DYNATRACE INC (DT) Stock Fundamental Analysis
NYSE:DT - New York Stock Exchange, Inc. - US2681501092 - Common Stock - Currency: USD
Overall DT gets a fundamental rating of 6 out of 10. We evaluated DT against 281 industry peers in the Software industry. DT gets an excellent profitability rating and is at the same time showing great financial health properties. DT is not overvalued while it is showing excellent growth. This is an interesting combination. This makes DT very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year DT was profitable.
DT had a positive operating cash flow in the past year.
DT had positive earnings in 4 of the past 5 years.
DT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.91%, DT belongs to the best of the industry, outperforming 87.90% of the companies in the same industry.
DT's Return On Equity of 18.89% is amongst the best of the industry. DT outperforms 84.34% of its industry peers.
DT has a better Return On Invested Capital (4.71%) than 75.09% of its industry peers.
DT had an Average Return On Invested Capital over the past 3 years of 4.30%. This is significantly below the industry average of 12.03%.
The last Return On Invested Capital (4.71%) for DT is above the 3 year average (4.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 18.89% | ||
| ROIC | 4.71% |
ROA(3y)3.5%
ROA(5y)-1.27%
ROE(3y)6.14%
ROE(5y)-3.53%
ROIC(3y)4.3%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 29.51%, DT belongs to the best of the industry, outperforming 93.24% of the companies in the same industry.
In the last couple of years the Profit Margin of DT has remained more or less at the same level.
DT's Operating Margin of 9.79% is fine compared to the rest of the industry. DT outperforms 77.22% of its industry peers.
DT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 81.22%, DT belongs to the top of the industry, outperforming 85.41% of the companies in the same industry.
DT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.79% | ||
| PM (TTM) | 29.51% | ||
| GM | 81.22% |
OM growth 3Y-11.1%
OM growth 5YN/A
PM growth 3Y0.15%
PM growth 5YN/A
GM growth 3Y-0.19%
GM growth 5Y1.59%
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.
Compared to 5 years ago, DT has more shares outstanding
There is no outstanding debt for DT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 8.05 indicates that DT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.05, DT belongs to the top of the industry, outperforming 81.49% of the companies in the same industry.
There is no outstanding debt for DT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 8.05 |
ROIC/WACC0.44
WACC10.59%
2.3 Liquidity
DT has a Current Ratio of 1.50. This is a normal value and indicates that DT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DT (1.50) is comparable to the rest of the industry.
A Quick Ratio of 1.50 indicates that DT should not have too much problems paying its short term obligations.
DT has a Quick ratio (1.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.22%, which is quite good.
DT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.96% yearly.
The Revenue has grown by 19.80% in the past year. This is quite good.
DT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.12% yearly.
EPS 1Y (TTM)13.22%
EPS 3Y23.96%
EPS 5YN/A
EPS Q2Q%15.62%
Revenue 1Y (TTM)19.8%
Revenue growth 3Y26.69%
Revenue growth 5Y27.12%
Sales Q2Q%19.47%
3.2 Future
Based on estimates for the next years, DT will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.40% on average per year.
The Revenue is expected to grow by 16.39% on average over the next years. This is quite good.
EPS Next Y17.79%
EPS Next 2Y15.22%
EPS Next 3Y15.53%
EPS Next 5Y16.4%
Revenue Next Year18.46%
Revenue Next 2Y16.69%
Revenue Next 3Y16.31%
Revenue Next 5Y16.39%
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.
4. Valuation
4.1 Price/Earnings Ratio
DT is valuated quite expensively with a Price/Earnings ratio of 35.01.
Based on the Price/Earnings ratio, DT is valued a bit cheaper than 64.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.22, DT is valued a bit more expensive.
The Price/Forward Earnings ratio is 30.10, which means the current valuation is very expensive for DT.
66.19% of the companies in the same industry are more expensive than DT, based on the Price/Forward Earnings ratio.
DT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.01 | ||
| Fwd PE | 30.1 |
4.2 Price Multiples
DT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DT is cheaper than 64.77% of the companies in the same industry.
DT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DT is cheaper than 70.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.33 | ||
| EV/EBITDA | 60.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DT may justify a higher PE ratio.
