DYNATRACE INC (DT) Stock Fundamental Analysis
USA - NYSE:DT - US2681501092 - Common Stock
48.37 USD
-0.23 (-0.47%)
48.3 USD
-0.07 (-0.14%)
Overall DT gets a fundamental rating of 7 out of 10. We evaluated DT against 279 industry peers in the Software industry. DT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past year DT had a positive cash flow from operations.
In the past 5 years DT has always been profitable.
Each year in the past 5 years DT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DT (12.08%) is better than 89.32% of its industry peers.
DT has a better Return On Equity (18.27%) than 85.77% of its industry peers.
With a decent Return On Invested Capital value of 5.54%, DT is doing good in the industry, outperforming 74.38% 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 11.86%.
The 3 year average ROIC (4.74%) for DT is below the current ROIC(5.54%), indicating increased profibility in the last year.
| 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 Profit Margin of 27.75%. This is amongst the best in the industry. DT outperforms 90.04% of its industry peers.
In the last couple of years the Profit Margin of DT has grown nicely.
DT has a Operating Margin of 11.24%. This is in the better half of the industry: DT outperforms 76.51% of its industry peers.
DT's Operating Margin has improved in the last couple of years.
The Gross Margin of DT (81.39%) is better than 84.70% 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 | 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
DT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DT has more shares outstanding
Compared to 5 years ago, DT has more shares outstanding
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 7.22. 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 7.22, DT is in the better half of the industry, outperforming 77.22% 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 | 7.22 |
ROIC/WACC0.5
WACC11.13%
2.3 Liquidity
A Current Ratio of 1.50 indicates that DT should not have too much problems paying 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.
The current and quick ratio evaluation for DT is rather negative, while it does have 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
The Earnings Per Share has grown by an nice 18.25% 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.
The Revenue has grown by 18.70% 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 25.49% yearly.
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
DT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.89% yearly.
The Revenue is expected to grow by 15.18% on average over the next years. This is quite good.
EPS Next Y19.11%
EPS Next 2Y15.94%
EPS Next 3Y15.93%
EPS Next 5Y17.89%
Revenue Next Year17.25%
Revenue Next 2Y15.9%
Revenue Next 3Y15.59%
Revenue Next 5Y15.18%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 32.46, which means the current valuation is very expensive for DT.
Based on the Price/Earnings ratio, DT is valued a bit cheaper than the industry average as 64.77% of the companies are valued more expensively.
DT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.70, which means the current valuation is very expensive for DT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 67.62% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, DT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 25.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DT is valued a bit cheaper than 62.63% 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 72.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.35 | ||
| EV/EBITDA | 54.66 |
4.3 Compensation for Growth
DT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent 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 15.93% in the coming years.
PEG (NY)1.7
PEG (5Y)0.92
EPS Next 2Y15.94%
EPS Next 3Y15.93%
5. Dividend
5.1 Amount
DT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.37
-0.23 (-0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.14%
Inst Owner Change-2.9%
Ins Owners0.49%
Ins Owner Change13.31%
Market Cap14.58B
Analysts82.79
Price Target63.85 (32%)
Short Float %2.65%
Short Ratio2.55
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)7.54%
Min EPS beat(2)6.4%
Max EPS beat(2)8.69%
EPS beat(4)4
Avg EPS beat(4)8.82%
Min EPS beat(4)6.4%
Max EPS beat(4)11.39%
EPS beat(8)8
Avg EPS beat(8)9.67%
EPS beat(12)12
Avg EPS beat(12)13.53%
EPS beat(16)15
Avg EPS beat(16)11.8%
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)0.03%
PT rev (3m)-0.09%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)2.24%
EPS NY rev (1m)0.5%
EPS NY rev (3m)2.47%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 25.7 | ||
| P/S | 8.21 | ||
| P/FCF | 31.35 | ||
| P/OCF | 29.26 | ||
| P/B | 5.4 | ||
| P/tB | 10.97 | ||
| EV/EBITDA | 54.66 |
EPS(TTM)1.49
EY3.08%
EPS(NY)1.88
Fwd EY3.89%
FCF(TTM)1.54
FCFY3.19%
OCF(TTM)1.65
OCFY3.42%
SpS5.89
BVpS8.95
TBVpS4.41
PEG (NY)1.7
PEG (5Y)0.92
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 | 7.22 |
F-Score8
WACC11.13%
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)18.25%
EPS 3Y26.6%
EPS 5Y35.19%
EPS Q2Q%27.27%
EPS Next Y19.11%
EPS Next 2Y15.94%
EPS Next 3Y15.93%
EPS Next 5Y17.89%
Revenue 1Y (TTM)18.7%
Revenue growth 3Y22.27%
Revenue growth 5Y25.49%
Sales Q2Q%19.57%
Revenue Next Year17.25%
Revenue Next 2Y15.9%
Revenue Next 3Y15.59%
Revenue Next 5Y15.18%
EBIT growth 1Y46.19%
EBIT growth 3Y30.24%
EBIT growth 5YN/A
EBIT Next Year22.81%
EBIT Next 3Y19.5%
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