DIGITALOCEAN HOLDINGS INC (DOCN) Fundamental Analysis & Valuation

NYSE:DOCN • US25402D1028

Current stock price

75.59 USD
-11.58 (-13.28%)
At close:
75.3 USD
-0.29 (-0.38%)
After Hours:

This DOCN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. DOCN Profitability Analysis

1.1 Basic Checks

  • In the past year DOCN was profitable.
  • In the past year DOCN had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: DOCN reported negative net income in multiple years.
  • Each year in the past 5 years DOCN had a positive operating cash flow.
DOCN Yearly Net Income VS EBIT VS OCF VS FCFDOCN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M 300M

1.2 Ratios

  • The Return On Assets of DOCN (14.11%) is better than 92.05% of its industry peers.
  • With an excellent Return On Invested Capital value of 11.14%, DOCN belongs to the best of the industry, outperforming 80.68% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DOCN is below the industry average of 11.10%.
  • The last Return On Invested Capital (11.14%) for DOCN is above the 3 year average (6.31%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 14.11%
ROE N/A
ROIC 11.14%
ROA(3y)6.86%
ROA(5y)3.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.31%
ROIC(5y)N/A
DOCN Yearly ROA, ROE, ROICDOCN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 2025 0 -200 -400 -600 -800

1.3 Margins

  • Looking at the Profit Margin, with a value of 28.76%, DOCN belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
  • DOCN's Operating Margin of 17.42% is amongst the best of the industry. DOCN outperforms 89.77% of its industry peers.
  • DOCN's Gross Margin of 59.86% is amongst the best of the industry. DOCN outperforms 81.82% of its industry peers.
  • DOCN's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 17.42%
PM (TTM) 28.76%
GM 59.86%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.81%
GM growth 5Y1.97%
DOCN Yearly Profit, Operating, Gross MarginsDOCN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. DOCN Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DOCN is creating some value.
  • DOCN has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for DOCN has been increased compared to 5 years ago.
  • Compared to 1 year ago, DOCN has an improved debt to assets ratio.
DOCN Yearly Shares OutstandingDOCN Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
DOCN Yearly Total Debt VS Total AssetsDOCN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • DOCN has an Altman-Z score of 3.19. This indicates that DOCN is financially healthy and has little risk of bankruptcy at the moment.
  • DOCN's Altman-Z score of 3.19 is in line compared to the rest of the industry. DOCN outperforms 59.09% of its industry peers.
  • DOCN has a debt to FCF ratio of 34.71. This is a negative value and a sign of low solvency as DOCN would need 34.71 years to pay back of all of its debts.
  • The Debt to FCF ratio of DOCN (34.71) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 34.71
Altman-Z 3.19
ROIC/WACC1.28
WACC8.69%
DOCN Yearly LT Debt VS Equity VS FCFDOCN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B

2.3 Liquidity

  • DOCN has a Current Ratio of 0.69. This is a bad value and indicates that DOCN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.69, DOCN is not doing good in the industry: 84.09% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.69 indicates that DOCN may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.69, DOCN is not doing good in the industry: 84.09% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.69
Quick Ratio 0.69
DOCN Yearly Current Assets VS Current LiabilitesDOCN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. DOCN Growth Analysis

3.1 Past

  • DOCN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.94%, which is quite good.
  • DOCN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.82% yearly.
  • The Revenue has grown by 15.48% in the past year. This is quite good.
  • The Revenue has been growing by 23.14% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)10.94%
EPS 3Y31.82%
EPS 5YN/A
EPS Q2Q%-10.2%
Revenue 1Y (TTM)15.48%
Revenue growth 3Y16.08%
Revenue growth 5Y23.14%
Sales Q2Q%18.28%

3.2 Future

  • DOCN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.72% yearly.
  • The Revenue is expected to grow by 12.29% on average over the next years. This is quite good.
EPS Next Y-49.19%
EPS Next 2Y-8.76%
EPS Next 3Y9.72%
EPS Next 5YN/A
Revenue Next Year22.02%
Revenue Next 2Y25.95%
Revenue Next 3Y25.48%
Revenue Next 5Y12.29%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
DOCN Yearly Revenue VS EstimatesDOCN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B
DOCN Yearly EPS VS EstimatesDOCN Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2 2.5

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Find the best growth stocksShow best growing peers

2

4. DOCN Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 35.49, DOCN can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Earnings ratio as DOCN.
  • When comparing the Price/Earnings ratio of DOCN to the average of the S&P500 Index (26.78), we can say DOCN is valued slightly more expensively.
  • The Price/Forward Earnings ratio is 69.85, which means the current valuation is very expensive for DOCN.
  • DOCN's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of DOCN to the average of the S&P500 Index (23.54), we can say DOCN is valued expensively.
Industry RankSector Rank
PE 35.49
Fwd PE 69.85
DOCN Price Earnings VS Forward Price EarningsDOCN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as DOCN.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as DOCN.
Industry RankSector Rank
P/FCF 169.25
EV/EBITDA 31.22
DOCN Per share dataDOCN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

