DoorDash, Inc.
DoorDash, Inc. Fundamental Analysis
DoorDash, Inc. (DASH) shows weak financial fundamentals with a PE ratio of 74.76, profit margin of 6.28%, and ROE of 9.57%. The company generates $14.7B in annual revenue with strong year-over-year growth of 27.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DASH's fundamental strength across five key dimensions:
Efficiency Score
WeakDASH struggles to generate sufficient returns from assets.
Valuation Score
ModerateDASH shows balanced valuation metrics.
Growth Score
ModerateDASH shows steady but slowing expansion.
Financial Health Score
ExcellentDASH maintains a strong and stable balance sheet.
Profitability Score
WeakDASH struggles to sustain strong margins.
Key Financial Metrics
Is DASH Expensive or Cheap?
P/E Ratio
DASH trades at 74.76 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DASH's PEG of 0.45 indicates potential undervaluation.
Price to Book
The market values DoorDash, Inc. at 6.78 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 41.73 times EBITDA. This signals the market has high growth expectations.
How Well Does DASH Make Money?
Net Profit Margin
For every $100 in sales, DoorDash, Inc. keeps $6.28 as profit after all expenses.
Operating Margin
Core operations generate 4.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.57 in profit for every $100 of shareholder equity.
ROA
DoorDash, Inc. generates $4.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DoorDash, Inc. produces operating cash flow of $2.39B, showing steady but balanced cash generation.
Free Cash Flow
DoorDash, Inc. generates strong free cash flow of $1.75B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.02 in free cash annually.
FCF Yield
DASH converts 2.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
74.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How DASH Stacks Against Its Sector Peers
| Metric | DASH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 74.76 | 23.90 | Worse (Expensive) |
| ROE | 9.57% | 1020.00% | Weak |
| Net Margin | 6.28% | -59468.00% (disorted) | Weak |
| Debt/Equity | 0.32 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.43 | 1.69 | Neutral |
| ROA | 4.69% | -6587.00% (disorted) | Weak |
DASH outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DoorDash, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-30.56%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
129.63%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
40.94%
Industry Style: Growth, Technology, Streaming
High Growth