We assign a fundamental rating of 7 out of 10 to DT. DT was compared to 278 industry peers in the Software industry. Both the health and profitability get an excellent rating, making DT a very profitable company, without any liquidiy or solvency issues. DT is growing strongly while it is still valued neutral. This is a good combination! These ratings would make DT suitable for growth and quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year DT was profitable.
In the past year DT had a positive cash flow from operations.
Each year in the past 5 years DT has been profitable.
DT had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

DT has a Return On Assets of 12.40%. This is amongst the best in the industry. DT outperforms 89.93% of its industry peers.
Looking at the Return On Equity, with a value of 18.22%, DT belongs to the top of the industry, outperforming 86.69% of the companies in the same industry.
DT has a Return On Invested Capital of 6.10%. This is in the better half of the industry: DT outperforms 75.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DT is significantly below the industry average of 10.73%.
The 3 year average ROIC (4.74%) for DT is below the current ROIC(6.10%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	12.4%
ROE	18.22%
ROIC	6.1%

ROA(3y)6.71%

ROA(5y)5.11%

ROE(3y)10.95%

ROE(5y)8.74%

ROIC(3y)4.74%

ROIC(5y)4.51%

1.3 Margins

DT has a better Profit Margin (27.33%) than 88.13% of its industry peers.
DT's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.19%, DT is doing good in the industry, outperforming 77.70% of the companies in the same industry.
In the last couple of years the Operating Margin of DT has grown nicely.
Looking at the Gross Margin, with a value of 81.50%, DT belongs to the top of the industry, outperforming 86.33% of the companies in the same industry.
In the last couple of years the Gross Margin of DT has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	12.19%
PM (TTM)	27.33%
GM	81.5%

OM growth 3Y6.52%

OM growth 5YN/A

PM growth 3Y71.46%

PM growth 5YN/A

GM growth 3Y-0.11%

GM growth 5Y1.22%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DT is destroying value.
The number of shares outstanding for DT has been increased compared to 1 year ago.
DT has more shares outstanding than it did 5 years ago.
There is no outstanding debt for DT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 6.26 indicates that DT is not in any danger for bankruptcy at the moment.
The Altman-Z score of DT (6.26) is better than 80.94% of its industry peers.
DT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	6.26

ROIC/WACC0.55

WACC11.08%

2.3 Liquidity

DT has a Current Ratio of 1.59. This is a normal value and indicates that DT is financially healthy and should not expect problems in meeting its short term obligations.
DT has a Current ratio (1.59) which is comparable to the rest of the industry.
DT has a Quick Ratio of 1.59. This is a normal value and indicates that DT is financially healthy and should not expect problems in meeting its short term obligations.
DT has a Quick ratio (1.59) which is in line with its industry peers.
The current and quick ratio evaluation for DT is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

		Industry Rank	Sector Rank
Current Ratio	1.59
Quick Ratio	1.59

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 18.18% over the past year.
DT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.19% yearly.
Looking at the last year, DT shows a quite strong growth in Revenue. The Revenue has grown by 18.50% in the last year.
The Revenue has been growing by 25.49% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)18.18%

EPS 3Y26.6%

EPS 5Y35.19%

EPS Q2Q%18.92%

Revenue 1Y (TTM)18.5%

Revenue growth 3Y22.27%

Revenue growth 5Y25.49%

Sales Q2Q%18.11%

3.2 Future

Based on estimates for the next years, DT will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.43% on average per year.
DT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.93% yearly.

EPS Next Y20.31%

EPS Next 2Y16.6%

EPS Next 3Y16.47%

EPS Next 5Y17.43%

Revenue Next Year18%

Revenue Next 2Y16.35%

Revenue Next 3Y15.64%

Revenue Next 5Y14.93%

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.

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4. Valuation

4.1 Price/Earnings Ratio

DT is valuated rather expensively with a Price/Earnings ratio of 24.42.
Based on the Price/Earnings ratio, DT is valued a bit cheaper than 65.83% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.32. DT is around the same levels.
DT is valuated rather expensively with a Price/Forward Earnings ratio of 20.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 69.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, DT is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	24.42
Fwd PE	20.01

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DT is valued a bit cheaper than 62.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DT is valued a bit cheaper than 72.30% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	24.28
EV/EBITDA	39.07

4.3 Compensation for Growth

DT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DT has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DT's earnings are expected to grow with 16.47% in the coming years.