DYNATRACE INC (DT)
US2681501092 - Common Stock
DT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 279 industry peers in the Software industry. Both the profitability and the financial health of DT get a neutral evaluation. Nothing too spectacular is happening here. DT is not overvalued while it is showing excellent growth. This is an interesting combination. This makes DT very considerable for growth 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.
Of the past 5 years DT 4 years were profitable.
DT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DT has a better Return On Assets (4.90%) than 75.63% of its industry peers.
With a decent Return On Equity value of 7.62%, DT is doing good in the industry, outperforming 75.27% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.14%, DT is doing good in the industry, outperforming 74.55% 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 11.54%.
The last Return On Invested Capital (5.14%) for DT is above the 3 year average (4.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 7.62% | ||
| ROIC | 5.14% |
ROA(3y)3.5%
ROA(5y)-1.27%
ROE(3y)6.14%
ROE(5y)-3.53%
ROIC(3y)4.3%
ROIC(5y)N/A
1.3 Margins
DT's Profit Margin of 10.44% is fine compared to the rest of the industry. DT outperforms 77.78% of its industry peers.
DT's Profit Margin has been stable in the last couple of years.
The Operating Margin of DT (9.49%) is better than 77.42% of its industry peers.
DT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 81.30%, DT belongs to the top of the industry, outperforming 84.95% of the companies in the same industry.
DT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.49% | ||
| PM (TTM) | 10.44% | ||
| GM | 81.3% |
OM growth 3Y-11.1%
OM growth 5YN/A
PM growth 3Y0.15%
PM growth 5YN/A
GM growth 3Y-0.19%
GM growth 5Y1.59%
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.
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
An Altman-Z score of 8.44 indicates that DT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.44, DT is in the better half of the industry, outperforming 76.70% of the companies in the same industry.
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 | 8.44 |
ROIC/WACC0.43
WACC11.9%
2.3 Liquidity
DT has a Current Ratio of 1.42. 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 of 1.42. This is comparable to the rest of the industry: DT outperforms 43.37% of its industry peers.
DT has a Quick Ratio of 1.42. This is a normal value and indicates that DT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.42, DT perfoms like the industry average, outperforming 43.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.79%, which is quite good.
DT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.96% yearly.
DT shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.57%.
Measured over the past years, DT shows a very strong growth in Revenue. The Revenue has been growing by 27.12% on average per year.
EPS 1Y (TTM)15.79%
EPS 3Y23.96%
EPS 5YN/A
EPS Q2Q%19.35%
Revenue 1Y (TTM)20.57%
Revenue growth 3Y26.69%
Revenue growth 5Y27.12%
Sales Q2Q%18.89%
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 17.23% yearly.
The Revenue is expected to grow by 16.89% on average over the next years. This is quite good.
EPS Next Y12.18%
EPS Next 2Y13.05%
EPS Next 3Y14.29%
EPS Next 5Y17.23%
Revenue Next Year16.96%
Revenue Next 2Y16.28%
Revenue Next 3Y16.46%
Revenue Next 5Y16.89%
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
The Price/Earnings ratio is 39.75, which means the current valuation is very expensive for DT.
Based on the Price/Earnings ratio, DT is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.65, DT is valued a bit more expensive.
DT is valuated quite expensively with a Price/Forward Earnings ratio of 34.21.
Based on the Price/Forward Earnings ratio, DT is valued a bit cheaper than the industry average as 63.80% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DT to the average of the S&P500 Index (23.56), we can say DT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.75 | ||
| Fwd PE | 34.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DT is valued a bit cheaper than 62.01% of the companies in the same industry.
71.33% 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 | 35.91 | ||
| EV/EBITDA | 69.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DT may justify a higher PE ratio.
DT's earnings are expected to grow with 14.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.26
PEG (5Y)N/A
EPS Next 2Y13.05%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
DT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DYNATRACE INC
NYSE:DT (11/21/2024, 4:33:44 PM)
After market: 52.47 0 (0%)52.47
+1.38 (+2.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.75 | ||
| Fwd PE | 34.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 7.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.49% | ||
| PM (TTM) | 10.44% | ||
| GM | 81.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)15.79%
EPS 3Y23.96%
EPS 5Y
EPS Q2Q%
EPS Next Y12.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.57%
Revenue growth 3Y26.69%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y