Recent News
On July 11, 2025 Dynatrace announced it ranked #1 across four of six use cases in the 2025 Gartner Critical Capabilities for Observability Platforms report, with Gartner positioning the company highest for Ability to Execute. On July 10–11 the company publicized a top placement in the 2025 Gartner Magic Quadrant for Observability Platforms. On July 17 Dynatrace opened a new corporate headquarters in Boston and on July 22 the company described its third‑generation platform as advancing autonomous intelligence. On August 7 Dynatrace earned Leader and Outperformer designations in the 2025 GigaOm Radar Report for Kubernetes Observability.
Technical Analysis
ADX at 14.59 signals no dominant trend; this limits the force behind any directional move and implies price may trade in a defined range until trend strength increases.
DI+ sits at 15.25 with a dip & reversal, while DI‑ at 19.64 decreases; both directional indicator dynamics imply renewed bullish directional pressure relative to prior sessions.
MACD reads ‑0.32 versus a signal line at ‑0.43 and shows a dip & reversal; the MACD has crossed above its signal line, indicating a bullish momentum shift despite negative absolute MACD value.
MRO at ‑17.53 places price below the model target and therefore implies upward potential toward that target; the oscillator’s level suggests a material gap between current price and the modeled fair price.
RSI at 46.75 with a dip & reversal suggests momentum recovering from lower levels and supports a near‑term upward bias without overbought pressure.
Price sits at $49.32, above the 20‑day average ($48.51) and 12‑day EMA ($48.79) yet below the 50‑day ($49.78) and 200‑day ($52.01). The 20‑day Bollinger upper band near $49.16 places the close slightly above the first standard deviation band, indicating compressed volatility and a potential short‑term push higher toward the 50‑day average if momentum holds.
SuperTrend lower support near $47.52 and recent intraday volume below the 10‑ and 50‑day averages suggest consolidation; limited trend strength (low ADX) makes breakouts vulnerable to false starts, but the cluster of bullish directional signals gives a skew toward higher prices over several sessions.
Fundamental Analysis
Business profile: Dynatrace supplies an AI‑driven observability platform for multicloud environments with capabilities spanning application performance, runtime security, log analytics, and digital business analytics; the company serves large enterprise verticals and distributes via direct and partner channels.
Revenue and growth: Total revenue $477,349,000 with YoY revenue growth of 49.88% and a headline revenue growth rate of 7.23%; quarter‑over‑quarter revenue growth registers as 250.46% per the QoQ metric, reflecting strong sequential acceleration in the reported period.
Profitability: EBIT $62,338,000 and EBITDA $68,799,000 produce an EBIT margin of 13.06%. That margin sits below the industry peer mean of 34.30% and below the industry peer median of 43.47%, though margin improved QoQ by 35.47% and rose YoY by 24.04%, indicating operational leverage taking hold.
Cash and liquidity: Cash and short‑term investments total $1,346,394,000 and operating cash flow $269,692,000. Cash conversion ratio equals 77.08% and cash flow margin equals 76.98%, supporting a free cash flow of $262,016,000 and a free cash flow yield of 1.70%, above the industry peer mean free cash flow yield of 0.53%.
Capital structure and coverage: Total debt $87,748,000 produces a debt‑to‑equity of 0.0325 and debt‑to‑EBITDA near 1.28; interest coverage about 5.65x, indicating manageable leverage relative to operating earnings.
Earnings detail: Reported EPS $0.16 versus an estimate of $0.19 produced an EPS surprise ratio of ‑15.79%. Forward EPS $0.375 implies a forward P/E of 139.63, while the reported P/E stands at 330.69—both metrics reflect a valuation premium relative to fundamental earnings power.
