DATADOG INC - CLASS A (DDOG) Stock Fundamental Analysis
NASDAQ:DDOG - Nasdaq - US23804L1035 - Common Stock - Currency: USD
Overall DDOG gets a fundamental rating of 5 out of 10. We evaluated DDOG against 284 industry peers in the Software industry. While DDOG has a great health rating, its profitability is only average at the moment. DDOG is valued quite expensive, but it does show an excellent growth. These ratings would make DDOG suitable for growth investing!
1. Profitability
1.1 Basic Checks
DDOG had positive earnings in the past year.
DDOG had a positive operating cash flow in the past year.
In multiple years DDOG reported negative net income over the last 5 years.
In the past 5 years DDOG always reported a positive cash flow from operatings.
1.2 Ratios
DDOG has a Return On Assets of 2.76%. This is in the better half of the industry: DDOG outperforms 71.83% of its industry peers.
DDOG has a better Return On Equity (5.68%) than 73.94% of its industry peers.
DDOG has a Return On Invested Capital of 0.61%. This is in the better half of the industry: DDOG outperforms 64.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 5.68% | ||
| ROIC | 0.61% |
ROA(3y)0.91%
ROA(5y)0.11%
ROE(3y)1.87%
ROE(5y)0.21%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DDOG's Profit Margin of 5.85% is fine compared to the rest of the industry. DDOG outperforms 72.89% of its industry peers.
Looking at the Operating Margin, with a value of 1.05%, DDOG is in the better half of the industry, outperforming 64.44% of the companies in the same industry.
With an excellent Gross Margin value of 80.14%, DDOG belongs to the best of the industry, outperforming 81.34% of the companies in the same industry.
In the last couple of years the Gross Margin of DDOG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.05% | ||
| PM (TTM) | 5.85% | ||
| GM | 80.14% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.52%
GM growth 5Y1.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DDOG is destroying value.
The number of shares outstanding for DDOG has been increased compared to 1 year ago.
The number of shares outstanding for DDOG has been increased compared to 5 years ago.
The debt/assets ratio for DDOG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.85 indicates that DDOG is not in any danger for bankruptcy at the moment.
DDOG has a better Altman-Z score (9.85) than 84.86% of its industry peers.
DDOG has a debt to FCF ratio of 1.94. This is a very positive value and a sign of high solvency as it would only need 1.94 years to pay back of all of its debts.
DDOG has a Debt to FCF ratio of 1.94. This is in the better half of the industry: DDOG outperforms 68.31% of its industry peers.
DDOG has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
DDOG's Debt to Equity ratio of 0.34 is on the low side compared to the rest of the industry. DDOG is outperformed by 60.56% of its industry peers.
Even though the debt/equity ratio score it not favorable for DDOG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 9.85 |
ROIC/WACC0.07
WACC8.9%
2.3 Liquidity
A Current Ratio of 2.74 indicates that DDOG has no problem at all paying its short term obligations.
DDOG has a better Current ratio (2.74) than 74.30% of its industry peers.
A Quick Ratio of 2.74 indicates that DDOG has no problem at all paying its short term obligations.
DDOG's Quick ratio of 2.74 is fine compared to the rest of the industry. DDOG outperforms 74.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
DDOG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.22%.
The Earnings Per Share has been growing by 54.87% on average over the past years. This is a very strong growth
DDOG shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.54%.
The Revenue has been growing by 49.22% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)2.22%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%4.55%
Revenue 1Y (TTM)25.54%
Revenue growth 3Y37.67%
Revenue growth 5Y49.22%
Sales Q2Q%24.59%
3.2 Future
Based on estimates for the next years, DDOG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.35% on average per year.
Based on estimates for the next years, DDOG will show a quite strong growth in Revenue. The Revenue will grow by 18.67% on average per year.
EPS Next Y-3.23%
EPS Next 2Y9.11%
EPS Next 3Y16.87%
EPS Next 5Y9.35%
Revenue Next Year21.59%
Revenue Next 2Y20.23%
Revenue Next 3Y20.76%
Revenue Next 5Y18.67%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
DDOG is valuated quite expensively with a Price/Earnings ratio of 69.29.
