DATADOG INC - CLASS A (DDOG)
US23804L1035 - Common Stock
We assign a fundamental rating of 5 out of 10 to DDOG. DDOG was compared to 276 industry peers in the Software industry. DDOG has an excellent financial health rating, but there are some minor concerns on its profitability. DDOG shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year DDOG was profitable.
In the past year DDOG had a positive cash flow from operations.
DDOG had negative earnings in 4 of the past 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 1.23%, DDOG is in the better half of the industry, outperforming 72.26% of the companies in the same industry.
DDOG's Return On Equity of 2.39% is fine compared to the rest of the industry. DDOG outperforms 73.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.39% | ||
| ROIC | N/A |
ROA(3y)-0.44%
ROA(5y)-0.84%
ROE(3y)-1.05%
ROE(5y)-1.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 2.28%, DDOG is doing good in the industry, outperforming 72.26% of the companies in the same industry.
DDOG has a Gross Margin of 80.74%. This is amongst the best in the industry. DDOG outperforms 84.67% of its industry peers.
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 | N/A | ||
| PM (TTM) | 2.28% | ||
| GM | 80.74% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.97%
GM growth 5Y1.09%
2. Health
2.1 Basic Checks
DDOG does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for DDOG has been increased compared to 1 year ago.
Compared to 5 years ago, DDOG has more shares outstanding
Compared to 1 year ago, DDOG has an improved debt to assets ratio.
2.2 Solvency
DDOG has an Altman-Z score of 14.17. This indicates that DDOG is financially healthy and has little risk of bankruptcy at the moment.
DDOG has a Altman-Z score of 14.17. This is amongst the best in the industry. DDOG outperforms 94.53% of its industry peers.
The Debt to FCF ratio of DDOG is 1.24, which is an excellent value as it means it would take DDOG, only 1.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DDOG (1.24) is better than 74.82% of its industry peers.
DDOG has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.37, DDOG is in line with its industry, outperforming 41.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | 14.17 |
ROIC/WACCN/A
WACC9.98%
2.3 Liquidity
DDOG has a Current Ratio of 3.17. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
DDOG's Current ratio of 3.17 is fine compared to the rest of the industry. DDOG outperforms 77.01% of its industry peers.
A Quick Ratio of 3.17 indicates that DDOG has no problem at all paying its short term obligations.
DDOG has a Quick ratio of 3.17. This is in the better half of the industry: DDOG outperforms 77.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
DDOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.07%, which is quite impressive.
Measured over the past years, DDOG shows a very strong growth in Earnings Per Share. The EPS has been growing by 95.35% on average per year.
DDOG shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.07%.
The Revenue has been growing by 60.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)69.07%
EPS 3Y95.35%
EPS 5YN/A
EPS growth Q2Q111.54%
Revenue 1Y (TTM)27.07%
Revenue growth 3Y52.21%
Revenue growth 5Y60.78%
Revenue growth Q2Q25.62%
3.2 Future
The Earnings Per Share is expected to grow by 34.47% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.96% on average over the next years. This is a very strong growth
EPS Next Y-8.71%
EPS Next 2Y7.35%
EPS Next 3Y15.32%
EPS Next 5Y34.47%
Revenue Next Year22.43%
Revenue Next 2Y22.86%
Revenue Next 3Y25.17%
Revenue Next 5Y27.96%
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
DDOG is valuated quite expensively with a Price/Earnings ratio of 79.05.
DDOG's Price/Earnings ratio is in line with the industry average.
DDOG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.20.
Based on the Price/Forward Earnings ratio of 86.59, the valuation of DDOG can be described as expensive.
DDOG's Price/Forward Earnings is on the same level as the industry average.
DDOG is valuated expensively when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.05 | ||
| Fwd PE | 86.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DDOG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DDOG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72 | ||
| EV/EBITDA | 3404.51 |
4.3 Compensation for Growth
DDOG's earnings are expected to grow with 15.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.35%
EPS Next 3Y15.32%
5. Dividend
5.1 Amount
No dividends for DDOG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DATADOG INC - CLASS A
NASDAQ:DDOG (4/26/2024, 10:17:03 AM)
129.64
+4.39 (+3.5%)
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 Cap43.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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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 | 79.05 | ||
| Fwd PE | 86.59 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 2.28% | ||
| GM | 80.74% | ||
| 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.17 | ||
| 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)69.07%
EPS 3Y95.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)27.07%
Revenue growth 3Y52.21%
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