DROPBOX INC-CLASS A (DBX)
US26210C1045 - Common Stock
DBX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. DBX has an excellent profitability rating, but there are some minor 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
In the past year DBX was profitable.
DBX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: DBX reported negative net income in multiple years.
Each year in the past 5 years DBX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.20%, DBX belongs to the top of the industry, outperforming 94.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.61%, DBX belongs to the top of the industry, outperforming 94.89% of the companies in the same industry.
DBX had an Average Return On Invested Capital over the past 3 years of 15.34%. This is above the industry average of 10.44%.
The 3 year average ROIC (15.34%) for DBX is below the current ROIC(17.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.2% | ||
| ROE | N/A | ||
| ROIC | 17.61% |
ROA(3y)14.62%
ROA(5y)6.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.34%
ROIC(5y)N/A
1.3 Margins
DBX has a Profit Margin of 18.13%. This is amongst the best in the industry. DBX outperforms 87.96% of its industry peers.
The Operating Margin of DBX (15.33%) is better than 86.50% of its industry peers.
In the last couple of years the Operating Margin of DBX has grown nicely.
The Gross Margin of DBX (80.87%) is better than 85.04% of its industry peers.
In the last couple of years the Gross Margin of DBX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.33% | ||
| PM (TTM) | 18.13% | ||
| GM | 80.87% |
OM growth 3Y34.27%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.07%
GM growth 5Y2.45%
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.
Compared to 1 year ago, DBX has less shares outstanding
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 1.62. 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 (1.62) is comparable to the rest of the industry.
The Debt to FCF ratio of DBX is 2.19, which is a good value as it means it would take DBX, 2.19 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.19, DBX is doing good in the industry, outperforming 68.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.19 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.95
WACC9.02%
2.3 Liquidity
DBX has a Current Ratio of 1.26. This is a normal value and indicates that DBX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DBX (1.26) is worse than 64.23% of its industry peers.
A Quick Ratio of 1.26 indicates that DBX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, DBX is doing worse than 61.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
DBX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.16%, 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 37.83% on average per year.
The Revenue has been growing slightly by 7.60% in the past year.
DBX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.44% yearly.
EPS 1Y (TTM)25.16%
EPS 3Y28.86%
EPS 5Y37.83%
EPS growth Q2Q25%
Revenue 1Y (TTM)7.6%
Revenue growth 3Y9.34%
Revenue growth 5Y12.44%
Revenue growth Q2Q6.05%
3.2 Future
Based on estimates for the next years, DBX will show a small growth in Earnings Per Share. The EPS will grow by 6.11% on average per year.
DBX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.25% yearly.
EPS Next Y3.03%
EPS Next 2Y5.05%
EPS Next 3Y6.68%
EPS Next 5Y6.11%
Revenue Next Year1.94%
Revenue Next 2Y2.39%
Revenue Next 3Y3.15%
Revenue Next 5Y6.25%
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
Based on the Price/Earnings ratio of 11.74, the valuation of DBX can be described as reasonable.
Based on the Price/Earnings ratio, DBX is valued cheaper than 91.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. DBX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.40, the valuation of DBX can be described as reasonable.
Based on the Price/Forward Earnings ratio, DBX is valued cheaply inside the industry as 92.34% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DBX to the average of the S&P500 Index (20.88), we can say DBX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
DBX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DBX is cheaper than 89.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DBX is valued cheaply inside the industry as 94.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.42 | ||
| EV/EBITDA | 13.64 |
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)3.88
PEG (5Y)0.31
EPS Next 2Y5.05%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
DBX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DROPBOX INC-CLASS A
NASDAQ:DBX (5/3/2024, 7:00:01 PM)
After market: 23.35 -0.02 (-0.09%)23.37
-0.22 (-0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 11.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.88
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.2% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.33% | ||
| PM (TTM) | 18.13% | ||
| GM | 80.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)25.16%
EPS 3Y28.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.6%
Revenue growth 3Y9.34%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y