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MSP

Datto HoldingNYSE:MSP Stock Report

Market Cap

US$3.9b

7D

3.4%

1Y

-17.2%

Updated

26 Oct, 2021

Data

Company Financials +
MSP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends0/6

MSP Overview

Datto Holding Corp. provides cloud-based software and technology solutions for delivery through the managed service provider (MSP) channel to small and medium businesses in the United States and internationally.

Datto Holding Competitors

Ubiquiti

NYSE:UI

US$18.7b

SolarWinds

NYSE:SWI

US$2.9b

Price History & Performance

Summary of all time highs, changes and price drops for Datto Holding
Historical stock prices
Current Share PriceUS$24.01
52 Week HighUS$21.98
52 Week LowUS$33.46
Beta0
1 Month Change-0.33%
3 Month Change-8.88%
1 Year Change-17.21%
3 Year Changen/a
5 Year Changen/a
Change since IPO-11.40%

Recent News & Updates

Aug 22

Datto: Invest Here At Market Tops

Datto has continued to demonstrate reliable steadiness in its financial performance, offering ~20% y/y growth alongside margin and cash flow expansion. In its most recent quarter, Datto grew revenue at 21% y/y and added 500 new MSP partners, an uptick versus prior quarters. The company's sales model - through MSPs to hundreds of individual mid-sized businesses - is a highly scalable one. Datto thrives in a hybrid cloud environment, where not every workload can move to the public cloud. The stock's

Aug 14
Earnings Beat: Datto Holding Corp. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Earnings Beat: Datto Holding Corp. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Datto Holding Corp. ( NYSE:MSP ) defied analyst predictions to release its second-quarter results, which were ahead of...

Shareholder Returns

MSPUS SoftwareUS Market
7D3.4%1.7%1.9%
1Y-17.2%40.7%33.4%

Return vs Industry: MSP underperformed the US Software industry which returned 40.7% over the past year.

Return vs Market: MSP underperformed the US Market which returned 33.4% over the past year.

Price Volatility

Is MSP's price volatile compared to industry and market?
MSP volatility
MSP Beta0
Industry Beta0.97
Market Beta1

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

Volatility Over Time: MSP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20071,743Tim Wellerhttps://www.datto.com

Datto Holding Corp. provides cloud-based software and technology solutions for delivery through the managed service provider (MSP) channel to small and medium businesses in the United States and internationally. Its Unified Continuity products include Business Continuity and Disaster Recovery that protects servers and workstations, and minimize downtime; Cloud Continuity, an image-based continuity solution for Windows-based laptops and desktops; SaaS Protection, an automated and secure backup and restoration product; Workplace, a cloud-hosted file sync and share solution, which enable end-users to synchronize files across platforms, including mobile devices; and File Protection, an MSP-managed secure and scalable backup product that enables MSPs to protect and recover files and folders on workstations and laptops. The company’s networking Products comprise access points, switches, edge routers, and managed power devices.

Datto Holding Fundamentals Summary

How do Datto Holding's earnings and revenue compare to its market cap?
MSP fundamental statistics
Market CapUS$3.90b
Earnings (TTM)US$44.58m
Revenue (TTM)US$566.17m

87.4x

P/E Ratio

6.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MSP income statement (TTM)
RevenueUS$566.17m
Cost of RevenueUS$133.24m
Gross ProfitUS$432.93m
ExpensesUS$388.35m
EarningsUS$44.58m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 10, 2021

Earnings per share (EPS)0.27
Gross Margin76.47%
Net Profit Margin7.87%
Debt/Equity Ratio0%

How did MSP perform over the long term?

See historical performance and comparison

Valuation

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

35.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MSP ($24.01) is trading below our estimate of fair value ($37.32)

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


Price To Earnings Ratio

PE vs Industry: MSP is poor value based on its PE Ratio (87.4x) compared to the US Software industry average (58.2x).

PE vs Market: MSP is poor value based on its PE Ratio (87.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MSP is good value based on its PB Ratio (2.2x) compared to the US Software industry average (7.1x).


Future Growth

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

-10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSP's earnings are forecast to decline over the next 3 years (-10.7% per year).

Earnings vs Market: MSP's earnings are forecast to decline over the next 3 years (-10.7% per year).

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

Revenue vs Market: MSP's revenue (16.1% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: MSP's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MSP's Return on Equity is forecast to be low in 3 years time (5.7%).


Past Performance

How has Datto Holding performed over the past 5 years?

866.0%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: MSP has high quality earnings.

Growing Profit Margin: MSP's current net profit margins (7.9%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if MSP's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare MSP's past year earnings growth to its 5-year average.

Earnings vs Industry: MSP earnings growth over the past year (866%) exceeded the Software industry 24.1%.


Return on Equity

High ROE: MSP's Return on Equity (2.5%) is considered low.


Financial Health

How is Datto Holding's financial position?


Financial Position Analysis

Short Term Liabilities: MSP's short term assets ($251.2M) exceed its short term liabilities ($81.2M).

Long Term Liabilities: MSP's short term assets ($251.2M) exceed its long term liabilities ($69.5M).


Debt to Equity History and Analysis

Debt Level: MSP is debt free.

Reducing Debt: MSP had no debt 5 years ago.

Debt Coverage: MSP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MSP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Datto Holding current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MSP'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 MSP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MSP'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 MSP'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?

2.6yrs

Average management tenure


CEO

Tim Weller (55 yo)

2.75yrs

Tenure

US$956,100

Compensation

Dr. Timothy Weller, also known as Tim, is Chief Executive Officer at Datto Holding Corp. (formerly known as Merritt Topco, Inc.) since January 1, 2019 and has been its Director since March 2019. Dr. Weller...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD956.10K) is below average for companies of similar size in the US market ($USD5.16M).

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


Leadership Team

Experienced Management: MSP's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: MSP's board of directors are not considered experienced ( 1.2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

Datto Holding Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Datto Holding Corp.
  • Ticker: MSP
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$3.896b
  • Shares outstanding: 162.28m
  • Website: https://www.datto.com

Number of Employees


Location

  • Datto Holding Corp.
  • 101 Merritt 7
  • Norwalk
  • Connecticut
  • 6851
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 22:44
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.