DROPBOX INC-CLASS A (DBX)
US26210C1045 - Common Stock
Overall DBX gets a fundamental rating of 6 out of 10. We evaluated DBX against 278 industry peers in the Software industry. While DBX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DBX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
DBX had positive earnings in the past year.
DBX had a positive operating cash flow in the past year.
In multiple years DBX reported negative net income over the last 5 years.
DBX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.48%, DBX belongs to the top of the industry, outperforming 97.10% of the companies in the same industry.
DBX's Return On Invested Capital of 22.22% is amongst the best of the industry. DBX outperforms 97.10% of its industry peers.
DBX had an Average Return On Invested Capital over the past 3 years of 15.34%. This is significantly above the industry average of 9.99%.
The 3 year average ROIC (15.34%) for DBX is below the current ROIC(22.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.48% | ||
| ROE | N/A | ||
| ROIC | 22.22% |
ROA(3y)14.62%
ROA(5y)6.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.34%
ROIC(5y)N/A
1.3 Margins
DBX has a better Profit Margin (20.50%) than 89.49% of its industry peers.
DBX has a Operating Margin of 17.56%. This is amongst the best in the industry. DBX outperforms 88.04% of its industry peers.
DBX's Operating Margin has improved in the last couple of years.
The Gross Margin of DBX (81.46%) is better than 86.59% of its industry peers.
In the last couple of years the Gross Margin of DBX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.56% | ||
| PM (TTM) | 20.5% | ||
| GM | 81.46% |
OM growth 3Y34.27%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.07%
GM growth 5Y2.45%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DBX is creating value.
Compared to 1 year ago, DBX has less shares outstanding
DBX has less shares outstanding than it did 5 years ago.
DBX has a worse debt/assets ratio than last year.
2.2 Solvency
DBX has an Altman-Z score of 1.44. This is a bad value and indicates that DBX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.44, DBX is in line with its industry, outperforming 41.67% of the companies in the same industry.
The Debt to FCF ratio of DBX is 2.11, which is a good value as it means it would take DBX, 2.11 years of fcf income to pay off all of its debts.
DBX has a better Debt to FCF ratio (2.11) than 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 1.44 |
ROIC/WACC2.43
WACC9.16%
2.3 Liquidity
DBX has a Current Ratio of 1.15. This is a normal value and indicates that DBX is financially healthy and should not expect problems in meeting its short term obligations.
DBX has a Current ratio of 1.15. This is in the lower half of the industry: DBX underperforms 69.93% of its industry peers.
DBX has a Quick Ratio of 1.15. This is a normal value and indicates that DBX is financially healthy and should not expect problems in meeting its short term obligations.
DBX has a Quick ratio of 1.15. This is in the lower half of the industry: DBX underperforms 67.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.90% over the past year.
DBX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.83% yearly.
DBX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.24%.
The Revenue has been growing by 12.44% on average over the past years. This is quite good.
EPS 1Y (TTM)31.9%
EPS 3Y28.86%
EPS 5Y37.83%
EPS Q2Q%38.1%
Revenue 1Y (TTM)6.24%
Revenue growth 3Y9.34%
Revenue growth 5Y12.44%
Sales Q2Q%3.31%
3.2 Future
DBX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.03% yearly.
Based on estimates for the next years, DBX will show a small growth in Revenue. The Revenue will grow by 5.86% on average per year.
EPS Next Y8.72%
EPS Next 2Y7.89%
EPS Next 3Y7.85%
EPS Next 5Y6.03%
Revenue Next Year1.86%
Revenue Next 2Y2.16%
Revenue Next 3Y2.84%
Revenue Next 5Y5.86%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.87, the valuation of DBX can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 92.75% of the companies listed in the same industry.
DBX is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.17, the valuation of DBX can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 93.12% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.91. DBX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 9.17 |
4.2 Price Multiples
92.03% of the companies in the same industry are more expensive than DBX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DBX is valued cheaper than 94.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.9 | ||
| EV/EBITDA | 11.24 |
4.3 Compensation for Growth
DBX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DBX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.13
PEG (5Y)0.26
EPS Next 2Y7.89%
EPS Next 3Y7.85%
5. Dividend
5.1 Amount
DBX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DROPBOX INC-CLASS A
NASDAQ:DBX (6/14/2024, 7:03:07 PM)
After market: 21.25 +0.02 (+0.09%)21.23
+0.31 (+1.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 9.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.13
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.48% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.56% | ||
| PM (TTM) | 20.5% | ||
| GM | 81.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)31.9%
EPS 3Y28.86%
EPS 5Y
EPS Q2Q%
EPS Next Y8.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.24%
Revenue growth 3Y9.34%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y