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DoorDash Inc Ordinary Shares - Class A DASH

Morningstar Rating
$121.41 +6.72 (5.86%)
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Company Report

DoorDash Earnings: Demand Keeps Increasing as Profitability Approaches

DoorDash’s network effect moat source remains intact and like Uber is aiding the firm in gaining traction in new markets, such as grocery delivery, which we continue to believe does not bode well for no-moat Instacart. The firm posted solid fourth-quarter results with strong growth in orders accompanied by a slight increase in take rate. We are maintaining our $155 fair value estimate. While the price of DoorDash shares has more than doubled during the last 12 months, the stock is still trading at around a 20% discount to our fair value estimate.

Price vs Fair Value

DASH is trading at a 22% discount.
Price
$121.41
Fair Value
$686.00
Uncertainty
Very High
1-Star Price
$819.58
5-Star Price
$79.10
Economic Moat
Szbgp
Capital Allocation
Ptwmbblg

Bulls Say, Bears Say

Bulls

Consumer behavior will continue to shift away from in-restaurant dining as the variety of food and speed of delivery available at home increase. As demand for DoorDash services pushes higher, the firm should quickly reach profitability.

Bears

The transition toward food delivery or pickup is probably not permanent and will likely slow or come to a halt as the pandemic ends, lessening chances of DoorDash becoming profitable.

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News

Trading Information

Previous Close Price
$114.69
Day Range
$120.02124.04
52-Week Range
$51.50126.65
Bid/Ask
$118.54 / $123.00
Market Cap
$49.05 Bil
Volume/Avg
7.1 Mil / 4.9 Mil

Key Statistics

Price/Earnings (Normalized)
201.88
Price/Sales
5.74
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.53%

Company Profile

Founded in 2013 and headquartered in San Francisco, DoorDash is an online food order demand aggregator. Consumers can use its app to order food on-demand for pickup or delivery from merchants mainly in the U.S. Through the acquisition of Wolt in 2022, the firm also provides this service in Europe. DoorDashprovides a marketplace for the merchants to create a presence online, market their offerings, and meet demand by making the offerings available for pickup or delivery. The firm provides similar service to businesses in addition to restaurants, such as grocery, retail, pet supplies, and flowers. In 2023, the firm generated $66.8 billion in gross order volume (up 25% year over year) and $8.6 billion in revenue (up 31%).
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Mid Core
Total Number of Employees
19,300

Competitors

Valuation

Metric
DASH
UBER
TKWY
Price/Earnings (Normalized)
201.88595.32
Price/Book Value
7.2914.480.44
Price/Sales
5.744.44
Price/Cash Flow
48.3948.41
Price/Earnings
DASH
UBER
TKWY

Financial Strength

Metric
DASH
UBER
TKWY
Quick Ratio
1.351.011.49
Current Ratio
1.641.191.61
Interest Coverage
3.90−47.24
Quick Ratio
DASH
UBER
TKWY

Profitability

Metric
DASH
UBER
TKWY
Return on Assets (Normalized)
4.62%7.58%−6.02%
Return on Equity (Normalized)
6.98%29.78%−8.55%
Return on Invested Capital (Normalized)
4.79%13.08%−6.40%
Return on Assets
DASH
UBER
TKWY
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