(DBX) Dropbox - NASDAQ
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 6.059m USD | Total Return: -12.1% in 12m
Avg Turnover: 108M
EPS Trend: 95.0%
Qual. Beats: 1
Rev. Trend: 66.1%
Qual. Beats: 6
Warnings
Altman Z'' -2.45 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Dropbox, Inc. operates a global content collaboration platform designed to centralize digital assets and facilitate team workflows. The company utilizes a freemium business model, offering basic services at no cost to drive user acquisition while converting a portion of its user base to paid subscription tiers for advanced features and administrative controls.
As a player in the Application Software sub-industry, Dropbox competes in the high-growth Cloud Content Management (CCM) sector, which is characterized by high switching costs and recurring revenue streams. The platform integrates with third-party applications to serve diverse industries including technology, education, and financial services. For a deeper look into the companys fundamental performance, you may want to consult ValueRay.
Originally incorporated as Evenflow, Inc. in 2007, the San Francisco-based firm rebranded in 2009. It now provides a unified environment for file storage, global sharing, and collaborative product experiences across both individual and enterprise segments.
- Average revenue per user growth offsets slowing total paying subscriber additions
- Strategic shift toward AI-powered document workflows drives platform differentiation and retention
- High free cash flow generation supports aggressive share repurchase programs and valuation
- Competitive pressure from Microsoft and Google ecosystems limits enterprise market share expansion
- Operating margin expansion through workforce reductions and real estate footprint optimization
| Net Income: 472.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.30 > 0.02 and ΔFCF/TA -1.21 > 1.0 |
| NWC/Revenue: 10.80% < 20% (prev -19.76%; Δ 30.56% < -1%) |
| CFO/TA 0.33 > 3% & CFO 1.00b > Net Income 472.6m |
| Net Debt (3.43b) to EBITDA (871.8m): 3.93 < 3 |
| Current Ratio: 1.23 > 1.5 & < 3 |
| Outstanding Shares: last quarter (236.7m) vs 12m ago -19.95% < -2% |
| Gross Margin: 79.73% > 18% (prev 82.06%; Δ -2.33% > 0.5%) |
| Asset Turnover: 84.36% > 50% (prev 85.94%; Δ -1.58% > 0%) |
| Interest Coverage Ratio: 5.41 > 6 (EBIT TTM 713.5m / Interest Expense TTM 131.8m) |
| A: 0.09 (Total Current Assets 1.45b - Total Current Liabilities 1.18b) / Total Assets 3.03b |
| B: -1.29 (Retained Earnings -3.92b / Total Assets 3.03b) |
| C: 0.24 (EBIT TTM 713.5m / Avg Total Assets 2.99b) |
| D: -0.40 (Book Value of Equity -2.01b / Total Liabilities 5.04b) |
| Altman-Z'' = -2.45 = D |
| DSRI: 1.05 (Receivables 74.7m/71.6m, Revenue 2.53b/2.54b) |
| GMI: 1.03 (GM 82.06% / 79.73%) |
| AQI: 0.87 (AQ_t 0.32 / AQ_t-1 0.36) |
| SGI: 0.99 (Revenue 2.53b / 2.54b) |
| TATA: -0.17 (NI 472.6m - CFO 1.00b) / TA 3.03b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of June 26, 2026, the stock is trading at USD 25.08 with a total of 3,424,650 shares traded. Over the past week, the price has changed by -5.04%, over one month by -5.32%, over three months by +10.48% and over the past year by -12.12%.
Current recommended Stop Loss: 23.10 (which is 7.9% or 2.2 ATR below the current price).
Dropbox has received a consensus analysts rating of 2.83. Therefore, it is recommended to hold DBX.
