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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2987
Positioning
Market Dominance
Services
Computer Software
$14.6B
Rick M. McConnell
Dynatrace, Inc. provides a software intelligence platform for dynamic multi-cloud environments. The company's products include AppMon that works in various application environments, such as Java,.NET, PHP, Node.js, GoLang, and.NET. Its platform allows its customers to modernize and automate IT operations.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = DT ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$DT Dynatrace, Inc. | 44 | 53 | 41 | 35 | 54.6x | 37.2x | 7.0% | 4.7% | 81.9% | 13.8% | 9.9% | 18.2% | 0.0% | 49.0x | $14.6B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
Dynatrace, Inc. (DT) receives a "Reduce" rating with a composite score of 43.9/100. It ranks #2987 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for DT.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 53 | 65 | -12DRAG |
| MOMENTUM | 35 | 32 | +3NEUTRAL |
| VALUATION | 41 | 38 | +3NEUTRAL |
| INVESTMENT | 22 | 6 | +16ALPHA |
| STABILITY | 70 | 75 | -5NEUTRAL |
| SHORT INT | 52 | 58 | -6DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 7.0% (sector 5.7%)
GM 82% vs sector 65%, OM 14% vs sector 5%
Capital turnover N/A, R&D intensity 23.1%
Rev growth 18%, 7yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Dynatrace, Inc. (DT) as a Reduce with a composite score of 43.9/100 at a current price of $34.16. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Dynatrace, Inc. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 43.9/100 places it at rank #2987 in our full universe.
Narrow
Low
Poor
Fair Value
Gross margins of 82% signal strong pricing power.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 54.6x leaves little room for execution misses.
Vulnerability to macroeconomic shocks and interest rate volatility.
Dynatrace, Inc. represents a reduce based on multi-factor quantitative performance.
Dynatrace, Inc. receives a Reduce rating from our analysis, with a composite score of 43.9/100 and 2 out of 5 stars, ranking #2987 out of 7,333 stocks. DT's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 53/100, DT shows adequate but unremarkable business quality. The company reports a return on equity of 7.0% (sector avg: 5.7%), gross margins of 81.9% (sector avg: 64.6%), net margins of 9.9% (sector avg: 2.8%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
With a value score of 41/100, DT appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 54.65x, an EV/EBITDA of 37.23x, a P/B ratio of 3.84x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Dynatrace, Inc.'s investment score of 22/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 18.2% vs. a sector average of 8.6% and a return on assets of 4.7% (sector: 2.4%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
DT is currently showing below-average momentum at 35/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 18.2% year-over-year, while a beta of 1.06 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
DT shows good financial stability with a score of 70/100. Key stability metrics include a beta of 1.06 and a debt-to-equity ratio of 49.00x (sector avg: 0.3x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 52/100 for DT suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 49.00x). With a $14.6B market cap (large-cap), Dynatrace, Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Dynatrace, Inc. is a large-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #2987 of 7,333 overall (59th percentile). Key comparisons include ROE of 7.0% exceeding the 5.7% sector median and operating margins of 13.8% above the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While DT currently exhibits a REDUCE profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
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Improvement in Investment (22) would have the largest impact on the composite score.
EV/EBITDA 217% ABOVE SECTOR MEDIAN
ROE 22% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 27% ABOVE SECTOR MEDIAN (FAVORABLE)
About Dynatrace Dynatrace, Inc. provides a software intelligence platform for dynamic multi-cloud environments. It operates Dynatrace, a software intelligence platform for running and optimizing the applications and services. The company's products include AppMon that works in various application environments, such as Java, .NET, PHP, Node.js, GoLang, SQL, NoSQL, CICS, IMS, AWS Lambda, Google Cloud Functions, and Microsoft Azure Functions; and Classic Real User Monitoring. Its platform allows i
US stock futures traded higher on Wednesday, with the S&P 500 and Nasdaq 100 indices turning positive for the year. Analysts noted a bullish signal in the market, with over 60% of S&P 500 components reaching new 20-day highs, which has historically been followed by strong performance.
US stock futures traded lower on Wednesday, but the S&P 500 and Nasdaq 100 indices turned positive for the year after Tuesday's advance. Analysts noted a bullish signal in the market, with over 60% of S&P 500 components reaching new 20-day highs, which has historically been followed by strong performance.
Dynatrace stock rose 7.52% after reporting strong Q3 fiscal 2026 results with 18% revenue growth to $515M and 20% ARR growth to nearly $2B. The AI-powered observability platform raised full-year earnings guidance and boosted free cash flow projections, benefiting from cloud partnerships and increased AI adoption.
Dynatrace’s fourth-quarter results were met with a positive market response, as the company outpaced Wall Street’s expectations on both revenue and adjusted earnings. Management attributed this performance to ongoing adoption of its AI-powered observability platform and growing customer interest in consolidating disparate monitoring tools into a unified system. CEO Rick McConnell highlighted the role of new customer wins and deeper product engagement, stating that the company’s platform is becom
Above 50MA
37.18%
Net New Highs
+51081