DYNATRACE INC (DT) Stock Fundamental Analysis
NYSE:DT - US2681501092 - Common Stock
49.4 USD
+0.59 (+1.21%)
49.4 USD
0 (0%)
Overall DT gets a fundamental rating of 7 out of 10. We evaluated DT against 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! This makes DT very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
DT had positive earnings in the past year.
DT had a positive operating cash flow in the past year.
DT had positive earnings in each of the past 5 years.
Each year in the past 5 years DT had a positive operating cash flow.
1.2 Ratios
DT's Return On Assets of 12.08% is amongst the best of the industry. DT outperforms 89.40% of its industry peers.
DT has a Return On Equity of 18.27%. This is amongst the best in the industry. DT outperforms 85.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.54%, DT is in the better half of the industry, outperforming 74.91% of the companies in the same industry.
DT had an Average Return On Invested Capital over the past 3 years of 4.74%. This is significantly below the industry average of 11.99%.
The last Return On Invested Capital (5.54%) for DT is above the 3 year average (4.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.08% | ||
| ROE | 18.27% | ||
| ROIC | 5.54% |
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
DT has a better Profit Margin (27.75%) than 90.11% of its industry peers.
In the last couple of years the Profit Margin of DT has grown nicely.
Looking at the Operating Margin, with a value of 11.24%, DT is in the better half of the industry, outperforming 76.33% of the companies in the same industry.
In the last couple of years the Operating Margin of DT has grown nicely.
With an excellent Gross Margin value of 81.39%, DT belongs to the best of the industry, outperforming 84.81% 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 | 11.24% | ||
| PM (TTM) | 27.75% | ||
| GM | 81.39% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DT 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
An Altman-Z score of 7.36 indicates that DT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 7.36, DT is doing good in the industry, outperforming 79.51% 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 | 7.36 |
ROIC/WACC0.49
WACC11.26%
2.3 Liquidity
A Current Ratio of 1.50 indicates that DT should not have too much problems paying its short term obligations.
DT has a Current ratio (1.50) which is comparable to the rest of the industry.
DT has a Quick 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.
With a Quick ratio value of 1.50, DT perfoms like the industry average, outperforming 50.53% of the companies in the same industry.
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 | 1.5 | ||
| 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 18.25%, which is quite good.
Measured over the past years, DT shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.19% on average per year.
DT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.70%.
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)18.25%
EPS 3Y26.6%
EPS 5Y35.19%
EPS Q2Q%27.27%
Revenue 1Y (TTM)18.7%
Revenue growth 3Y22.27%
Revenue growth 5Y25.49%
Sales Q2Q%19.57%
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 17.89% on average per year.
DT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.18% yearly.
EPS Next Y18.51%
EPS Next 2Y15.91%
EPS Next 3Y16.74%
EPS Next 5Y17.89%
Revenue Next Year17.19%
Revenue Next 2Y15.88%
Revenue Next 3Y15.85%
Revenue Next 5Y15.18%
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 33.15.
DT's Price/Earnings ratio is a bit cheaper when compared to the industry. DT is cheaper than 63.60% of the companies in the same industry.
DT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 26.26, the valuation of DT can be described as expensive.
67.84% of the companies in the same industry are more expensive than DT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.81. DT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.15 | ||
| Fwd PE | 26.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 61.48% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DT is valued a bit cheaper than 71.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.01 | ||
| EV/EBITDA | 55.95 |
4.3 Compensation for Growth
DT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DT has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DT's earnings are expected to grow with 16.74% in the coming years.
PEG (NY)1.79
PEG (5Y)0.94
EPS Next 2Y15.91%
EPS Next 3Y16.74%
5. Dividend
5.1 Amount
DT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
49.4
+0.59 (+1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.18%
Inst Owner Change-2.92%
Ins Owners0.46%
Ins Owner Change8.11%
Market Cap14.89B
Analysts82.38
Price Target63.76 (29.07%)
Short Float %2.37%
Short Ratio2.44
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)7.48%
Min EPS beat(2)6.28%
Max EPS beat(2)8.69%
EPS beat(4)4
Avg EPS beat(4)8.79%
Min EPS beat(4)6.28%
Max EPS beat(4)11.39%
EPS beat(8)8
Avg EPS beat(8)9.65%
EPS beat(12)12
Avg EPS beat(12)13.52%
EPS beat(16)15
Avg EPS beat(16)11.79%
Revenue beat(2)0
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-0.88%
Revenue beat(12)2
Avg Revenue beat(12)-0.59%
Revenue beat(16)2
Avg Revenue beat(16)-0.56%
PT rev (1m)-0.32%
PT rev (3m)0.76%
EPS NQ rev (1m)1.78%
EPS NQ rev (3m)3.11%
EPS NY rev (1m)1.48%
EPS NY rev (3m)1.96%
Revenue NQ rev (1m)1.13%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.15 | ||
| Fwd PE | 26.26 | ||
| P/S | 8.38 | ||
| P/FCF | 32.01 | ||
| P/OCF | 29.89 | ||
| P/B | 5.52 | ||
| P/tB | 11.21 | ||
| EV/EBITDA | 55.95 |
EPS(TTM)1.49
EY3.02%
EPS(NY)1.88
Fwd EY3.81%
FCF(TTM)1.54
FCFY3.12%
OCF(TTM)1.65
OCFY3.35%
SpS5.89
BVpS8.95
TBVpS4.41
PEG (NY)1.79
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.08% | ||
| ROE | 18.27% | ||
| ROCE | 7.01% | ||
| ROIC | 5.54% | ||
| ROICexc | 10.51% | ||
| ROICexgc | 118.92% | ||
| OM | 11.24% | ||
| PM (TTM) | 27.75% | ||
| GM | 81.39% | ||
| FCFM | 26.18% |
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-Score8
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 81.6% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 266.39 | ||
| Cash Conversion | 207.32% | ||
| Profit Quality | 94.37% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 7.36 |
F-Score8
WACC11.26%
ROIC/WACC0.49
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)18.25%
EPS 3Y26.6%
EPS 5Y35.19%
EPS Q2Q%27.27%
EPS Next Y18.51%
EPS Next 2Y15.91%
EPS Next 3Y16.74%
EPS Next 5Y17.89%
Revenue 1Y (TTM)18.7%
Revenue growth 3Y22.27%
Revenue growth 5Y25.49%
Sales Q2Q%19.57%
Revenue Next Year17.19%
Revenue Next 2Y15.88%
Revenue Next 3Y15.85%
Revenue Next 5Y15.18%
EBIT growth 1Y46.19%
EBIT growth 3Y30.24%
EBIT growth 5YN/A
EBIT Next Year22.43%
EBIT Next 3Y20.37%
EBIT Next 5YN/A
FCF growth 1Y45.03%
FCF growth 3Y22.68%
FCF growth 5YN/A
OCF growth 1Y44.16%
OCF growth 3Y22.34%
OCF growth 5YN/A