- StrongBuy: 0
- Buy: 1
- Hold: 8
- Sell: 3
- StrongSell: 0
| Analysts Target Price | 26.2 | 4.3% |
P/E Trailing = 14.1913
P/E Forward = 8.658
P/S = 2.3988
P/B = 29.8101
P/EG = 12.3667
Revenue TTM = 2.53b USD
EBIT TTM = 713.5m USD
EBITDA TTM = 871.8m USD
Long Term Debt = 3.27b USD (from longTermDebt, last quarter)
Short Term Debt = 212.1m USD (from shortTermDebt, last quarter)
Debt = 4.72b USD (from shortLongTermDebtTotal, last quarter) + Leases 706.6m
Net Debt = 3.43b USD (calculated: Debt 4.72b - CCE 1.29b)
Enterprise Value = 9.49b USD (6.06b + Debt 4.72b - CCE 1.29b)
Interest Coverage Ratio = 5.41 (Ebit TTM 713.5m / Interest Expense TTM 131.8m)
EV/FCF = 10.28x (Enterprise Value 9.49b / FCF TTM 922.7m)
FCF Yield = 9.73% (FCF TTM 922.7m / Enterprise Value 9.49b)
FCF Margin = 36.53% (FCF TTM 922.7m / Revenue TTM 2.53b)
Net Margin = 18.71% (Net Income TTM 472.6m / Revenue TTM 2.53b)
Gross Margin = 79.73% ((Revenue TTM 2.53b - Cost of Revenue TTM 512.1m) / Revenue TTM)
Gross Margin QoQ = 79.65% (prev 79.24%)
Tobins Q-Ratio = 3.13 (Enterprise Value 9.49b / Total Assets 3.03b)
Interest Expense / Debt = 2.80% (Interest Expense 131.8m / Debt 4.72b)
Taxrate = 19.83% (116.9m / 589.5m)
NOPAT = 572.0m (EBIT 713.5m * (1 - 19.83%))
Current Ratio = 1.20 (Total Current Assets 1.45b / Total Current Liabilities 1.21b)
Debt / Equity = -2.34 (negative equity) (Debt 4.72b / totalStockholderEquity, last quarter -2.01b)
Debt / EBITDA = 3.93 (Net Debt 3.43b / EBITDA 871.8m)
Debt / FCF = 3.71 (Net Debt 3.43b / FCF TTM 922.7m)
Total Stockholder Equity = -1.66b (last 4 quarters mean from totalStockholderEquity)
RoA = 15.78% (Net Income 472.6m / Total Assets 3.03b)
RoE = -28.45% (negative equity) (Net Income TTM 472.6m / Total Stockholder Equity -1.66b)
RoCE = 44.22% (EBIT 713.5m / Capital Employed (Equity -1.66b + L.T.Debt 3.27b))
RoIC = 29.47% (NOPAT 572.0m / Invested Capital 1.94b)
WACC = 5.99% (E(6.06b)/V(10.8b) * Re(8.91%) + D(4.72b)/V(10.8b) * Rd(2.80%) * (1-Tc(0.20)))
Discount Rate = 8.91% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.11 | Cagr: -15.48%
[DCF] Terminal Value 75.25% ; FCFF base≈928.0m ; Y1≈920.8m ; Y5≈952.4m
[DCF] Fair Price = 72.29 (EV 14.9b - Net Debt 3.43b = Equity 11.4b / Shares 158.0m; r=8.35% [WACC [floored]]; 5y FCF grow -1.42% → 2.50% )
EPS Correlation: 95.02 | EPS CAGR: 16.46% | SUE: 2.14 | # QB: 1
Revenue Correlation: 66.06 | Revenue CAGR: 1.08% | SUE: 2.84 | # QB: 6
EPS current Quarter (2026-06-30): EPS=0.74 | Chg30d=+0.48% | Revisions=-11% | Analysts=7
EPS next Quarter (2026-09-30): EPS=0.78 | Chg30d=+0.81% | Revisions=+33% | Analysts=6
EPS current Year (2026-12-31): EPS=3.07 | Chg30d=+3.06% | Revisions=+45% | GrowthEPS=+8.0% | GrowthRev=-0.5%
EPS next Year (2027-12-31): EPS=3.41 | Chg30d=+1.06% | Revisions=+60% | GrowthEPS=+11.1% | GrowthRev=-0.5%
[Analyst] Revisions Ratio: +60%