DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis
NASDAQ:DBX - Nasdaq - US26210C1045 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to DBX. DBX was compared to 284 industry peers in the Software industry. While DBX belongs to the best of the industry regarding profitability, there are some minor 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
The Return On Assets of DBX (13.60%) is better than 89.44% of its industry peers.
The Return On Invested Capital of DBX (19.61%) is better than 93.66% of its industry peers.
DBX had an Average Return On Invested Capital over the past 3 years of 17.97%. This is significantly above the industry average of 12.17%.
The 3 year average ROIC (17.97%) for DBX is below the current ROIC(19.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.6% | ||
| ROE | N/A | ||
| ROIC | 19.61% |
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 17.75%, DBX belongs to the best of the industry, outperforming 83.10% of the companies in the same industry.
In the last couple of years the Profit Margin of DBX has grown nicely.
DBX's Operating Margin of 19.08% is amongst the best of the industry. DBX outperforms 85.92% of its industry peers.
In the last couple of years the Operating Margin of DBX has grown nicely.
The Gross Margin of DBX (82.53%) is better than 89.79% of its industry peers.
DBX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.08% | ||
| PM (TTM) | 17.75% | ||
| GM | 82.53% |
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.
DBX has less shares outstanding than it did 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 1.36. This is a bad value and indicates that DBX is not financially healthy and even has some risk of bankruptcy.
DBX has a Altman-Z score of 1.36. This is comparable to the rest of the industry: DBX outperforms 42.96% of its industry peers.
The Debt to FCF ratio of DBX is 3.08, which is a good value as it means it would take DBX, 3.08 years of fcf income to pay off all of its debts.
DBX has a better Debt to FCF ratio (3.08) than 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 1.36 |
ROIC/WACC2
WACC9.82%
2.3 Liquidity
DBX has a Current Ratio of 1.44. This is a normal value and indicates that DBX is financially healthy and should not expect problems in meeting its short term obligations.
DBX's Current ratio of 1.44 is in line compared to the rest of the industry. DBX outperforms 45.07% of its industry peers.
A Quick Ratio of 1.44 indicates that DBX should not have too much problems paying its short term obligations.
DBX has a Quick ratio (1.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
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 1.86%.
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)1.86%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.05%
3.2 Future
Based on estimates for the next years, DBX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.42% on average per year.
The Revenue is expected to grow by 2.00% on average over the next years.
EPS Next Y3.09%
EPS Next 2Y6.5%
EPS Next 3Y6.48%
EPS Next 5Y10.42%
Revenue Next Year-2.65%
Revenue Next 2Y-1.45%
Revenue Next 3Y-1.05%
Revenue Next 5Y2%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
A Price/Earnings ratio of 11.14 indicates a reasonable valuation of DBX.
Compared to the rest of the industry, the Price/Earnings ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 90.49% of the companies listed in the same industry.
DBX is valuated cheaply when we compare the Price/Earnings ratio to 24.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.29, which indicates a very decent valuation of DBX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 91.90% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DBX to the average of the S&P500 Index (20.94), we can say DBX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DBX is valued cheaper than 85.92% of the companies in the same industry.
95.07% 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 | 9.68 | ||
| EV/EBITDA | 14.84 |
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)3.6
PEG (5Y)0.29
EPS Next 2Y6.5%
EPS Next 3Y6.48%
5. Dividend
5.1 Amount
DBX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.29
-0.17 (-0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners104.24%
Inst Owner Change-2.69%
Ins Owners4.51%
Ins Owner Change5.57%
Market Cap8.43B
Analysts51.58
Price Target28.33 (-3.28%)
Short Float %10.51%
Short Ratio4.98
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)13.68%
Min EPS beat(2)11.62%
Max EPS beat(2)15.74%
EPS beat(4)4
Avg EPS beat(4)14.11%
Min EPS beat(4)11.62%
Max EPS beat(4)15.74%
EPS beat(8)8
Avg EPS beat(8)12.43%
EPS beat(12)12
Avg EPS beat(12)9.68%
EPS beat(16)16
Avg EPS beat(16)10.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)-0.26%
Revenue beat(4)0
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)-0.25%
Revenue beat(8)2
Avg Revenue beat(8)-0.18%
Revenue beat(12)2
Avg Revenue beat(12)-0.22%
Revenue beat(16)6
Avg Revenue beat(16)-0.11%
PT rev (1m)-1.75%
PT rev (3m)-6.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.29 | ||
| P/S | 3.31 | ||
| P/FCF | 9.68 | ||
| P/OCF | 9.43 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.84 |
EPS(TTM)2.63
EY8.98%
EPS(NY)2.85
Fwd EY9.72%
FCF(TTM)3.03
FCFY10.33%
OCF(TTM)3.11
OCFY10.6%
SpS8.85
BVpS-2.61
TBVpS-4.34
PEG (NY)3.6
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.6% | ||
| ROE | N/A | ||
| ROCE | 23% | ||
| ROIC | 19.61% | ||
| ROICexc | 79.71% | ||
| ROICexgc | 1842.96% | ||
| OM | 19.08% | ||
| PM (TTM) | 17.75% | ||
| GM | 82.53% | ||
| FCFM | 34.2% |
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-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 4.09 | ||
| Cap/Depr | 16.53% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 31.99 | ||
| Cash Conversion | 143.38% | ||
| Profit Quality | 192.66% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 1.36 |
F-Score6
WACC9.82%
ROIC/WACC2
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 Y3.09%
EPS Next 2Y6.5%
EPS Next 3Y6.48%
EPS Next 5Y10.42%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.05%
Revenue Next Year-2.65%
Revenue Next 2Y-1.45%
Revenue Next 3Y-1.05%
Revenue Next 5Y2%
EBIT growth 1Y26.81%
EBIT growth 3Y16.58%
EBIT growth 5YN/A
EBIT Next Year18.52%
EBIT Next 3Y4.69%
EBIT Next 5Y8.46%
FCF growth 1Y14.79%
FCF growth 3Y7.53%
FCF growth 5Y17.4%
OCF growth 1Y14.09%
OCF growth 3Y7%
OCF growth 5Y11.09%