DYNATRACE INC (DT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DT - US2681501092 - Common Stock
45.28 USD
-0.24 (-0.53%)
45.41 USD
+0.13 (+0.29%)
Taking everything into account, DT scores 7 out of 10 in our fundamental rating. DT was compared to 280 industry peers in the Software industry. DT gets an excellent profitability rating and is at the same time showing great financial health properties. DT is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, DT could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
DT had positive earnings in the past year.
In the past year DT had a positive cash flow from operations.
Each year in the past 5 years DT has been profitable.
Each year in the past 5 years DT had a positive operating cash flow.
1.2 Ratios
DT has a better Return On Assets (12.40%) than 89.29% of its industry peers.
The Return On Equity of DT (18.22%) is better than 86.79% of its industry peers.
The Return On Invested Capital of DT (6.10%) is better than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DT is significantly below the industry average of 10.98%.
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 88.93% of its industry peers.
In the last couple of years the Profit Margin of DT has grown nicely.
Looking at the Operating Margin, with a value of 12.19%, DT is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
In the last couple of years the Operating Margin of DT has grown nicely.
With an excellent Gross Margin value of 81.50%, DT belongs to the best of the industry, outperforming 86.43% of the companies in the same industry.
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
DT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
An Altman-Z score of 7.29 indicates that DT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 7.29, DT is doing good in the industry, outperforming 79.29% 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 | 7.29 |
ROIC/WACC0.56
WACC10.92%
2.3 Liquidity
DT has a Current Ratio of 1.59. This is a normal value and indicates that DT is financially healthy and should not expect problems in meeting 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.
The Quick ratio of DT (1.59) is comparable to the rest of the industry.
The current and quick ratio evaluation for DT is rather negative, while it does have 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
The Earnings Per Share has grown by an nice 18.18% 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
The Revenue has grown by 18.50% in the past year. This is quite good.
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)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.
Based on estimates for the next years, DT will show a quite strong growth in Revenue. The Revenue will grow by 14.93% on average per year.
EPS Next Y20.21%
EPS Next 2Y16.55%
EPS Next 3Y16.4%
EPS Next 5Y17.43%
Revenue Next Year17.88%
Revenue Next 2Y16.3%
Revenue Next 3Y15.57%
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 29.03 indicates a quite expensive valuation of DT.
Based on the Price/Earnings ratio, DT is valued a bit cheaper than the industry average as 66.07% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DT to the average of the S&P500 Index (26.76), we can say DT is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.81, DT is valued on the expensive side.
68.57% 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 (23.96), we can say DT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 23.81 |
4.2 Price Multiples
62.86% of the companies in the same industry are more expensive than DT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 72.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.86 | ||
| EV/EBITDA | 47.75 |
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.
DT's earnings are expected to grow with 16.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)0.82
EPS Next 2Y16.55%
EPS Next 3Y16.4%
5. Dividend
5.1 Amount
DT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
45.28
-0.24 (-0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners102.7%
Inst Owner Change1.11%
Ins Owners0.46%
Ins Owner Change-3.82%
Market Cap13.65B
Revenue(TTM)1.85B
Net Income(TTM)506.25M
Analysts82.33
Price Target62.6 (38.25%)
Short Float %2.2%
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)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)-2.08%
PT rev (3m)-1.96%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)2.06%
EPS NY rev (1m)1.62%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 23.81 | ||
| P/S | 7.37 | ||
| P/FCF | 28.86 | ||
| P/OCF | 26.94 | ||
| P/B | 4.91 | ||
| P/tB | 9.68 | ||
| EV/EBITDA | 47.75 |
EPS(TTM)1.56
EY3.45%
EPS(NY)1.9
Fwd EY4.2%
FCF(TTM)1.57
FCFY3.46%
OCF(TTM)1.68
OCFY3.71%
SpS6.14
BVpS9.22
TBVpS4.68
PEG (NY)1.44
PEG (5Y)0.82
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 | 7.29 |
F-Score8
WACC10.92%
ROIC/WACC0.56
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 Y20.21%
EPS Next 2Y16.55%
EPS Next 3Y16.4%
EPS Next 5Y17.43%
Revenue 1Y (TTM)18.5%
Revenue growth 3Y22.27%
Revenue growth 5Y25.49%
Sales Q2Q%18.11%
Revenue Next Year17.88%
Revenue Next 2Y16.3%
Revenue Next 3Y15.57%
Revenue Next 5Y14.93%
EBIT growth 1Y52.12%
EBIT growth 3Y30.24%
EBIT growth 5YN/A
EBIT Next Year24.9%
EBIT Next 3Y19.53%
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 20.21% in the next year.