DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis
USA - NASDAQ:DBX - US26210C1045 - Common Stock
29.56 USD
+0.45 (+1.55%)
29.89 USD
+0.33 (+1.12%)
Taking everything into account, DBX scores 5 out of 10 in our fundamental rating. DBX was compared to 281 industry peers in the Software industry. DBX scores excellent on profitability, but there are 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.
Of the past 5 years DBX 4 years were profitable.
Each year in the past 5 years DBX had a positive operating cash flow.
1.2 Ratios
DBX has a Return On Assets of 17.46%. This is amongst the best in the industry. DBX outperforms 92.53% of its industry peers.
The Return On Invested Capital of DBX (52.97%) is better than 98.93% of its industry peers.
DBX had an Average Return On Invested Capital over the past 3 years of 17.97%. This is significantly above the industry average of 11.98%.
The last Return On Invested Capital (52.97%) for DBX is above the 3 year average (17.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | N/A | ||
| ROIC | 52.97% |
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
1.3 Margins
Looking at the Profit Margin, with a value of 19.16%, DBX belongs to the top of the industry, outperforming 83.27% of the companies in the same industry.
In the last couple of years the Profit Margin of DBX has grown nicely.
The Operating Margin of DBX (22.67%) is better than 88.61% of its industry peers.
DBX's Operating Margin has improved in the last couple of years.
The Gross Margin of DBX (81.35%) is better than 84.70% of its industry peers.
DBX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.67% | ||
| PM (TTM) | 19.16% | ||
| GM | 81.35% |
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
2. Health
2.1 Basic Checks
DBX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, DBX has less shares outstanding
The number of shares outstanding for DBX has been reduced compared to 5 years ago.
The debt/assets ratio for DBX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that DBX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.67, DBX is doing worse than 66.90% of the companies in the same industry.
The Debt to FCF ratio of DBX is 3.00, which is a good value as it means it would take DBX, 3.00 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DBX (3.00) is better than 63.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3 | ||
| Altman-Z | 0.67 |
ROIC/WACC5.15
WACC10.29%
2.3 Liquidity
DBX has a Current Ratio of 0.60. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.60, DBX is not doing good in the industry: 87.54% of the companies in the same industry are doing better.
A Quick Ratio of 0.60 indicates that DBX may have some problems paying its short term obligations.
With a Quick ratio value of 0.60, DBX is not doing good in the industry: 87.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
DBX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.32%, which is quite impressive.
The Earnings Per Share has been growing by 38.64% on average over the past years. This is a very strong growth
DBX shows a decrease in Revenue. In the last year, the revenue decreased by -0.04%.
DBX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.93% yearly.
EPS 1Y (TTM)22.32%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%18.33%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.39%
3.2 Future
Based on estimates for the next years, DBX will show a small growth in Earnings Per Share. The EPS will grow by 2.92% on average per year.
The Revenue is expected to decrease by -1.17% on average over the next years.
EPS Next Y8.86%
EPS Next 2Y8.23%
EPS Next 3Y4.73%
EPS Next 5Y2.92%
Revenue Next Year-1.83%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.97%
Revenue Next 5Y-1.17%
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
DBX is valuated reasonably with a Price/Earnings ratio of 10.79.
DBX's Price/Earnings ratio is rather cheap when compared to the industry. DBX is cheaper than 90.04% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.91, DBX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.05, the valuation of DBX can be described as reasonable.
DBX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DBX is cheaper than 91.10% of the companies in the same industry.
DBX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DBX is valued cheaper than 87.54% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 96.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.94 | ||
| EV/EBITDA | 12.92 |
4.3 Compensation for Growth
The 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)1.22
PEG (5Y)0.28
EPS Next 2Y8.23%
EPS Next 3Y4.73%
5. Dividend
5.1 Amount
DBX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.56
+0.45 (+1.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners107.64%
Inst Owner Change0.01%
Ins Owners5.95%
Ins Owner Change-1.46%
Market Cap7.98B
Analysts50.53
Price Target28.32 (-4.19%)
Short Float %9.48%
Short Ratio5.12
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)11.38%
Min EPS beat(2)11.32%
Max EPS beat(2)11.44%
EPS beat(4)4
Avg EPS beat(4)12.53%
Min EPS beat(4)11.32%
Max EPS beat(4)15.74%
EPS beat(8)8
Avg EPS beat(8)11.93%
EPS beat(12)12
Avg EPS beat(12)11.35%
EPS beat(16)16
Avg EPS beat(16)9.58%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)0.16%
Revenue beat(8)1
Avg Revenue beat(8)-0.33%
Revenue beat(12)3
Avg Revenue beat(12)-0.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.15%
PT rev (1m)-1.47%
PT rev (3m)-1.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)0%
EPS NY rev (3m)2.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.05 | ||
| P/S | 3.15 | ||
| P/FCF | 8.94 | ||
| P/OCF | 8.84 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.92 |
EPS(TTM)2.74
EY9.27%
EPS(NY)2.94
Fwd EY9.95%
FCF(TTM)3.31
FCFY11.18%
OCF(TTM)3.34
OCFY11.31%
SpS9.39
BVpS-4.84
TBVpS-6.67
PEG (NY)1.22
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | N/A | ||
| ROCE | 62.12% | ||
| ROIC | 52.97% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 22.67% | ||
| PM (TTM) | 19.16% | ||
| GM | 81.35% | ||
| FCFM | 35.23% |
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
ROICexc(3y)69.99%
ROICexc(5y)80.12%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.07%
ROCE(5y)17.71%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-15.6%
ROICexc growth 5YN/A
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
F-Score4
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 6.71% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.51% | ||
| Profit Quality | 183.81% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.67 |
F-Score4
WACC10.29%
ROIC/WACC5.15
Cap/Depr(3y)17.74%
Cap/Depr(5y)24.54%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.78%
Profit Quality(3y)165.94%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.32%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%18.33%
EPS Next Y8.86%
EPS Next 2Y8.23%
EPS Next 3Y4.73%
EPS Next 5Y2.92%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.39%
Revenue Next Year-1.83%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.97%
Revenue Next 5Y-1.17%
EBIT growth 1Y12.3%
EBIT growth 3Y16.58%
EBIT growth 5YN/A
EBIT Next Year24.01%
EBIT Next 3Y6.3%
EBIT Next 5Y8.46%
FCF growth 1Y19.21%
FCF growth 3Y7.53%
FCF growth 5Y17.4%
OCF growth 1Y16.65%
OCF growth 3Y7%
OCF growth 5Y11.09%