DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis
NASDAQ:DBX - US26210C1045 - Common Stock
28.82 USD
+0.5 (+1.77%)
28.82 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to DBX. 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. 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.
In the past 5 years DBX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.46%, DBX belongs to the top of the industry, outperforming 93.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 52.97%, DBX belongs to the top of the industry, outperforming 98.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DBX is significantly above the industry average of 11.99%.
The 3 year average ROIC (17.97%) for DBX is below the current ROIC(52.97%), indicating increased profibility in the last year.
| 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
DBX has a better Profit Margin (19.16%) than 84.10% of its industry peers.
In the last couple of years the Profit Margin of DBX has grown nicely.
Looking at the Operating Margin, with a value of 22.67%, DBX belongs to the top of the industry, outperforming 89.05% of the companies in the same industry.
DBX's Operating Margin has improved in the last couple of years.
DBX's Gross Margin of 81.35% is amongst the best of the industry. DBX outperforms 84.10% of its industry peers.
In the last couple of years the Gross Margin of DBX has grown nicely.
| 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.
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
DBX has an Altman-Z score of 0.66. 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 0.66 is on the low side compared to the rest of the industry. DBX is outperformed by 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 65.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3 | ||
| Altman-Z | 0.66 |
ROIC/WACC5.16
WACC10.26%
2.3 Liquidity
A Current Ratio of 0.60 indicates that DBX may have some problems paying its short term obligations.
DBX has a worse Current ratio (0.60) than 86.93% of its industry peers.
DBX has a Quick 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 Quick ratio (0.60) than 86.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.32% 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.
Looking at the last year, DBX shows a decrease in Revenue. The Revenue has decreased by -0.04% in the last year.
The Revenue has been growing by 8.93% on average over the past years. This is quite good.
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
DBX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.92% yearly.
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 3Y5.13%
EPS Next 5Y2.92%
Revenue Next Year-1.83%
Revenue Next 2Y-1.21%
Revenue Next 3Y-1.01%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.52, the valuation of DBX can be described as very reasonable.
Based on the Price/Earnings ratio, DBX is valued cheaper than 89.05% of the companies in the same industry.
When comparing the Price/Earnings ratio of DBX to the average of the S&P500 Index (27.24), we can say DBX is valued rather cheaply.
DBX is valuated reasonably with a Price/Forward Earnings ratio of 9.80.
91.17% of the companies in the same industry are more expensive than DBX, based on the Price/Forward Earnings ratio.
DBX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DBX is valued cheaper than 87.63% of the companies in the same industry.
95.05% 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 | 8.72 | ||
| EV/EBITDA | 12.81 |
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)1.19
PEG (5Y)0.27
EPS Next 2Y8.23%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
No dividends for DBX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.82
+0.5 (+1.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners114.18%
Inst Owner Change5.29%
Ins Owners5.88%
Ins Owner Change5.71%
Market Cap7.78B
Analysts51.58
Price Target28.74 (-0.28%)
Short Float %9.77%
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%
PT rev (3m)1.42%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)0.89%
EPS NY rev (1m)2.46%
EPS NY rev (3m)2.85%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 9.8 | ||
| P/S | 3.07 | ||
| P/FCF | 8.72 | ||
| P/OCF | 8.62 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.81 |
EPS(TTM)2.74
EY9.51%
EPS(NY)2.94
Fwd EY10.2%
FCF(TTM)3.31
FCFY11.47%
OCF(TTM)3.34
OCFY11.6%
SpS9.39
BVpS-4.84
TBVpS-6.67
PEG (NY)1.19
PEG (5Y)0.27
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 | 0.66 |
F-Score4
WACC10.26%
ROIC/WACC5.16
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-1.01%
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%