127.895 USD
-0.29 (-0.22%)
Last: Jan 30, 2026, 01:20 PM
DDOG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. DDOG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DDOG is valued quite expensively, but it does show have an excellent growth rating.
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.
- Each year in the past 5 years DDOG had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.76%, DDOG is in the better half of the industry, outperforming 60.79% of the companies in the same industry.
- The Return On Equity of DDOG (3.10%) is better than 63.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 3.1% | ||
| ROIC | N/A |
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 better Profit Margin (3.32%) than 61.51% of its industry peers.
- DDOG's Gross Margin of 79.94% is amongst the best of the industry. DDOG outperforms 81.30% of its industry peers.
- DDOG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 3.32% | ||
| GM | 79.94% |
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
- DDOG does not have a ROIC to compare to the WACC, probably because it is not profitable.
- DDOG has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DDOG has more shares outstanding
- DDOG has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 11.55 indicates that DDOG is not in any danger for bankruptcy at the moment.
- DDOG has a better Altman-Z score (11.55) than 92.09% of its industry peers.
- The Debt to FCF ratio of DDOG is 1.14, which is an excellent value as it means it would take DDOG, only 1.14 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.14, DDOG is in the better half of the industry, outperforming 74.46% of the companies in the same industry.
- A Debt/Equity ratio of 0.29 indicates that DDOG is not too dependend on debt financing.
- DDOG has a worse Debt to Equity ratio (0.29) than 60.07% 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 | 0.29 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 11.55 |
ROIC/WACCN/A
WACC11.09%
2.3 Liquidity
- A Current Ratio of 3.66 indicates that DDOG has no problem at all paying its short term obligations.
- DDOG's Current ratio of 3.66 is fine compared to the rest of the industry. DDOG outperforms 79.86% of its industry peers.
- A Quick Ratio of 3.66 indicates that DDOG has no problem at all paying its short term obligations.
- DDOG's Quick ratio of 3.66 is fine compared to the rest of the industry. DDOG outperforms 79.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.66 | ||
| Quick Ratio | 3.66 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.73% over the past year.
- DDOG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 54.87% yearly.
- The Revenue has grown by 26.63% in the past year. This is a very strong growth!
- The Revenue has been growing by 49.22% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)10.73%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%19.57%
Revenue 1Y (TTM)26.63%
Revenue growth 3Y37.67%
Revenue growth 5Y49.22%
Sales Q2Q%28.35%
3.2 Future
- DDOG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.92% yearly.
- The Revenue is expected to grow by 21.44% on average over the next years. This is a very strong growth
EPS Next Y13.9%
EPS Next 2Y14.99%
EPS Next 3Y17.31%
EPS Next 5Y19.92%
Revenue Next Year27.52%
Revenue Next 2Y24.25%
Revenue Next 3Y22.99%
Revenue Next 5Y21.44%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
- The Price/Earnings ratio is 65.25, which means the current valuation is very expensive for DDOG.
- The rest of the industry has a similar Price/Earnings ratio as DDOG.
- The average S&P500 Price/Earnings ratio is at 28.39. DDOG is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 53.15 indicates a quite expensive valuation of DDOG.
- The rest of the industry has a similar Price/Forward Earnings ratio as DDOG.
- When comparing the Price/Forward Earnings ratio of DDOG to the average of the S&P500 Index (25.72), we can say DDOG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.25 | ||
| Fwd PE | 53.15 |
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.
- DDOG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.87 | ||
| EV/EBITDA | 3218.27 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DDOG does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as DDOG's earnings are expected to grow with 17.31% in the coming years.
PEG (NY)4.69
PEG (5Y)N/A
EPS Next 2Y14.99%
EPS Next 3Y17.31%
5. Dividend
5.1 Amount
- DDOG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DATADOG INC - CLASS A / DDOG FAQ
What is the fundamental rating for DDOG stock?
ChartMill assigns a fundamental rating of 5 / 10 to DDOG.
What is the valuation status of DATADOG INC - CLASS A (DDOG) stock?
ChartMill assigns a valuation rating of 2 / 10 to DATADOG INC - CLASS A (DDOG). This can be considered as Overvalued.
What is the profitability of DDOG stock?
DATADOG INC - CLASS A (DDOG) has a profitability rating of 4 / 10.
What is the expected EPS growth for DATADOG INC - CLASS A (DDOG) stock?
The Earnings per Share (EPS) of DATADOG INC - CLASS A (DDOG) is expected to grow by 13.9% in the next year.