DIGITALOCEAN HOLDINGS INC (DOCN) Fundamental Analysis & Valuation

NYSE:DOCN • US25402D1028

Current stock price

84.92 USD
-1.1 (-1.28%)
At close:
78.63 USD
-6.29 (-7.41%)
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

  • DOCN had positive earnings in the past year.
  • DOCN had a positive operating cash flow in the past year.
  • 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.
  • The Average Return On Invested Capital over the past 3 years for DOCN is below the industry average of 11.08%.
  • 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

  • DOCN has a Profit Margin of 28.76%. This is amongst the best in the industry. DOCN outperforms 97.73% of its industry peers.
  • DOCN has a Operating Margin of 17.42%. This is amongst the best in the industry. DOCN outperforms 89.77% of its industry peers.
  • Looking at the Gross Margin, with a value of 59.86%, DOCN belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
  • 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.
  • 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 3.16 indicates that DOCN is not in any danger for bankruptcy at the moment.
  • DOCN has a Altman-Z score of 3.16. This is comparable to the rest of the industry: DOCN outperforms 56.82% of its industry peers.
  • 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 has a Debt to FCF ratio of 34.71. This is comparable to the rest of the industry: DOCN outperforms 43.18% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 34.71
Altman-Z 3.16
ROIC/WACC1.26
WACC8.86%
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 has a Current ratio of 0.69. This is amonst the worse of the industry: DOCN underperforms 85.23% of its industry peers.
  • A Quick Ratio of 0.69 indicates that DOCN may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.69, DOCN is doing worse than 85.23% of the companies in the same industry.
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

  • The Earnings Per Share has grown by an nice 10.94% over the past year.
  • The Earnings Per Share has been growing by 31.82% on average over the past years. This is a very strong growth
  • Looking at the last year, DOCN shows a quite strong growth in Revenue. The Revenue has grown by 15.48% in the last year.
  • DOCN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.14% yearly.
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

  • The Earnings Per Share is expected to grow by 9.72% on average over the next years. This is quite good.
  • 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 3Y24.62%
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

  • Based on the Price/Earnings ratio of 39.87, the valuation of DOCN can be described as expensive.
  • DOCN's Price/Earnings is on the same level as the industry average.
  • DOCN is valuated expensively when we compare the Price/Earnings ratio to 25.50, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 78.47, which means the current valuation is very expensive for DOCN.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DOCN is on the same level as its industry peers.
  • DOCN is valuated expensively when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 39.87
Fwd PE 78.47
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.
  • DOCN's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 190.14
EV/EBITDA 30.86
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%

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Find the best dividend stocksShow peers with best dividend

DOCN Fundamentals: All Metrics, Ratios and Statistics

DIGITALOCEAN HOLDINGS INC

NYSE:DOCN (3/24/2026, 8:25:36 PM)

After market: 78.63 -6.29 (-7.41%)

84.92

-1.1 (-1.28%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-24
Earnings (Next)05-04
Inst Owners77.53%
Inst Owner Change7.62%
Ins Owners1.12%
Ins Owner Change2.09%
Market Cap7.81B
Revenue(TTM)901.43M
Net Income(TTM)259.26M
Analysts81
Price Target62.05 (-26.93%)
Short Float %13.97%
Short Ratio3
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)9.94%
PT rev (3m)15.87%
EPS NQ rev (1m)-42.23%
EPS NQ rev (3m)-43.14%
EPS NY rev (1m)-45.51%
EPS NY rev (3m)-46.13%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)2.57%
Revenue NY rev (3m)2.67%
Valuation
Industry RankSector Rank
PE 39.87
Fwd PE 78.47
P/S 8.67
P/FCF 190.14
P/OCF 25.23
P/B N/A
P/tB N/A
EV/EBITDA 30.86
EPS(TTM)2.13
EY2.51%
EPS(NY)1.08
Fwd EY1.27%
FCF(TTM)0.45
FCFY0.53%
OCF(TTM)3.37
OCFY3.96%
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 3.16
F-Score8
WACC8.86%
ROIC/WACC1.26
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 3Y24.62%
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.


Can you provide the valuation status for DIGITALOCEAN HOLDINGS INC?

ChartMill assigns a valuation rating of 2 / 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 7 / 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 39.87 and the Price/Book (PB) ratio is -272.31.


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 -49.19% in the next year.