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

3.1%

DBX

-1.1%

US Software

-0.6%

US Market


1 Year Return

-20.1%

DBX

13.7%

US Software

0.7%

US Market

DBX underperformed the Software industry which returned 14% over the past year.

DBX underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

DBXIndustryMarket
7 Day3.1%-1.1%-0.6%
30 Day18.4%0.5%4.9%
90 Day-12.3%-0.5%1.7%
1 Year-20.1%-20.1%15.3%13.7%3.0%0.7%
3 Yearn/a120.2%111.5%44.8%35.4%
5 Yearn/a168.5%148.8%62.0%44.3%

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 based on future cash flows and its price relative to the stock market?

11.91x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Dropbox's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Dropbox's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Dropbox is loss making, we can't compare its value to the US Software industry average.

Dropbox is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Dropbox, we can't assess if its growth is good value.


Price Based on Value of Assets

Dropbox is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

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

86.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Dropbox's revenue is expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

Dropbox's earnings are expected to grow significantly at over 20% yearly.

Dropbox's revenue growth is expected to exceed the United States of America market average.

Dropbox's earnings growth is expected to exceed the United States of America market average.

Dropbox's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Dropbox is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Dropbox does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Dropbox's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Dropbox's 1-year growth to the US Software industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Dropbox has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Dropbox has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Dropbox improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Dropbox's financial position?


Financial Position Analysis

Dropbox is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Dropbox's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Dropbox has no debt.

Dropbox currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

High level of physical assets or inventory.

Dropbox has no debt, it does not need to be 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.

Whilst loss making Dropbox has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Dropbox has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -26.6% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Dropbox's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Dropbox's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Dropbox has not reported any payouts.

Unable to verify if Dropbox's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Dropbox has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Dropbox's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

3.0yrs

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

Drew's remuneration is lower than average for companies of similar size in United States of America.

Drew's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.0yrs

Average Tenure

40yo

Average Age

The tenure for the Dropbox management team is about average.


Board Age and Tenure

2.7yrs

Average Tenure

56yo

Average Age

The average tenure for the Dropbox board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


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: 3yrs
    • Compensation: US$6.30m
  • Lin-Hua Wu

    Vice President of Communications

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

    Chief Technology Officer

    • Tenure: 0.5yrs
    • 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: 1yrs
    • Compensation: US$4.21m
  • Melanie Collins

    Vice President of People

    • Tenure: 0.2yrs

Board Members

  • Paul Jacobs (56yo)

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: US$342.61k
  • Meg Whitman (63yo)

    Non-Executive Director

    • Tenure: 2yrs
    • 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: 5yrs
    • Compensation: US$375.54k
  • Lisa Campbell (56yo)

    Director

    • Tenure: 1.1yrs
  • 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: 10.2yrs
    • Compensation: US$346.49k
  • Karen Peacock

    Director

    • Tenure: 0.08yrs

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$8.693b
  • 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 Analysis2019/09/23 00:41
End of Day Share Price2019/09/20 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.