Dynatrace, Inc. (DT) stock analysis
Close on Nov 11, 2026Market cap $12.79BP/E 81.9Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Solid15 of 30 checks passed
Dynatrace passes 15 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 3/6
- Past performance
- 4/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 17.5%, above the 10% that usually covers the cost of capital.
No debt
Dynatrace has no borrowings on its latest balance sheet.
Earnings grew over 5 years
Net income grew 16.5% a year on average over the last five fiscal years.
Revenue growing 10%+ a year
Revenue grew 20.3% a year over the last three fiscal years.
What to watch
Margin of safety under 20%
The price is 54.6% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $44.24 is above our fair value estimate of $28.61.
Return on equity under 15%
Return on equity was 6.4% over the last twelve months and averaged 9.5% over five years; we look for 15% on both.
Earnings growth not accelerating
Net income grew -68.0% over the last twelve months, against a 5-year average of 16.5% a year.
Valuation2/6
P/E below its 5-year median
Dynatrace's P/E of 81.9 is below its own 5-year median of 97.3.
P/E above the industry
Dynatrace's P/E of 81.9 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
Dynatrace's EV/EBITDA of 38.4 is below its 5-year median of 108.5.
P/B above the industry
Dynatrace's price-to-book of 5.62 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $44.24 is above our fair value estimate of $28.61.
Margin of safety under 20%
The price is 54.6% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 20.3% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 13.4% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -68.0% over the last twelve months, against a 5-year average of 16.5% a year.
Growing faster than the industry
Revenue grew 17.8% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance lowered
Dynatrace lowered its Fiscal 2027 Subscription revenue outlook on Nov 3, 2026.
Gross margin slipping
Gross margin was 81.0% over the last twelve months, against 81.5% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 6.4% over the last twelve months and averaged 9.5% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 17.5%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Dynatrace's return on equity of 6.4% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings grew over 5 years
Net income grew 16.5% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 7.4% over the last twelve months, against a 5-year average of 12.5%.
Net margin above the industry
Dynatrace's net margin of 7.4% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health6/6
No debt
Dynatrace has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 231.0 times.
Short-term assets cover short-term debts
Current assets are 2.09 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.62; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Dynatrace has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$28.61
The share price is 55% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 45.0× | 97.3× | 27.6× | $24.30 | 40% |
| EV/EBITDA | 30.0× | 108.5× | 18.8× | $36.15 | 35% |
| P/B | 5.4× | 7.5× | 3.3× | $42.83 | 10% |
| Earnings power | 11.6% cost of equity | – | – | $13.05 | 15% |
| Fair value | $28.61 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 97.3
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $469.81M
- Value traded per 1% price move
- $196.33M
Downside
High risk
- Typical loss in a bad month
- 25.7%
- Volatility (annualized)
- 46%
- Sharpe ratio, 1 year
- -0.21
- Beta to the S&P 500 (5Y)
- 1.35
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2017 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +18.8% | +20.3% | +23.5% | – | |
| Gross profit | +19.4% | +20.7% | +23.4% | – | |
| Operating income | +36.8% | +38.3% | +21.7% | – | |
| Net income | -66.4% | +14.6% | +16.5% | – | |
| EPS, diluted | -66.0% | +13.4% | +15.7% | – | |
| Free cash flow | +22.2% | +16.7% | +20.7% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | – | 7.3% | 6.2% | |
| Return on assets | – | 3.5% | 3.8% | |
| Current ratio | – | 1.05 | 1.35 | |
| Debt to equity | – | 0.35 | – | |
| Net debt to EBITDA | – | 0.66× | – | |
| Interest coverage | – | – | 306.7× | |
| Capex to revenue | – | 2.0% | 1.6% | |
| Diluted shares | – | 287M | 304M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Dynatrace generated $2.01B from operations and spent $775.37M on capital expenditure, dividends and share buybacks. 16% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 8.1% | 0.47× | 1.64× | 6.2% |
| FY2025 | 28.5% | 0.45× | 1.63× | 20.9% |
| FY2024 | 10.8% | 0.46× | 1.71× | 8.5% |
| FY2023 | 9.3% | 0.44× | 1.82× | 7.4% |
| FY2022 | 5.6% | 0.39× | 1.98× | 4.3% |
| FY2021 | 10.8% | 0.33× | 2.07× | 7.3% |
| FY2020 | -75.8% | 0.28× | 6.70× | -143.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$162.67M
- Cash generatingOperating cash flow above zero$561.85M
- Return on assets improvedROA up on the prior year14.2% → 3.9%
- Earnings backed by cashOperating cash flow above net income$561.85M vs $162.67M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.40 → 1.35
- No dilutionShare count did not rise304M → 304M
- Gross margin improvedGross margin up on the prior year81.15% → 81.56%
- More efficientAsset turnover rose0.50 → 0.49
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