DYNATRACE INC (DT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DT - US2681501092 - Common Stock
44.56 USD
+0.39 (+0.88%)
44.56 USD
0 (0%)
Overall DT gets a fundamental rating of 7 out of 10. We evaluated DT against 280 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 growing strongly while it is still valued neutral. This is a good combination! 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.
DT had positive earnings in each of the past 5 years.
In the past 5 years DT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DT (12.40%) is better than 88.97% of its industry peers.
DT's Return On Equity of 18.22% is amongst the best of the industry. DT outperforms 86.48% of its industry peers.
DT's Return On Invested Capital of 6.10% is fine compared to the rest of the industry. DT outperforms 75.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DT is significantly below the industry average of 12.00%.
The 3 year average ROIC (4.74%) for DT is below the current ROIC(6.10%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (27.33%) than 88.97% of its industry peers.
In the last couple of years the Profit Margin of DT has grown nicely.
DT's Operating Margin of 12.19% is fine compared to the rest of the industry. DT outperforms 77.22% of its industry peers.
DT's Operating Margin has improved in the last couple of years.
DT has a better Gross Margin (81.50%) than 86.48% of its industry peers.
In the last couple of years the Gross Margin of DT has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DT is destroying value.
Compared to 1 year ago, DT has more shares outstanding
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
DT has an Altman-Z score of 7.16. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.16, DT is in the better half of the industry, outperforming 79.00% 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 | 7.16 |
ROIC/WACC0.55
WACC11%
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.
A Quick Ratio of 1.59 indicates that DT should not have too much problems paying its short term obligations.
DT has a Quick ratio (1.59) which is comparable to the rest of the 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 | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.18%, which is quite good.
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
The Earnings Per Share is expected to grow by 17.43% on average over the next years. This is quite good.
DT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.93% yearly.
EPS Next Y18.29%
EPS Next 2Y15.7%
EPS Next 3Y16.51%
EPS Next 5Y17.43%
Revenue Next Year17.31%
Revenue Next 2Y15.93%
Revenue Next 3Y15.64%
Revenue Next 5Y14.93%
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
A Price/Earnings ratio of 28.56 indicates a quite expensive valuation of DT.
Based on the Price/Earnings ratio, DT is valued a bit cheaper than 65.12% 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 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.78, which indicates a rather expensive current valuation of DT.
67.26% of the companies in the same industry are more expensive than DT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DT to the average of the S&P500 Index (36.59), we can say DT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.56 | ||
| Fwd PE | 23.78 |
4.2 Price Multiples
62.99% of the companies in the same industry are more expensive than DT, based on the Enterprise Value to EBITDA ratio.
71.89% 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 | 28.41 | ||
| EV/EBITDA | 46.63 |
4.3 Compensation for Growth
DT's 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.
A more expensive valuation may be justified as DT's earnings are expected to grow with 16.51% in the coming years.
PEG (NY)1.56
PEG (5Y)0.81
EPS Next 2Y15.7%
EPS Next 3Y16.51%
5. Dividend
5.1 Amount
DT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.56
+0.39 (+0.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.14%
Inst Owner Change1.09%
Ins Owners0.49%
Ins Owner Change-2.45%
Market Cap13.43B
Revenue(TTM)1.85B
Net Income(TTM)506.25M
Analysts82.73
Price Target62.76 (40.84%)
Short Float %2.2%
Short Ratio1.97
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)6.57%
Min EPS beat(2)4.45%
Max EPS beat(2)8.69%
EPS beat(4)4
Avg EPS beat(4)7.08%
Min EPS beat(4)4.45%
Max EPS beat(4)8.79%
EPS beat(8)8
Avg EPS beat(8)8.43%
EPS beat(12)12
Avg EPS beat(12)12.49%
EPS beat(16)15
Avg EPS beat(16)11.46%
Revenue beat(2)0
Avg Revenue beat(2)-0.95%
Min Revenue beat(2)-1.1%
Max Revenue beat(2)-0.79%
Revenue beat(4)0
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.59%
Revenue beat(8)0
Avg Revenue beat(8)-0.91%
Revenue beat(12)2
Avg Revenue beat(12)-0.64%
Revenue beat(16)2
Avg Revenue beat(16)-0.62%
PT rev (1m)-1.7%
PT rev (3m)-1.57%
EPS NQ rev (1m)1.96%
EPS NQ rev (3m)2%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)1.26%
Revenue NQ rev (3m)1.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.56 | ||
| Fwd PE | 23.78 | ||
| P/S | 7.25 | ||
| P/FCF | 28.41 | ||
| P/OCF | 26.51 | ||
| P/B | 4.83 | ||
| P/tB | 9.52 | ||
| EV/EBITDA | 46.63 |
EPS(TTM)1.56
EY3.5%
EPS(NY)1.87
Fwd EY4.21%
FCF(TTM)1.57
FCFY3.52%
OCF(TTM)1.68
OCFY3.77%
SpS6.14
BVpS9.22
TBVpS4.68
PEG (NY)1.56
PEG (5Y)0.81
Graham Number17.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.4% | ||
| ROE | 18.22% | ||
| ROCE | 7.72% | ||
| ROIC | 6.1% | ||
| ROICexc | 11.09% | ||
| ROICexgc | 74.17% | ||
| OM | 12.19% | ||
| PM (TTM) | 27.33% | ||
| GM | 81.5% | ||
| FCFM | 25.53% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 104.7% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 300.58 | ||
| Cash Conversion | 196.4% | ||
| Profit Quality | 93.42% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 7.16 |
F-Score8
WACC11%
ROIC/WACC0.55
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)18.18%
EPS 3Y26.6%
EPS 5Y35.19%
EPS Q2Q%18.92%
EPS Next Y18.29%
EPS Next 2Y15.7%
EPS Next 3Y16.51%
EPS Next 5Y17.43%
Revenue 1Y (TTM)18.5%
Revenue growth 3Y22.27%
Revenue growth 5Y25.49%
Sales Q2Q%18.11%
Revenue Next Year17.31%
Revenue Next 2Y15.93%
Revenue Next 3Y15.64%
Revenue Next 5Y14.93%
EBIT growth 1Y52.12%
EBIT growth 3Y30.24%
EBIT growth 5YN/A
EBIT Next Year22.81%
EBIT Next 3Y19.78%
EBIT Next 5YN/A
FCF growth 1Y43.36%
FCF growth 3Y22.68%
FCF growth 5YN/A
OCF growth 1Y43.47%
OCF growth 3Y22.34%
OCF growth 5YN/A
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 of DYNATRACE INC (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.
Can you provide the financial health for DT stock?
The financial health rating of DYNATRACE INC (DT) is 7 / 10.
What is the earnings growth outlook for DYNATRACE INC?
The Earnings per Share (EPS) of DYNATRACE INC (DT) is expected to grow by 18.29% in the next year.