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Dropbox Inc Class A DBX

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Stock XNAS Rating as of
$30.39 −0.08 (0.26%)
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As of Cboe BZX Real-Time Price Open

Company Report

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Amid Greater Skepticism of Software, We Recommend Sitting Out on DropBox

Mark Giarelli

Dropbox is a content management software solution. Dash for Business, the company's AI-powered universal search feature, aims to compete with similar products in a world dominated by unstructured cloud data and artificial intelligence. We believe this is a continuation of an uphill battle against tech giants already well-equipped to win. Dropbox’s main competition in AI-powered universal search is giants Microsoft (Copilot) and Google, and a new entrant, Glean, which has developed an interconnected, large-language-model-powered search tool.

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Price vs Fair Value

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DBX is trading at a LOCK|jVSw<N^ premium.
Price
$30.35
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Dash, Dropbox’s AI-powered universal search tool, is an intriguing product for a world that is rife with unstructured data. The new Dash product should lift average revenue per user and retention rates.

Bears

The AI-powered universal search tool, Dash, is still nascent and faces robust competition from tech giants like Google and Microsoft, who have distribution and scale advantages over Dropbox

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News

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Trading Information

Previous Close Price
$30.45
Day Range
$30.37–30.92
52-Week Range
$21.69–32.40
Bid/Ask
$30.38 / $30.41
Shares Outstanding
233.30M
Market Cap
$7.14B
Volume/Avg
636,180 / 4M

Key Statistics

Price/Earnings (Normalized)
10.53
Price/Sales
3.11
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
22.30%

Company Profile

Dropbox provides cloud storage and content collaboration tools, focusing on individuals and small to midsize businesses. Founded in 2007, Dropbox was a pioneer in the file sync and share market. In recent years, the firm has been emphasizing its Dash product, which facilitates AI-powered universal search across unstructured cloud data.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Small Value
Total Number of Employees
2,113
Website
https://www.dropbox.com

Competitors

Valuation

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Metric
DBX
GOOGL
TEAM
Price/Earnings (Normalized)
 10.5336.3117.83
Price/Book Value
 —8.9726.88
Price/Sales
 3.1110.253.92
Price/Cash Flow
 7.4224.4116.25
Price/Earnings
DBX
GOOGL
TEAM

Financial Strength

Metric
DBX
GOOGL
TEAM
Quick Ratio
 1.161.710.62
Current Ratio
 1.231.920.70
Interest Coverage
 6.85154.63−5.44
Quick Ratio
DBX
GOOGL
TEAM

Profitability

Metric
DBX
GOOGL
TEAM
Return on Assets (Normalized)
 25.98%24.77%22.27%
Return on Equity (Normalized)
 —35.04%99.96%
Return on Invested Capital (Normalized)
 45.17%30.59%50.12%
Return on Assets
DBX
GOOGL
TEAM

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