DATADOG INC - CLASS A (DDOG) Stock Fundamental Analysis
NASDAQ:DDOG - Nasdaq - US23804L1035 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to DDOG. DDOG was compared to 282 industry peers in the Software industry. DDOG has an excellent financial health rating, but there are some minor concerns on its profitability. DDOG is valued quite expensively, but it does show have an excellent growth rating. 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.
DDOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.76%, DDOG is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
DDOG has a Return On Equity of 5.68%. This is in the better half of the industry: DDOG outperforms 72.69% of its industry peers.
With a decent Return On Invested Capital value of 0.61%, DDOG is doing good in the industry, outperforming 64.54% of the companies in the same industry.
| 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 has a Profit Margin of 5.85%. This is in the better half of the industry: DDOG outperforms 72.34% of its industry peers.
The Operating Margin of DDOG (1.05%) is better than 64.18% of its industry peers.
DDOG has a better Gross Margin (80.14%) than 81.21% of its industry peers.
DDOG's Gross Margin has been stable in the last couple of years.
| 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.
DDOG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DDOG has been increased compared to 5 years ago.
Compared to 1 year ago, DDOG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.98 indicates that DDOG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.98, DDOG belongs to the top of the industry, outperforming 82.62% of the companies in the same industry.
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.
The Debt to FCF ratio of DDOG (1.94) is better than 67.38% 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.
With a Debt to Equity ratio value of 0.34, DDOG perfoms like the industry average, outperforming 40.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 8.98 |
ROIC/WACC0.06
WACC10.94%
2.3 Liquidity
A Current Ratio of 2.74 indicates that DDOG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.74, DDOG is in the better half of the industry, outperforming 73.76% of the companies in the same industry.
A Quick Ratio of 2.74 indicates that DDOG has no problem at all paying its short term obligations.
The Quick ratio of DDOG (2.74) is better than 74.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.22% over the past year.
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
The Earnings Per Share is expected to grow by 19.43% on average over the next years. This is quite good.
DDOG is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.11% yearly.
EPS Next Y-3.23%
EPS Next 2Y9.11%
EPS Next 3Y16.87%
EPS Next 5Y19.43%
Revenue Next Year21.52%
Revenue Next 2Y20.15%
Revenue Next 3Y20.49%
Revenue Next 5Y20.11%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 64.07, the valuation of DDOG can be described as expensive.
DDOG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.19, DDOG is valued quite expensively.
With a Price/Forward Earnings ratio of 54.40, DDOG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DDOG is on the same level as its industry peers.
DDOG is valuated expensively when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.07 | ||
| Fwd PE | 54.4 |
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 the industry average as 60.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.89 | ||
| EV/EBITDA | 411.27 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DDOG's earnings are expected to grow with 16.87% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.11%
EPS Next 3Y16.87%
5. Dividend
5.1 Amount
No dividends for DDOG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
117.88
+0.88 (+0.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.58%
Inst Owner Change0.62%
Ins Owners2.83%
Ins Owner Change15.69%
Market Cap40.71B
Analysts80.82
Price Target144.29 (22.4%)
Short Float %3.26%
Short Ratio1.96
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)-10.47%
PT rev (3m)-11.79%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)-9.02%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)2.26%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.07 | ||
| Fwd PE | 54.4 | ||
| P/S | 14.36 | ||
| P/FCF | 48.89 | ||
| P/OCF | 43.78 | ||
| P/B | 13.96 | ||
| P/tB | 15.95 | ||
| EV/EBITDA | 411.27 |
EPS(TTM)1.84
EY1.56%
EPS(NY)2.17
Fwd EY1.84%
FCF(TTM)2.41
FCFY2.05%
OCF(TTM)2.69
OCFY2.28%
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 | 8.98 |
F-Score4
WACC10.94%
ROIC/WACC0.06
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 5Y19.43%
Revenue 1Y (TTM)25.54%
Revenue growth 3Y37.67%
Revenue growth 5Y49.22%
Sales Q2Q%24.59%
Revenue Next Year21.52%
Revenue Next 2Y20.15%
Revenue Next 3Y20.49%
Revenue Next 5Y20.11%
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%