NasdaqGS:DBX

Stock Analysis Report

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Executive Summary

Dropbox, Inc. provides a collaboration platform worldwide.


Snowflake Analysis

Flawless balance sheet with reasonable 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

DBX

4.3%

US Software

4.0%

US Market


1 Year Return

-14.0%

DBX

35.3%

US Software

4.9%

US Market

Return vs Industry: DBX underperformed the US Software industry which returned 35.3% over the past year.

Return vs Market: DBX underperformed the US Market which returned 5% over the past year.


Shareholder returns

DBXIndustryMarket
7 Day0.8%4.3%4.0%
30 Day-7.0%11.1%1.3%
90 Day20.5%42.2%29.5%
1 Year-14.0%-14.0%36.3%35.3%7.2%4.9%
3 Yearn/a154.5%145.8%36.1%27.2%
5 Yearn/a247.1%226.6%65.3%46.9%

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?

42.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DBX ($21.65) is trading below our estimate of fair value ($37.69)

Significantly Below Fair Value: DBX is trading below fair value by more than 20%.


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 (11.2x) compared to the US Software industry average (6.5x).


Next Steps

Future Growth

How is Dropbox forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

46.6%

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 (2.2%).

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 (9.2% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: DBX's revenue (9.2% 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 (31%)


Next Steps

Past Performance

How has Dropbox performed over the past 5 years?

21.8%

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 21.8% 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 (7.9%).


Return on Equity

High ROE: DBX has a negative Return on Equity (-0.71%), as it is currently unprofitable.


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 ($970.8M).

Long Term Liabilities: DBX's short term assets ($1.2B) exceed its long term liabilities ($946.1M).


Debt to Equity History and Analysis

Debt Level: DBX is debt free.

Reducing Debt: DBX 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 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 29.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate DBX'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 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?

0.8yrs

Average management tenure


CEO

Drew Houston (37yo)

13.08yrs

Tenure

US$1,385,192

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 President and Chairman of Dropbox Inc. Mr. Houst ...


CEO Compensation Analysis

Compensation vs Market: Drew's total compensation ($USD1.39M) is below average for companies of similar size in the US market ($USD7.33M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Houston
Co-Founder13.08yrsUS$1.39m22.76% $2.0b
Ajay Vashee
Chief Financial Officer3.83yrsUS$4.98m0.20% $17.7m
Bharat Mediratta
CTO & Senior VP of Platform0.75yrUS$20.16m0.25% $22.8m
Timothy Young
Senior VP & GM of Core Dropbox0.75yrUS$20.53m0.25% $22.8m
Olivia Nottebohm
Chief Operating Officer0.42yrno data0.20% $18.3m
Timothy Regan
Chief Accounting Officerno datano data0.038% $3.4m
Darren Yip
Head of Investor Relationsno datano datano data
Bart Volkmer
Chief Legal Officer4.08yrsUS$3.53m0.12% $11.1m
Lin-Hua Wu
Chief Communications Officerno datano datano data
Tifenn Dano Kwan
Chief Marketing Officer0.50yrno datano data

0.8yrs

Average Tenure

40yo

Average Age

Experienced Management: DBX's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Houston
Co-Founder13.08yrsUS$1.39m22.76% $2.0b
Paul Jacobs
Independent Non-Executive Director4.25yrsUS$355.00k0.063% $5.6m
Donald Blair
Lead Independent Director0.33yrUS$362.50k0.014% $1.2m
Condoleezza Rice
Independent Director6.25yrsUS$405.00k0.014% $1.2m
Robert Mylod
Independent Non-Executive Director5.83yrsUS$390.00k0.016% $1.5m
Lisa Campbell
Independent Director0.92yrUS$247.25k0.0015% $137.8k
R. Schreier
Independent Non-Executive Director11yrsUS$366.53k0.19% $17.1m
Karen Peacock
Independent Director0.92yrUS$246.36k0.00077% $68.9k

4.3yrs

Average Tenure

55yo

Average Age

Experienced Board: DBX's board of directors are considered experienced (4.3 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 not been meaningfully diluted in the past year.


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$8.946b
  • Shares outstanding: 413.21m
  • 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. The company’s 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. As of December 31, 2019, it had approximately 600 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 Analysis2020/07/04 23:49
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
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.