DigitalOcean Holdings Inc.
Find Ratings ReportsDIGITALOCEAN HOLDINGS INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. DIGITALOCEAN HOLDINGS INC is extremely liquid. Currently, the Quick Ratio is 2.46 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 759.45% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 180.87 | 163.0 |
EBITDA ($mil) | 48.01 | 26.62 |
EBIT ($mil) | 17.23 | -1.71 |
Net Income ($mil) | 15.94 | -10.38 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 411.77 | 873.33 |
Total Assets ($mil) | 1460.97 | 1815.63 |
Total Debt ($mil) | 1660.02 | 1635.4 |
Equity ($mil) | -313.7 | 47.57 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 75.88 | 80.46 |
EBITDA Margin | 26.54 | 16.33 |
Operating Margin | 9.53 | -1.05 |
Sales Turnover | 0.47 | 0.32 |
Return on Assets | 1.32 | -1.53 |
Return on Equity | 0.0 | -58.45 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.61 | 5.72 |
Debt/Capital | 1.23 | 0.97 |
Interest Expense | 2.31 | 2.12 |
Interest Coverage | 7.46 | -0.81 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 90.24 | 96.73 |
Div / share | 0.0 | 0.0 |
EPS | 0.17 | -0.11 |
Book value / share | -3.48 | 0.49 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1078780.0 | 1276096.0 |
SELL. DIGITALOCEAN HOLDINGS INC's P/E ratio indicates a significant premium compared to an average of 76.09 for the Web Search, Libraries, Archives, and Other Infor S subsector and a significant premium 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 well above the S&P 500 average, but well below the subsector average.
Price/Earnings |
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Price/Cash Flow |
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DOCN 185.90 | Peers 76.09 | DOCN 15.00 | Peers 32.96 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. DOCN is trading at a significant premium 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. DOCN is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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DOCN 21.25 | Peers 26.19 | DOCN 0.26 | Peers 0.62 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. DOCN is trading at a valuation on par with 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. DOCN trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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DOCN NM | Peers 17.67 | DOCN 177.77 | 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. DOCN's P/B is negative making this valuation measure meaningless. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. DOCN is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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DOCN 5.08 | Peers 8.21 | DOCN 20.22 | 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. DOCN is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. DOCN has a sales growth rate that significantly exceeds its peers. |
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