Datadog, Inc. Fundamental Analysis
Datadog, Inc. (DDOG) shows weak financial fundamentals with a PE ratio of 592.71, profit margin of 3.69%, and ROE of 3.78%. The company generates $3.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DDOG's fundamental strength across five key dimensions:
Efficiency Score
WeakDDOG struggles to generate sufficient returns from assets.
Valuation Score
ModerateDDOG shows balanced valuation metrics.
Growth Score
ModerateDDOG shows steady but slowing expansion.
Financial Health Score
ExcellentDDOG maintains a strong and stable balance sheet.
Profitability Score
WeakDDOG struggles to sustain strong margins.
Key Financial Metrics
Is DDOG Expensive or Cheap?
P/E Ratio
DDOG trades at 592.71 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DDOG's PEG of -28.45 indicates potential undervaluation.
Price to Book
The market values Datadog, Inc. at 20.16 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 350.75 times EBITDA. This signals the market has high growth expectations.
How Well Does DDOG Make Money?
Net Profit Margin
For every $100 in sales, Datadog, Inc. keeps $3.69 as profit after all expenses.
Operating Margin
Core operations generate -0.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.78 in profit for every $100 of shareholder equity.
ROA
Datadog, Inc. generates $1.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Datadog, Inc. generates strong operating cash flow of $1.12B, reflecting robust business health.
Free Cash Flow
Datadog, Inc. generates strong free cash flow of $1.09B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.06 in free cash annually.
FCF Yield
DDOG converts 1.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
592.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-28.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
20.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
22.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How DDOG Stacks Against Its Sector Peers
| Metric | DDOG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 592.71 | 42.32 | Worse (Expensive) |
| ROE | 3.78% | 764.00% | Weak |
| Net Margin | 3.69% | 10929058400.00% | Weak |
| Debt/Equity | 0.32 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 3.40 | 5.24 | Strong Liquidity |
| ROA | 1.95% | 103.00% | Weak |
DDOG outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Datadog, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta