DOCN Stock Analysis: DigitalOcean Holdings | NYSE
Software - Infrastructure | NYSE, USA | Market Cap: 9.914m USD | 12M Return: 86.2% | US25402D1028 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 337M
EPS Trend: -15.2%
Qual. Beats: 10
Rev. Trend: 98.4%
Qual. Beats: 5
Warnings
Tailwinds
Seasonality 5.6 years of data, until 10/2026
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, ≥40 worth a closer look and ≥60 is strong.
DigitalOcean Holdings, Inc. (NYSE: DOCN) is a U.S.-based cloud infrastructure provider headquartered in Broomfield, Colorado, incorporated in 2012 and publicly listed since its March 2021 IPO. The company operates an agentic inference cloud platform serving customers across North America, Europe, and Asia, with a core focus on AI and digital-native enterprises as well as growing technology companies.
Its business model spans three main service layers: Infrastructure-as-a-Service (IaaS) offering compute, storage, networking, and security products such as cloud firewalls, managed load balancers, NAT gateways, and virtual private cloud software; Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) solutions including managed databases, managed Kubernetes, serverless Functions, an application platform, and the DigitalOcean Marketplace for pre-configured applications; and AI/ML offerings such as GPU Droplets, bare metal GPUs, and managed Jupyter Notebooks for model training and development.
DigitalOcean is positioned within the Internet Services & Infrastructure sub-industry of the Information Technology sector, competing in the broader cloud computing market alongside hyperscalers like AWS, Microsoft Azure, and Google Cloud, but generally targeting smaller and mid-market developers and startups with simplified, developer-friendly tooling. Its customer base spans verticals including online gaming, fintech, and cybersecurity, with use cases ranging from website hosting and web/mobile app development to AI integration and building AI products.
- Agentic AI cloud platform drives new enterprise revenue growth
- Hyperscaler competition pressures pricing and market share
- Cost cuts and efficiency push lift operating margins
| Net Income: 34.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -5.75 > 1.0 |
| NWC/Revenue: 13.02% < 20% (prev 4.93%; Δ 8.09% < -1%) |
| CFO/TA 0.10 > 3% & CFO 375.4m > Net Income 34.3m |
| Net Debt (1.82b) to EBITDA (350.0m): 5.19 < 3 |
| Current Ratio: 1.15 > 1.5 & < 3 |
| Outstanding Shares: last quarter (114.7m) vs 12m ago 11.30% < -2% |
| Gross Margin: 54.66% > 18% (prev 59.54%; Δ -4.88% > 0.5%) |
| Asset Turnover: 40.38% > 50% (prev 50.06%; Δ -9.68% > 0%) |
| Interest Coverage Ratio: 2.22 > 6 (EBIT TTM 87.0m / Interest Expense TTM 39.3m) |
| A: 0.04 (Total Current Assets 1.07b - Total Current Liabilities 927.2m) / Total Assets 3.74b |
| B: -0.01 (Retained Earnings -35.1m / Total Assets 3.74b) |
| C: 0.03 (EBIT TTM 87.0m / Avg Total Assets 2.73b) |
| D: 0.61 (Book Value of Equity 1.42b / Total Liabilities 2.32b) |
| Altman-Z'' = 1.08 = BB |
| DSRI: 1.30 (Receivables 139.8m/84.4m, Revenue 1.10b/864.0m) |
| GMI: 1.09 (GM 59.54% / 54.66%) |
| AQI: 0.46 (AQ_t 0.15 / AQ_t-1 0.32) |
| SGI: 1.28 (Revenue 1.10b / 864.0m) |
| TATA: -0.09 (NI 34.3m - CFO 375.4m) / TA 3.74b) |
| Beneish M = -2.83 (Cap -4..+1) = A |
As of November 13, 2026, the stock is trading at USD 90.07 with a total of 2,895,527 shares traded. Over the past week, the price has changed by +27.40%, over one month by -31.46%, over three months by -32.47% and over the past year by +86.21%.
Current recommended Stop Loss: 66.10 (which is 26.6% or 2.6 ATR below the current price).
DigitalOcean Holdings has received a consensus analysts rating of 4.53. Therefore, it is recommended to buy DOCN.
