DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis
USA - NASDAQ:DBX - US26210C1045 - Common Stock
30.91 USD
0 (0%)
30.82 USD
-0.09 (-0.29%)
Taking everything into account, DBX scores 5 out of 10 in our fundamental rating. DBX was compared to 280 industry peers in the Software industry. DBX scores excellent on profitability, but there are 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
DBX had positive earnings in the past year.
In the past year DBX had a positive cash flow from operations.
Of the past 5 years DBX 4 years were profitable.
In the past 5 years DBX always reported a positive cash flow from operatings.
1.2 Ratios
DBX has a Return On Assets of 17.46%. This is amongst the best in the industry. DBX outperforms 93.21% of its industry peers.
DBX has a better Return On Invested Capital (52.97%) 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 11.85%.
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
With an excellent Profit Margin value of 19.16%, DBX belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
In the last couple of years the Profit Margin of DBX has grown nicely.
With an excellent Operating Margin value of 22.67%, DBX belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
In the last couple of years the Operating Margin of DBX has grown nicely.
DBX's Gross Margin of 81.35% is amongst the best of the industry. DBX outperforms 84.29% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DBX is creating value.
DBX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DBX has less shares outstanding
The debt/assets ratio for DBX is higher compared to a year ago.
2.2 Solvency
DBX has an Altman-Z score of 0.74. This is a bad value and indicates that DBX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DBX (0.74) is worse than 66.43% of its industry peers.
DBX has a debt to FCF ratio of 3.00. This is a good value and a sign of high solvency as DBX would need 3.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.00, DBX is in the better half of the industry, outperforming 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3 | ||
| Altman-Z | 0.74 |
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.
DBX has a worse Current ratio (0.60) than 87.50% of its industry peers.
A Quick Ratio of 0.60 indicates that DBX may have some problems paying its short term obligations.
DBX has a Quick ratio of 0.60. This is amonst the worse of the industry: DBX underperforms 87.14% of its industry peers.
| 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.
Measured over the past years, DBX shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.64% on average per year.
Looking at the last year, DBX shows a decrease in Revenue. The Revenue has decreased by -0.04% in the last year.
Measured over the past years, DBX shows a quite strong growth in Revenue. The Revenue has been growing by 8.93% on average per year.
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
The Earnings Per Share is expected to grow by 2.92% on average over the next years.
Based on estimates for the next years, DBX will show a decrease in Revenue. The Revenue will decrease by -1.17% on average per year.
EPS Next Y8.86%
EPS Next 2Y8.23%
EPS Next 3Y5.13%
EPS Next 5Y2.92%
Revenue Next Year-1.83%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.93%
Revenue Next 5Y-1.17%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 11.28, the valuation of DBX can be described as very reasonable.
Based on the Price/Earnings ratio, DBX is valued cheaper than 88.21% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. DBX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.51, the valuation of DBX can be described as very reasonable.
89.64% of the companies in the same industry are more expensive than DBX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DBX to the average of the S&P500 Index (22.73), we can say DBX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DBX is valued cheaper than 86.07% of the companies in the same industry.
95.00% of the companies in the same industry are more expensive than DBX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.35 | ||
| EV/EBITDA | 13.59 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of DBX may justify a higher PE ratio.
PEG (NY)1.27
PEG (5Y)0.29
EPS Next 2Y8.23%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
DBX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.91
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners114.18%
Inst Owner Change5.3%
Ins Owners5.88%
Ins Owner Change5.14%
Market Cap8.34B
Analysts51.58
Price Target28.61 (-7.44%)
Short Float %9.82%
Short Ratio5.04
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)-0.45%
PT rev (3m)-0.45%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)1.14%
EPS NY rev (1m)2.46%
EPS NY rev (3m)2.85%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 10.51 | ||
| P/S | 3.29 | ||
| P/FCF | 9.35 | ||
| P/OCF | 9.24 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.59 |
EPS(TTM)2.74
EY8.86%
EPS(NY)2.94
Fwd EY9.51%
FCF(TTM)3.31
FCFY10.7%
OCF(TTM)3.34
OCFY10.82%
SpS9.39
BVpS-4.84
TBVpS-6.67
PEG (NY)1.27
PEG (5Y)0.29
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 | 0.74 |
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 3Y5.13%
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-0.93%
Revenue Next 5Y-1.17%
EBIT growth 1Y12.3%
EBIT growth 3Y16.58%
EBIT growth 5YN/A
EBIT Next Year20.78%
EBIT Next 3Y4.99%
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%