4.3 Compensation for Growth

  • DOCN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.76%
EPS Next 3Y9.72%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DOCN Dividend Analysis

5.1 Amount

  • No dividends for DOCN!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

DOCN Fundamentals: All Metrics, Ratios and Statistics

DIGITALOCEAN HOLDINGS INC

NYSE:DOCN (4/10/2026, 7:41:11 PM)

After market: 75.3 -0.29 (-0.38%)

75.59

-11.58 (-13.28%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-24
Earnings (Next)05-04
Inst Owners77.53%
Inst Owner Change0%
Ins Owners1.12%
Ins Owner Change4.05%
Market Cap6.95B
Revenue(TTM)901.43M
Net Income(TTM)259.26M
Analysts80.95
Price Target77.78 (2.9%)
Short Float %14.11%
Short Ratio2.43
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)10.33%
Min EPS beat(2)7.4%
Max EPS beat(2)13.27%
EPS beat(4)4
Avg EPS beat(4)17.04%
Min EPS beat(4)7.4%
Max EPS beat(4)23.93%
EPS beat(8)8
Avg EPS beat(8)20.77%
EPS beat(12)11
Avg EPS beat(12)17.13%
EPS beat(16)14
Avg EPS beat(16)22.32%
Revenue beat(2)0
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-0.63%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)-0.02%
Revenue beat(8)2
Avg Revenue beat(8)-0.51%
Revenue beat(12)3
Avg Revenue beat(12)-0.64%
Revenue beat(16)4
Avg Revenue beat(16)-0.74%
PT rev (1m)25.34%
PT rev (3m)44.09%
EPS NQ rev (1m)-6.88%
EPS NQ rev (3m)-43.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-46.13%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.67%
Valuation
Industry RankSector Rank
PE 35.49
Fwd PE 69.85
P/S 7.71
P/FCF 169.25
P/OCF 22.46
P/B N/A
P/tB N/A
EV/EBITDA 31.22
EPS(TTM)2.13
EY2.82%
EPS(NY)1.08
Fwd EY1.43%
FCF(TTM)0.45
FCFY0.59%
OCF(TTM)3.37
OCFY4.45%
SpS9.8
BVpS-0.31
TBVpS-5.18
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 14.11%
ROE N/A
ROCE 12.89%
ROIC 11.14%
ROICexc 14.09%
ROICexgc 26.33%
OM 17.42%
PM (TTM) 28.76%
GM 59.86%
FCFM 4.56%
ROA(3y)6.86%
ROA(5y)3.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.31%
ROIC(5y)N/A
ROICexc(3y)8.45%
ROICexc(5y)N/A
ROICexgc(3y)16.36%
ROICexgc(5y)N/A
ROCE(3y)7.3%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc 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 3Y-1.81%
GM growth 5Y1.97%
F-Score8
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 34.71
Debt/EBITDA 3.63
Cap/Depr 195.36%
Cap/Sales 29.79%
Interest Coverage 16.2
Cash Conversion 105.15%
Profit Quality 15.85%
Current Ratio 0.69
Quick Ratio 0.69
Altman-Z 3.19
F-Score8
WACC8.69%
ROIC/WACC1.28
Cap/Depr(3y)148.93%
Cap/Depr(5y)138.62%
Cap/Sales(3y)24.02%
Cap/Sales(5y)23.86%
Profit Quality(3y)228.08%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.94%
EPS 3Y31.82%
EPS 5YN/A
EPS Q2Q%-10.2%
EPS Next Y-49.19%
EPS Next 2Y-8.76%
EPS Next 3Y9.72%
EPS Next 5YN/A
Revenue 1Y (TTM)15.48%
Revenue growth 3Y16.08%
Revenue growth 5Y23.14%
Sales Q2Q%18.28%
Revenue Next Year22.02%
Revenue Next 2Y25.95%
Revenue Next 3Y25.48%
Revenue Next 5Y12.29%
EBIT growth 1Y72.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year59.71%
EBIT Next 3Y41.84%
EBIT Next 5Y22.21%
FCF growth 1Y-57.29%
FCF growth 3Y-16.08%
FCF growth 5YN/A
OCF growth 1Y9.51%
OCF growth 3Y16.63%
OCF growth 5Y39.57%

DIGITALOCEAN HOLDINGS INC / DOCN Fundamental Analysis FAQ

What is the fundamental rating for DOCN stock?

ChartMill assigns a fundamental rating of 5 / 10 to DOCN.


What is the valuation status of DIGITALOCEAN HOLDINGS INC (DOCN) stock?

ChartMill assigns a valuation rating of 2 / 10 to DIGITALOCEAN HOLDINGS INC (DOCN). This can be considered as Overvalued.


What is the profitability of DOCN stock?

DIGITALOCEAN HOLDINGS INC (DOCN) has a profitability rating of 7 / 10.


What are the PE and PB ratios of DIGITALOCEAN HOLDINGS INC (DOCN) stock?

The Price/Earnings (PE) ratio for DIGITALOCEAN HOLDINGS INC (DOCN) is 35.49 and the Price/Book (PB) ratio is -242.39.