DYNATRACE INC (DT)
US2681501092 - Common Stock
We assign a fundamental rating of 6 out of 10 to DT. DT was compared to 279 industry peers in the Software industry. DT has only an average score on both its financial health and profitability. DT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make DT suitable 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's Return On Assets of 4.90% is fine compared to the rest of the industry. DT outperforms 75.18% of its industry peers.
With a decent Return On Equity value of 7.62%, DT is doing good in the industry, outperforming 75.54% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.14%, DT is in the better half of the industry, outperforming 74.46% 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 12.23%.
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 77.70% of its industry peers.
DT's Profit Margin has been stable in the last couple of years.
DT has a Operating Margin of 9.49%. This is in the better half of the industry: DT outperforms 76.62% of its industry peers.
DT's Operating Margin has declined in the last couple of years.
DT has a Gross Margin of 81.30%. This is amongst the best in the industry. DT outperforms 84.53% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DT is destroying value.
Compared to 1 year ago, DT has more shares outstanding
Compared to 5 years ago, DT has more shares outstanding
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 8.81. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
DT's Altman-Z score of 8.81 is fine compared to the rest of the industry. DT outperforms 75.90% 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 | 8.81 |
ROIC/WACC0.44
WACC11.78%
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.
Looking at the Current ratio, with a value of 1.42, DT is in line with its industry, outperforming 43.53% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that DT should not have too much problems paying its short term obligations.
DT has a Quick ratio (1.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.79% over the past year.
Measured over the past years, DT shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.96% on average per year.
DT shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.57%.
DT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.12% yearly.
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 17.14% yearly.
Based on estimates for the next years, DT will show a quite strong growth in Revenue. The Revenue will grow by 16.45% on average per year.
EPS Next Y13.83%
EPS Next 2Y13.39%
EPS Next 3Y14.29%
EPS Next 5Y17.14%
Revenue Next Year17.37%
Revenue Next 2Y16.46%
Revenue Next 3Y16.41%
Revenue Next 5Y16.45%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
DT is valuated quite expensively with a Price/Earnings ratio of 41.39.
DT's Price/Earnings ratio is a bit cheaper when compared to the industry. DT is cheaper than 65.11% of the companies in the same industry.
DT is valuated rather expensively when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
DT is valuated quite expensively with a Price/Forward Earnings ratio of 35.41.
DT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DT is cheaper than 64.39% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. DT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.39 | ||
| Fwd PE | 35.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 62.23% of the companies listed in the same industry.
71.94% 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 | 37.4 | ||
| EV/EBITDA | 72.88 |
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)2.99
PEG (5Y)N/A
EPS Next 2Y13.39%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
No dividends for DT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DYNATRACE INC
NYSE:DT (12/20/2024, 8:06:00 PM)
After market: 54.64 0 (0%)54.64
+1.08 (+2.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners99.08%
Inst Owner Change1.48%
Ins Owners0.47%
Ins Owner Change-8.93%
Market Cap16.31B
Analysts84
Price Target63.7 (16.58%)
Short Float %2.97%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)8.75%
Max EPS beat(2)11.39%
EPS beat(4)4
Avg EPS beat(4)9.78%
Min EPS beat(4)7.94%
Max EPS beat(4)11.39%
EPS beat(8)8
Avg EPS beat(8)15.2%
EPS beat(12)11
Avg EPS beat(12)12.92%
EPS beat(16)15
Avg EPS beat(16)12.71%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)-0.05%
Revenue beat(8)2
Avg Revenue beat(8)-0.51%
Revenue beat(12)2
Avg Revenue beat(12)-0.52%
Revenue beat(16)4
Avg Revenue beat(16)-0.24%
PT rev (1m)5.91%
PT rev (3m)8.07%
EPS NQ rev (1m)1.44%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)1.47%
EPS NY rev (3m)3.2%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.39 | ||
| Fwd PE | 35.41 | ||
| P/S | 10.43 | ||
| P/FCF | 37.4 | ||
| P/OCF | 35.32 | ||
| P/B | 7.61 | ||
| P/tB | 21.04 | ||
| EV/EBITDA | 72.88 |
EPS(TTM)1.32
EY2.42%
EPS(NY)1.54
Fwd EY2.82%
FCF(TTM)1.46
FCFY2.67%
OCF(TTM)1.55
OCFY2.83%
SpS5.24
BVpS7.18
TBVpS2.6
PEG (NY)2.99
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 7.62% | ||
| ROCE | 6.5% | ||
| ROIC | 5.14% | ||
| ROICexc | 9.18% | ||
| ROICexgc | N/A | ||
| OM | 9.49% | ||
| PM (TTM) | 10.44% | ||
| GM | 81.3% | ||
| FCFM | 27.9% |
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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 45.85% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 181.86 | ||
| Cash Conversion | 226.07% | ||
| Profit Quality | 267.12% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 8.81 |
F-Score7
WACC11.78%
ROIC/WACC0.44
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)15.79%
EPS 3Y23.96%
EPS 5YN/A
EPS Q2Q%19.35%
EPS Next Y13.83%
EPS Next 2Y13.39%
EPS Next 3Y14.29%
EPS Next 5Y17.14%
Revenue 1Y (TTM)20.57%
Revenue growth 3Y26.69%
Revenue growth 5Y27.12%
Sales Q2Q%18.89%
Revenue Next Year17.37%
Revenue Next 2Y16.46%
Revenue Next 3Y16.41%
Revenue Next 5Y16.45%
EBIT growth 1Y20.55%
EBIT growth 3Y12.63%
EBIT growth 5YN/A
EBIT Next Year28.3%
EBIT Next 3Y21.34%
EBIT Next 5YN/A
FCF growth 1Y45.22%
FCF growth 3Y18.86%
FCF growth 5Y20.24%
OCF growth 1Y43.56%
OCF growth 3Y19.71%
OCF growth 5Y20.78%