ScoreWhy is DigitalOcean Holdings, Inc. ?
1
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
2
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 ReportHow much should you hold?
- Overall Portfolio exposure to DigitalOcean Holdings, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is DigitalOcean Holdings, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
DigitalOcean Holdings, Inc.
282.06%
0.51
67.26%
S&P 500
15.76%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality 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
0
Pledged Shares
0
Institutional Holding
91.61%
ROCE (avg)
3.76%
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
35
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
NA
ROCE (Latest)
13.63%
ROE (Latest)
Negative BV
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 314.04 MM
ROCE(HY)
Highest at 62.27%
NET SALES(Q)
Highest at USD 281.18 MM
-42What is not working for the Company
NET SALES(HY)
At USD 257.9 MM has Grown at -39.94%
INTEREST(HY)
At USD 18.02 MM has Grown at 305.13%
INTEREST COVERAGE RATIO(Q)
Lowest at 393.55
OPERATING CASH FLOW(Y)
Lowest at USD 204.07 MM
PRE-TAX PROFIT(Q)
Lowest at USD 27.14 MM
RAW MATERIAL COST(Y)
Grown by 8.27% (YoY
CASH AND EQV(HY)
Lowest at USD 741.36 MM
DEBT-EQUITY RATIO
(HY)
Highest at 130.09 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 0 times
OPERATING PROFIT(Q)
Lowest at USD 29.37 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 28.64 %
NET PROFIT(Q)
Lowest at USD 0 MM
Here's what is working for DigitalOcean Holdings, Inc.
Operating Cash Flow
Highest at USD 314.04 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 281.18 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Net Sales
At USD 281.18 MM has Grown at 28.57%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Depreciation
Highest at USD 51.15 MM
in the last five periodsMOJO 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.
Interest
At USD 18.02 MM has Grown at 305.13%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 393.55 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At USD 0 MM has Fallen at -100%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Pre-Tax Profit
Lowest at USD 27.14 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Operating Cash Flow
Lowest at USD 204.07 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Operating Profit
Lowest at USD 29.37 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 28.64 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Fallen at -36.46%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 0 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Cash and Eqv
Lowest at USD 741.36 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 130.09 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 8.27% (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
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