DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis
NASDAQ:DBX - Nasdaq - US26210C1045 - Common Stock - Currency: USD
Taking everything into account, DBX scores 5 out of 10 in our fundamental rating. DBX was compared to 284 industry peers in the Software industry. DBX scores excellent on profitability, but there are concerns on its financial health. DBX is valued quite cheap, while showing a decent growth score. This is a good combination!
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's Return On Assets of 15.90% is amongst the best of the industry. DBX outperforms 92.25% of its industry peers.
DBX has a better Return On Invested Capital (40.08%) than 98.24% 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 12.36%.
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 85.92% of its industry peers.
In the last couple of years the Profit Margin of DBX has grown nicely.
With an excellent Operating Margin value of 20.72%, DBX belongs to the best of the industry, outperforming 88.03% of the companies in the same industry.
In the last couple of years the Operating Margin of DBX has grown nicely.
The Gross Margin of DBX (82.06%) is better than 88.03% 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
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.
Compared to 5 years ago, DBX has less shares outstanding
Compared to 1 year ago, DBX has a worse debt to assets ratio.
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 worse Altman-Z score (0.84) than 62.68% 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 has a better Debt to FCF ratio (3.13) than 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 0.84 |
ROIC/WACC5.29
WACC7.58%
2.3 Liquidity
A Current Ratio of 0.73 indicates that DBX may have some problems paying its short term obligations.
DBX's Current ratio of 0.73 is on the low side compared to the rest of the industry. DBX is outperformed by 84.15% of its industry peers.
A Quick Ratio of 0.73 indicates that DBX may have some problems paying its short term obligations.
DBX has a worse Quick ratio (0.73) than 84.15% 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.
DBX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.64% yearly.
DBX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.79%.
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)22.33%
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.
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 Y5.84%
EPS Next 2Y6.7%
EPS Next 3Y5.07%
EPS Next 5Y3.35%
Revenue Next Year-2.45%
Revenue Next 2Y-1.25%
Revenue Next 3Y-1.06%
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
The Price/Earnings ratio is 10.97, which indicates a very decent valuation of DBX.
Based on the Price/Earnings ratio, DBX is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DBX to the average of the S&P500 Index (26.92), we can say DBX is valued rather cheaply.
A Price/Forward Earnings ratio of 10.09 indicates a reasonable valuation of DBX.
91.90% 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 (21.46), we can say DBX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.09 |
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 87.32% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DBX is valued cheaply inside the industry as 96.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.18 | ||
| EV/EBITDA | 13.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DBX may justify a higher PE ratio.
PEG (NY)1.88
PEG (5Y)0.28
EPS Next 2Y6.7%
EPS Next 3Y5.07%
5. Dividend
5.1 Amount
DBX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.84
+0.12 (+0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners113.91%
Inst Owner Change-4.25%
Ins Owners5.89%
Ins Owner Change5.77%
Market Cap7.88B
Analysts51.58
Price Target28.74 (-0.35%)
Short Float %11.58%
Short Ratio5.84
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)1.42%
PT rev (3m)-0.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)0%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.09 | ||
| P/S | 3.1 | ||
| P/FCF | 9.18 | ||
| P/OCF | 9.03 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.65 |
EPS(TTM)2.63
EY9.12%
EPS(NY)2.86
Fwd EY9.91%
FCF(TTM)3.14
FCFY10.9%
OCF(TTM)3.19
OCFY11.07%
SpS9.31
BVpS-3.94
TBVpS-5.74
PEG (NY)1.88
PEG (5Y)0.28
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
WACC7.58%
ROIC/WACC5.29
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 2Y6.7%
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-2.45%
Revenue Next 2Y-1.25%
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%