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Datadog Inc. pages available for free this week:
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2019
- Operating Profit Margin since 2019
- Current Ratio since 2019
- Debt to Equity since 2019
- Price to Earnings (P/E) since 2019
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Free Cash Flow to Equity (FCFE)
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reveals significant growth in the company's operating cash flow over the reviewed five-year period. The net cash provided by operating activities demonstrates a consistent upward trend, increasing from $109,091 thousand at the end of 2020 to $870,603 thousand by the end of 2024. This reflects a robust enhancement in the company's operational efficiency and cash-generating ability.
Free cash flow to equity (FCFE) shows more variability but also exhibits a strong overall growth trend. After an initial peak of $723,790 thousand in 2020, there was a notable decline in 2021 to $250,520 thousand, followed by a recovery period with increases in subsequent years. The FCFE rose to $353,515 thousand in 2022, $597,548 thousand in 2023, and then significantly surged to $1,511,056 thousand in 2024. This progression suggests an improvement in the company's financial flexibility and capacity to return value to shareholders, despite some fluctuations.
- Net cash provided by operating activities
- Consistently increased year-over-year, representing expanding operational cash generation.
- Growth from 2020 to 2024 was approximately eightfold.
- Free cash flow to equity (FCFE)
- Displayed volatility with a decline in 2021 but strong recovery and substantial growth by 2024.
- The significant spike in 2024 indicates enhanced ability to finance equity dividends or share repurchases.
Overall, the data indicates improving operational cash flow performance and increasing free cash flow availability, pointing to strengthening financial health and flexibility over the period under review.
Price to FCFE Ratio, Current
No. shares of common stock outstanding | |
Selected Financial Data (US$) | |
Free cash flow to equity (FCFE) (in thousands) | |
FCFE per share | |
Current share price (P) | |
Valuation Ratio | |
P/FCFE | |
Benchmarks | |
P/FCFE, Competitors1 | |
Accenture PLC | |
Adobe Inc. | |
Cadence Design Systems Inc. | |
CrowdStrike Holdings Inc. | |
Fair Isaac Corp. | |
International Business Machines Corp. | |
Intuit Inc. | |
Microsoft Corp. | |
Oracle Corp. | |
Palantir Technologies Inc. | |
Palo Alto Networks Inc. | |
Salesforce Inc. | |
ServiceNow Inc. | |
Synopsys Inc. | |
Workday Inc. | |
P/FCFE, Sector | |
Software & Services | |
P/FCFE, Industry | |
Information Technology |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | ||||||
Selected Financial Data (US$) | ||||||
Free cash flow to equity (FCFE) (in thousands)2 | ||||||
FCFE per share3 | ||||||
Share price1, 4 | ||||||
Valuation Ratio | ||||||
P/FCFE5 | ||||||
Benchmarks | ||||||
P/FCFE, Competitors6 | ||||||
Accenture PLC | ||||||
Adobe Inc. | ||||||
Cadence Design Systems Inc. | ||||||
CrowdStrike Holdings Inc. | ||||||
Fair Isaac Corp. | ||||||
International Business Machines Corp. | ||||||
Intuit Inc. | ||||||
Microsoft Corp. | ||||||
Oracle Corp. | ||||||
Palantir Technologies Inc. | ||||||
Palo Alto Networks Inc. | ||||||
Salesforce Inc. | ||||||
ServiceNow Inc. | ||||||
Synopsys Inc. | ||||||
Workday Inc. | ||||||
P/FCFE, Sector | ||||||
Software & Services | ||||||
P/FCFE, Industry | ||||||
Information Technology |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Datadog Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The analysis of the financial metrics over the five-year period reveals notable fluctuations across the key indicators.
- Share Price (US$)
- The share price exhibited significant volatility. Beginning at $97.61 in 2020, it rose sharply to a peak of $161.41 in 2021. However, this was followed by a substantial decline to $76.67 in 2022. Subsequently, the share price recovered to $129.51 in 2023 before experiencing a slight decrease to $126.24 in 2024. This pattern suggests market sensitivity and possible external influences affecting investor sentiment over the years.
- Free Cash Flow to Equity (FCFE) per Share (US$)
- The FCFE per share showed an overall upward trajectory despite some fluctuations. The metric started at $2.36 in 2020, dropped to a low of $0.80 in 2021, then increased gradually to $1.11 in 2022 and $1.80 in 2023, culminating in a notable rise to $4.41 in 2024. This indicates an improving cash flow position available to equity holders, especially evident in the most recent period.
- Price to Free Cash Flow to Equity (P/FCFE) Ratio
- The P/FCFE ratio exhibited considerable variability, reflecting changes in share price relative to FCFE per share. It started at 41.33 in 2020, surged dramatically to 202.25 in 2021, then declined to 69.38 in 2022 and remained relatively stable at 71.93 in 2023. By 2024, it dropped significantly to 28.64, signaling a potential revaluation of the stock price in relation to cash flow generation. The high ratios in 2021 and 2022 suggest overvaluation or lower cash flow in those years, while the decline in 2024 indicates improving valuation multiples.
Overall, the data reflects a period of high volatility in market valuation accompanied by improving cash flow generation to equity holders. The decoupling of share price and FCFE in 2021 highlights a temporary misalignment between market perception and cash flow fundamentals, which subsequently corrected through 2024.