DYNATRACE INC (NYSE:DT) qualifies as a high growth stock and is consolidating.

Last update: May 9, 2025

In this article we will dive into DYNATRACE INC (NYSE:DT) as a possible candidate for growth investing. Investors should always do their own research, but we noticed DYNATRACE INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Deciphering DT's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. DT has received a 8 out of 10:

DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.22%, 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.
The Revenue has grown by 19.80% 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 27.12% yearly.
DT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.40% yearly.
The Revenue is expected to grow by 16.39% on average over the next years. This is quite good.

What does the Health looks like for DT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. DT scores a 7 out of 10:

An Altman-Z score of 8.22 indicates that DT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.22, DT belongs to the best of the industry, outperforming 81.98% 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.

A Closer Look at Profitability for DT

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of DT, the assigned 7 is noteworthy for profitability:

DT has a Return On Assets of 12.91%. This is amongst the best in the industry. DT outperforms 87.99% of its industry peers.
DT's Return On Equity of 18.89% is amongst the best of the industry. DT outperforms 84.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.71%, DT is in the better half of the industry, outperforming 74.91% of the companies in the same industry.
The last Return On Invested Capital (4.71%) for DT is above the 3 year average (4.30%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 29.51%, DT belongs to the best of the industry, outperforming 93.29% of the companies in the same industry.
The Operating Margin of DT (9.79%) is better than 77.39% of its industry peers.
DT has a better Gross Margin (81.22%) than 85.51% of its industry peers.
DT's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for DT?

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. DT currently has a 7 as setup rating:

Although the technical rating is bad, DT does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 48.56. Right above this resistance zone may be a good entry point. Another positive sign is the recent Pocket Pivot signal.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of DT contains the most current fundamental analsysis.

Check the latest full technical report of DT for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.