Dynatrace, Inc.
Dynatrace, Inc. Fundamental Analysis
Dynatrace, Inc. (DT) shows weak financial fundamentals with a PE ratio of 57.24, profit margin of 9.55%, and ROE of 6.81%. The company generates $1.9B in annual revenue with strong year-over-year growth of 23.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.6/100 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 DT's fundamental strength across five key dimensions:
Efficiency Score
WeakDT struggles to generate sufficient returns from assets.
Valuation Score
ModerateDT shows balanced valuation metrics.
Growth Score
ExcellentDT delivers strong and consistent growth momentum.
Financial Health Score
ExcellentDT maintains a strong and stable balance sheet.
Profitability Score
WeakDT struggles to sustain strong margins.
Key Financial Metrics
Is DT Expensive or Cheap?
P/E Ratio
DT trades at 57.24 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DT's PEG of -0.90 indicates potential undervaluation.
Price to Book
The market values Dynatrace, Inc. at 3.84 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 38.21 times EBITDA. This signals the market has high growth expectations.
How Well Does DT Make Money?
Net Profit Margin
For every $100 in sales, Dynatrace, Inc. keeps $9.55 as profit after all expenses.
Operating Margin
Core operations generate 12.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.81 in profit for every $100 of shareholder equity.
ROA
Dynatrace, Inc. generates $4.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dynatrace, Inc. generates strong operating cash flow of $499.11M, reflecting robust business health.
Free Cash Flow
Dynatrace, Inc. generates strong free cash flow of $466.29M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.55 in free cash annually.
FCF Yield
DT converts 4.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
57.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How DT Stacks Against Its Sector Peers
| Metric | DT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 57.24 | 35.19 | Worse (Expensive) |
| ROE | 6.81% | 1155.00% | Weak |
| Net Margin | 9.55% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.56 | 4.71 | Neutral |
| ROA | 4.50% | -314918.00% (disorted) | Weak |
DT 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 Dynatrace, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
211.04%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
224.70%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
140.79%
Industry Style: Growth, Innovation, High Beta
High Growth