DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis
NASDAQ:DBX - Nasdaq - US26210C1045 - Common Stock - Currency: USD
Taking everything into account, DBX scores 6 out of 10 in our fundamental rating. DBX was compared to 283 industry peers in the Software industry. While DBX has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DBX.
1. Profitability
1.1 Basic Checks
In the past year DBX was profitable.
DBX had a positive operating cash flow in the past year.
DBX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DBX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DBX (15.90%) is better than 91.87% of its industry peers.
DBX has a better Return On Invested Capital (40.08%) than 98.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DBX is significantly above the industry average of 12.25%.
The last Return On Invested Capital (40.08%) for DBX is above the 3 year average (17.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.9% | ||
| ROE | N/A | ||
| ROIC | 40.08% |
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
DBX has a better Profit Margin (18.50%) than 85.51% of its industry peers.
DBX's Profit Margin has improved in the last couple of years.
DBX has a better Operating Margin (20.72%) than 88.34% of its industry peers.
In the last couple of years the Operating Margin of DBX has grown nicely.
The Gross Margin of DBX (82.06%) is better than 87.99% of its industry peers.
DBX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.72% | ||
| PM (TTM) | 18.5% | ||
| GM | 82.06% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DBX is creating value.
The number of shares outstanding for DBX has been reduced compared to 1 year ago.
The number of shares outstanding for DBX has been reduced compared to 5 years ago.
DBX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that DBX is in the distress zone and has some risk of bankruptcy.
DBX has a Altman-Z score of 0.84. This is in the lower half of the industry: DBX underperforms 62.90% of its industry peers.
DBX has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as DBX would need 3.13 years to pay back of all of its debts.
DBX's Debt to FCF ratio of 3.13 is fine compared to the rest of the industry. DBX outperforms 64.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 0.84 |
ROIC/WACC3.94
WACC10.17%
2.3 Liquidity
A Current Ratio of 0.73 indicates that DBX may have some problems paying its short term obligations.
DBX has a worse Current ratio (0.73) than 84.81% of its industry peers.
DBX has a Quick Ratio of 0.73. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
DBX's Quick ratio of 0.73 is on the low side compared to the rest of the industry. DBX is outperformed by 84.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
DBX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.33%, 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
The Revenue has been growing slightly by 0.79% in the past year.
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)22.33%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%20.69%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.05%
3.2 Future
DBX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.42% yearly.
The Revenue is expected to grow by 2.00% on average over the next years.
EPS Next Y5.84%
EPS Next 2Y6.39%
EPS Next 3Y5.07%
EPS Next 5Y10.42%
Revenue Next Year-2.49%
Revenue Next 2Y-1.23%
Revenue Next 3Y-0.96%
Revenue Next 5Y2%
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.
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 11.07.
DBX's Price/Earnings ratio is rather cheap when compared to the industry. DBX is cheaper than 90.81% of the companies in the same industry.
DBX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.29.
The Price/Forward Earnings ratio is 10.25, which indicates a very decent valuation of DBX.
Based on the Price/Forward Earnings ratio, DBX is valued cheaply inside the industry as 90.81% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.17. DBX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
87.99% 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 cheaply inside the industry as 95.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.27 | ||
| EV/EBITDA | 13.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DBX does not grow enough to justify the current Price/Earnings ratio.
DBX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)0.29
EPS Next 2Y6.39%
EPS Next 3Y5.07%
5. Dividend
5.1 Amount
No dividends for DBX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.12
+0.26 (+0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners104.24%
Inst Owner Change-4.27%
Ins Owners4.51%
Ins Owner Change5.75%
Market Cap7.95B
Analysts51.58
Price Target28.33 (-2.71%)
Short Float %10.51%
Short Ratio4.98
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)13.59%
Min EPS beat(2)11.44%
Max EPS beat(2)15.74%
EPS beat(4)4
Avg EPS beat(4)13.09%
Min EPS beat(4)11.44%
Max EPS beat(4)15.74%
EPS beat(8)8
Avg EPS beat(8)11.89%
EPS beat(12)12
Avg EPS beat(12)10.52%
EPS beat(16)16
Avg EPS beat(16)10.15%
Revenue beat(2)0
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)-0.25%
Revenue beat(4)0
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)-0.25%
Revenue beat(8)1
Avg Revenue beat(8)-0.29%
Revenue beat(12)2
Avg Revenue beat(12)-0.21%
Revenue beat(16)5
Avg Revenue beat(16)-0.14%
PT rev (1m)0%
PT rev (3m)-7.36%
EPS NQ rev (1m)1.37%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)2.67%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 10.25 | ||
| P/S | 3.13 | ||
| P/FCF | 9.27 | ||
| P/OCF | 9.12 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.65 |
EPS(TTM)2.63
EY9.03%
EPS(NY)2.84
Fwd EY9.76%
FCF(TTM)3.14
FCFY10.79%
OCF(TTM)3.19
OCFY10.97%
SpS9.31
BVpS-3.94
TBVpS-5.74
PEG (NY)1.89
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.9% | ||
| ROE | N/A | ||
| ROCE | 47.01% | ||
| ROIC | 40.08% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 20.72% | ||
| PM (TTM) | 18.5% | ||
| GM | 82.06% | ||
| FCFM | 33.77% |
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-Score5
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 2.77 | ||
| Cap/Depr | 9.72% | ||
| Cap/Sales | 0.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 130.09% | ||
| Profit Quality | 182.52% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 0.84 |
F-Score5
WACC10.17%
ROIC/WACC3.94
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)22.33%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%20.69%
EPS Next Y5.84%
EPS Next 2Y6.39%
EPS Next 3Y5.07%
EPS Next 5Y10.42%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.05%
Revenue Next Year-2.49%
Revenue Next 2Y-1.23%
Revenue Next 3Y-0.96%
Revenue Next 5Y2%
EBIT growth 1Y18.9%
EBIT growth 3Y16.58%
EBIT growth 5YN/A
EBIT Next Year20.67%
EBIT Next 3Y3.93%
EBIT Next 5Y8.46%
FCF growth 1Y11.52%
FCF growth 3Y7.53%
FCF growth 5Y17.4%
OCF growth 1Y9.63%
OCF growth 3Y7%
OCF growth 5Y11.09%