DYNATRACE INC (DT)
US2681501092 - Common Stock
Taking everything into account, DT scores 7 out of 10 in our fundamental rating. DT was compared to 276 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 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
DT had positive earnings in the past year.
In the past year DT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DT reported negative net income in multiple years.
DT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of DT (6.57%) is better than 83.94% of its industry peers.
Looking at the Return On Equity, with a value of 10.29%, DT belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
DT's Return On Invested Capital of 4.49% is fine compared to the rest of the industry. DT outperforms 78.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DT is significantly below the industry average of 10.21%.
The last Return On Invested Capital (4.49%) for DT is above the 3 year average (3.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 10.29% | ||
| ROIC | 4.49% |
ROA(3y)3.11%
ROA(5y)-3.46%
ROE(3y)5.85%
ROE(5y)N/A
ROIC(3y)3.89%
ROIC(5y)N/A
1.3 Margins
DT has a better Profit Margin (14.44%) than 85.77% of its industry peers.
In the last couple of years the Profit Margin of DT has grown nicely.
DT's Operating Margin of 9.16% is amongst the best of the industry. DT outperforms 81.02% of its industry peers.
The Gross Margin of DT (81.36%) is better than 86.50% of its industry peers.
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 | 9.16% | ||
| PM (TTM) | 14.44% | ||
| GM | 81.36% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y32.17%
GM growth 3Y1.87%
GM growth 5Y1.29%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DT is destroying value.
DT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DT has been increased compared to 5 years ago.
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
DT has an Altman-Z score of 8.03. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.03, DT belongs to the best of the industry, outperforming 84.67% 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 | 8.03 |
ROIC/WACC0.45
WACC9.93%
2.3 Liquidity
A Current Ratio of 1.34 indicates that DT should not have too much problems paying its short term obligations.
DT has a Current ratio (1.34) which is comparable to the rest of the industry.
A Quick Ratio of 1.34 indicates that DT should not have too much problems paying its short term obligations.
DT has a Quick ratio of 1.34. This is comparable to the rest of the industry: DT outperforms 43.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.56% over the past year.
The Earnings Per Share has been growing by 65.28% on average over the past years. This is a very strong growth
DT shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.39%.
Measured over the past years, DT shows a very strong growth in Revenue. The Revenue has been growing by 23.82% on average per year.
EPS 1Y (TTM)47.56%
EPS 3Y45.76%
EPS 5Y65.28%
EPS growth Q2Q28%
Revenue 1Y (TTM)24.39%
Revenue growth 3Y28.52%
Revenue growth 5Y23.82%
Revenue growth Q2Q22.72%
3.2 Future
The Earnings Per Share is expected to grow by 20.42% on average over the next years. This is a very strong growth
DT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.91% yearly.
EPS Next Y25.85%
EPS Next 2Y18.99%
EPS Next 3Y19%
EPS Next 5Y20.42%
Revenue Next Year24.09%
Revenue Next 2Y21.14%
Revenue Next 3Y20.27%
Revenue Next 5Y18.91%
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
Based on the Price/Earnings ratio of 37.67, the valuation of DT can be described as expensive.
Based on the Price/Earnings ratio, DT is valued a bit cheaper than the industry average as 68.61% of the companies are valued more expensively.
DT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.67.
The Price/Forward Earnings ratio is 33.54, which means the current valuation is very expensive for DT.
Based on the Price/Forward Earnings ratio, DT is valued a bit cheaper than 67.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.02, DT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.67 | ||
| Fwd PE | 33.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DT is valued a bit cheaper than the industry average as 64.96% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DT is valued a bit cheaper than 67.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.73 | ||
| EV/EBITDA | 70.21 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DT has a very decent profitability rating, which may justify a higher PE ratio.
DT's earnings are expected to grow with 19.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)0.58
EPS Next 2Y18.99%
EPS Next 3Y19%
5. Dividend
5.1 Amount
No dividends for DT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DYNATRACE INC
NYSE:DT (5/1/2024, 4:05:00 PM)
After market: 45.58 0 (0%)45.58
+0.27 (+0.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.67 | ||
| Fwd PE | 33.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.46
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 10.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.16% | ||
| PM (TTM) | 14.44% | ||
| GM | 81.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)47.56%
EPS 3Y45.76%
EPS 5Y
EPS growth Q2Q
EPS Next Y25.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.39%
Revenue growth 3Y28.52%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y