DATADOG INC - CLASS A (DDOG) Stock Fundamental Analysis
NASDAQ:DDOG - Nasdaq - US23804L1035 - Common Stock - Currency: USD
DDOG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. While DDOG has a great health rating, its profitability is only average at the moment. DDOG shows excellent growth, but is valued quite expensive already. These ratings would make DDOG suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year DDOG was profitable.
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
DDOG has a Return On Assets of 2.76%. This is in the better half of the industry: DDOG outperforms 71.63% of its industry peers.
DDOG's Return On Equity of 5.68% is fine compared to the rest of the industry. DDOG outperforms 73.76% of its industry peers.
DDOG has a better Return On Invested Capital (0.61%) than 64.18% 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
The Profit Margin of DDOG (5.85%) is better than 72.69% of its industry peers.
With a decent Operating Margin value of 1.05%, DDOG is doing good in the industry, outperforming 63.83% of the companies in the same industry.
Looking at the Gross Margin, with a value of 80.14%, DDOG belongs to the top of the industry, outperforming 81.21% 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.
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 10.35 indicates that DDOG is not in any danger for bankruptcy at the moment.
DDOG's Altman-Z score of 10.35 is amongst the best of the industry. DDOG outperforms 84.75% of its industry peers.
The Debt to FCF ratio of DDOG is 1.94, which is an excellent value as it means it would take DDOG, only 1.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DDOG (1.94) is better than 68.09% 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 has a Debt to Equity ratio of 0.34. This is in the lower half of the industry: DDOG underperforms 60.99% 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 | 10.35 |
ROIC/WACC0.06
WACC10.92%
2.3 Liquidity
DDOG has a Current Ratio of 2.74. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.74, DDOG is doing good in the industry, outperforming 74.82% 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.
Looking at the Quick ratio, with a value of 2.74, DDOG is in the better half of the industry, outperforming 75.18% of the companies in the same industry.
| 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%.
Measured over the past years, DDOG shows a very strong growth in Earnings Per Share. The EPS has been growing by 54.87% on average per year.
The Revenue has grown by 25.54% in the past year. This is a very strong growth!
Measured over the past years, DDOG shows a very strong growth in Revenue. The Revenue has been growing by 49.22% on average per year.
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
DDOG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.35% yearly.
DDOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.67% yearly.
EPS Next Y-3.44%
EPS Next 2Y8.97%
EPS Next 3Y16.61%
EPS Next 5Y9.35%
Revenue Next Year21.59%
Revenue Next 2Y20.26%
Revenue Next 3Y20.76%
Revenue Next 5Y18.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
DDOG is valuated quite expensively with a Price/Earnings ratio of 74.66.
DDOG's Price/Earnings is on the same level as the industry average.
DDOG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
DDOG is valuated quite expensively with a Price/Forward Earnings ratio of 63.57.
DDOG's Price/Forward Earnings ratio is in line with the industry average.
DDOG is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.66 | ||
| Fwd PE | 63.57 |
4.2 Price Multiples
DDOG's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 56.97 | ||
| EV/EBITDA | 496.36 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DDOG's earnings are expected to grow with 16.61% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.97%
EPS Next 3Y16.61%
5. Dividend
5.1 Amount
No dividends for DDOG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
137.37
-0.12 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.65%
Inst Owner Change0%
Ins Owners2.46%
Ins Owner Change14.81%
Market Cap47.44B
Analysts81.6
Price Target141.89 (3.29%)
Short Float %2.46%
Short Ratio1.63
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)-1.66%
PT rev (3m)-11.96%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.66 | ||
| Fwd PE | 63.57 | ||
| P/S | 16.74 | ||
| P/FCF | 56.97 | ||
| P/OCF | 51.02 | ||
| P/B | 16.27 | ||
| P/tB | 18.59 | ||
| EV/EBITDA | 496.36 |
EPS(TTM)1.84
EY1.34%
EPS(NY)2.16
Fwd EY1.57%
FCF(TTM)2.41
FCFY1.76%
OCF(TTM)2.69
OCFY1.96%
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 | 10.35 |
F-Score4
WACC10.92%
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-3.44%
EPS Next 2Y8.97%
EPS Next 3Y16.61%
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 2Y20.26%
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%