DYNATRACE INC (DT) Stock Fundamental Analysis
NYSE:DT - New York Stock Exchange, Inc. - US2681501092 - Common Stock - Currency: USD
Taking everything into account, DT scores 7 out of 10 in our fundamental rating. DT was compared to 282 industry peers in the Software industry. Both the health and profitability get an excellent rating, making DT a very profitable company, without any liquidiy or solvency issues. DT is growing strongly while it is still valued neutral. This is a good combination! These ratings would make DT suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year DT was profitable.
In the past year DT had a positive cash flow from operations.
DT had positive earnings in each of the past 5 years.
DT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.68%, DT belongs to the top of the industry, outperforming 89.01% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.45%, DT belongs to the top of the industry, outperforming 85.82% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.14%, DT is doing good in the industry, outperforming 75.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DT is significantly below the industry average of 12.11%.
The last Return On Invested Capital (5.14%) for DT is above the 3 year average (4.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 18.45% | ||
| ROIC | 5.14% |
ROA(3y)6.71%
ROA(5y)5.11%
ROE(3y)10.95%
ROE(5y)8.74%
ROIC(3y)4.74%
ROIC(5y)4.51%
1.3 Margins
The Profit Margin of DT (28.47%) is better than 92.91% of its industry peers.
DT's Profit Margin has improved in the last couple of years.
DT has a better Operating Margin (10.57%) than 77.66% of its industry peers.
In the last couple of years the Operating Margin of DT has grown nicely.
With an excellent Gross Margin value of 81.15%, DT belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
In the last couple of years the Gross Margin of DT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.57% | ||
| PM (TTM) | 28.47% | ||
| GM | 81.15% |
OM growth 3Y6.52%
OM growth 5YN/A
PM growth 3Y71.46%
PM growth 5YN/A
GM growth 3Y-0.11%
GM growth 5Y1.22%
2. Health
2.1 Basic Checks
DT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DT has been increased compared to 1 year ago.
DT has more shares outstanding than it did 5 years ago.
DT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
DT has an Altman-Z score of 6.83. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.83, DT is in the better half of the industry, outperforming 78.37% of the companies in the same industry.
DT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.83 |
ROIC/WACC0.5
WACC10.25%
2.3 Liquidity
DT has a Current Ratio of 1.40. This is a normal value and indicates that DT is financially healthy and should not expect problems in meeting its short term obligations.
DT's Current ratio of 1.40 is in line compared to the rest of the industry. DT outperforms 44.33% of its industry peers.
DT has a Quick Ratio of 1.40. This is a normal value and indicates that DT is financially healthy and should not expect problems in meeting its short term obligations.
DT has a Quick ratio of 1.40. This is comparable to the rest of the industry: DT outperforms 44.33% of its industry peers.
DT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.67% over the past year.
DT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.19% yearly.
Looking at the last year, DT shows a quite strong growth in Revenue. The Revenue has grown by 18.74% in the last year.
Measured over the past years, DT shows a very strong growth in Revenue. The Revenue has been growing by 25.49% on average per year.
EPS 1Y (TTM)16.67%
EPS 3Y26.6%
EPS 5Y35.19%
EPS Q2Q%10%
Revenue 1Y (TTM)18.74%
Revenue growth 3Y22.27%
Revenue growth 5Y25.49%
Sales Q2Q%16.89%
3.2 Future
The Earnings Per Share is expected to grow by 17.51% on average over the next years. This is quite good.
The Revenue is expected to grow by 15.25% on average over the next years. This is quite good.
EPS Next Y16.78%
EPS Next 2Y14.98%
EPS Next 3Y15.95%
EPS Next 5Y17.51%
Revenue Next Year16.04%
Revenue Next 2Y15.3%
Revenue Next 3Y15.29%
Revenue Next 5Y15.25%
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.
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 36.08 indicates a quite expensive valuation of DT.
64.54% of the companies in the same industry are more expensive than DT, based on the Price/Earnings ratio.
DT is valuated rather expensively when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 30.89, DT can be considered very expensive at the moment.
62.41% of the companies in the same industry are more expensive than DT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, DT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.08 | ||
| Fwd PE | 30.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DT is valued a bit cheaper than the industry average as 62.41% of the companies are valued more expensively.
