1.74
Dividend
| Industry Rank | Sector 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)10.07%
Min EPS beat(2)4.29%
Max EPS beat(2)15.86%
EPS beat(4)4
Avg EPS beat(4)8.15%
Min EPS beat(4)4.29%
Max EPS beat(4)15.86%
EPS beat(8)8
Avg EPS beat(8)11.75%
EPS beat(12)11
Avg EPS beat(12)13.58%
EPS beat(16)15
Avg EPS beat(16)24.22%
Revenue beat(2)2
Avg Revenue beat(2)1.89%
Min Revenue beat(2)1.82%
Max Revenue beat(2)1.96%
Revenue beat(4)4
Avg Revenue beat(4)1.73%
Min Revenue beat(4)0.69%
Max Revenue beat(4)2.46%
Revenue beat(8)8
Avg Revenue beat(8)1.58%
Revenue beat(12)11
Avg Revenue beat(12)1.44%
Revenue beat(16)15
Avg Revenue beat(16)2.06%
PT rev (1m)-9.19%
PT rev (3m)17.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)7.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.59 | ||
| Fwd PE | 50.9 | ||
| P/S | 12.56 | ||
| P/FCF | 47.06 | ||
| P/OCF | 40.99 | ||
| P/B | 11.53 | ||
| P/tB | 13.51 | ||
| EV/EBITDA | 2848.77 |
EPS(TTM)2.06
EY1.68%
EPS(NY)2.41
Fwd EY1.96%
FCF(TTM)2.61
FCFY2.13%
OCF(TTM)2.99
OCFY2.44%
SpS9.77
BVpS10.64
TBVpS9.09
PEG (NY)3.49
PEG (5Y)1.06
Graham Number22.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 2.89% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 3.14% | ||
| GM | 79.96% | ||
| FCFM | 26.69% |
ROA(3y)2.01%
ROA(5y)0.7%
ROE(3y)4.02%
ROE(5y)1.3%
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 3Y0.27%
GM growth 5Y0.39%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 77.1 | ||
| Cap/Depr | 242.88% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 8232.48% | ||
| Profit Quality | 849% | ||
| Current Ratio | 3.38 | ||
| Quick Ratio | 3.38 | ||
| Altman-Z | 10.26 |
F-Score6
WACC10.98%
ROIC/WACCN/A
Cap/Depr(3y)185.69%
Cap/Depr(5y)180.37%
Cap/Sales(3y)3.48%
Cap/Sales(5y)3.56%
Profit Quality(3y)833.72%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.19%
EPS 3Y28.54%
EPS 5Y56.42%
EPS Q2Q%20.41%
EPS Next Y17.06%
EPS Next 2Y19.52%
EPS Next 3Y22.33%
EPS Next 5Y20.52%
Revenue 1Y (TTM)27.68%
Revenue growth 3Y26.95%
Revenue growth 5Y41.53%
Sales Q2Q%29.21%
Revenue Next Year21.61%
Revenue Next 2Y20.46%
Revenue Next 3Y20.13%
Revenue Next 5Y19.64%
EBIT growth 1Y-179.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.31%
EBIT Next 3Y32.65%
EBIT Next 5Y23.73%
FCF growth 1Y18.01%
FCF growth 3Y37.29%
FCF growth 5Y61.52%
OCF growth 1Y20.62%
OCF growth 3Y35.9%
OCF growth 5Y57.28%
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 17.06% in the next year.