Datto Holding Corp (MSP)
US23821D1000 - Common Stock
We assign a fundamental rating of 3 out of 10 to MSP. MSP was compared to 277 industry peers in the Software industry. MSP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MSP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MSP had positive earnings in the past year.
1.2 Ratios
| Industry Rank | Sector 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
1.3 Margins
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MSP is destroying value.
The number of shares outstanding for MSP has been increased compared to 1 year ago.
MSP 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 23.90 indicates that MSP is not in any danger for bankruptcy at the moment.
MSP 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 | N/A | ||
| Altman-Z | 23.9 |
ROIC/WACC0.33
WACC7.02%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.42% over the past year.
Looking at the last year, MSP shows a quite strong growth in Revenue. The Revenue has grown by 19.55% in the last year.
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 growth Q2Q-22.22%
Revenue 1Y (TTM)19.55%
Revenue growth 3Y16.89%
Revenue growth 5YN/A
Revenue growth Q2Q17.86%
3.2 Future
The Earnings Per Share is expected to grow by 17.48% on average over the next years. This is quite good.
The Revenue is expected to grow by 18.49% on average over the next years. This is quite good.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 57.67, MSP can be considered very expensive at the moment.
MSP is valuated expensively when we compare the Price/Earnings ratio to 28.43, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 48.53, the valuation of MSP can be described as expensive.
MSP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.67 | ||
| Fwd PE | 48.53 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 47.6 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MSP's earnings are expected to grow with 12.60% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.6%
EPS Next 3Y12.6%
5. Dividend
5.1 Amount
MSP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Datto Holding Corp
NYSE:MSP (6/22/2022, 7:04:01 PM)
Premarket: 35.36 +0.18 (+0.51%)35.18
+0.19 (+0.54%)
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 Cap5.81B
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 57.67 | ||
| Fwd PE | 48.53 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 2.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.6% | ||
| PM (TTM) | 6.84% | ||
| GM | N/A | ||
| 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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.74 | ||
| 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)38.42%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-9.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.55%
Revenue growth 3Y16.89%
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