68.79% of the companies in the same industry are more expensive than DT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.4 | ||
| EV/EBITDA | 61.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DT does not grow enough to justify the current Price/Earnings ratio.
DT has an outstanding profitability rating, which may justify a higher PE ratio.
DT's earnings are expected to grow with 15.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.15
PEG (5Y)1.03
EPS Next 2Y14.98%
EPS Next 3Y15.95%
5. Dividend
5.1 Amount
DT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
50.51
-2.1 (-3.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.72%
Inst Owner Change0.42%
Ins Owners0.4%
Ins Owner Change1.73%
Market Cap15.24B
Analysts81.4
Price Target63.96 (26.63%)
Short Float %2.34%
Short Ratio2.66
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)7.53%
Min EPS beat(2)6.28%
Max EPS beat(2)8.79%
EPS beat(4)4
Avg EPS beat(4)8.8%
Min EPS beat(4)6.28%
Max EPS beat(4)11.39%
EPS beat(8)8
Avg EPS beat(8)10.94%
EPS beat(12)11
Avg EPS beat(12)12.74%
EPS beat(16)15
Avg EPS beat(16)11.63%
Revenue beat(2)0
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-0.92%
Revenue beat(12)2
Avg Revenue beat(12)-0.6%
Revenue beat(16)3
Avg Revenue beat(16)-0.51%
PT rev (1m)0%
PT rev (3m)-0.52%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)6.02%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)2.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.71%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.08 | ||
| Fwd PE | 30.89 | ||
| P/S | 8.97 | ||
| P/FCF | 35.4 | ||
| P/OCF | 33.18 | ||
| P/B | 5.81 | ||
| P/tB | 12.1 | ||
| EV/EBITDA | 61.66 |
EPS(TTM)1.4
EY2.77%
EPS(NY)1.63
Fwd EY3.24%
FCF(TTM)1.43
FCFY2.83%
OCF(TTM)1.52
OCFY3.01%
SpS5.63
BVpS8.69
TBVpS4.17
PEG (NY)2.15
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 18.45% | ||
| ROCE | 6.51% | ||
| ROIC | 5.14% | ||
| ROICexc | 8.62% | ||
| ROICexgc | 50.07% | ||
| OM | 10.57% | ||
| PM (TTM) | 28.47% | ||
| GM | 81.15% | ||
| FCFM | 25.35% |
ROA(3y)6.71%
ROA(5y)5.11%
ROE(3y)10.95%
ROE(5y)8.74%
ROIC(3y)4.74%
ROIC(5y)4.51%
ROICexc(3y)7.59%
ROICexc(5y)6.75%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6%
ROCE(5y)5.71%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y17.65%
ROICexc growth 5YN/A
OM growth 3Y6.52%
OM growth 5YN/A
PM growth 3Y71.46%
PM growth 5YN/A
GM growth 3Y-0.11%
GM growth 5Y1.22%
F-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 59.87% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 238.36 | ||
| Cash Conversion | 201.86% | ||
| Profit Quality | 89.03% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 6.83 |
F-Score6
WACC10.25%
ROIC/WACC0.5
Cap/Depr(3y)52.33%
Cap/Depr(5y)42.26%
Cap/Sales(3y)1.92%
Cap/Sales(5y)1.94%
Profit Quality(3y)207.25%
Profit Quality(5y)267.69%
High Growth Momentum
Growth
EPS 1Y (TTM)16.67%
EPS 3Y26.6%
EPS 5Y35.19%
EPS Q2Q%10%
EPS Next Y16.78%
EPS Next 2Y14.98%
EPS Next 3Y15.95%
EPS Next 5Y17.51%
Revenue 1Y (TTM)18.74%
Revenue growth 3Y22.27%
Revenue growth 5Y25.49%
Sales Q2Q%16.89%
Revenue Next Year16.04%
Revenue Next 2Y15.3%
Revenue Next 3Y15.29%
Revenue Next 5Y15.25%
EBIT growth 1Y39.2%
EBIT growth 3Y30.24%
EBIT growth 5YN/A
EBIT Next Year22.51%
EBIT Next 3Y19.57%
EBIT Next 5YN/A
FCF growth 1Y24.32%
FCF growth 3Y22.68%
FCF growth 5YN/A
OCF growth 1Y21.5%
OCF growth 3Y22.34%
OCF growth 5YN/A