Valuation context: Price‑to‑book runs 5.71, below the industry peer mean of 12.08, and enterprise value ratios show elevated multiples (enterprise multiple 205.53; EV and market cap reflect premium positioning). WMDST values the stock as fair‑valued given the mix of above‑average free cash flow yield and high earnings multiples that offset each other.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-06 |
| NEXT REPORT DATE: | 2025-11-04 |
| CASH FLOW | Begin Period Cash Flow | $ 1.0 B |
| Operating Cash Flow | $ 269.7 M | |
| Capital Expenditures | $ -7.68 M | |
| Change In Working Capital | $ 146.7 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 230.3 M | |
| End Period Cash Flow | $ 1.2 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 477.3 M | |
| Forward Revenue | $ 281.6 M | |
| COSTS | ||
| Cost Of Revenue | $ 85.2 M | |
| Depreciation | $ 5.1 M | |
| Depreciation and Amortization | $ 6.5 M | |
| Research and Development | $ 108.2 M | |
| Total Operating Expenses | $ 415.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 392.1 M | |
| EBITDA | $ 68.8 M | |
| EBIT | $ 62.3 M | |
| Operating Income | $ 62.3 M | |
| Interest Income | $ 12.3 M | |
| Interest Expense | — | |
| Net Interest Income | $ 12.3 M | |
| Income Before Tax | $ 81.4 M | |
| Tax Provision | $ 33.4 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 48.0 M | |
| Net Income From Continuing Operations | $ 48.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.19 | |
| EPS Actual | $ 0.16 | |
| EPS Difference | $ -0.03 | |
| EPS Surprise | -15.789 % | |
| Forward EPS | $ 0.38 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.1 B | |
| Intangible Assets | $ 1.4 B | |
| Net Tangible Assets | $ 1.3 B | |
| Total Current Assets | $ 1.9 B | |
| Cash and Short-Term Investments | $ 1.3 B | |
| Cash | $ 1.2 B | |
| Net Receivables | $ 292.1 M | |
| Inventory | — | |
| Long-Term Investments | $ 40.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 8.0 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 1.2 B | |
| Net Debt | — | |
| Total Debt | $ 87.7 M | |
| Total Liabilities | $ 1.4 B | |
| EQUITY | ||
| Total Equity | $ 2.7 B | |
| Retained Earnings | $ 332.9 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 8.94 | |
| Shares Outstanding | 301.716 M | |
| Revenue Per-Share | $ 1.58 | |
| VALUATION | Market Capitalization | $ 15.4 B |
| Enterprise Value | $ 14.1 B | |
| Enterprise Multiple | 205.534 | |
| Enterprise Multiple QoQ | -25.476 % | |
| Enterprise Multiple YoY | -6.922 % | |
| Enterprise Multiple IPRWA | high: 634.148 DT: 205.534 mean: 90.931 median: 82.154 low: -577.222 |
|
| EV/R | 29.623 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.512 | |
| Asset To Liability | 2.952 | |
| Debt To Capital | 0.032 | |
| Debt To Assets | 0.021 | |
| Debt To Assets QoQ | 18.067 % | |
| Debt To Assets YoY | 128.238 % | |
| Debt To Assets IPRWA | high: 1.095 mean: 0.162 median: 0.098 DT: 0.021 low: 0.002 |
|
| Debt To Equity | 0.033 | |
| Debt To Equity QoQ | 13.113 % | |
| Debt To Equity YoY | 118.99 % | |
| Debt To Equity IPRWA | high: 3.008 mean: 0.3 median: 0.176 DT: 0.033 low: -0.874 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.707 | |
| Price To Book QoQ | 1.71 % | |
| Price To Book YoY | -11.604 % | |
| Price To Book IPRWA | high: 34.07 mean: 12.084 median: 10.727 DT: 5.707 low: -16.218 |
|
| Price To Earnings (P/E) | 330.69 | |
| Price To Earnings QoQ | 122.459 % | |
| Price To Earnings YoY | 143.79 % | |
| Price To Earnings IPRWA | high: 499.385 DT: 330.69 mean: 131.566 median: 130.187 low: -357.639 |
|
| PE/G Ratio | -6.419 | |
| Price To Sales (P/S) | 32.26 | |
| Price To Sales QoQ | -2.356 % | |
| Price To Sales YoY | -3.523 % | |
| Price To Sales IPRWA | high: 113.355 median: 48.199 mean: 45.713 DT: 32.26 low: 1.219 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 139.631 | |
| Forward PE/G | -2.71 | |
| Forward P/S | 54.692 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 6.261 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.116 | |
