Dropbox, Inc. (DBX) on Decifer

Decifer ranks DBX number 128 of 270 tracked names on durable business quality.

Why it ranks here

• It earns strong returns on the money it puts to work, around 30% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is not growing right now, profits grew 33% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.
• High returns around 30% and momentum of 25 out of 35 can't rescue a company whose revenue is simply not growing.

The current read

The evidence on DBX lines up on the supportive side: the intelligence feed flags this name as connected to what is moving markets now. The independent signals we track are telling the same story.

Themes

• Cloud & Data Platform Migration: Enterprises are still mid-cycle in migrating compute, storage and applications off legacy on-prem stacks toward hybrid and public cloud architectures.

Read the full DBX research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.