The rest of the industry has a similar Price/Earnings ratio as DDOG.
DDOG is valuated expensively when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 58.84 indicates a quite expensive valuation of DDOG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DDOG is on the same level as its industry peers.
DDOG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.29 | ||
| Fwd PE | 58.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DDOG is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, DDOG is valued a bit cheaper than 60.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.88 | ||
| EV/EBITDA | 465.42 |
4.3 Compensation for Growth
DDOG's earnings are expected to grow with 16.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.11%
EPS Next 3Y16.87%
5. Dividend
5.1 Amount
DDOG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
127.5
-2.54 (-1.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.65%
Inst Owner Change0.62%
Ins Owners2.46%
Ins Owner Change15.03%
Market Cap44.03B
Analysts80.8
Price Target141.89 (11.29%)
Short Float %2.32%
Short Ratio1.44
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)7.32%
Min EPS beat(2)4.55%
Max EPS beat(2)10.09%
EPS beat(4)4
Avg EPS beat(4)10.55%
Min EPS beat(4)4.55%
Max EPS beat(4)14.67%
EPS beat(8)8
Avg EPS beat(8)17.92%
EPS beat(12)12
Avg EPS beat(12)23.92%
EPS beat(16)16
Avg EPS beat(16)47.33%
Revenue beat(2)2
Avg Revenue beat(2)0.95%
Min Revenue beat(2)0.69%
Max Revenue beat(2)1.22%
Revenue beat(4)4
Avg Revenue beat(4)1.26%
Min Revenue beat(4)0.69%
Max Revenue beat(4)1.83%
Revenue beat(8)7
Avg Revenue beat(8)1.28%
Revenue beat(12)11
Avg Revenue beat(12)1.78%
Revenue beat(16)15
Avg Revenue beat(16)3.23%
PT rev (1m)-3.17%
PT rev (3m)-14.59%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)0.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.29 | ||
| Fwd PE | 58.84 | ||
| P/S | 15.53 | ||
| P/FCF | 52.88 | ||
| P/OCF | 47.35 | ||
| P/B | 15.1 | ||
| P/tB | 17.25 | ||
| EV/EBITDA | 465.42 |
EPS(TTM)1.84
EY1.44%
EPS(NY)2.17
Fwd EY1.7%
FCF(TTM)2.41
FCFY1.89%
OCF(TTM)2.69
OCFY2.11%
SpS8.21
BVpS8.45
TBVpS7.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 5.68% | ||
| ROCE | 0.72% | ||
| ROIC | 0.61% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 1.05% | ||
| PM (TTM) | 5.85% | ||
| GM | 80.14% | ||
| FCFM | 29.38% |
ROA(3y)0.91%
ROA(5y)0.11%
ROE(3y)1.87%
ROE(5y)0.21%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.52%
GM growth 5Y1.37%
F-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | 11.79 | ||
| Cap/Depr | 182.25% | ||
| Cap/Sales | 3.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 1118.16% | ||
| Profit Quality | 502.39% | ||
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z | 9.85 |
F-Score4
WACC8.9%
ROIC/WACC0.07
Cap/Depr(3y)167.26%
Cap/Depr(5y)165.21%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.22%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%4.55%
EPS Next Y-3.23%
EPS Next 2Y9.11%
EPS Next 3Y16.87%
EPS Next 5Y9.35%
Revenue 1Y (TTM)25.54%
Revenue growth 3Y37.67%
Revenue growth 5Y49.22%
Sales Q2Q%24.59%
Revenue Next Year21.59%
Revenue Next 2Y20.23%
Revenue Next 3Y20.76%
Revenue Next 5Y18.67%
EBIT growth 1Y120.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year10.09%
EBIT Next 3Y21.58%
EBIT Next 5Y22.11%
FCF growth 1Y145%
FCF growth 3Y45.72%
FCF growth 5Y295.6%
OCF growth 1Y129.71%
OCF growth 3Y44.84%
OCF growth 5Y104.74%