- StrongBuy: 11
- Buy: 4
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 168.1 | 86.7% |
P/E Trailing = 289.7241
P/E Forward = 47.1698
P/S = 8.991
P/B = 11.4329
P/EG = 1.5379
Revenue TTM = 1.10b USD
EBIT TTM = 87.0m USD
EBITDA TTM = 350.0m USD
Long Term Debt = 970.7m USD (from longTermDebt, last fiscal year)
Short Term Debt = 663.9m USD (from shortTermDebt, last quarter)
Debt = 2.66b USD (from shortLongTermDebtTotal, last quarter) + Leases 608.9m
Net Debt = 1.82b USD (calculated: Debt 2.66b - CCE 844.7m)
Enterprise Value = 11.7b USD (9.91b + Debt 2.66b - CCE 844.7m)
Interest Coverage Ratio = 2.22 (Ebit TTM 87.0m / Interest Expense TTM 39.3m)
EV/FCF = 133.6x (Enterprise Value 11.7b / FCF TTM 87.8m)
FCF Yield = 0.75% (FCF TTM 87.8m / Enterprise Value 11.7b)
FCF Margin = 7.96% (FCF TTM 87.8m / Revenue TTM 1.10b)
Net Margin = 3.11% (Net Income TTM 34.3m / Revenue TTM 1.10b)
Gross Margin = 54.66% ((Revenue TTM 1.10b - Cost of Revenue TTM 500.0m) / Revenue TTM)
Gross Margin QoQ = 50.15% (prev 55.00%)
Tobins Q-Ratio = 3.14 (Enterprise Value 11.7b / Total Assets 3.74b)
Interest Expense / Debt = 1.48% (Interest Expense 39.3m / Debt 2.66b)
Taxrate = 28.23% (13.5m / 47.7m)
NOPAT = 62.5m (EBIT 87.0m * (1 - 28.23%))
Current Ratio = 1.15 (Total Current Assets 1.07b / Total Current Liabilities 927.2m)
Debt / Equity = 1.88 (Debt 2.66b / totalStockholderEquity, last quarter 1.42b)
Debt / EBITDA = 5.19 (Net Debt 1.82b / EBITDA 350.0m)
Debt / FCF = 20.68 (Net Debt 1.82b / FCF TTM 87.8m)
Total Stockholder Equity = 801.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.25% (Net Income 34.3m / Total Assets 3.74b)
RoE = 4.27% (Net Income TTM 34.3m / Total Stockholder Equity 801.5m)
RoCE = 4.91% (EBIT 87.0m / Capital Employed (Equity 801.5m + L.T.Debt 970.7m))
RoIC = 1.83% (NOPAT 62.5m / Invested Capital 3.42b)
WACC = 10.21% (E(9.91b)/V(12.6b) * Re(12.67%) + D(2.66b)/V(12.6b) * Rd(1.48%) * (1-Tc(0.28)))
Discount Rate = 12.67% (= CAPM, Blume Beta Adj.) -> capped to 12.54%
Shares (quarterly) Correlation: 84.50 | Cagr: 9.33%
[DCF] Terminal Value 66.47% ; FCFF base≈108.6m ; Y1≈95.2m ; Y5≈77.0m
[DCF] Fair Price = N/A (negative equity: EV 946.1m - Net Debt 1.82b = -869.9m; debt exceeds intrinsic value)
EPS Correlation: -15.21 | EPS CAGR: -2.02% | SUE: 2.25 | # QB: 10
Revenue Correlation: 98.40 | Revenue CAGR: 17.05% | SUE: 4.0 | # QB: 5
EPS current Quarter (2027-03-31): EPS=0.36 | Chg30d=+7.16% | Revisions=-25% | Analysts=14
EPS current Year (2026-12-31): EPS=1.64 | Chg30d=+12.39% | Revisions=+82% | GrowthEPS=-22.8% | GrowthRev=+34.3%
EPS next Year (2027-12-31): EPS=1.96 | Chg30d=+6.67% | Revisions=+25% | GrowthEPS=+20.0% | GrowthRev=+57.5%
[Analyst] Revisions Ratio: +74% (up=15, down=1)