DATADOG INC - CLASS A (DDOG) Stock Fundamental Analysis
NASDAQ:DDOG - US23804L1035 - Common Stock
131.22 USD
+2.07 (+1.6%)
131 USD
-0.22 (-0.17%)
DDOG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 283 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 expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
DDOG had positive earnings in the past year.
In the past year DDOG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DDOG reported negative net income in multiple 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 2.14%, DDOG is in the better half of the industry, outperforming 67.49% of the companies in the same industry.
The Return On Equity of DDOG (3.90%) is better than 68.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.14% | ||
| ROE | 3.9% | ||
| 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
Looking at the Profit Margin, with a value of 4.13%, DDOG is in the better half of the industry, outperforming 68.55% of the companies in the same industry.
DDOG's Gross Margin of 79.92% is fine compared to the rest of the industry. DDOG outperforms 79.86% 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) | 4.13% | ||
| GM | 79.92% |
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.
DDOG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DDOG has a worse debt to assets ratio.
2.2 Solvency
DDOG has an Altman-Z score of 11.39. This indicates that DDOG is financially healthy and has little risk of bankruptcy at the moment.
DDOG has a Altman-Z score of 11.39. This is amongst the best in the industry. DDOG outperforms 89.75% of its industry peers.
DDOG has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.15, DDOG is doing good in the industry, outperforming 74.20% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that DDOG is not too dependend on debt financing.
The Debt to Equity ratio of DDOG (0.31) is worse than 60.07% of its industry peers.
Although DDOG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 11.39 |
ROIC/WACCN/A
WACC11.32%
2.3 Liquidity
DDOG has a Current Ratio of 3.43. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.43, DDOG belongs to the best of the industry, outperforming 80.21% of the companies in the same industry.
A Quick Ratio of 3.43 indicates that DDOG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.43, DDOG belongs to the top of the industry, outperforming 80.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.43 | ||
| Quick Ratio | 3.43 |
3. Growth
3.1 Past
DDOG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
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 26.00%.
The Revenue has been growing by 49.22% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)0%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%6.98%
Revenue 1Y (TTM)26%
Revenue growth 3Y37.67%
Revenue growth 5Y49.22%
Sales Q2Q%28.12%
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 17.37% yearly.
DDOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.64% yearly.
EPS Next Y-3.45%
EPS Next 2Y9.01%
EPS Next 3Y16.57%
EPS Next 5Y17.37%
Revenue Next Year21.7%
Revenue Next 2Y20.4%
Revenue Next 3Y21.06%
Revenue Next 5Y19.64%
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
A Price/Earnings ratio of 70.17 indicates a quite expensive valuation of DDOG.
Compared to the rest of the industry, the Price/Earnings ratio of DDOG is on the same level as its industry peers.
When comparing the Price/Earnings ratio of DDOG to the average of the S&P500 Index (27.24), we can say DDOG is valued expensively.
Based on the Price/Forward Earnings ratio of 60.67, the valuation of DDOG can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DDOG is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, DDOG is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.17 | ||
| Fwd PE | 60.67 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as DDOG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.04 | ||
| EV/EBITDA | 1039.47 |
4.3 Compensation for Growth
DDOG's earnings are expected to grow with 16.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.01%
EPS Next 3Y16.57%
5. Dividend
5.1 Amount
DDOG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
131.22
+2.07 (+1.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.1%
Inst Owner Change-1.21%
Ins Owners2.44%
Ins Owner Change14.6%
Market Cap45.32B
Analysts81.6
Price Target153.11 (16.68%)
Short Float %3.77%
Short Ratio1.52
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)6.22%
Min EPS beat(2)4.55%
Max EPS beat(2)7.9%
EPS beat(4)4
Avg EPS beat(4)8.86%
Min EPS beat(4)4.55%
Max EPS beat(4)12.91%
EPS beat(8)8
Avg EPS beat(8)15.84%
EPS beat(12)12
Avg EPS beat(12)20.04%
EPS beat(16)16
Avg EPS beat(16)35.59%
Revenue beat(2)2
Avg Revenue beat(2)1.57%
Min Revenue beat(2)0.69%
Max Revenue beat(2)2.46%
Revenue beat(4)4
Avg Revenue beat(4)1.55%
Min Revenue beat(4)0.69%
Max Revenue beat(4)2.46%
Revenue beat(8)8
Avg Revenue beat(8)1.61%
Revenue beat(12)11
Avg Revenue beat(12)1.6%
Revenue beat(16)15
Avg Revenue beat(16)2.9%
PT rev (1m)7.91%
PT rev (3m)6.11%
EPS NQ rev (1m)8.77%
EPS NQ rev (3m)4.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)3.44%
Revenue NQ rev (3m)3.62%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.17 | ||
| Fwd PE | 60.67 | ||
| P/S | 15.03 | ||
| P/FCF | 53.04 | ||
| P/OCF | 46.94 | ||
| P/B | 14.18 | ||
| P/tB | 17.12 | ||
| EV/EBITDA | 1039.47 |
EPS(TTM)1.87
EY1.43%
EPS(NY)2.16
Fwd EY1.65%
FCF(TTM)2.47
FCFY1.89%
OCF(TTM)2.8
OCFY2.13%
SpS8.73
BVpS9.25
TBVpS7.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.14% | ||
| ROE | 3.9% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 4.13% | ||
| GM | 79.92% | ||
| FCFM | 28.33% |
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 26.67 | ||
| Cap/Depr | 207.15% | ||
| Cap/Sales | 3.69% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 2623.8% | ||
| Profit Quality | 685.76% | ||
| Current Ratio | 3.43 | ||
| Quick Ratio | 3.43 | ||
| Altman-Z | 11.39 |
F-Score4
WACC11.32%
ROIC/WACCN/A
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)0%
EPS 3Y54.87%
EPS 5YN/A
EPS Q2Q%6.98%
EPS Next Y-3.45%
EPS Next 2Y9.01%
EPS Next 3Y16.57%
EPS Next 5Y17.37%
Revenue 1Y (TTM)26%
Revenue growth 3Y37.67%
Revenue growth 5Y49.22%
Sales Q2Q%28.12%
Revenue Next Year21.7%
Revenue Next 2Y20.4%
Revenue Next 3Y21.06%
Revenue Next 5Y19.64%
EBIT growth 1Y-135.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year8.5%
EBIT Next 3Y22.21%
EBIT Next 5Y22.11%
FCF growth 1Y102.69%
FCF growth 3Y45.72%
FCF growth 5Y295.6%
OCF growth 1Y99.07%
OCF growth 3Y44.84%
OCF growth 5Y104.74%