Provides on-demand cloud infrastructure for developers and businesses. Offers virtual machines (Droplets) for compute resources. Now — the numbers.
This is an established company with proven profits.
Average growth of 20% a year over the last 4 years. Red columns mark years that ended in a loss.
The market pays 55.4× for every dollar this company earns in a year — a price that already assumes things go well.
Against companies in its own sector, it looks cheaper than 22% of them.
Analysts' average target sits 40% above today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
Clearly below the class average.
Clearly below the class average.
Sales are growing strongly for its sector.
The stock has been running stronger than the market lately.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
The stock trades 32% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 29% — still a thick cushion, though costs have been eating into it lately.
Over the last 4 years, sales grew about 20% a year on average.
It met or beat analyst expectations in 8 of the last 8 quarters — consistency is a promise kept.
The company’s market value is 55 times its annual profit. Even a small disappointment could hit the price hard.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 22/100.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 27/100.
On our five-subject report card, DOCN sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: DOCN is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.
Analysts’ average target sits above today’s price, yet the valuation grade (22/100) says the stock isn’t cheap.
Not covered, because the filings we hold do not carry it: the revenue breakdown.