DYNATRACE INC (DT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DT - US2681501092 - Common Stock
40.65 USD
-0.02 (-0.05%)
40.48 USD
-0.17 (-0.42%)
We assign a fundamental rating of 7 out of 10 to DT. DT was compared to 278 industry peers in the Software industry. DT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DT is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, DT could be worth investigating further for growth and quality investing!.
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.
- DT had positive earnings in each of the past 5 years.
- DT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DT has a better Return On Assets (12.40%) than 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.
- With a decent Return On Invested Capital value of 6.10%, DT is doing good in the industry, outperforming 75.18% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DT is significantly below the industry average of 10.76%.
- The last Return On Invested Capital (6.10%) for DT is above the 3 year average (4.74%), which is a sign of increasing profitability.
| 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's Profit Margin of 27.33% is amongst the best of the industry. DT outperforms 88.13% of its industry peers.
- DT's Profit Margin has improved in the last couple of years.
- DT's Operating Margin of 12.19% is fine compared to the rest of the industry. DT outperforms 77.70% of its industry peers.
- In the last couple of years the Operating Margin of DT has grown nicely.
- With an excellent Gross Margin value of 81.50%, DT belongs to the best of the industry, outperforming 85.97% of the companies in the same industry.
- DT's Gross Margin has been stable in the last couple of years.
| 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%
2. Health
2.1 Basic Checks
- DT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, DT has more shares outstanding
- The number of shares outstanding for DT has been increased compared to 5 years ago.
- DT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- DT has an Altman-Z score of 6.62. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
- DT has a better Altman-Z score (6.62) than 79.86% 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 | 6.62 |
ROIC/WACC0.55
WACC11.1%
2.3 Liquidity
- A Current Ratio of 1.59 indicates that DT should not have too much problems paying its short term obligations.
- The Current ratio of DT (1.59) 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 |
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.
- The Revenue has grown by 18.50% in the past year. This is quite good.
- DT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.49% yearly.
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
- DT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.43% yearly.
- The Revenue is expected to grow by 14.93% on average over the next years. This is quite good.
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
- 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
- With a Price/Earnings ratio of 26.06, DT can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, DT is valued a bit cheaper than 65.83% of the companies in the same industry.
- DT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 21.36 indicates a rather expensive valuation of DT.
- DT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DT is cheaper than 69.78% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, DT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 21.36 |
4.2 Price Multiples
- 62.23% of the companies in the same industry are more expensive than DT, based on the Enterprise Value to EBITDA ratio.
- 71.58% of the companies in the same industry are more expensive than DT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.91 | ||
| EV/EBITDA | 42.08 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of DT may justify a higher PE ratio.
- DT's earnings are expected to grow with 16.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)0.74
EPS Next 2Y16.6%
EPS Next 3Y16.47%
5. Dividend
5.1 Amount
- No dividends for DT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DYNATRACE INC / DT FAQ
What is the ChartMill fundamental rating of DYNATRACE INC (DT) stock?
ChartMill assigns a fundamental rating of 7 / 10 to DT.
What is the valuation status for DT stock?
ChartMill assigns a valuation rating of 5 / 10 to DYNATRACE INC (DT). This can be considered as Fairly Valued.
How profitable is DYNATRACE INC (DT) stock?
DYNATRACE INC (DT) has a profitability rating of 8 / 10.
How financially healthy is DYNATRACE INC?
The financial health rating of DYNATRACE INC (DT) is 7 / 10.
Can you provide the expected EPS growth for DT stock?
The Earnings per Share (EPS) of DYNATRACE INC (DT) is expected to grow by 20.31% in the next year.