Duck Creek Technologies, Inc.
Duck Creek Technologies, Inc. Fundamental Analysis
Duck Creek Technologies, Inc. (DCT) shows weak financial fundamentals with a PE ratio of -301.32, profit margin of -2.75%, and ROE of -1.14%. The company generates $0.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DCT's fundamental strength across five key dimensions:
Efficiency Score
WeakDCT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDCT trades at attractive valuation levels.
Growth Score
WeakDCT faces weak or negative growth trends.
Financial Health Score
ExcellentDCT maintains a strong and stable balance sheet.
Profitability Score
WeakDCT struggles to sustain strong margins.
Key Financial Metrics
Is DCT Expensive or Cheap?
P/E Ratio
DCT trades at -301.32 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DCT's PEG of -3.01 indicates potential undervaluation.
Price to Book
The market values Duck Creek Technologies, Inc. at 3.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 174.61 times EBITDA. This signals the market has high growth expectations.
How Well Does DCT Make Money?
Net Profit Margin
For every $100 in sales, Duck Creek Technologies, Inc. keeps $-2.75 as profit after all expenses.
Operating Margin
Core operations generate -1.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.14 in profit for every $100 of shareholder equity.
ROA
Duck Creek Technologies, Inc. generates $-0.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Duck Creek Technologies, Inc. generates limited operating cash flow of $10.78M, signaling weaker underlying cash strength.
Free Cash Flow
Duck Creek Technologies, Inc. generates weak or negative free cash flow of $7.64M, restricting financial flexibility.
FCF Per Share
Each share generates $0.06 in free cash annually.
FCF Yield
DCT converts 0.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-301.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How DCT Stacks Against Its Sector Peers
| Metric | DCT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -301.32 | 34.79 | Better (Cheaper) |
| ROE | -1.14% | 1185.00% | Weak |
| Net Margin | -2.75% | -131296.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 4.43 | 4.90 | Strong Liquidity |
| ROA | -0.99% | -325472.00% (disorted) | Weak |
DCT outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Duck Creek Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta