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Datto Holding Corp (MSP) Stock Fundamental Analysis

USA - NYSE:MSP - US23821D1000 - Common Stock

35.18
+0.19 (+0.54%)
Last: 6/22/2022, 8:04:01 PM
35.36
+0.18 (+0.51%)
Pre-Market: 6/23/2022, 7:24:19 AM
Fundamental Rating

3

Overall MSP gets a fundamental rating of 3 out of 10. We evaluated MSP against 279 industry peers in the Software industry. The financial health of MSP is average, but there are quite some concerns on its profitability. MSP is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

MSP had positive earnings in the past year.
MSP Yearly Net Income VS EBIT VS OCF VS FCFMSP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 0 50M 100M

1.2 Ratios

Industry RankSector Rank
ROA 2.22%
ROE 2.4%
ROIC 2.3%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
MSP Yearly ROA, ROE, ROICMSP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 0 2 -2

1.3 Margins

Industry RankSector Rank
OM 8.6%
PM (TTM) 6.84%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
MSP Yearly Profit, Operating, Gross MarginsMSP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 0 20 40 60

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MSP is destroying value.
Compared to 1 year ago, MSP has more shares outstanding
MSP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
MSP Yearly Shares OutstandingMSP Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 50M 100M 150M
MSP Yearly Total Debt VS Total AssetsMSP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 500M 1B 1.5B

2.2 Solvency

MSP has an Altman-Z score of 23.90. This indicates that MSP is financially healthy and has little risk of bankruptcy at the moment.
There is no outstanding debt for MSP. 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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 23.9
ROIC/WACC0.33
WACC7.02%
MSP Yearly LT Debt VS Equity VS FCFMSP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 0 500M 1B 1.5B

2.3 Liquidity

MSP has a Current Ratio of 3.22. This indicates that MSP is financially healthy and has no problem in meeting its short term obligations.
MSP has a Quick Ratio of 2.74. This indicates that MSP is financially healthy and has no problem in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 3.22
Quick Ratio 2.74
MSP Yearly Current Assets VS Current LiabilitesMSP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 100M 200M 300M

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6

3. Growth

3.1 Past

MSP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.42%, which is quite impressive.
The Revenue has grown by 19.55% in the past year. This is quite good.
The Revenue has been growing by 16.89% on average over the past years. This is quite good.
EPS 1Y (TTM)38.42%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-22.22%
Revenue 1Y (TTM)19.55%
Revenue growth 3Y16.89%
Revenue growth 5YN/A
Sales Q2Q%17.86%

3.2 Future

The Earnings Per Share is expected to grow by 17.48% on average over the next years. This is quite good.
MSP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.49% yearly.
EPS Next Y-9.81%
EPS Next 2Y5.6%
EPS Next 3Y12.6%
EPS Next 5Y17.48%
Revenue Next Year17.5%
Revenue Next 2Y17.71%
Revenue Next 3Y18.52%
Revenue Next 5Y18.49%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
MSP Yearly Revenue VS EstimatesMSP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B
MSP Yearly EPS VS EstimatesMSP Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 0.5 1

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 57.67 indicates a quite expensive valuation of MSP.
Compared to an average S&P500 Price/Earnings ratio of 27.41, MSP is valued quite expensively.
A Price/Forward Earnings ratio of 48.53 indicates a quite expensive valuation of MSP.
MSP is valuated expensively when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 57.67
Fwd PE 48.53
MSP Price Earnings VS Forward Price EarningsMSP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 47.6
MSP Per share dataMSP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

MSP's earnings are expected to grow with 12.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.6%
EPS Next 3Y12.6%

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0

5. Dividend

5.1 Amount

No dividends for MSP!.
Industry RankSector Rank
Dividend Yield N/A

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Datto Holding Corp

NYSE:MSP (6/22/2022, 8:04:01 PM)

Premarket: 35.36 +0.18 (+0.51%)

35.18

+0.19 (+0.54%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-09 2022-05-09/amc
Earnings (Next)08-09 2022-08-09
Inst Owners0.06%
Inst Owner Change0%
Ins Owners0.29%
Ins Owner Change0%
Market Cap5.81B
Analysts67.69
Price Target34.45 (-2.08%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 57.67
Fwd PE 48.53
P/S 9.02
P/FCF N/A
P/OCF N/A
P/B 3.16
P/tB N/A
EV/EBITDA 47.6
EPS(TTM)0.61
EY1.73%
EPS(NY)0.72
Fwd EY2.06%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.9
BVpS11.14
TBVpSN/A
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.22%
ROE 2.4%
ROCE N/A
ROIC 2.3%
ROICexc N/A
ROICexgc 10.06%
OM 8.6%
PM (TTM) 6.84%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0%
ROICexcg growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.22
Quick Ratio 2.74
Altman-Z 23.9
F-Score7
WACC7.02%
ROIC/WACC0.33
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.42%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-22.22%
EPS Next Y-9.81%
EPS Next 2Y5.6%
EPS Next 3Y12.6%
EPS Next 5Y17.48%
Revenue 1Y (TTM)19.55%
Revenue growth 3Y16.89%
Revenue growth 5YN/A
Sales Q2Q%17.86%
Revenue Next Year17.5%
Revenue Next 2Y17.71%
Revenue Next 3Y18.52%
Revenue Next 5Y18.49%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A