DYNATRACE INC (DT) Stock Fundamental Analysis
NYSE:DT - New York Stock Exchange, Inc. - US2681501092 - Common Stock
Taking everything into account, DT scores 6 out of 10 in our fundamental rating. DT was compared to 285 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 priced too expensively while it is growing strongly. Keep and eye on this one! 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.
DT had positive earnings in 4 of the past 5 years.
DT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.90%, DT is doing good in the industry, outperforming 75.27% of the companies in the same industry.
DT has a Return On Equity of 7.62%. This is in the better half of the industry: DT outperforms 75.27% of its industry peers.
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 12.12%.
The 3 year average ROIC (4.30%) for DT is below the current ROIC(5.14%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 10.44%. This is in the better half of the industry: DT outperforms 76.70% of its industry peers.
DT's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 9.49%, DT is doing good in the industry, outperforming 76.70% of the companies in the same industry.
In the last couple of years the Operating Margin of DT has declined.
DT has a Gross Margin of 81.30%. This is amongst the best in the industry. DT outperforms 84.59% of its industry peers.
In the last couple of years the Gross Margin of DT has grown nicely.
| 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.
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.
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 8.76. 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 8.76, DT is in the better half of the industry, outperforming 76.70% of the companies in the same industry.
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 | 8.76 |
ROIC/WACC0.46
WACC11.19%
2.3 Liquidity
A Current Ratio of 1.42 indicates that DT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.42, DT perfoms like the industry average, outperforming 44.09% of the companies in the same industry.
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.
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
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.
Looking at the last year, DT shows a very strong growth in Revenue. The Revenue has grown by 20.57%.
The Revenue has been growing by 27.12% on average over the past years. This is a very strong growth!
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
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 16.45% yearly.
EPS Next Y14.04%
EPS Next 2Y13.6%
EPS Next 3Y14.23%
EPS Next 5Y17.14%
Revenue Next Year17.44%
Revenue Next 2Y16.49%
Revenue Next 3Y16.4%
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.
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 40.32 indicates a quite expensive valuation of DT.
Compared to the rest of the industry, the Price/Earnings ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 65.23% of the companies listed in the same industry.
DT is valuated rather expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
DT is valuated quite expensively with a Price/Forward Earnings ratio of 34.37.
DT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DT is cheaper than 66.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. DT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.32 | ||
| Fwd PE | 34.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DT is valued a bit cheaper than the industry average as 63.44% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DT is valued a bit cheaper than the industry average as 72.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.43 | ||
| EV/EBITDA | 72.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DT's earnings are expected to grow with 14.23% in the coming years.
PEG (NY)2.87
PEG (5Y)N/A
EPS Next 2Y13.6%
EPS Next 3Y14.23%
5. Dividend
5.1 Amount
DT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DYNATRACE INC
NYSE:DT (1/21/2025, 8:04:00 PM)
Premarket: 53.0342 -0.19 (-0.35%)53.22
+1.92 (+3.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners99.08%
Inst Owner Change0.23%
Ins Owners0.47%
Ins Owner Change-8.76%
Market Cap15.89B
Analysts84.1
Price Target64.16 (20.56%)
Short Float %2.18%
Short Ratio2.01
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)10.07%
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)0.72%
PT rev (3m)8.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.32 | ||
| Fwd PE | 34.37 | ||
| P/S | 10.16 | ||
| P/FCF | 36.43 | ||
| P/OCF | 34.41 | ||
| P/B | 7.41 | ||
| P/tB | 20.5 | ||
| EV/EBITDA | 72.38 |
EPS(TTM)1.32
EY2.48%
EPS(NY)1.55
Fwd EY2.91%
FCF(TTM)1.46
FCFY2.75%
OCF(TTM)1.55
OCFY2.91%
SpS5.24
BVpS7.18
TBVpS2.6
PEG (NY)2.87
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 | 8.76 |
F-Score7
WACC11.19%
ROIC/WACC0.46
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 Y14.04%
EPS Next 2Y13.6%
EPS Next 3Y14.23%
EPS Next 5Y17.14%
Revenue 1Y (TTM)20.57%
Revenue growth 3Y26.69%
Revenue growth 5Y27.12%
Sales Q2Q%18.89%
Revenue Next Year17.44%
Revenue Next 2Y16.49%
Revenue Next 3Y16.4%
Revenue Next 5Y16.45%
EBIT growth 1Y20.55%
EBIT growth 3Y12.63%
EBIT growth 5YN/A
EBIT Next Year29.24%
EBIT Next 3Y21.43%
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%