Dynatrace Inc. Common Stock (DT)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business that earns high returns on capital and sells at a sensible price. Dynatrace has an appealing observability platform and low debt: FairStock-calculated debt-to-equity is 0.06, Altman Z-score is 7.18, and Piotroski F-score is 7/9, while trailing free cash flow is $570.6M. Revenue growth remains respectable: in fiscal Q1 2027, the quarter ended 2026-06-30, revenue was $554.5M versus $477.3M in fiscal Q1 2026, the quarter ended 2025-06-30. But profits are not keeping pace. Fiscal Q1 2027 net income was $36.7M, or $0.12 diluted EPS, down from $48.0M and $0.16. For FY2026, the period ended 2026-03-31, revenue was $2.0B and net income $162.7M, or $0.54 diluted EPS, far below FY2025's $483.7M and $1.59. FairStock's valuation math is unforgiving: at the 2026-10-13 close of $64.47, P/E is 128.94, P/B is 7.64, EV/EBITDA is 59.45, FCF yield is 3.1%, and the Graham Number is only $9.74, implying a negative margin of safety of -561.91%. ROE of 5.88% and ROCE of 4.17% do not suggest a wide moat today. FairStock labels it a STALWART based on five-year profit growth of 16.5% and revenue growth of 23.5%, but current profit growth is -55.69%. The stock may be a fine growth story, yet it fails my value tests.

In plain English: Dynatrace sells software that helps companies monitor and manage their digital systems. Revenue is growing, but profits have fallen sharply, so the business looks mixed. At the recent close, the stock price looks expensive compared with its earnings, book value, and cash flow.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer