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DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis

NASDAQ:DBX - Nasdaq - US26210C1045 - Common Stock - Currency: USD

29.12  +0.26 (+0.9%)

After market: 29.01 -0.11 (-0.38%)

Fundamental Rating

6

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.


Dividend Valuation Growth Profitability Health

9

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.
DBX Yearly Net Income VS EBIT VS OCF VS FCFDBX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M 800M

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 RankSector 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%
DBX Yearly ROA, ROE, ROICDBX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150 -200 -250

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 RankSector 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%
DBX Yearly Profit, Operating, Gross MarginsDBX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60 80

3

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.
DBX Yearly Shares OutstandingDBX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
DBX Yearly Total Debt VS Total AssetsDBX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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 RankSector Rank
Debt/Equity N/A
Debt/FCF 3.13
Altman-Z 0.84
ROIC/WACC3.94
WACC10.17%
DBX Yearly LT Debt VS Equity VS FCFDBX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

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 RankSector Rank
Current Ratio 0.73
Quick Ratio 0.73
DBX Yearly Current Assets VS Current LiabilitesDBX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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 22.33%, 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.
DBX Yearly Revenue VS EstimatesDBX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B
DBX Yearly EPS VS EstimatesDBX Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3 4 5

8

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 RankSector Rank
PE 11.07
Fwd PE 10.25
DBX Price Earnings VS Forward Price EarningsDBX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 RankSector Rank
P/FCF 9.27
EV/EBITDA 13.65
DBX Per share dataDBX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

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%

0

5. Dividend

5.1 Amount

No dividends for DBX!.
Industry RankSector Rank
Dividend Yield N/A

DROPBOX INC-CLASS A

NASDAQ:DBX (6/2/2025, 8:00:01 PM)

After market: 29.01 -0.11 (-0.38%)

29.12

+0.26 (+0.9%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-06 2025-08-06/amc
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%