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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Progress Software Corp.

DigitalOcean Holdings, Inc.

Intapp, Inc.

N-able, 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 18.00%, 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.

15.77%

0.37

67.15%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.71%

EBIT Growth (5y)

138.18%

EBIT to Interest (avg)

1.60

Debt to EBITDA (avg)

4.32

Net Debt to Equity (avg)

-5.79

Sales to Capital Employed (avg)

0.55

Tax Ratio

13.03%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

73.68%

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

-12.37

EV to EBIT

32.68

EV to EBITDA

15.65

EV to Capital Employed

3.79

EV to Sales

4.74

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

11.60%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 297.15 MM

INTEREST COVERAGE RATIO(Q)

Highest at 3,054.22

NET SALES(Q)

Highest at USD 218.7 MM

OPERATING PROFIT(Q)

Highest at USD 68.38 MM

RAW MATERIAL COST(Y)

Fallen by 1.82% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -785.22 %

PRE-TAX PROFIT(Q)

Highest at USD 42.72 MM

NET PROFIT(Q)

At USD 37.26 MM has Grown at 94.85%

EPS(Q)

Highest at USD 0.39

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Interest Coverage Ratio

Highest at 3,054.22 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at USD 297.15 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 218.7 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 68.38 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 42.72 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 42.72 MM has Grown at 72.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 37.26 MM has Grown at 94.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.39

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at -785.22 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1.82% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales