DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis
NASDAQ:DBX - Nasdaq - US26210C1045 - Common Stock - Currency: USD
Overall DBX gets a fundamental rating of 5 out of 10. We evaluated DBX against 281 industry peers in the Software industry. DBX has an excellent profitability rating, 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.
In the past year DBX had a positive cash flow from operations.
DBX had positive earnings in 4 of the past 5 years.
DBX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DBX has a Return On Assets of 15.90%. This is amongst the best in the industry. DBX outperforms 91.84% of its industry peers.
DBX has a better Return On Invested Capital (40.08%) than 98.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DBX is significantly above the industry average of 12.11%.
The 3 year average ROIC (17.97%) for DBX is below the current ROIC(40.08%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 18.50%, DBX belongs to the best of the industry, outperforming 85.82% of the companies in the same industry.
In the last couple of years the Profit Margin of DBX has grown nicely.
Looking at the Operating Margin, with a value of 20.72%, DBX belongs to the top of the industry, outperforming 88.30% of the companies in the same industry.
In the last couple of years the Operating Margin of DBX has grown nicely.
Looking at the Gross Margin, with a value of 82.06%, DBX belongs to the top of the industry, outperforming 89.01% of the companies in the same industry.
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.
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 0.74. This is a bad value and indicates that DBX is not financially healthy and even has some risk of bankruptcy.
DBX's Altman-Z score of 0.74 is on the low side compared to the rest of the industry. DBX is outperformed by 64.18% 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 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 0.74 |
ROIC/WACC4.32
WACC9.28%
2.3 Liquidity
A Current Ratio of 0.73 indicates that DBX may have some problems paying its short term obligations.
DBX has a Current ratio of 0.73. This is amonst the worse of the industry: DBX underperforms 83.33% of its industry peers.
A Quick Ratio of 0.73 indicates that DBX may have some problems paying 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 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.33% over the past year.
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.
DBX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.79%.
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
The Earnings Per Share is expected to grow by 3.35% on average over the next years.
DBX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.17% yearly.
EPS Next Y6.25%
EPS Next 2Y7.02%
EPS Next 3Y5.07%
EPS Next 5Y3.35%
Revenue Next Year-2.3%
Revenue Next 2Y-1.31%
Revenue Next 3Y-1.06%
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
Based on the Price/Earnings ratio of 10.06, the valuation of DBX can be described as reasonable.
Based on the Price/Earnings ratio, DBX is valued cheaply inside the industry as 90.07% of the companies are valued more expensively.
DBX is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
DBX is valuated reasonably with a Price/Forward Earnings ratio of 9.20.
Based on the Price/Forward Earnings ratio, DBX is valued cheaply inside the industry as 92.55% of the companies are valued more expensively.
DBX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 87.59% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DBX is valued cheaply inside the industry as 95.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 12.68 |
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)1.61
PEG (5Y)0.26
EPS Next 2Y7.02%
EPS Next 3Y5.07%
5. Dividend
5.1 Amount
No dividends for DBX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.46
-0.71 (-2.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners113.91%
Inst Owner Change0.89%
Ins Owners5.89%
Ins Owner Change5.7%
Market Cap7.23B
Analysts51.58
Price Target28.74 (8.62%)
Short Float %10.94%
Short Ratio5.88
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)1.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)0.38%
EPS NY rev (3m)3.06%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 9.2 | ||
| P/S | 2.84 | ||
| P/FCF | 8.42 | ||
| P/OCF | 8.28 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.68 |
EPS(TTM)2.63
EY9.94%
EPS(NY)2.88
Fwd EY10.87%
FCF(TTM)3.14
FCFY11.88%
OCF(TTM)3.19
OCFY12.07%
SpS9.31
BVpS-3.94
TBVpS-5.74
PEG (NY)1.61
PEG (5Y)0.26
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 | 0.74 |
F-Score5
WACC9.28%
ROIC/WACC4.32
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 Y6.25%
EPS Next 2Y7.02%
EPS Next 3Y5.07%
EPS Next 5Y3.35%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.05%
Revenue Next Year-2.3%
Revenue Next 2Y-1.31%
Revenue Next 3Y-1.06%
Revenue Next 5Y-1.17%
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%