Dropbox, Inc. (DBX) 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

FactSet Research Systems, Inc.

GoDaddy, Inc.

Automatic Data Processing, Inc.

Jacobs Solutions, Inc.

Paychex, Inc.

Tyler Technologies, Inc.

Zscaler, Inc.

Akamai Technologies, Inc.

Verisk Analytics, Inc.

MSCI, Inc.

Dropbox, Inc.

Why is Dropbox, Inc. ?

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

Negative results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 618.01
DEBT-EQUITY RATIO (HY) Highest at -141.82 %
CASH AND EQV(HY) Lowest at USD 1,966.3 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -17.76%, its profits have risen by 12.9% ; the PEG ratio of the company is 0.3

Below par performance in long term as well as near term

Along with generating -17.76% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

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 Commercial Services & Supplies)

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

Is Dropbox, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dropbox, Inc.

-14.55%

0.14

28.18%

S&P 500

30.29%

0.62

19.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.66%

EBIT Growth (5y)

41.66%

EBIT to Interest (avg)

26.98

Debt to EBITDA (avg)

0.67

Net Debt to Equity (avg)

-1.25

Sales to Capital Employed (avg)

1.99

Tax Ratio

10.96%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

290.33%

ROE (avg)

42.51%

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

-3.31

EV to EBIT

11.48

EV to EBITDA

9.35

EV to Capital Employed

40.88

EV to Sales

3.15

PEG Ratio

0.33

Dividend Yield

ROCE (Latest)

356.08%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 951.8 MM

PRE-TAX PROFIT(Q)

At USD 139.2 MM has Grown at 50.49%

-18What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 618.01

DEBT-EQUITY RATIO (HY)

Highest at -141.82 %

CASH AND EQV(HY)

Lowest at USD 1,966.3 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 32.18 times

INTEREST(Q)

Highest at USD 32.2 MM

Here's what is working for Dropbox, Inc.

Operating Cash Flow

Highest at USD 951.8 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)

Pre-Tax Profit

At USD 139.2 MM has Grown at 50.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Depreciation

Highest at USD 40.7 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 Dropbox, Inc.

Interest Coverage Ratio

Lowest at 618.01 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 32.2 MM has Grown at 14.59%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at -141.82 % and Grown

In each half year 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

Interest

Highest at USD 32.2 MM

in the last five periods and Increased by 14.59% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv

Lowest at USD 1,966.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 32.18 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio