Is Dropbox Stock a Good Investment?
Dropbox Investment Advice | DBX |
- Examine Dropbox's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Dropbox's leadership team and their track record. Good management can help Dropbox navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Dropbox's business and its evolving consumer preferences.
- Compare Dropbox's performance and market position to its competitors. Analyze how Dropbox is positioned in terms of product offerings, innovation, and market share.
- Check if Dropbox pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Dropbox's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Dropbox stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Dropbox is a good investment.
Sell | Buy |
Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Dropbox Stock
Researching Dropbox's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.38. Dropbox had not issued any dividends in recent years.
To determine if Dropbox is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Dropbox's research are outlined below:
| Over 98.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from zacks.com: Acquisition by Andrew Houston of 147085 shares of Dropbox subject to Rule 16b-3 |
Dropbox Quarterly Liabilities And Stockholders Equity |
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Dropbox uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Dropbox. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Dropbox's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 15th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 15th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Dropbox's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Dropbox's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-02-20 | 2019-12-31 | 0.14 | 0.16 | 0.02 | 14 | ||
2019-11-07 | 2019-09-30 | 0.11 | 0.13 | 0.02 | 18 | ||
2019-08-08 | 2019-06-30 | 0.08 | 0.1 | 0.02 | 25 | ||
2019-02-21 | 2018-12-31 | 0.08 | 0.1 | 0.02 | 25 | ||
2020-05-07 | 2020-03-31 | 0.14 | 0.17 | 0.03 | 21 | ||
2018-05-10 | 2018-03-31 | 0.05 | 0.08 | 0.03 | 60 | ||
2022-02-17 | 2021-12-31 | 0.37 | 0.41 | 0.04 | 10 | ||
2021-05-06 | 2021-03-31 | 0.31 | 0.35 | 0.04 | 12 |
Know Dropbox's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Dropbox is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Dropbox backward and forwards among themselves. Dropbox's institutional investor refers to the entity that pools money to purchase Dropbox's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Aqr Capital Management Llc | 2024-06-30 | 3 M | Charles Schwab Investment Management Inc | 2024-09-30 | 2.8 M | Ing Investment Management Llc | 2024-06-30 | 2.8 M | Bank Of New York Mellon Corp | 2024-06-30 | 2.8 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 2.6 M | First Trust Advisors L.p. | 2024-06-30 | 2.5 M | Robeco Institutional Asset Management Bv | 2024-09-30 | 2.4 M | Kbc Group Nv | 2024-06-30 | 2.3 M | Arrowstreet Capital Limited Partnership | 2024-06-30 | 2.2 M | Vanguard Group Inc | 2024-09-30 | 28 M | Blackrock Inc | 2024-06-30 | 27.8 M |
Dropbox's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 8.55 B.Market Cap |
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Dropbox's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.18 | 0.19 | |
| Return On Capital Employed | 0.22 | 0.23 | |
| Return On Assets | 0.15 | 0.16 | |
| Return On Equity | (2.74) | (2.87) |
Determining Dropbox's profitability involves analyzing its financial statements and using various financial metrics to determine if Dropbox is a good buy. For example, gross profit margin measures Dropbox's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Dropbox's profitability and make more informed investment decisions.
Dropbox's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Dropbox's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Dropbox. Check Dropbox's Beneish M Score to see the likelihood of Dropbox's management manipulating its earnings.
