DYNATRACE INC (DT) Stock Fundamental Analysis
NYSE:DT - New York Stock Exchange, Inc. - US2681501092 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to DT. DT was compared to 282 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 priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make DT suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
DT had positive earnings in the past year.
DT had a positive operating cash flow in the past year.
In the past 5 years DT has always been profitable.
In the past 5 years DT always reported a positive cash flow from operatings.
1.2 Ratios
DT has a Return On Assets of 11.68%. This is amongst the best in the industry. DT outperforms 88.65% of its industry peers.
The Return On Equity of DT (18.45%) is better than 85.82% of its industry peers.
With a decent Return On Invested Capital value of 5.14%, DT is doing good in the industry, outperforming 75.53% 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 12.26%.
The last Return On Invested Capital (5.14%) for DT is above the 3 year average (4.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 18.45% | ||
| ROIC | 5.14% |
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 28.47% is amongst the best of the industry. DT outperforms 93.26% of its industry peers.
DT's Profit Margin has improved in the last couple of years.
DT has a Operating Margin of 10.57%. This is in the better half of the industry: DT outperforms 77.31% of its industry peers.
DT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 81.15%, DT belongs to the top of the industry, outperforming 84.75% 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 | 10.57% | ||
| PM (TTM) | 28.47% | ||
| GM | 81.15% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DT is destroying value.
The number of shares outstanding for DT has been increased compared to 1 year ago.
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 7.31. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
DT has a Altman-Z score of 7.31. This is in the better half of the industry: DT outperforms 77.66% 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 | 7.31 |
ROIC/WACC0.58
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.40 indicates that DT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.40, DT perfoms like the industry average, outperforming 44.68% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that DT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.40, DT perfoms like the industry average, outperforming 44.68% of the companies in the same industry.
DT does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.67% over the past year.
The Earnings Per Share has been growing by 35.19% on average over the past years. This is a very strong growth
Looking at the last year, DT shows a quite strong growth in Revenue. The Revenue has grown by 18.74% in the last year.
Measured over the past years, DT shows a very strong growth in Revenue. The Revenue has been growing by 25.49% on average per year.
EPS 1Y (TTM)16.67%
EPS 3Y26.6%
EPS 5Y35.19%
EPS Q2Q%10%
Revenue 1Y (TTM)18.74%
Revenue growth 3Y22.27%
Revenue growth 5Y25.49%
Sales Q2Q%16.89%
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 17.51% on average per year.
The Revenue is expected to grow by 15.25% on average over the next years. This is quite good.
EPS Next Y16.8%
EPS Next 2Y15.01%
EPS Next 3Y16.18%
EPS Next 5Y17.51%
Revenue Next Year16.1%
Revenue Next 2Y15.35%
Revenue Next 3Y15.16%
Revenue Next 5Y15.25%
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
DT is valuated quite expensively with a Price/Earnings ratio of 39.44.
Based on the Price/Earnings ratio, DT is valued a bit cheaper than the industry average as 64.54% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.15. DT is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 33.76 indicates a quite expensive valuation of DT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DT is on the same level as its industry peers.
DT is valuated expensively when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.44 | ||
| Fwd PE | 33.76 |
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 61.35% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 68.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.42 | ||
| EV/EBITDA | 66.96 |
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.
DT has an outstanding profitability rating, which may justify a higher PE ratio.
DT's earnings are expected to grow with 16.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.35
PEG (5Y)1.12
EPS Next 2Y15.01%
EPS Next 3Y16.18%
5. Dividend
5.1 Amount
No dividends for DT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
55.21
+0.32 (+0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.72%
Inst Owner Change1.69%
Ins Owners0.4%
Ins Owner Change2.35%
Market Cap16.54B
Analysts81.43
Price Target63.96 (15.85%)
Short Float %2.12%
Short Ratio2.14
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)7.53%
Min EPS beat(2)6.28%
Max EPS beat(2)8.79%
EPS beat(4)4
Avg EPS beat(4)8.8%
Min EPS beat(4)6.28%
Max EPS beat(4)11.39%
EPS beat(8)8
Avg EPS beat(8)10.94%
EPS beat(12)11
Avg EPS beat(12)12.74%
EPS beat(16)15
Avg EPS beat(16)11.63%
Revenue beat(2)0
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-0.92%
Revenue beat(12)2
Avg Revenue beat(12)-0.6%
Revenue beat(16)3
Avg Revenue beat(16)-0.51%
PT rev (1m)1.08%
PT rev (3m)-4.54%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)5.56%
EPS NY rev (1m)0.48%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.44 | ||
| Fwd PE | 33.76 | ||
| P/S | 9.74 | ||
| P/FCF | 38.42 | ||
| P/OCF | 36.01 | ||
| P/B | 6.31 | ||
| P/tB | 13.14 | ||
| EV/EBITDA | 66.96 |
EPS(TTM)1.4
EY2.54%
EPS(NY)1.64
Fwd EY2.96%
FCF(TTM)1.44
FCFY2.6%
OCF(TTM)1.53
OCFY2.78%
SpS5.67
BVpS8.75
TBVpS4.2
PEG (NY)2.35
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 18.45% | ||
| ROCE | 6.51% | ||
| ROIC | 5.14% | ||
| ROICexc | 8.62% | ||
| ROICexgc | 50.07% | ||
| OM | 10.57% | ||
| PM (TTM) | 28.47% | ||
| GM | 81.15% | ||
| FCFM | 25.35% |
ROA(3y)6.71%
ROA(5y)5.11%
ROE(3y)10.95%
ROE(5y)8.74%
ROIC(3y)4.74%
ROIC(5y)4.51%
ROICexc(3y)7.59%
ROICexc(5y)6.75%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6%
ROCE(5y)5.71%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y17.65%
ROICexc growth 5YN/A
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%
F-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 59.87% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 238.36 | ||
| Cash Conversion | 201.86% | ||
| Profit Quality | 89.03% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 7.31 |
F-Score6
WACC8.93%
ROIC/WACC0.58
Cap/Depr(3y)52.33%
Cap/Depr(5y)42.26%
Cap/Sales(3y)1.92%
Cap/Sales(5y)1.94%
Profit Quality(3y)207.25%
Profit Quality(5y)267.69%
High Growth Momentum
Growth
EPS 1Y (TTM)16.67%
EPS 3Y26.6%
EPS 5Y35.19%
EPS Q2Q%10%
EPS Next Y16.8%
EPS Next 2Y15.01%
EPS Next 3Y16.18%
EPS Next 5Y17.51%
Revenue 1Y (TTM)18.74%
Revenue growth 3Y22.27%
Revenue growth 5Y25.49%
Sales Q2Q%16.89%
Revenue Next Year16.1%
Revenue Next 2Y15.35%
Revenue Next 3Y15.16%
Revenue Next 5Y15.25%
EBIT growth 1Y39.2%
EBIT growth 3Y30.24%
EBIT growth 5YN/A
EBIT Next Year22.51%
EBIT Next 3Y19.57%
EBIT Next 5YN/A
FCF growth 1Y24.32%
FCF growth 3Y22.68%
FCF growth 5YN/A
OCF growth 1Y21.5%
OCF growth 3Y22.34%
OCF growth 5YN/A