Quality Investor

Dynatrace, Inc.

Rank #137Op. Leverage

DT · NYSE · Technology

Dynatrace, Inc. (DT) — Rank #137 by gross profitability (GP/assets 0.40) · ROE 6.6% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001773383 · all metrics point-in-time as of the filing date.

About

Dynatrace, Inc. engages in the advancement of observability for digital businesses, which transforms the complexity of modern digital ecosystems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

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The company operates Dynatrace, an AI-powered observability platform, which provides solutions, including infrastructure, application, threat, and AI observability; digital experience; log analytics; application security; software delivery; and business analytics. It also offers implementation, consulting, and training services. The company markets its products through a combination of global direct sales team and a network of partners, including global system integrators (GSIs), cloud providers, resellers and technology alliance partners. It serves customers in various industries, including banking, financial services, government, insurance, retail and wholesale, transportation, and software. Dynatrace, Inc.

was founded in 2005 and is headquartered in Boston, Massachusetts.

Industry
Software - Application
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
March 31

Price History

DT-28.0% · -6.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$15.83B

P/E (annual)

101.4

P/S (annual)

7.8

P/B

6.5

P/OCF (annual)

28.2

Shareholder Yield

-0.0%

Employees

5,600

Industry

Software - Application

Exchange

NYSE

Signal Flags

5 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.40
Return on equity
6.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.68
Current ratio
1.21×
Net cash
$1.21B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
14.8%

Growth

2/2 pass
Revenue growth
18.8%
Piotroski F-Score
N/A
Share dilution
0.0%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

13.8%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.0% — per-share value needs a total required return of 13.9% once share-count change is priced in.

vs. own 6-year median revenue growth: 24.1%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

9.2%

r = 10% (base)

13.8%

r = 12%

17.9%

Net debt / market cap: -7.3%

Base FCF: $529.7M3Y mean FCF: $438.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

73.8xCheap
34.1xmed 91.5x208.9x

P / S

Price / revenue per share

6.0xCheap
6.0xmed 11.8x20.8x

P / B

Price / book value per share

4.6xCheap
4.6xmed 8.4x13.2x

P / GP

Price / gross profit per share

7.4xCheap
7.4xmed 14.5x25.4x

P / FCF

Price / free cash flow per share

22.9xCheap
22.9xmed 41.7x71.0x

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.40

Primary signal (Novy-Marx).

57th pctl of 38 SIC 7372 peers

Return on equity

6.6%

Gross margin

81.6%

84th pctl of 38 SIC 7372 peers

Revenue growth (YoY)

18.8%

RPO growth (YoY)

20.7%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

20.3%

Revenue CAGR (5Y)

23.5%

Earnings CAGR (3Y)

14.6%

FCF CAGR (3Y)

16.7%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.68

47th pctl of 33 SIC 7372 peers (best = lowest)

Current ratio

1.21×

11th pctl of 38 SIC 7372 peers

Quick ratio

1.08×

Net cash

$1.21B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$529.68M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

2.26

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

14.8%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20212026
Hypergrowth
Op. Leverage