A more expensive valuation may be justified as DT's earnings are expected to grow with 15.53% in the coming years.
PEG (NY)1.97
PEG (5Y)N/A
EPS Next 2Y15.22%
EPS Next 3Y15.53%
5. Dividend
5.1 Amount
DT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
47.96
+0.52 (+1.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.61%
Inst Owner Change-0.03%
Ins Owners0.4%
Ins Owner Change-11.79%
Market Cap14.36B
Analysts81.95
Price Target64.3 (34.07%)
Short Float %2.25%
Short Ratio2.27
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)10.09%
Min EPS beat(2)8.79%
Max EPS beat(2)11.39%
EPS beat(4)4
Avg EPS beat(4)9.22%
Min EPS beat(4)7.94%
Max EPS beat(4)11.39%
EPS beat(8)8
Avg EPS beat(8)14.56%
EPS beat(12)11
Avg EPS beat(12)12.88%
EPS beat(16)15
Avg EPS beat(16)11.58%
Revenue beat(2)0
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)-0.05%
Revenue beat(8)1
Avg Revenue beat(8)-0.84%
Revenue beat(12)2
Avg Revenue beat(12)-0.6%
Revenue beat(16)3
Avg Revenue beat(16)-0.5%
PT rev (1m)-4.04%
PT rev (3m)0.21%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)3.6%
EPS NY rev (1m)0%
EPS NY rev (3m)3.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.01 | ||
| Fwd PE | 30.1 | ||
| P/S | 8.78 | ||
| P/FCF | 35.33 | ||
| P/OCF | 33.52 | ||
| P/B | 5.62 | ||
| P/tB | 12.02 | ||
| EV/EBITDA | 60.73 |
EPS(TTM)1.37
EY2.86%
EPS(NY)1.59
Fwd EY3.32%
FCF(TTM)1.36
FCFY2.83%
OCF(TTM)1.43
OCFY2.98%
SpS5.46
BVpS8.53
TBVpS3.99
PEG (NY)1.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 18.89% | ||
| ROCE | 5.96% | ||
| ROIC | 4.71% | ||
| ROICexc | 7.53% | ||
| ROICexgc | 39.5% | ||
| OM | 9.79% | ||
| PM (TTM) | 29.51% | ||
| GM | 81.22% | ||
| FCFM | 24.86% |
ROA(3y)3.5%
ROA(5y)-1.27%
ROE(3y)6.14%
ROE(5y)-3.53%
ROIC(3y)4.3%
ROIC(5y)N/A
ROICexc(3y)6.48%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)5.44%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y11.73%
ROICexc growth 5YN/A
OM growth 3Y-11.1%
OM growth 5YN/A
PM growth 3Y0.15%
PM growth 5YN/A
GM growth 3Y-0.19%
GM growth 5Y1.59%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.52% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 207.85 | ||
| Cash Conversion | 198.67% | ||
| Profit Quality | 84.25% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 8.05 |
F-Score6
WACC10.59%
ROIC/WACC0.44
Cap/Depr(3y)42.76%
Cap/Depr(5y)36.49%
Cap/Sales(3y)1.99%
Cap/Sales(5y)2.35%
Profit Quality(3y)325.63%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.22%
EPS 3Y23.96%
EPS 5YN/A
EPS Q2Q%15.62%
EPS Next Y17.79%
EPS Next 2Y15.22%
EPS Next 3Y15.53%
EPS Next 5Y16.4%
Revenue 1Y (TTM)19.8%
Revenue growth 3Y26.69%
Revenue growth 5Y27.12%
Sales Q2Q%19.47%
Revenue Next Year18.46%
Revenue Next 2Y16.69%
Revenue Next 3Y16.31%
Revenue Next 5Y16.39%
EBIT growth 1Y28.01%
EBIT growth 3Y12.63%
EBIT growth 5YN/A
EBIT Next Year32.9%
EBIT Next 3Y21.76%
EBIT Next 5YN/A
FCF growth 1Y34.87%
FCF growth 3Y18.86%
FCF growth 5Y20.24%
OCF growth 1Y32.68%
OCF growth 3Y19.71%
OCF growth 5Y20.78%