Dropsuite (ASX:DSE) - Share price, News & Analysis

DSE fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	5/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

DSE Stock Overview

Dropsuite Limited operates a cloud-based software platform worldwide.

Rewards

Earnings are forecast to grow 52.09% per year

Earnings have grown 36.4% per year over the past 5 years

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap (A$123M)

Dropsuite Competitors

Whispir

ASX:WSP

AU$131.9m

Energy One

ASX:EOL

AU$148.7m

Xref

ASX:XF1

AU$97.3m

IODM

ASX:IOD

AU$154.1m

Price History & Performance

Summary of all time highs, changes and price drops for Dropsuite
Historical stock prices
Current Share Price	AU$0.18
52 Week High	AU$0.28
52 Week Low	AU$0.15
Beta	0.68
1 Month Change	-13.95%
3 Month Change	-2.63%
1 Year Change	2.78%
3 Year Change	478.13%
5 Year Change	189.06%
Change since IPO	112.64%

Recent News & Updates

Mar 30

Estimating The Fair Value Of Dropsuite Limited (ASX:DSE)

Today we will run through one way of estimating the intrinsic value of Dropsuite Limited ( ASX:DSE ) by estimating the...

Dec 06

Dropsuite (ASX:DSE) Is In A Strong Position To Grow Its Business

We can readily understand why investors are attracted to unprofitable companies. For example, although...

Shareholder Returns

	DSE	AU Software	AU Market
7D	-2.6%	3.9%	1.1%
1Y	2.8%	-8.8%	1.5%

Return vs Industry: DSE exceeded the Australian Software industry which returned -8.8% over the past year.

Return vs Market: DSE exceeded the Australian Market which returned 1.5% over the past year.

Price Volatility

Is DSE's price volatile compared to industry and market?
DSE volatility
DSE Average Weekly Movement	10.7%
Software Industry Average Movement	10.5%
Market Average Movement	9.5%
10% most volatile stocks in AU Market	16.5%
10% least volatile stocks in AU Market	4.3%

Stable Share Price: DSE is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: DSE's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1983	n/a	Charif El-Ansari	https://www.dropsuite.com

Dropsuite Limited operates a cloud-based software platform worldwide. It offers Dropsuite Website Backup, a cloud-based website and database backup, and monitoring service that allows website owners to automatically backup their website files and databases, monitor website availability and performance, and restore lost or corrupted data; Dropsuite Email Backup and Archiving, a cloud-based email backup and archiving solution that helps organizations to securely backup, manage, recover, comply, and protect their email data; and Dropsuite for Microsoft Office 365, a backup and archiving solution for Microsoft’s Office 365 suite of products, including email, SharePoint, One Drive, Groups, and Teams. The company also provides Dropsuite for Google Workplace, a backup and archiving solution for Google Workplace; and Reseller Provisioning Platform, which allows reseller partners to customize, provision, and support their users on the Dropsuite platform.

Dropsuite Fundamentals Summary

How do Dropsuite's earnings and revenue compare to its market cap?
DSE fundamental statistics
Market Cap	AU$122.74m
Earnings (TTM)	-AU$31.23k
Revenue (TTM)	AU$11.70m

10.8x

P/S Ratio

-4,625x

P/E Ratio

Is DSE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DSE income statement (TTM)
Revenue	AU$11.70m
Cost of Revenue	AU$9.11m
Gross Profit	AU$2.59m
Other Expenses	AU$2.62m
Earnings	-AU$31.23k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.00004
Gross Margin	22.14%
Net Profit Margin	-0.27%
Debt/Equity Ratio	0.0%

How did DSE perform over the long term?

See historical performance and comparison

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Dropsuite forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

52.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).

Earnings vs Market: DSE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DSE's is expected to become profitable in the next 3 years.

Revenue vs Market: DSE's revenue (29.4% per year) is forecast to grow faster than the Australian market (4.7% per year).

High Growth Revenue: DSE's revenue (29.4% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DSE's Return on Equity is forecast to be low in 3 years time (7.4%).

Past Performance

How has Dropsuite performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

36.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DSE is currently unprofitable.

Growing Profit Margin: DSE is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: DSE is unprofitable, but has reduced losses over the past 5 years at a rate of 36.4% per year.

Accelerating Growth: Unable to compare DSE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DSE is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (21.2%).

Return on Equity

High ROE: DSE has a negative Return on Equity (-0.14%), as it is currently unprofitable.

Financial Health

How is Dropsuite's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: DSE's short term assets (A$24.0M) exceed its short term liabilities (A$2.2M).

Long Term Liabilities: DSE's short term assets (A$24.0M) exceed its long term liabilities (A$50.3K).

Debt to Equity History and Analysis

Debt Level: DSE is debt free.

Reducing Debt: DSE has no debt compared to 5 years ago when its debt to equity ratio was 7.4%.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable DSE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DSE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 22.2% per year.

Dividend

What is Dropsuite current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate DSE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DSE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DSE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DSE's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DSE has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure

CEO

Charif El-Ansari

8.58yrs

Tenure

AU$503,926

Compensation

Mr. Charif El-Ansari has been the Chief Executive Officer since October 2013 and Managing Director at Dropsuite Limited since December 20, 2016. Mr. El-Ansari has been Managing Director and Director at Exc...

CEO Compensation Analysis

Compensation vs Market: Charif's total compensation ($USD354.10K) is about average for companies of similar size in the Australian market ($USD286.83K).

Compensation vs Earnings: Charif's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: DSE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31