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 5 out of 10. We evaluated DT against 283 industry peers in the Software industry. DT gets an excellent profitability rating and is at the same time showing great financial health properties. DT has a decent growth rate and is not valued too expensively.
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 89.05% of the companies in the same industry.
DT has a Return On Equity of 18.89%. This is amongst the best in the industry. DT outperforms 84.45% of its industry peers.
DT's Return On Invested Capital of 4.71% is fine compared to the rest of the industry. DT outperforms 74.91% 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 12.70%.
The 3 year average ROIC (4.30%) for DT is below the current ROIC(4.71%), indicating increased profibility in the last year.
| 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
DT has a better Profit Margin (29.51%) than 93.29% of its industry peers.
In the last couple of years the Profit Margin of DT has remained more or less at the same level.
Looking at the Operating Margin, with a value of 9.79%, DT is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
In the last couple of years the Operating Margin of DT has declined.
With an excellent Gross Margin value of 81.22%, DT belongs to the best of the industry, outperforming 85.51% of the companies in the same industry.
In the last couple of years the Gross Margin of DT has grown nicely.
| 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.
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 9.09. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
DT has a Altman-Z score of 9.09. This is amongst the best in the industry. DT outperforms 82.69% of its industry peers.
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 | 9.09 |
ROIC/WACC0.42
WACC11.08%
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.
With a Current ratio value of 1.50, DT perfoms like the industry average, outperforming 46.64% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that DT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, DT is in line with its industry, outperforming 47.35% of the companies in the same industry.
| 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 16.67%, 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.
EPS 1Y (TTM)16.67%
EPS 3Y26.6%
EPS 5Y35.19%
EPS Q2Q%10%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%16.89%
3.2 Future
The Earnings Per Share is expected to grow by 19.41% on average over the next years. This is quite good.
The Revenue is expected to grow by 15.39% on average over the next years. This is quite good.
EPS Next Y16.24%
EPS Next 2Y14.89%
EPS Next 3Y16.02%
EPS Next 5Y19.41%
Revenue Next Year15.87%
Revenue Next 2Y15.3%
Revenue Next 3Y15.41%
Revenue Next 5Y15.39%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 38.05, the valuation of DT can be described as expensive.
Based on the Price/Earnings ratio, DT is valued a bit cheaper than 63.96% of the companies in the same industry.
DT is valuated rather expensively when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 32.73, the valuation of DT can be described as expensive.
60.78% of the companies in the same industry are more expensive than DT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DT to the average of the S&P500 Index (21.76), we can say DT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.05 | ||
| Fwd PE | 32.73 |
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 62.54% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DT indicates a somewhat cheap valuation: DT is cheaper than 66.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.3 | ||
| EV/EBITDA | 70.22 |
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 a very decent 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 16.02% in the coming years.
PEG (NY)2.34
PEG (5Y)1.08
EPS Next 2Y14.89%
EPS Next 3Y16.02%
5. Dividend
5.1 Amount
No dividends for DT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
53.27
-0.92 (-1.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.61%
Inst Owner Change0.71%
Ins Owners0.4%
Ins Owner Change-10.98%
Market Cap15.97B
Analysts81.95
Price Target63.28 (18.79%)
Short Float %1.91%
Short Ratio1.94
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)-4.81%
PT rev (3m)-0.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.05 | ||
| Fwd PE | 32.73 | ||
| P/S | 9.77 | ||
| P/FCF | 39.3 | ||
| P/OCF | 37.29 | ||
| P/B | 6.26 | ||
| P/tB | 13.37 | ||
| EV/EBITDA | 70.22 |
EPS(TTM)1.4
EY2.63%
EPS(NY)1.63
Fwd EY3.05%
FCF(TTM)1.36
FCFY2.54%
OCF(TTM)1.43
OCFY2.68%
SpS5.45
BVpS8.52
TBVpS3.98
PEG (NY)2.34
PEG (5Y)1.08
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 | 9.09 |
F-Score6
WACC11.08%
ROIC/WACC0.42
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)16.67%
EPS 3Y26.6%
EPS 5Y35.19%
EPS Q2Q%10%
EPS Next Y16.24%
EPS Next 2Y14.89%
EPS Next 3Y16.02%
EPS Next 5Y19.41%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%16.89%
Revenue Next Year15.87%
Revenue Next 2Y15.3%
Revenue Next 3Y15.41%
Revenue Next 5Y15.39%
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%