DigitalOcean Holdings, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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DigitalOcean Holdings, Inc.

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Certara, Inc.

Why is DigitalOcean Holdings, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate 138.18% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 28.41%, its profits have risen by 107.5% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is DigitalOcean Holdings, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

DigitalOcean Holdings, Inc.

523.05%

0.51

67.26%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.14%

EBIT Growth (5y)

64.22%

EBIT to Interest (avg)

1.60

Debt to EBITDA (avg)

4.32

Net Debt to Equity (avg)

-5.79

Sales to Capital Employed (avg)

0.58

Tax Ratio

13.03%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

91.61%

ROCE (avg)

3.76%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

-261.08

EV to EBIT

55.23

EV to EBITDA

29.45

EV to Capital Employed

7.53

EV to Sales

9.62

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

13.63%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 292.44 MM

ROCE(HY)

Highest at 70%

NET SALES(Q)

Highest at USD 257.9 MM

NET PROFIT(9M)

Higher at USD 153.17 MM

OPERATING PROFIT(Q)

Highest at USD 82.05 MM

-24What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 777.47

RAW MATERIAL COST(Y)

Grown by 8.8% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 86.4 %

INTEREST(Q)

Highest at USD 10.55 MM

PRE-TAX PROFIT(Q)

Lowest at USD 27.2 MM

NET PROFIT(Q)

Lowest at USD 17.51 MM

EPS(Q)

Lowest at USD 0.15

Here's what is working for DigitalOcean Holdings, Inc.

Operating Cash Flow

Highest at USD 292.44 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 257.9 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Operating Profit

Highest at USD 82.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Depreciation

Highest at USD 45.48 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for DigitalOcean Holdings, Inc.

Net Profit

At USD 17.51 MM has Fallen at -54.17%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 10.55 MM has Grown at 24.87%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 777.47

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 10.55 MM

in the last five periods and Increased by 24.87% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD 27.2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

Fallen at -34.28%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 17.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 86.4 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 8.8% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales