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MSP

Datto Holding NYSE:MSP Stock Report

Last Price

US$35.18

Market Cap

US$5.8b

7D

1.2%

1Y

24.9%

Updated

26 Jun, 2022

Data

Company Financials +
MSP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends0/6

MSP Stock 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

Price History & Performance

Summary of all time highs, changes and price drops for Datto Holding
Historical stock prices
Current Share PriceUS$35.18
52 Week HighUS$35.24
52 Week LowUS$20.76
Beta0
1 Month Change0.60%
3 Month Change34.07%
1 Year Change24.93%
3 Year Changen/a
5 Year Changen/a
Change since IPO29.82%

Recent News & Updates

Shareholder Returns

MSPUS SoftwareUS Market
7D1.2%3.0%3.6%
1Y24.9%-14.7%-9.6%

Return vs Industry: MSP exceeded the US Software industry which returned -17.9% over the past year.

Return vs Market: MSP exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is MSP's price volatile compared to industry and market?
MSP volatility
MSP Average Weekly Movement6.3%
Software Industry Average Movement10.2%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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

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

About the Company

FoundedEmployeesCEOWebsite
20072,089Tim 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 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$5.82b
Earnings (TTM)US$44.10m
Revenue (TTM)US$644.53m

132.0x

P/E Ratio

9.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MSP income statement (TTM)
RevenueUS$644.53m
Cost of RevenueUS$151.76m
Gross ProfitUS$492.77m
Other ExpensesUS$448.68m
EarningsUS$44.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.27
Gross Margin76.45%
Net Profit Margin6.84%
Debt/Equity Ratio0%

How did MSP perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MSP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MSP?

Other financial metrics that can be useful for relative valuation.

MSP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.8x
Enterprise Value/EBITDA49.9x
PEG Ratio251.7x

Price to Earnings Ratio vs Peers

How does MSP's PE Ratio compare to its peers?

MSP PE Ratio vs Peers
The above table shows the PE ratio for MSP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average52.6x
QLYS Qualys
59.5x9.3%US$6.0b
DLB Dolby Laboratories
38.9x23.2%US$7.8b
TDC Teradata
44.7x42.8%US$3.7b
CVLT Commvault Systems
115.6x29.8%US$2.7b
MSP Datto Holding
132x0.5%US$5.8b

Price-To-Earnings vs Peers: MSP is expensive based on its Price-To-Earnings Ratio (132x) compared to the peer average (52.6x).


Price to Earnings Ratio vs Industry

How does MSP's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: MSP is expensive based on its Price-To-Earnings Ratio (132x) compared to the US Software industry average (39.3x)


Price to Earnings Ratio vs Fair Ratio

What is MSP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MSP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio132x
Fair PE Ratio27.6x

Price-To-Earnings vs Fair Ratio: MSP is expensive based on its Price-To-Earnings Ratio (132x) compared to the estimated Fair Price-To-Earnings Ratio (27.6x).


Share Price vs Fair Value

What is the Fair Price of MSP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MSP ($35.18) is trading below our estimate of fair value ($54.59)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Datto Holding forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


0.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSP's forecast earnings growth (0.5% per year) is below the savings rate (1.9%).

Earnings vs Market: MSP's earnings (0.5% per year) are forecast to grow slower than the US market (13.9% per year).

High Growth Earnings: MSP's earnings are forecast to grow, but not significantly.

Revenue vs Market: MSP's revenue (19.1% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: MSP's revenue (19.1% 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 (7.2%).


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Past Performance

How has Datto Holding 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


98.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MSP has high quality earnings.

Growing Profit Margin: MSP's current net profit margins (6.8%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: MSP's earnings have grown significantly by 98.8% per year over the past 5 years.

Accelerating Growth: MSP's earnings growth over the past year (21%) is below its 5-year average (98.8% per year).

Earnings vs Industry: MSP earnings growth over the past year (21%) underperformed the Software industry 27.1%.


Return on Equity

High ROE: MSP's Return on Equity (2.4%) is considered low.


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Financial Health

How is Datto Holding's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MSP's short term assets ($294.6M) exceed its short term liabilities ($91.6M).

Long Term Liabilities: MSP's short term assets ($294.6M) exceed its long term liabilities ($57.5M).


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


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Dividend

What is Datto Holding 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

  • Cash Flow Coverage

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.


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 MSP has not reported any payouts.


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Management

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

2.6yrs

Average management tenure


CEO

Tim Weller (55 yo)

3.42yrs

Tenure

US$1,107,368

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 had been its Director since March 2019. Dr. Weller...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD1.11M) is below average for companies of similar size in the US market ($USD8.23M).

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).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MSP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


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
  • Implied Market Cap: US$5.822b
  • Shares outstanding: 165.48m
  • 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 Analysis2022/06/26 00:00
End of Day Share Price2022/06/22 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.