Duck Creek Technologies Inc (DCT)
US2641201064 - Common Stock
Taking everything into account, DCT scores 4 out of 10 in our fundamental rating. DCT was compared to 275 industry peers in the Software industry. While DCT has a great health rating, there are worries on its profitability. DCT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DCT was profitable.
DCT had a positive operating cash flow in the past year.
DCT had negative earnings in each of the past 5 years.
Of the past 5 years DCT 4 years had a positive operating cash flow.
1.2 Ratios
DCT has negative profitability rations, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DCT has a worse Gross Margin (56.63%) than 63.00% of its industry peers.
DCT's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for DCT so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.63% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.12%
GM growth 5Y-0.64%
2. Health
2.1 Basic Checks
DCT does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for DCT has been increased compared to 1 year ago.
DCT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
DCT has an Altman-Z score of 15.48. This indicates that DCT is financially healthy and has little risk of bankruptcy at the moment.
DCT has a Altman-Z score of 15.48. This is amongst the best in the industry. DCT outperforms 95.33% of its industry peers.
There is no outstanding debt for DCT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 15.48 |
ROIC/WACCN/A
WACC12.39%
2.3 Liquidity
DCT has a Current Ratio of 4.68. This indicates that DCT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DCT (4.68) is better than 85.00% of its industry peers.
A Quick Ratio of 4.68 indicates that DCT has no problem at all paying its short term obligations.
DCT has a Quick ratio of 4.68. This is amongst the best in the industry. DCT outperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.68 | ||
| Quick Ratio | 4.68 |
3. Growth
3.1 Past
DCT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
The Revenue has grown by 12.81% in the past year. This is quite good.
DCT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.09% yearly.
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-50%
Revenue 1Y (TTM)12.81%
Revenue growth 3Y20.93%
Revenue growth 5Y14.09%
Revenue growth Q2Q9.76%
3.2 Future
The Earnings Per Share is expected to grow by 29.83% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.02% on average over the next years. This is quite good.
EPS Next Y21.11%
EPS Next 2Y28.3%
EPS Next 3Y29.83%
EPS Next 5YN/A
Revenue Next Year13.08%
Revenue Next 2Y12.42%
Revenue Next 3Y14.02%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 189.90, which means the current valuation is very expensive for DCT.
DCT's Price/Earnings ratio is in line with the industry average.
DCT is valuated expensively when we compare the Price/Earnings ratio to 24.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 96.14, DCT can be considered very expensive at the moment.
DCT's Price/Forward Earnings ratio is in line with the industry average.
DCT is valuated expensively when we compare the Price/Forward Earnings ratio to 21.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 189.9 | ||
| Fwd PE | 96.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCT is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
DCT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DCT is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.39 | ||
| EV/EBITDA | 244.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DCT's earnings are expected to grow with 29.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)9
PEG (5Y)N/A
EPS Next 2Y28.3%
EPS Next 3Y29.83%
5. Dividend
5.1 Amount
DCT has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
DCT's Dividend Yield is rather good when compared to the industry average which is at 11.06. DCT pays more dividend than 86.00% of the companies in the same industry.
With a Dividend Yield of 1.26, DCT pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
DCT has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y28.3%
EPS Next 3Y29.83%
Duck Creek Technologies Inc
NASDAQ:DCT (3/29/2023, 7:01:09 PM)
After market: 18.99 0 (0%)18.99
0 (0%)
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 Cap2.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 | 189.9 | ||
| Fwd PE | 96.14 | ||
| 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)9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.63% | ||
| 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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.68 | ||
| Quick Ratio | 4.68 | ||
| 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)0%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y21.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.81%
Revenue growth 3Y20.93%
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