Dynatrace, Inc.
$43.44
-3.4%Dynatrace, Inc. provides a software intelligence platform for dynamic multi-cloud environments. It operates Dynatrace, a software intelligence platform, which provides application and microservices monitoring, runtime application security, infrastructure monitoring, digital experience monitoring, business analytics, and cloud automation. Its platform allows its customers to modernize and automate IT operations, develop and release software, and enhance user experiences. The company also offers implementation, consulting, and training services. Dynatrace, Inc. markets its products through a combination of direct sales team and a network of partners, including resellers, system integrators, and managed service providers. It serves customers in various industries comprising banking, insurance, retail, manufacturing, travel, and software. The company operates in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 80.4).
Valuation inputs: P/E 80.4, earnings yield +1.2%, momentum -3.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +6.2%, ROIC +8.6%).
Profitability stack: net margin +8.1%, ROE +6.2%, ROIC +8.6%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +40.9%, momentum -3.4%, net margin +8.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Dynatrace, Inc. Market vs Earnings Trajectory
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Dynatrace, Inc. Fair Value Envelope
Dynatrace, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
Dynatrace, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Neutral working capital impact. Changes in current assets and liabilities balanced out.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Dynatrace, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Dynatrace, Inc. Street Expectations Map
Wall Street analysts project that DT stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 44.29, with estimates ranging from a low of 36.00 to a high of 51.00.
The consensus 1-year price target stands at 44.29, with estimates ranging from a low of 36.00 to a high of 51.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Risk-Reward Profile
Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Dynatrace, Inc. Insider Positioning
During the last 12 months, insiders have purchased $107K and sold $10.00M worth of DT shares, resulting in $9.89M of net selling activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
3.0K
107.25K
7.6K
342.06K
-235K
-$235K
6-9 Months
0
0.00
107.3K
5.25M
-5.3M
-$5.25M
9-12 Months
0
0.00
80.6K
4.40M
-4.4M
-$4.40M
Top Buyers
Mcmahon Stephen A
Officer: Evp, Chief Customer Officer
$107K
Top Sellers
Mcconnell Rick M
Director, Officer: Chief Executive Officer
$4.40M
Benson James M
Officer: Evp, Cfo And Treasurer
$3.27M
Zugelder Dan
Officer: Evp, Chief Revenue Officer
$2.06M
Yates Daniel S.
Officer: Svp, Chief Accounting Officer
$193K
Campbell Lisa M
Director
$62K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $9.89M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
No Dividend Yield Data
DT has not reported any dividend yield values in the available annual periods.
dt Dividend History
Learning Layer
Related Guides
Build conviction on DT by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.