Is the business good?
How good a business is DT?
Dynatrace, Inc. earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
13%
Return on invested capital · cost of capital 9.0% · 4.5 points above what the capital costs: growth creates value
- Operating margin
- 12%
Operating margin · Software - Application median 8.2% · 12 months to Q4 2026
- Cash conversion
- 3.26×
Cash conversion · 0.90× a year ago · every dollar of reported profit arrived as cash, and more
- R&D as % of revenue
- 24%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 13% |
| FY2022 | 8.8% |
| FY2023 | 8.0% |
| FY2024 | 9.0% |
| FY2025 | 11% |
| FY2026 | 12% |
Details›
- Gross margin12 months to Q4 2026
- 82%
- Operating margin12 months to Q4 2026
- 12%
- Net margin12 months to Q4 2026
- 8.1%
- Free cash flow margin
- 26%
- R&D as % of revenue
- 24%
- Revenue, trailing twelve months
- $2.02B
- Free cash flow, trailing twelve months
- $530M
- Net income, trailing twelve months
- $163M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #74 of 90 by Smart Score