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DBX

Dropbox NasdaqGS:DBX Stock Report

Last Price

US$20.17

Market Cap

US$7.5b

7D

-2.9%

1Y

-24.5%

Updated

22 May, 2022

Data

Company Financials +
DBX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health2/6
Dividends0/6

DBX Stock Overview

Dropbox, Inc. provides a content collaboration platform worldwide.

Dropbox Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dropbox
Historical stock prices
Current Share PriceUS$20.17
52 Week HighUS$33.00
52 Week LowUS$19.32
Beta0.89
1 Month Change-8.07%
3 Month Change-12.38%
1 Year Change-24.51%
3 Year Change-10.71%
5 Year Changen/a
Change since IPO-29.18%

Recent News & Updates

May 19
DropBox is Our Best Stay at Home Stock - Who Else Benefits?

DropBox is Our Best Stay at Home Stock - Who Else Benefits?

As we begin to shift into a post-COVID world, we can see the beginnings of a revolution in the way we work. Even 2 years on from the outbreak of COVID-19 in the US, data from Pew Research Center suggests that nearly 60% of US workers...

May 07

Dropbox: Long Overdue For A Rebound

Shares of Dropbox rallied modestly after the company posted strong Q1 results. Revenue grew at 10% y/y, beating the high-single-digit target that Wall Street had set. Meanwhile, operating margins continue to tick upward while free cash flow expansion is settling into high gear. Dropbox is substantially undervalued at ~3x forward revenue.

Shareholder Returns

DBXUS SoftwareUS Market
7D-2.9%-2.7%-2.7%
1Y-24.5%-13.6%-12.9%

Return vs Industry: DBX underperformed the US Software industry which returned -13.6% over the past year.

Return vs Market: DBX underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is DBX's price volatile compared to industry and market?
DBX volatility
DBX Average Weekly Movement5.7%
Software Industry Average Movement11.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: DBX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DBX's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20072,667Drew Houstonhttps://www.dropbox.com

Dropbox, Inc. provides a content collaboration platform worldwide. Its platform allows individuals, families, 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, 2021, the company had approximately 700 million registered users.

Dropbox Fundamentals Summary

How do Dropbox's earnings and revenue compare to its market cap?
DBX fundamental statistics
Market CapUS$7.52b
Earnings (TTM)US$367.90m
Revenue (TTM)US$2.21b

20.4x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DBX income statement (TTM)
RevenueUS$2.21b
Cost of RevenueUS$447.80m
Gross ProfitUS$1.76b
Other ExpensesUS$1.39b
EarningsUS$367.90m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.99
Gross Margin79.73%
Net Profit Margin16.66%
Debt/Equity Ratio-296.0%

How did DBX perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: DBX ($20.17) is trading below our estimate of fair value ($58.72)

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


Price To Earnings Ratio

PE vs Industry: DBX is good value based on its PE Ratio (20.4x) compared to the US Software industry average (42.2x).

PE vs Market: DBX is poor value based on its PE Ratio (20.4x) compared to the US market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: DBX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DBX has negative assets, so we can't compare its PB Ratio to the US Software industry average.


Future Growth

How is Dropbox forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-6.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DBX's earnings are forecast to decline over the next 3 years (-6.9% per year).

Earnings vs Market: DBX's earnings are forecast to decline over the next 3 years (-6.9% per year).

High Growth Earnings: DBX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DBX's revenue (6.9% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: DBX's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DBX's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Dropbox performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


39.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DBX has high quality earnings.

Growing Profit Margin: DBX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DBX has become profitable over the past 5 years, growing earnings by 39.6% per year.

Accelerating Growth: DBX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DBX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (24.9%).


Return on Equity

High ROE: DBX's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Dropbox's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DBX has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: DBX has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: DBX has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: DBX's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: DBX's debt is well covered by operating cash flow (55.1%).

Interest Coverage: DBX's interest payments on its debt are well covered by EBIT (62.1x coverage).


Balance Sheet


Dividend

What is Dropbox 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 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.


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 DBX has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.8yrs

Average management tenure


CEO

Drew Houston (38 yo)

14.92yrs

Tenure

US$1,515,269

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Drew's total compensation ($USD1.52M) is below average for companies of similar size in the US market ($USD8.23M).

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


Leadership Team

Experienced Management: DBX's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: DBX's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 employee growth, exchange listings and data sources


Key Information

  • Name: Dropbox, Inc.
  • Ticker: DBX
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$7.519b
  • Shares outstanding: 372.79m
  • Website: https://www.dropbox.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/22 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
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.