Dropbox Inc
Find Ratings ReportsDROPBOX INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. DROPBOX INC has average liquidity. Currently, the Quick Ratio is 1.19 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 46.41% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 635.0 | 598.8 |
EBITDA ($mil) | 157.7 | 127.5 |
EBIT ($mil) | 114.7 | 87.8 |
Net Income ($mil) | 227.3 | 328.3 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1356.0 | 1343.4 |
Total Assets ($mil) | 2983.5 | 3110.1 |
Total Debt ($mil) | 2030.6 | 2294.6 |
Equity ($mil) | -165.8 | -309.4 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 87.02 | 87.02 |
EBITDA Margin | 24.83 | 21.29 |
Operating Margin | 18.06 | 14.66 |
Sales Turnover | 0.84 | 0.75 |
Return on Assets | 15.2 | 17.78 |
Return on Equity | 0.0 | 0.0 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.26 | 1.25 |
Debt/Capital | 1.09 | 1.16 |
Interest Expense | 4.2 | 3.1 |
Interest Coverage | 27.31 | 28.32 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 336.7 | 349.4 |
Div / share | 0.0 | 0.0 |
EPS | 0.66 | 0.93 |
Book value / share | -0.49 | -0.89 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 3860303.0 | 2819634.0 |
HOLD. The current P/E ratio indicates a significant discount compared to an average of 76.09 for the Web Search, Libraries, Archives, and Other Infor S subsector and a discount compared to the S&P 500 average of 27.95. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, DROPBOX INC proves to trade at a discount to investment alternatives.
Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
DBX 18.33 | Peers 76.09 | DBX 10.40 | Peers 32.96 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. DBX is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. DBX is trading at a significant discount to its peers. |
|||||||||||||||||||||||
Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
DBX 11.08 | Peers 26.19 | DBX 0.35 | Peers 0.62 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. DBX is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. DBX trades at a significant discount to its peers. |
|||||||||||||||||||||||
Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
DBX NM | Peers 17.67 | DBX -14.29 | Peers 89.51 | |||||||||||||||||||||
Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. DBX's P/B is negative making this valuation measure meaningless. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, DBX is expected to significantly trail its peers on the basis of its earnings growth rate. |
|||||||||||||||||||||||
Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
DBX 3.26 | Peers 8.21 | DBX 7.60 | Peers 15.59 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. DBX is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. DBX significantly trails its peers on the basis of sales growth. |
|||||||||||||||||||||||