(DT) Dynatrace Holdings - Overview
Sector: Technology | Industry: Software - Application | Exchange: NYSE (USA) | Market Cap: 11.748m USD | Total Return: -24% in 12m
Industry Rotation: +1.7
Avg Turnover: 222M
EPS Trend: 62.9%
Qual. Beats: 0
Rev. Trend: 99.9%
Qual. Beats: 17
Warnings
Below Avwap Earnings
Tailwinds
Confidence
Dynatrace, Inc. (DT) provides an AI-powered observability platform designed to monitor and optimize complex cloud environments and digital ecosystems. The company’s software suite covers infrastructure monitoring, application security, log analytics, and digital experience management for global enterprises across sectors such as banking, government, and retail.
Operating within the Application Software sector, Dynatrace utilizes a Software-as-a-Service (SaaS) business model, generating recurring revenue through platform subscriptions. The observability market is characterized by high technical barriers to entry, as platforms must integrate seamlessly with multi-cloud architectures like AWS, Azure, and Google Cloud to provide real-time data insights.
The company employs a hybrid go-to-market strategy, combining a direct sales force with strategic partnerships through global system integrators and technology alliances. To better understand how these operational factors influence valuation, consider reviewing the detailed metrics available on ValueRay. Since its founding in 2005, the firm has expanded its footprint across North America, EMEA, and Asia Pacific to address the growing demand for automated IT operations.
- Cloud migration complexity increases demand for high-margin enterprise observability platform subscriptions
- Strategic partnerships with AWS and Azure drive significant annual recurring revenue growth
- Expansion into application security and log analytics diversifies total addressable market
- Enterprise IT budget consolidation pressures sales cycles and net expansion rates
- AI-driven automation capabilities improve customer retention through reduced operational complexity
| Net Income: 162.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 1.47 > 1.0 |
| NWC/Revenue: 27.47% < 20% (prev 32.39%; Δ -4.92% < -1%) |
| CFO/TA 0.13 > 3% & CFO 559.4m > Net Income 162.7m |
| Net Debt (-922.0m) to EBITDA (313.8m): -2.94 < 3 |
| Current Ratio: 1.35 > 1.5 & < 3 |
| Outstanding Shares: last quarter (298.9m) vs 12m ago -1.78% < -2% |
| Gross Margin: 81.56% > 18% (prev 0.81%; Δ 8.07k% > 0.5%) |
| Asset Turnover: 47.18% > 50% (prev 41.03%; Δ 6.15% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
| A: 0.13 (Total Current Assets 2.12b - Total Current Liabilities 1.57b) / Total Assets 4.42b |
| B: 0.10 (Retained Earnings 447.6m / Total Assets 4.42b) |
| C: 0.07 (EBIT TTM 289.8m / Avg Total Assets 4.28b) |
| D: 0.23 (Book Value of Equity 411.9m / Total Liabilities 1.80b) |
| Altman-Z'' = 1.85 = BBB |
| DSRI: 0.94 (Receivables 710.2m/636.0m, Revenue 2.02b/1.70b) |
| GMI: 1.00 (GM 81.56% / 81.15%) |
| AQI: 0.94 (AQ_t 0.47 / AQ_t-1 0.50) |
| SGI: 1.19 (Revenue 2.02b / 1.70b) |
| TATA: -0.09 (NI 162.7m - CFO 559.4m) / TA 4.42b) |
| Beneish M = -3.07 (Cap -4..+1) = AA |
Over the past week, the price has changed by +7.43%, over one month by +14.03%, over three months by +22.50% and over the past year by -23.95%.
- StrongBuy: 19
- Buy: 7
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 43.9 | 12% |
P/E Forward = 20.4499
P/S = 5.8204
P/B = 4.4987
P/EG = 0.8244
Revenue TTM = 2.02b USD
EBIT TTM = 289.8m USD
EBITDA TTM = 313.8m USD
Long Term Debt = 141.7m USD (estimated: total debt 164.3m - short term 22.6m)
Short Term Debt = 22.6m USD (from shortTermDebt, last quarter)
Debt = 250.1m USD (from shortLongTermDebtTotal, last quarter) + Leases 85.8m
Net Debt = -922.0m USD (calculated: Debt 250.1m - CCE 1.17b)
Enterprise Value = 10.83b USD (11.75b + Debt 250.1m - CCE 1.17b)
Interest Coverage Ratio = unknown (Ebit TTM 289.8m / Interest Expense TTM 0.0)
EV/FCF = 20.53x (Enterprise Value 10.83b / FCF TTM 527.2m)
FCF Yield = 4.87% (FCF TTM 527.2m / Enterprise Value 10.83b)
FCF Margin = 26.12% (FCF TTM 527.2m / Revenue TTM 2.02b)
Net Margin = 8.06% (Net Income TTM 162.7m / Revenue TTM 2.02b)
Gross Margin = 81.56% ((Revenue TTM 2.02b - Cost of Revenue TTM 372.2m) / Revenue TTM)
Gross Margin QoQ = 80.93% (prev 81.41%)
Tobins Q-Ratio = 2.45 (Enterprise Value 10.83b / Total Assets 4.42b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 250.1m)
Taxrate = 45.73% (137.1m / 299.8m)
NOPAT = 157.2m (EBIT 289.8m * (1 - 45.73%))
Current Ratio = 1.35 (Total Current Assets 2.12b / Total Current Liabilities 1.57b)
Debt / Equity = 0.10 (Debt 250.1m / totalStockholderEquity, last quarter 2.61b)
Debt / EBITDA = -2.94 (Net Debt -922.0m / EBITDA 313.8m)
Debt / FCF = -1.75 (Net Debt -922.0m / FCF TTM 527.2m)
Total Stockholder Equity = 2.71b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.80% (Net Income 162.7m / Total Assets 4.42b)
RoE = 6.00% (Net Income TTM 162.7m / Total Stockholder Equity 2.71b)
RoCE = 10.16% (EBIT 289.8m / Capital Employed (Equity 2.71b + L.T.Debt 141.7m))
RoIC = 9.27% (NOPAT 157.2m / Invested Capital 1.70b)
WACC = 8.58% (E(11.75b)/V(12.00b) * Re(8.76%) + D(250.1m)/V(12.00b) * Rd(0.0%) * (1-Tc(0.46)))
Discount Rate = 8.76% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 33.33 | Cagr: -0.05%
[DCF] Terminal Value 78.02% ; FCFF base≈489.8m ; Y1≈547.7m ; Y5≈726.7m
[DCF] Fair Price = 41.81 (EV 11.40b - Net Debt -922.0m = Equity 12.32b / Shares 294.7m; r=8.58% [WACC]; 5y FCF grow 13.68% → 3.0% )
EPS Correlation: 62.88 | EPS CAGR: 21.65% | SUE: 0.05 | # QB: 0
Revenue Correlation: 99.91 | Revenue CAGR: 19.50% | SUE: 4.0 | # QB: 17
EPS current Quarter (2026-06-30): EPS=0.44 | Chg30d=-1.44% | Revisions=-21% | Analysts=34
EPS next Quarter (2026-09-30): EPS=0.49 | Chg30d=+1.37% | Revisions=+36% | Analysts=34
EPS current Year (2027-03-31): EPS=1.95 | Chg30d=+1.72% | Revisions=+58% | GrowthEPS=+14.5% | GrowthRev=+15.4%
EPS next Year (2028-03-31): EPS=2.26 | Chg30d=+1.65% | Revisions=+41% | GrowthEPS=+16.1% | GrowthRev=+14.6%
[Analyst] Revisions Ratio: +58%