Dynatrace, Inc. (DT) on Decifer

Why it ranks here

• Its returns on invested money are modest, around 5% and it turns most of its profit into real cash.
• Revenue is growing about 19% a year, profits are expected to grow 15%, 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.
• And it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.
• It trades about 140% above similar companies, and its growth does not yet back up that price.

The current read

The evidence on DT lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Read the full DT research brief · See all quality rankings

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