NasdaqGS:DBX

Stock Analysis Report

Executive Summary

Dropbox, Inc. provides a collaboration platform worldwide.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Dropbox's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DBX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.2%

DBX

-2.6%

US Software

-1.0%

US Market


1 Year Return

-4.3%

DBX

35.8%

US Software

18.0%

US Market

Return vs Industry: DBX underperformed the US Software industry which returned 35.8% over the past year.

Return vs Market: DBX underperformed the US Market which returned 18% over the past year.


Shareholder returns

DBXIndustryMarket
7 Day21.2%-2.6%-1.0%
30 Day26.8%4.9%0.6%
90 Day18.3%15.2%7.9%
1 Year-4.3%-4.3%37.3%35.8%20.4%18.0%
3 Yearn/a145.0%134.6%48.0%38.5%
5 Yearn/a214.6%191.9%72.2%53.3%

Price Volatility Vs. Market

How volatile is Dropbox's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dropbox undervalued compared to its fair value and its price relative to the market?

17.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DBX ($22.45) is trading below our estimate of fair value ($27.04)

Significantly Below Fair Value: DBX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DBX is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: DBX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DBX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DBX is overvalued based on its PB Ratio (11.5x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is Dropbox forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

49.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DBX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: DBX's revenue (9.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: DBX's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DBX's Return on Equity is forecast to be high in 3 years time (34.5%)


Next Steps

Past Performance

How has Dropbox performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DBX is currently unprofitable.

Growing Profit Margin: DBX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DBX is unprofitable, but has reduced losses over the past 5 years at a rate of 14.2% per year.

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

Earnings vs Industry: DBX is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: DBX has a negative Return on Equity (-6.52%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dropbox's financial position?


Financial Position Analysis

Short Term Liabilities: DBX's short term assets ($1.2B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: DBX's short term assets ($1.2B) exceed its long term liabilities ($876.0M).


Debt to Equity History and Analysis

Debt Level: DBX is debt free.

Reducing Debt: DBX had no debt 5 years ago.


Balance Sheet

Inventory Level: DBX has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DBX's debt is covered by short term assets.


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

Forecast Cash Runway: DBX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 32.6% per year.


Next Steps

Dividend

What is Dropbox's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DBX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Drew Houston (35yo)

12.7yrs

Tenure

US$1,229,049

Compensation

Mr. Andrew W. Houston also known as Drew, co-founded Dropbox Inc., and serves as its Chief Executive Officer and Director since June 2007. He also serves as Chairman of Dropbox Inc. Mr. Houston is a Direct ...


CEO Compensation Analysis

Compensation vs Market: Drew's total compensation ($USD1.23M) is below average for companies of similar size in the US market ($USD6.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Houston
Co-Founder12.7yrsUS$1.23m22.76% $2.1b
Ajay Vashee
Chief Financial Officer3.4yrsUS$6.30m0.18% $16.6m
Bart Volkmer
Chief Legal Officer3.7yrsUS$3.53m0.11% $10.5m
Arash Ferdowsi
Co-Founder & Director12.7yrsUS$47.32m8.74% $814.7m
Olivia Nottebohm
Chief Operating Officer0yrsno datano data
Timothy Regan
Chief Accounting Officer0yrsno data0.031% $2.8m
Bharat Mediratta
CTO & Senior VP of Platform0.3yrsno data0.25% $23.6m
Darren Yip
Head of Investor Relations0yrsno datano data
Lin-Hua Wu
Chief Communications Officer0yrsno datano data
Tifenn Dano Kwan
Chief Marketing Officer0.08yrsno datano data

3.5yrs

Average Tenure

35yo

Average Age

Experienced Management: DBX's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Houston
Co-Founder12.7yrsUS$1.23m22.76% $2.1b
Arash Ferdowsi
Co-Founder & Director12.7yrsUS$47.32m8.74% $814.7m
Paul Jacobs
Non-Executive Director3.8yrsUS$342.61k0.058% $5.4m
Margaret Whitman
Non-Executive Director2.4yrsUS$60.04k0.024% $2.3m
Donald Blair
Non-Executive Director2.2yrsUS$964.68k0.016% $1.5m
Condoleezza Rice
Lead Independent Director0yrsUS$371.98k0.010% $967.8k
Robert Mylod
Non-Executive Director5.4yrsUS$375.54k0.013% $1.2m
Lisa Campbell
Director1.5yrsno datano data
R. Schreier
Non-Executive Director10.6yrsUS$346.49k0.11% $10.4m
Karen Peacock
Director0.5yrsno datano data

3.1yrs

Average Tenure

56yo

Average Age

Experienced Board: DBX's board of directors are considered experienced (3.1 years average tenure).


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 14.8%.


Top Shareholders

Company Information

Dropbox, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dropbox, Inc.
  • Ticker: DBX
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$9.324b
  • Shares outstanding: 415.32m
  • Website: https://www.dropbox.com

Number of Employees


Location

  • Dropbox, Inc.
  • 1800 Owens Street
  • San Francisco
  • California
  • 94158
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DBXWBAG (Wiener Boerse AG)YesClass A Common StockATEURMar 2018
DBXNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDMar 2018
1Q5SWX (SIX Swiss Exchange)YesClass A Common StockCHCHFMar 2018
0SGOLSE (London Stock Exchange)YesClass A Common StockGBUSDMar 2018
1Q5DB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 2018
DBX *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNMar 2018

Biography

Dropbox, Inc. provides a collaboration platform worldwide. Its platform allows individuals, teams, and organizations to collaborate and sign up for free through its Website or app, as well as upgrade to a paid subscription plan for premium features. The company has approximately 500 million registered users across 180 countries. The company was formerly known as Evenflow, Inc. and changed its name to Dropbox, Inc. in October 2009. Dropbox, Inc. was founded in 2007 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 02:39
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.