company background image
DASH

DoorDash NYSE:DASH Stock Report

Last Price

US$77.89

Market Cap

US$30.1b

7D

-4.3%

1Y

-58.6%

Updated

11 Aug, 2022

Data

Company Financials +
DASH fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance0/6
Financial Health6/6
Dividends0/6

DASH Stock Overview

DoorDash, Inc. operates a logistics platform that connects merchants, consumers, and dashers in the United States and internationally.

DoorDash Competitors

Price History & Performance

Summary of all time highs, changes and price drops for DoorDash
Historical stock prices
Current Share PriceUS$77.89
52 Week HighUS$257.25
52 Week LowUS$56.67
Beta0
1 Month Change9.50%
3 Month Change5.67%
1 Year Change-58.61%
3 Year Changen/a
5 Year Changen/a
Change since IPO-58.90%

Recent News & Updates

Jul 27

DoorDash Stock Prediction: What To Expect The Rest Of 2022

DoorDash's stock price dropped by -51% in 2022 thus far, even though its recent Q1 2022 results came in above the market's expectations. DASH should still deliver solid revenue growth above +20% for the remainder of 2022, but significant EBITDA margin expansion is unlikely with the company committed to reinvesting its earnings. DoorDash is a Hold, as the 2022 outlook for DASH is mixed, taking into account expectations of its top line expansion and EBITDA margins for the rest of the year. Elevator Pitch I retain my Hold rating for DoorDash, Inc.'s (DASH) shares. I discussed DASH's valuations in my prior article for the stock published on December 7, 2021. I turn my attention to DoorDash's outlook for the remainder of this year in this article. Strong (albeit slower) revenue growth and lackluster profitability (as indicated by EBITDA margins) are what investors should expect of DoorDash's financial performance for the rest of 2022. This translates into a Neutral view and a Hold rating for DASH's stock. DASH Stock Key Metrics Before providing a preview of DoorDash's expected financial performance for the rest of 2022, it is worthwhile to evaluate the key metrics revealed as part of the company's most recent Q1 2022 financial results. DASH's key financial and operating metrics for the first quarter of 2022 beat market expectations. DoorDash's top line expanded by +35% YoY to $1.46 billion in the most recent quarter, and this turned out to be +5% higher than the sell-side's consensus revenue estimate of $1.38 billion. DASH's non-GAAP adjusted EBITDA increased by +26% YoY from $43 million in Q1 2021 to $54 million in Q2 2022, which was +35% better than the market's consensus EBITDA projection of $40 million as per S&P Capital IQ. Marketplace GOV (Gross Order Value) for DASH rose by +25% YoY to $12.35 billion in the first quarter of this year, and this exceeded the market's expectations of $11.71 billion (source: S&P Capital IQ) in Marketplace GOV by +5%. DoorDash also disclosed in its Q1 2022 investor letter that it "added more new consumers than any quarter since Q1 2021", and this led DASH's monthly active users and average order frequency metrics to rise to the highest they have ever been in the company's history. But DoorDash's good financial and operating performance didn't boost its share price. DASH's stock price has halved year-to-date in 2022, and the company's shares continued to underperform the broader market even after it reported above-expectations numbers for Q1 2022 on May 5, 2022. DASH's 2022 Year-to-date Share Price Chart Seeking Alpha In my view, it is the fear that DoorDash's financial and operating performance for the rest of 2022 won't be as good as that of Q1 2022 which has resulted in DASH's share price weakness. What Is DoorDash Stock's Price Target? DoorDash's average sell-side price target is $109.29, which suggests that the company's shares could potentially rise by +52% as compared to its last done stock price of $71.76 as of July 25, 2022. I am of the view that the Wall Street analysts are still overly bullish on DASH, as its current valuations are already very rich which don't justify an upside of +52%. As per S&P Capital IQ's valuation data, DoorDash is valued by the market at consensus forward FY 2023 EV/EBITDA and normalized (non-GAAP) P/E multiples of 49.4 times and 99.7 times, respectively. In this current market environment, investors assign a substantial valuation discount to loss-making companies, and DASH is still expected to be unprofitable on a GAAP basis for the FY 2022-2024 period as per consensus forecasts sourced from S&P Capital IQ. In conclusion, I think that the current consensus target price for DASH is unachievable in view of DASH's valuations now. Is DoorDash Stock Expected To Recover? I have a mixed view of DoorDash's share price recovery prospects. On one hand, DASH's food delivery business might do better than what the market expects in a weak economic growth environment. A June 17, 2022 article published on Insider Intelligence cites a recent survey of US consumers done by CivicScience which indicates that 51% of survey respondents intend to reduce their spending on dining out as compared to 37% of them who will do so for food delivery. In other words, food delivery might be a relatively more resilient category of consumer spending than what is expected. On the other hand, a new partnership between Amazon (AMZN) and Grubhub, one of DASH's key competitors in the US food delivery market, could be negative for DoorDash. A July 6, 2022 Seeking Alpha News article highlighted that "Prime members in the U.S. can enjoy a free, one-year Grubhub+ membership with no food-delivery fees on eligible orders" following a deal between Amazon and Grubhub's parent, Just Eat Takeaway (OTC:JTKWY). The competitive threat posed by the Amazon-Grubhub partnership could translate into market share losses for DoorDash going forward. As a reference, analysts from Morningstar have predicted that Grubhub's subscriber base will increase by +100% to 6 million in a year's time as result of the Amazon deal.

