Dynatrace, Inc.

Dynatrace, Inc.

DTยทNYSE

$43.44

-3.4%
TechnologySoftware - Application

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 Snapshot
Market Cap$12.66B
EPS0.5400
P/E Ratio80.44
Earnings Date08/05/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation 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 confidence

Return 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 confidence

Risk 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.

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Dynatrace, Inc. Market vs Earnings Trajectory

DT ยท NYSE

Loading price and EPS data...

Dynatrace, Inc.

Dynatrace, Inc. Fair Value Envelope

DT ยท NYSE

Our analysis suggests that DT has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $43.44, this represents a potential HIDDEN relative to our calculated worth for Dynatrace, Inc..

Intrinsic Value
Current Price: $43.44
3Y+42.0%
5Y+100.0%
10Y+18521.0%
3Y+74.0%
5Y+187.0%
10Y+397.0%
3Y+51.0%
5Y+115.0%
10Y+20336.0%
3Y+58.0%
5Y+155.0%
10Y+494.0%
3Y+59.0%
5Y+157.0%
10Y+556.0%
3Y+60.0%
5Y+96.0%
10Y+133.0%
Dynatrace, Inc.

Dynatrace, Inc. Profit Bridge

DT ยท NYSE
Revenue2.02B
Cost of Goods Sold (372.20M)
Gross Profit1.65B
Operating Expenses (1.38B)
Operating Income245.39M
Interest Expense (0.00)
Other Income/Expense54.37M
Pretax Income299.76M
Income Tax (-330.56M)
Net Income162.67M
Net Income
162.67M

Profitability Analysis

Gross Margin

81.6%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

12.2%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

8.1%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

-110.3%

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.

81.56%
Gross Profit Margin
1%
3Y+1.0%
5Y-
10Y+9.0%
12.16%
Operating Profit Margin
15%
3Y+52.0%
5Y-7.0%
10Y+294.0%
8.06%
Net Profit Margin
-72%
3Y-14.0%
5Y-25.0%
10Y+4014.0%
6.23%
Return on Equity
-66%
3Y-7.0%
5Y-8.0%
10Y-2170.0%
3.68%
Return on Assets
-68%
3Y-6.0%
5Y+10.0%
10Y+8671.0%
8.55%
Return on Invested Capital
32%
3Y+61.0%
5Y+55.0%
10Y+1195.0%
DT

Dynatrace, Inc. Cash Conversion Engine

DT ยท NYSE
Net Income162.67M
Depreciation & Amortization18.45M
Stock-Based Compensation299.63M
Change in Working Capital0.00
Others55.98M
Capital Expenditures-32.17M
Free Cash Flow529.68M

Cash Flow Quality Analysis

FCF Conversion Rate

325.6%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

5.7%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+22.2%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$0.00

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.

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Dynatrace, Inc. Funding & Solvency Profile

DT ยท NYSE
Cash & Cash Equivalents1.10B
Net Receivables710.20M
Inventory0.00
Other Current Assets241.15M
Total Current Assets2 B
Property, Plant & Equipment212.28M
Goodwill & Intangible Assets1.37B
Long-Term Investments0.00
Other Non-Current Assets198.15M
Total Non-Current Assets410 M
Total Assets
4.42B

Financial Health Analysis

Current Ratio

1.35x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

0.69x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

554 M

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

48% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

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Dynatrace, Inc. Street Expectations Map

DT ยท NYSE

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.

Lowest Target
36.00
-17.13%
Consensus Target
44.29
1.96%
Highest Target
51.00
17.40%

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

+2.0%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

33.9% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Risk-Reward Profile

1.02x

Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.

Analyst Conviction

Moderate

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.

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Dynatrace, Inc. Insider Positioning

DT ยท NYSE

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

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

3.0K

107.25K

Sold

7.6K

342.06K

Net Activity

-235K

-$235K

6-9 Months

Bought

0

0.00

Sold

107.3K

5.25M

Net Activity

-5.3M

-$5.25M

9-12 Months

Bought

0

0.00

Sold

80.6K

4.40M

Net Activity

-4.4M

-$4.40M

Top Buyers

1
MSA

Mcmahon Stephen A

Officer: Evp, Chief Customer Officer

3.0K sharesโ€ข1 transactions

$107K

Top Sellers

1
MRM

Mcconnell Rick M

Director, Officer: Chief Executive Officer

90.0K sharesโ€ข3 transactions

$4.40M

2
BJM

Benson James M

Officer: Evp, Cfo And Treasurer

59.7K sharesโ€ข1 transactions

$3.27M

3
ZD

Zugelder Dan

Officer: Evp, Chief Revenue Officer

40.2K sharesโ€ข5 transactions

$2.06M

4
YDS

Yates Daniel S.

Officer: Svp, Chief Accounting Officer

4.0K sharesโ€ข2 transactions

$193K

5
CLM

Campbell Lisa M

Director

1.3K sharesโ€ข2 transactions

$62K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $9.89M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.01:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

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.

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dt Dividend History

DT
10Y CAGR +0%
Latest $1.03
Annual $1.03
Stable dividend payments
Last Period: 1%