Dropbox, Inc.
Dropbox, Inc. Fundamental Analysis
Dropbox, Inc. (DBX) shows moderate financial fundamentals with a PE ratio of 11.94, profit margin of 20.17%, and ROE of -35.62%. The company generates $2.7B in annual revenue with weak year-over-year growth of 1.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DBX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDBX demonstrates superior asset utilization.
Valuation Score
ModerateDBX shows balanced valuation metrics.
Growth Score
WeakDBX faces weak or negative growth trends.
Financial Health Score
ModerateDBX shows balanced financial health with some risks.
Profitability Score
ModerateDBX maintains healthy but balanced margins.
Key Financial Metrics
Is DBX Expensive or Cheap?
P/E Ratio
DBX trades at 11.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DBX's PEG of 2.37 indicates potential overvaluation.
Price to Book
The market values Dropbox, Inc. at -3.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.17 times EBITDA. This is generally considered low.
How Well Does DBX Make Money?
Net Profit Margin
For every $100 in sales, Dropbox, Inc. keeps $20.17 as profit after all expenses.
Operating Margin
Core operations generate 27.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-35.62 in profit for every $100 of shareholder equity.
ROA
Dropbox, Inc. generates $17.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dropbox, Inc. generates strong operating cash flow of $1.02B, reflecting robust business health.
Free Cash Flow
Dropbox, Inc. generates strong free cash flow of $997.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.72 in free cash annually.
FCF Yield
DBX converts 14.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
-3.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.36
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.73
vs 25 benchmark
How DBX Stacks Against Its Sector Peers
| Metric | DBX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.94 | 34.79 | Better (Cheaper) |
| ROE | -35.62% | 1185.00% | Weak |
| Net Margin | 20.17% | -131296.00% (disorted) | Strong |
| Debt/Equity | -1.20 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 0.63 | 4.90 | Weak Liquidity |
| ROA | 17.87% | -325472.00% (disorted) | Strong |
DBX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dropbox, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
98.41%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
1210.17%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
118.83%
Industry Style: Growth, Innovation, High Beta
High Growth