Dropbox, Inc.DBX
NASDAQ • Technology
$25.66
P/E
13.87
PEG
—
FCF Yield
—
Rev Growth YoY
+0.8% YoY
Gross Margin
79.7%
Health Score
4/10
D/E Ratio
-2.19
Confidence
—
Business Snapshot
Dropbox operates a cloud-based file storage, sync, and collaboration platform for individuals and businesses, generating the majority of its revenue from subscription plans. The company operates in the highly competitive cloud storage and collaboration market, positioned as a niche leader behind dominant players like Microsoft and Google. With $2.53B in trailing twelve-month revenue, it falls into the mid-cap tier by revenue scale, though market capitalisation is not provided. Its defining characteristic is a deep user base built on a freemium model, but it faces intense competition and limited pricing power in a commoditising segment.
Financial Health
Gross margin of 79.7% is strong and slightly improved from 79.2% a year earlier, while net margin of 18.7% shows the company can convert revenue into profit. However, the balance sheet is fragile: debt/equity of -2.19x indicates shareholders' equity is negative (liabilities exceed assets), and the current ratio of 0.62x signals a liquidity crunch — current liabilities surpass current assets by a wide margin...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of -2.19x (negative equity) combined with a current ratio of only 0.62x signals a strained balance sheet and potential near-term liquidity risk.
- EARNINGS QUALITY — Net income fell 23.8% year-over-year, a significant deterioration that suggests earnings power is declining even as the company beats estimates three out of four quarters.
- REVENUE DECELERATION — Revenue growth of +0.8% YoY masks a sequential decline of -1.1% QoQ, indicating the top line is contracting in the near term.
- VALUATION DIVERGENCE — The FMP DCF of $261.15 implies massive undervaluation, yet the Python DCF model could not be calculated (negative/unavailable FCF), creating a wide range of possible intrinsic values and reducing confidence in the DCF signal.
- 52-WEEK POSITION — At $25.66, the stock trades 27.8% below its 52-week high of $32.40 and just 18.3% above the low of $21.70, placing it in the lower half of its annual range — a neutral to bearish price context.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- ANALYST CREDIBILITY — Only 6% of analysts rate the stock a buy, with 44% on hold and the remainder likely sell, reflecting very limited Wall Street conviction....