DYNATRACE INC (DT) Stock Fundamental Analysis
NYSE:DT - New York Stock Exchange, Inc. - US2681501092 - Common Stock - Currency: USD
Overall DT gets a fundamental rating of 6 out of 10. We evaluated DT against 283 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 not overvalued while it is showing excellent growth. This is an interesting combination. This makes DT very considerable 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 4 of the past 5 years.
Of the past 5 years DT 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.91%, DT belongs to the top of the industry, outperforming 90.22% of the companies in the same industry.
With an excellent Return On Equity value of 18.89%, DT belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
DT's Return On Invested Capital of 4.71% is fine compared to the rest of the industry. DT outperforms 74.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DT is significantly below the industry average of 11.91%.
The last Return On Invested Capital (4.71%) for DT is above the 3 year average (4.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 18.89% | ||
| ROIC | 4.71% |
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
The Profit Margin of DT (29.51%) is better than 93.84% of its industry peers.
In the last couple of years the Profit Margin of DT has remained more or less at the same level.
DT has a Operating Margin of 9.79%. This is in the better half of the industry: DT outperforms 77.17% of its industry peers.
In the last couple of years the Operating Margin of DT has declined.
Looking at the Gross Margin, with a value of 81.22%, DT belongs to the top of the industry, outperforming 84.06% of the companies in the same industry.
In the last couple of years the Gross Margin of DT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.79% | ||
| PM (TTM) | 29.51% | ||
| GM | 81.22% |
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
DT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DT has more shares outstanding than it did 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
DT has an Altman-Z score of 9.94. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
DT has a Altman-Z score of 9.94. This is amongst the best in the industry. DT outperforms 81.88% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.94 |
ROIC/WACC0.34
WACC13.99%
2.3 Liquidity
DT has a Current Ratio of 1.50. 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 (1.50) which is comparable to the rest of the industry.
A Quick Ratio of 1.50 indicates that DT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, DT is in line with its industry, outperforming 46.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.22%, 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.
The Revenue has grown by 19.80% in the past year. This is quite good.
The Revenue has been growing by 27.12% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)13.22%
EPS 3Y23.96%
EPS 5YN/A
EPS Q2Q%15.62%
Revenue 1Y (TTM)19.8%
Revenue growth 3Y26.69%
Revenue growth 5Y27.12%
Sales Q2Q%19.47%
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 17.14% on average per year.
DT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.41% yearly.
EPS Next Y17.8%
EPS Next 2Y15.27%
EPS Next 3Y15.49%
EPS Next 5Y17.14%
Revenue Next Year18.46%
Revenue Next 2Y16.78%
Revenue Next 3Y16.4%
Revenue Next 5Y17.42%
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 43.71 indicates a quite expensive valuation of DT.
Based on the Price/Earnings ratio, DT is valued a bit cheaper than 61.96% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. DT is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 37.56, the valuation of DT can be described as expensive.
Based on the Price/Forward Earnings ratio, DT is valued a bit cheaper than 63.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DT to the average of the S&P500 Index (22.70), we can say DT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.71 | ||
| Fwd PE | 37.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DT is valued a bit cheaper than 61.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DT is valued a bit cheaper than 66.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.11 | ||
| EV/EBITDA | 78.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of DT may justify a higher PE ratio.
A more expensive valuation may be justified as DT's earnings are expected to grow with 15.49% in the coming years.
PEG (NY)2.46
PEG (5Y)N/A
EPS Next 2Y15.27%
EPS Next 3Y15.49%
5. Dividend
5.1 Amount
No dividends for DT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
59.88
-1.36 (-2.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.61%
Inst Owner Change-94.98%
Ins Owners0.4%
Ins Owner Change-13.38%
Market Cap17.93B
Analysts81.95
Price Target66.87 (11.67%)
Short Float %1.52%
Short Ratio1.38
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)10.09%
Min EPS beat(2)8.79%
Max EPS beat(2)11.39%
EPS beat(4)4
Avg EPS beat(4)9.22%
Min EPS beat(4)7.94%
Max EPS beat(4)11.39%
EPS beat(8)8
Avg EPS beat(8)14.56%
EPS beat(12)11
Avg EPS beat(12)12.88%
EPS beat(16)15
Avg EPS beat(16)11.58%
Revenue beat(2)0
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)-0.05%
Revenue beat(8)1
Avg Revenue beat(8)-0.84%
Revenue beat(12)2
Avg Revenue beat(12)-0.6%
Revenue beat(16)3
Avg Revenue beat(16)-0.5%
PT rev (1m)4.22%
PT rev (3m)11.17%
EPS NQ rev (1m)3.62%
EPS NQ rev (3m)-8.43%
EPS NY rev (1m)3.3%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)1.59%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.71 | ||
| Fwd PE | 37.56 | ||
| P/S | 10.97 | ||
| P/FCF | 44.11 | ||
| P/OCF | 41.85 | ||
| P/B | 7.02 | ||
| P/tB | 15.01 | ||
| EV/EBITDA | 78.01 |
EPS(TTM)1.37
EY2.29%
EPS(NY)1.59
Fwd EY2.66%
FCF(TTM)1.36
FCFY2.27%
OCF(TTM)1.43
OCFY2.39%
SpS5.46
BVpS8.53
TBVpS3.99
PEG (NY)2.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 18.89% | ||
| ROCE | 5.96% | ||
| ROIC | 4.71% | ||
| ROICexc | 7.53% | ||
| ROICexgc | 39.5% | ||
| OM | 9.79% | ||
| PM (TTM) | 29.51% | ||
| GM | 81.22% | ||
| FCFM | 24.86% |
ROA(3y)3.5%
ROA(5y)-1.27%
ROE(3y)6.14%
ROE(5y)-3.53%
ROIC(3y)4.3%
ROIC(5y)N/A
ROICexc(3y)6.48%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)5.44%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y11.73%
ROICexc growth 5YN/A
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%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.52% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 207.85 | ||
| Cash Conversion | 198.67% | ||
| Profit Quality | 84.25% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 9.94 |
F-Score6
WACC13.99%
ROIC/WACC0.34
Cap/Depr(3y)42.76%
Cap/Depr(5y)36.49%
Cap/Sales(3y)1.99%
Cap/Sales(5y)2.35%
Profit Quality(3y)325.63%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.22%
EPS 3Y23.96%
EPS 5YN/A
EPS Q2Q%15.62%
EPS Next Y17.8%
EPS Next 2Y15.27%
EPS Next 3Y15.49%
EPS Next 5Y17.14%
Revenue 1Y (TTM)19.8%
Revenue growth 3Y26.69%
Revenue growth 5Y27.12%
Sales Q2Q%19.47%
Revenue Next Year18.46%
Revenue Next 2Y16.78%
Revenue Next 3Y16.4%
Revenue Next 5Y17.42%
EBIT growth 1Y28.01%
EBIT growth 3Y12.63%
EBIT growth 5YN/A
EBIT Next Year32.43%
EBIT Next 3Y21.74%
EBIT Next 5YN/A
FCF growth 1Y34.87%
FCF growth 3Y18.86%
FCF growth 5Y20.24%
OCF growth 1Y32.68%
OCF growth 3Y19.71%
OCF growth 5Y20.78%