Shareholder Returns

DASHUS Online RetailUS Market
7D-4.3%-1.7%1.3%
1Y-58.6%-28.4%-11.7%

Return vs Industry: DASH underperformed the US Online Retail industry which returned -28.3% over the past year.

Return vs Market: DASH underperformed the US Market which returned -11.6% over the past year.

Price Volatility

Is DASH's price volatile compared to industry and market?
DASH volatility
DASH Average Weekly Movement12.7%
Online Retail Industry Average Movement12.8%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: DASH is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: DASH's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20138,600Tony Xuhttps://www.doordash.com

DoorDash, Inc. operates a logistics platform that connects merchants, consumers, and dashers in the United States and internationally. It operates DoorDash marketplace, which provides an array of services that enable merchants to solve mission-critical challenges, such as customer acquisition, delivery, insights and analytics, merchandising, payment processing, and customer support; and offers DoorDash Drive, a white-label logistics service; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015.

DoorDash Fundamentals Summary

How do DoorDash's earnings and revenue compare to its market cap?
DASH fundamental statistics
Market CapUS$30.07b
Earnings (TTM)-US$686.00m
Revenue (TTM)US$5.64b

5.3x

P/S Ratio

-43.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DASH income statement (TTM)
RevenueUS$5.64b
Cost of RevenueUS$2.80b
Gross ProfitUS$2.84b
Other ExpensesUS$3.53b
Earnings-US$686.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.78
Gross Margin50.40%
Net Profit Margin-12.17%
Debt/Equity Ratio0%

How did DASH perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is DASH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DASH?

Other financial metrics that can be useful for relative valuation.

DASH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.6x
Enterprise Value/EBITDA-46.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does DASH's PS Ratio compare to its peers?

DASH PS Ratio vs Peers
The above table shows the PS ratio for DASH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.1x
CPNG Coupang
1.7x16.5%US$33.0b
EBAY eBay
2.7x4.6%US$26.7b
MELI MercadoLibre
5.9x19.0%US$52.0b
CHWY Chewy
2.2x13.5%US$20.3b
DASH DoorDash
5.3x18.0%US$30.1b

Price-To-Sales vs Peers: DASH is expensive based on its Price-To-Sales Ratio (5.3x) compared to the peer average (3.1x).


Price to Earnings Ratio vs Industry

How does DASH's PE Ratio compare vs other companies in the US Online Retail Industry?

Price-To-Sales vs Industry: DASH is expensive based on its Price-To-Sales Ratio (5.3x) compared to the US Online Retail industry average (1.1x)


Price to Sales Ratio vs Fair Ratio

What is DASH's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DASH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.3x
Fair PS Ratio3.8x

Price-To-Sales vs Fair Ratio: DASH is expensive based on its Price-To-Sales Ratio (5.3x) compared to the estimated Fair Price-To-Sales Ratio (3.8x).


Share Price vs Fair Value

What is the Fair Price of DASH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DASH ($77.89) is trading above our estimate of fair value ($50.7)

Significantly Below Fair Value: DASH is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is DoorDash forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


53.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DASH is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DASH is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DASH is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DASH's revenue (18% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: DASH's revenue (18% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DASH's Return on Equity is forecast to be low in 3 years time (3.1%).


Discover growth companies

Past Performance

How has DoorDash 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


-14.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DASH is currently unprofitable.

Growing Profit Margin: DASH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DASH is unprofitable, and losses have increased over the past 5 years at a rate of 14.8% per year.

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

Earnings vs Industry: DASH is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (-36.3%).


Return on Equity

High ROE: DASH has a negative Return on Equity (-9.26%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is DoorDash'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: DASH's short term assets ($4.8B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: DASH's short term assets ($4.8B) exceed its long term liabilities ($492.0M).


Debt to Equity History and Analysis

Debt Level: DASH is debt free.

Reducing Debt: DASH had no debt 5 years ago.


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 DASH has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DASH is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 86.1% per year.


Discover healthy companies

Dividend

What is DoorDash 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

  • Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate DASH'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 DASH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DASH'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 DASH has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure


CEO

Tony Xu (37 yo)

9.25yrs

Tenure

US$300,297

Compensation

Mr. Tony Xu is Co-Founder and serves as Chief Executive Officer and Director of DoorDash, Inc. since May 2013 and serves as Chairman since November 2020 and served as its President and Treasurer. He serves...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD300.30K) is below average for companies of similar size in the US market ($USD12.88M).

Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DASH's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: DASH's board of directors are considered experienced (7.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: DASH insiders have only sold shares 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 18.5%.


Top Shareholders

Company Information

DoorDash, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: DoorDash, Inc.
  • Ticker: DASH
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Implied Market Cap: US$30.072b
  • Shares outstanding: 386.08m
  • Website: https://www.doordash.com

Number of Employees


Location

  • DoorDash, Inc.
  • South Tower
  • 8th Floor
  • San Francisco
  • California
  • 94107
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.