Evaluate Dropbox's management efficiency
Dropbox has Return on Asset of 0.105 % which means that on every $100 spent on assets, it made $0.105 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1683 %, implying that it generated $0.1683 on every 100 dollars invested. Dropbox's management efficiency ratios could be used to measure how well Dropbox manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Dropbox's Return On Tangible Assets are fairly stable compared to the past year. Return On Capital Employed is likely to rise to 0.23 in 2024, whereas Return On Equity is likely to drop (2.87) in 2024. At this time, Dropbox's Non Currrent Assets Other are fairly stable compared to the past year. Return On Tangible Assets is likely to rise to 0.19 in 2024, whereas Total Assets are likely to drop slightly above 2.3 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (0.49) | (0.46) | |
| Tangible Book Value Per Share | (1.83) | (1.74) | |
| Enterprise Value Over EBITDA | 20.73 | 21.77 | |
| Price Book Value Ratio | (60.67) | (57.63) | |
| Enterprise Value Multiple | 20.73 | 21.77 | |
| Price Fair Value | (60.67) | (57.63) | |
| Enterprise Value | 9.8 B | 8.8 B |
Dropbox's management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Beta 0.607 |
Basic technical analysis of Dropbox Stock
As of the 28th of November, Dropbox shows the Downside Deviation of 1.72, coefficient of variation of 650.79, and Mean Deviation of 1.17. Dropbox technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Dropbox's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Dropbox insiders, such as employees or executives, is commonly permitted as long as it does not rely on Dropbox's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Dropbox insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Dropbox's Outstanding Corporate Bonds
Dropbox issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Dropbox uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Dropbox bonds can be classified according to their maturity, which is the date when Dropbox has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Dropbox's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Dropbox's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1228 | |||
| Market Risk Adjusted Performance | 0.2354 | |||
| Mean Deviation | 1.17 | |||
| Semi Deviation | 1.46 | |||
| Downside Deviation | 1.72 | |||
| Coefficient Of Variation | 650.79 | |||
| Standard Deviation | 1.62 | |||
| Variance | 2.63 | |||
| Information Ratio | 0.0732 | |||
| Jensen Alpha | 0.1114 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0688 | |||
| Treynor Ratio | 0.2254 | |||
| Maximum Drawdown | 7.66 | |||
| Value At Risk | (2.51) | |||
| Potential Upside | 2.87 | |||
| Downside Variance | 2.97 | |||
| Semi Variance | 2.13 | |||
| Expected Short fall | (1.26) | |||
| Skewness | (0.11) | |||
| Kurtosis | 1.32 |
| Risk Adjusted Performance | 0.1228 | |||
| Market Risk Adjusted Performance | 0.2354 | |||
| Mean Deviation | 1.17 | |||
| Semi Deviation | 1.46 | |||
| Downside Deviation | 1.72 | |||
| Coefficient Of Variation | 650.79 | |||
| Standard Deviation | 1.62 | |||
| Variance | 2.63 | |||
| Information Ratio | 0.0732 | |||
| Jensen Alpha | 0.1114 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0688 | |||
| Treynor Ratio | 0.2254 | |||
| Maximum Drawdown | 7.66 | |||
| Value At Risk | (2.51) | |||
| Potential Upside | 2.87 | |||
| Downside Variance | 2.97 | |||
| Semi Variance | 2.13 | |||
| Expected Short fall | (1.26) | |||
| Skewness | (0.11) | |||
| Kurtosis | 1.32 |
Consider Dropbox's intraday indicators
Dropbox intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Dropbox stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Dropbox Corporate Filings
F4 | 25th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 23rd of October 2024 An amended filing to the original Schedule 13G | ViewVerify |
Dropbox Stock media impact
Far too much social signal, news, headlines, and media speculation about Dropbox that are available to investors today. That information is available publicly through Dropbox media outlets and privately through word of mouth or via Dropbox internal channels. However, regardless of the origin, that massive amount of Dropbox data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Dropbox news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Dropbox relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Dropbox's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Dropbox alpha.
Dropbox Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Dropbox can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Dropbox Historical Investor Sentiment
Investor biases related to Dropbox's public news can be used to forecast risks associated with an investment in Dropbox. The trend in average sentiment can be used to explain how an investor holding Dropbox can time the market purely based on public headlines and social activities around Dropbox. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Dropbox's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Dropbox and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Dropbox news discussions. The higher the estimate score, the more favorable the investor's outlook on Dropbox.
Dropbox Corporate Management
| Timothy Regan | Chief Officer | Profile | |
| Bart Esq | Chief Officer | Profile | |
| Melanie Collins | Chief Officer | Profile | |
| Mary Becking | VP Legal | Profile | |
| Timothy Young | President | Profile | |
| Timothy CPA | Chief Officer | Profile |
Additional Tools for Dropbox Stock Analysis
When running Dropbox's price analysis, check to measure Dropbox's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dropbox is operating at the current time. Most of Dropbox's value examination focuses on studying past and present price action to predict the probability of Dropbox's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dropbox's price. Additionally, you may evaluate how the addition of Dropbox to your portfolios can decrease your overall portfolio volatility.