| Asset Turnover Ratio QoQ | 2.715 % | |
| Asset Turnover Ratio YoY | -3.023 % | |
| Asset Turnover Ratio IPRWA | high: 0.416 mean: 0.13 median: 0.129 DT: 0.116 low: 0.0 |
|
| Receivables Turnover | 1.042 | |
| Receivables Turnover Ratio QoQ | 18.869 % | |
| Receivables Turnover Ratio YoY | 10.596 % | |
| Receivables Turnover Ratio IPRWA | high: 4.366 mean: 1.422 median: 1.257 DT: 1.042 low: 0.131 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 87.601 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.771 | |
| CapEx To Revenue | -0.016 | |
| CapEx To Depreciation | -1.507 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.7 B | |
| Net Invested Capital | $ 2.7 B | |
| Invested Capital | $ 2.7 B | |
| Net Tangible Assets | $ 1.3 B | |
| Net Working Capital | $ 619.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.092 | |
| Current Ratio | 1.502 | |
| Current Ratio QoQ | 7.449 % | |
| Current Ratio YoY | 10.881 % | |
| Current Ratio IPRWA | high: 9.787 mean: 1.695 DT: 1.502 median: 1.353 low: 0.079 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 1.275 | |
| Cost Of Debt | 10.679 % | |
| Interest Coverage Ratio | 5.655 | |
| Interest Coverage Ratio QoQ | 45.263 % | |
| Interest Coverage Ratio YoY | 48.321 % | |
| Interest Coverage Ratio IPRWA | high: 181.115 median: 54.034 mean: 37.863 DT: 5.655 low: -372.737 |
|
| Operating Cash Flow Ratio | 0.298 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 18.913 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.419 % | |
| Revenue Growth | 7.23 % | |
| Revenue Growth QoQ | 250.46 % | |
| Revenue Growth YoY | 49.876 % | |
| Revenue Growth IPRWA | high: 32.808 % median: 9.099 % DT: 7.23 % mean: 6.944 % low: -21.897 % |
|
| Earnings Growth | -51.515 % | |
| Earnings Growth QoQ | 376.505 % | |
| Earnings Growth YoY | -615.15 % | |
| Earnings Growth IPRWA | high: 157.143 % median: 5.491 % mean: 4.909 % DT: -51.515 % low: -200.0 % |
|
| MARGINS | ||
| Gross Margin | 82.15 % | |
| Gross Margin QoQ | 1.564 % | |
| Gross Margin YoY | 1.077 % | |
| Gross Margin IPRWA | high: 91.297 % DT: 82.15 % mean: 72.3 % median: 68.585 % low: 33.069 % |
|
| EBIT Margin | 13.059 % | |
| EBIT Margin QoQ | 35.467 % | |
| EBIT Margin YoY | 24.041 % | |
| EBIT Margin IPRWA | high: 74.313 % median: 43.473 % mean: 34.302 % DT: 13.059 % low: -124.558 % |
|
| Return On Sales (ROS) | 13.059 % | |
| Return On Sales QoQ | 35.467 % | |
| Return On Sales YoY | 24.041 % | |
| Return On Sales IPRWA | high: 76.082 % median: 44.901 % mean: 34.061 % DT: 13.059 % low: -117.376 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 262.0 M | |
| Free Cash Flow Yield | 1.701 % | |
| Free Cash Flow Yield QoQ | 71.992 % | |
| Free Cash Flow Yield YoY | -0.117 % | |
| Free Cash Flow Yield IPRWA | high: 6.936 % DT: 1.701 % median: 0.694 % mean: 0.526 % low: -13.154 % |
|
| Free Cash Growth | 80.045 % | |
| Free Cash Growth QoQ | -72.145 % | |
| Free Cash Growth YoY | -8.534 % | |
| Free Cash Growth IPRWA | high: 207.215 % DT: 80.045 % median: 25.957 % mean: 12.007 % low: -316.997 % |
|
| Free Cash To Net Income | 5.464 | |
| Cash Flow Margin | 76.981 % | |
| Cash Flow To Earnings | 7.663 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.167 % | |
| Return On Assets QoQ | 16.934 % | |
| Return On Assets YoY | 0.777 % | |
| Return On Assets IPRWA | high: 14.05 % median: 4.609 % mean: 3.68 % DT: 1.167 % low: -24.058 % |
|
| Return On Capital Employed (ROCE) | 2.189 % | |
| Return On Equity (ROE) | 0.018 | |
| Return On Equity QoQ | 18.546 % | |
| Return On Equity YoY | -4.872 % | |
| Return On Equity IPRWA | high: 0.214 median: 0.079 mean: 0.07 DT: 0.018 low: -0.337 |
|
| DuPont ROE | 1.803 % | |
| Return On Invested Capital (ROIC) | 1.825 % | |
| Return On Invested Capital QoQ | 58.009 % | |
| Return On Invested Capital YoY | -158.251 % | |
| Return On Invested Capital IPRWA | high: 14.534 % median: 7.176 % mean: 5.548 % DT: 1.825 % low: -13.655 % |
|