DIGITALOCEAN HOLDINGS INC (DOCN) Stock Fundamental Analysis

NYSE:DOCN • US25402D1028

58.24 USD
+2.18 (+3.89%)
At close: Mar 2, 2026
58.5 USD
+0.26 (+0.45%)
After Hours: 3/2/2026, 8:14:10 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Overall DOCN gets a fundamental rating of 4 out of 10. We evaluated DOCN against 86 industry peers in the IT Services industry. While DOCN is still in line with the averages on profitability rating, there are concerns on its financial health. DOCN shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year DOCN was profitable.
  • In the past year DOCN had a positive cash flow from operations.
  • In multiple years DOCN reported negative net income over the last 5 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 91.86% of its industry peers.
  • DOCN has a better Return On Invested Capital (11.14%) than 79.07% of its industry peers.
  • DOCN had an Average Return On Invested Capital over the past 3 years of 6.31%. This is below the industry average of 10.82%.
  • 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

  • The Profit Margin of DOCN (28.76%) is better than 96.51% of its industry peers.
  • DOCN has a Operating Margin of 17.42%. This is amongst the best in the industry. DOCN outperforms 89.53% of its industry peers.
  • DOCN has a Gross Margin of 59.86%. This is amongst the best in the industry. DOCN outperforms 82.56% 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

2

2. Health

2.1 Basic Checks

  • DOCN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, DOCN has less shares outstanding
  • The number of shares outstanding for DOCN has been increased compared to 5 years ago.
  • DOCN has a better debt/assets ratio than last year.
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

  • An Altman-Z score of 2.26 indicates that DOCN is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.26, DOCN is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • The Debt to FCF ratio of DOCN is 34.71, which is on the high side as it means it would take DOCN, 34.71 years of fcf income to pay off all of its debts.
  • DOCN's Debt to FCF ratio of 34.71 is in line compared to the rest of the industry. DOCN outperforms 40.70% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 34.71
Altman-Z 2.26
ROIC/WACC1.37
WACC8.15%
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.
  • DOCN's Current ratio of 0.69 is on the low side compared to the rest of the industry. DOCN is outperformed by 87.21% of its industry peers.
  • A Quick Ratio of 0.69 indicates that DOCN may have some problems paying its short term obligations.
  • The Quick ratio of DOCN (0.69) is worse than 87.21% of its industry peers.
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

8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 10.94% over the past year.
  • 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

  • Based on estimates for the next years, DOCN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.32% on average per year.
  • The Revenue is expected to grow by 12.29% on average over the next years. This is quite good.
EPS Next Y-6.76%
EPS Next 2Y8.02%
EPS Next 3Y14.32%
EPS Next 5YN/A
Revenue Next Year19.06%
Revenue Next 2Y19.22%
Revenue Next 3Y18.68%
Revenue Next 5Y12.29%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • 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.
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 1 2 3

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 27.34 indicates a quite expensive valuation of DOCN.
  • The rest of the industry has a similar Price/Earnings ratio as DOCN.
  • Compared to an average S&P500 Price/Earnings ratio of 27.13, DOCN is valued at the same level.
  • The Price/Forward Earnings ratio is 29.33, which means the current valuation is very expensive for DOCN.
  • The rest of the industry has a similar Price/Forward Earnings ratio as DOCN.
  • DOCN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.11.
Industry RankSector Rank
PE 27.34
Fwd PE 29.33
DOCN Price Earnings VS Forward Price EarningsDOCN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DOCN is on the same level as its industry peers.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DOCN is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 129.68
EV/EBITDA 21.4
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.
  • A more expensive valuation may be justified as DOCN's earnings are expected to grow with 14.32% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.02%
EPS Next 3Y14.32%

More info and screens

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

0

5. Dividend

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

DIGITALOCEAN HOLDINGS INC

NYSE:DOCN (3/2/2026, 8:14:10 PM)

After market: 58.5 +0.26 (+0.45%)

58.24

+2.18 (+3.89%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-24
Earnings (Next)05-04
Inst Owners73.8%
Inst Owner Change7.64%
Ins Owners0.82%
Ins Owner Change2.09%
Market Cap5.33B
Revenue(TTM)901.43M
Net Income(TTM)259.26M
Analysts80
Price Target62.05 (6.54%)
Short Float %14.21%
Short Ratio3.94
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)11.96%
PT rev (3m)15.87%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.99%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)4.61%
Valuation
Industry RankSector Rank
PE 27.34
Fwd PE 29.33
P/S 5.91
P/FCF 129.68
P/OCF 17.21
P/B N/A
P/tB N/A
EV/EBITDA 21.4
EPS(TTM)2.13
EY3.66%
EPS(NY)1.99
Fwd EY3.41%
FCF(TTM)0.45
FCFY0.77%
OCF(TTM)3.38
OCFY5.81%
SpS9.85
BVpS-0.31
TBVpS-5.21
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 2.26
F-Score8
WACC8.15%
ROIC/WACC1.37
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-6.76%
EPS Next 2Y8.02%
EPS Next 3Y14.32%
EPS Next 5YN/A
Revenue 1Y (TTM)15.48%
Revenue growth 3Y16.08%
Revenue growth 5Y23.14%
Sales Q2Q%18.28%
Revenue Next Year19.06%
Revenue Next 2Y19.22%
Revenue Next 3Y18.68%
Revenue Next 5Y12.29%
EBIT growth 1Y72.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year63.93%
EBIT Next 3Y38.94%
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 FAQ

What is the fundamental rating for DOCN stock?

ChartMill assigns a fundamental rating of 4 / 10 to DOCN.


Can you provide the valuation status for DIGITALOCEAN HOLDINGS INC?

ChartMill assigns a valuation rating of 3 / 10 to DIGITALOCEAN HOLDINGS INC (DOCN). This can be considered as Overvalued.


Can you provide the profitability details for DIGITALOCEAN HOLDINGS INC?

DIGITALOCEAN HOLDINGS INC (DOCN) has a profitability rating of 6 / 10.


What is the valuation of DIGITALOCEAN HOLDINGS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for DIGITALOCEAN HOLDINGS INC (DOCN) is 27.34 and the Price/Book (PB) ratio is -185.72.


Can you provide the expected EPS growth for DOCN stock?

The Earnings per Share (EPS) of DIGITALOCEAN HOLDINGS INC (DOCN) is expected to decline by -6.76% in the next year.