NasdaqGS:DBX

Stock Analysis Report

Executive Summary

Dropbox, Inc. provides a collaboration platform worldwide.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.3%

DBX

1.5%

US Software

1.3%

US Market


1 Year Return

-22.3%

DBX

23.1%

US Software

5.9%

US Market

Return vs Industry: DBX underperformed the US Software industry which returned 23.1% over the past year.

Return vs Market: DBX underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

DBXIndustryMarket
7 Day0.3%1.5%1.3%
30 Day-3.6%-0.8%-1.9%
90 Day-22.8%-3.4%-1.8%
1 Year-22.3%-22.3%24.8%23.1%8.3%5.9%
3 Yearn/a122.8%114.1%45.6%36.2%
5 Yearn/a179.3%159.1%66.1%47.9%

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?

10.95x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: DBX ($19.34) is trading above our estimate of fair value ($19.07)

Significantly Undervalued: DBX is trading above our estimate of fair value.


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

Low 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 (10.9x) compared to the US Software industry average (5.1x).


Next Steps

Future Growth

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

82.7%

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 (2.7%).

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

High Growth Earnings: DBX's loss is forecast to worsen by 0% next year.

Revenue vs Market: DBX's revenue (9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: DBX's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DBX's Return on Equity is forecast to be high in 3 years time (27.5%)


Next Steps

Past Performance

How has Dropbox performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DBX is unprofitable, and losses have increased over the past 5 years at a rate of -2.7% 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 (19.1%).


Return on Equity

High ROE: DBX has a negative Return on Equity (-6.08%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: DBX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: DBX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Dropbox's financial position?


Financial Position Analysis

Short Term Liabilities: DBX's short term assets ($1.1B) exceeds its short term liabilities ($903.1M)

Long Term Liabilities: DBX's short term assets (1.1B) exceeds its long term liabilities (731.6M)


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 26.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Dropbox's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Drew Houston (36yo)

12.3yrs

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 Member of Board of Directors since June 2007. He also serves as Chairman of Dropbox Inc. Mr. ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Drew's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

3.1yrs

Average Tenure

40yo

Average Age

Experienced Management: DBX's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

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


Insider Trading

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


Recent Insider Transactions

SellUS$90,38323 Nov 18
Bart Volkmer
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares4,303
Max PriceUS$21.00

Ownership Breakdown


Management Team

  • Darren Yip

    Head of Investor Relations

    • Tenure: 0yrs
  • Drew Houston (36yo)

    Co-Founder

    • Tenure: 12.3yrs
    • Compensation: US$1.23m
  • Arash Ferdowsi (33yo)

    Co-Founder & Director

    • Tenure: 12.3yrs
    • Compensation: US$47.32m
  • Ajay Vashee (35yo)

    Chief Financial Officer

    • Tenure: 3.1yrs
    • Compensation: US$6.30m
  • Lin-Hua Wu

    Vice President of Communications

    • Tenure: 0yrs
  • Quentin Clark (47yo)

    Chief Technology Officer

    • Tenure: 0.6yrs
    • Compensation: US$1.01m
  • Bart Volkmer (44yo)

    General Counsel

    • Tenure: 3.3yrs
    • Compensation: US$3.53m
  • Timothy Regan

    Chief Accounting Officer

    • Tenure: 0yrs
  • Yamini Rangan (45yo)

    Chief Customer Officer

    • Tenure: 1.1yrs
    • Compensation: US$4.21m
  • Melanie Collins

    Vice President of People

    • Tenure: 0.3yrs

Board Members

  • Paul Jacobs (56yo)

    Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: US$342.61k
  • Meg Whitman (63yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: US$60.04k
  • Don Blair (61yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$964.68k
  • Condoleezza Rice (64yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$371.98k
  • Bob Mylod (52yo)

    Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: US$375.54k
  • Lisa Campbell (56yo)

    Director

    • Tenure: 1.2yrs
  • Drew Houston (36yo)

    Co-Founder

    • Tenure: 12.3yrs
    • Compensation: US$1.23m
  • Arash Ferdowsi (33yo)

    Co-Founder & Director

    • Tenure: 12.3yrs
    • Compensation: US$47.32m
  • R. Schreier (40yo)

    Non-Executive Director

    • Tenure: 10.3yrs
    • Compensation: US$346.49k
  • Karen Peacock

    Director

    • Tenure: 0.2yrs

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$7.995b
  • Shares outstanding: 413.39m
  • Website: https://www.dropbox.com

Number of Employees


Location

  • Dropbox, Inc.
  • 333 Brannan Street
  • San Francisco
  • California
  • 94107
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:26
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.