DOCN Stock Analysis: DigitalOcean Holdings | NYSE
Software - Infrastructure | NYSE, USA | Market Cap: 14.727m USD | 12M Return: 277.7% | US25402D1028 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 380M
EPS Trend: 44.8%
Qual. Beats: 9
Rev. Trend: 99.2%
Qual. Beats: 4
Warnings
Tailwinds
Seasonality 5.4 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
DigitalOcean Holdings, Inc. (NYSE: DOCN) is a U.S.-based cloud computing provider that operates an agentic inference cloud platform serving customers in North America, Europe, and Asia. The company was founded in 2012, is headquartered in Broomfield, Colorado, and went public in March 2021. It sits within the Information Technology sector, specifically the Internet Services & Infrastructure sub-industry.
DigitalOceans core business is providing cloud infrastructure and platform services to technology companies and digital-native enterprises. Its offerings span the full cloud stack: infrastructure-as-a-service (IaaS) products such as compute, storage, networking, cloud firewalls, managed load balancers, NAT gateways, and virtual private cloud; platform-as-a-service (PaaS) and software-as-a-service (SaaS) solutions including managed databases, managed Kubernetes, an application platform, serverless functions, and uptime monitoring; and AI/ML capabilities such as GPU droplets, bare metal GPU servers, and managed Jupyter Notebooks. The company also operates DigitalOcean Marketplace, where developers can deploy pre-configured applications.
DigitalOceans customer base spans several verticals, including online gaming, fintech, and cybersecurity, with typical use cases ranging from website hosting and web/mobile app development to AI integration and building AI products. Unlike hyperscale cloud providers (e.g., AWS, Microsoft Azure, Google Cloud) that cater broadly to enterprises of all sizes, DigitalOcean has historically focused on small and mid-sized businesses, startups, and individual developers, positioning itself as a simpler and more affordable alternative in the IaaS market. The recent emphasis on agentic inference reflects the broader industry shift toward AI workloads and autonomous AI agents requiring specialized compute.
- Agentic AI cloud platform drives new customer growth
- GPU droplet revenue accelerates on rising AI workload demand
- Hyperscaler competition pressures pricing and compresses operating margins
| Net Income: 235.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA -5.11 > 1.0 |
| NWC/Revenue: 23.88% < 20% (prev 34.25%; Δ -10.37% < -1%) |
| CFO/TA 0.11 > 3% & CFO 356.9m > Net Income 235.2m |
| Net Debt (1.34b) to EBITDA (321.8m): 4.17 < 3 |
| Current Ratio: 1.31 > 1.5 & < 3 |
| Outstanding Shares: last quarter (126.5m) vs 12m ago 25.77% < -2% |
| Gross Margin: 57.22% > 18% (prev 59.67%; Δ -2.44% > 0.5%) |
| Asset Turnover: 41.76% > 50% (prev 48.42%; Δ -6.67% > 0%) |
| Interest Coverage Ratio: 5.36 > 6 (EBIT TTM 149.7m / Interest Expense TTM 27.9m) |
| A: 0.08 (Total Current Assets 1.02b - Total Current Liabilities 776.1m) / Total Assets 3.12b |
| B: 0.00 (Retained Earnings 7.47m / Total Assets 3.12b) |
| C: 0.06 (EBIT TTM 149.7m / Avg Total Assets 2.42b) |
| D: 0.42 (Book Value of Equity 930.7m / Total Liabilities 2.19b) |
| Altman-Z'' = 1.38 = BB |
| DSRI: 1.17 (Receivables 115.0m/81.3m, Revenue 1.01b/832.8m) |
| GMI: 1.04 (GM 59.67% / 57.22%) |
| AQI: 0.64 (AQ_t 0.18 / AQ_t-1 0.28) |
| SGI: 1.21 (Revenue 1.01b / 832.8m) |
| TATA: -0.04 (NI 235.2m - CFO 356.9m) / TA 3.12b) |
| Beneish M = -2.92 (Cap -4..+1) = A |
As of August 20, 2026, the stock is trading at USD 116.66 with a total of 2,386,372 shares traded. Over the past week, the price has changed by -12.53%, over one month by -2.04%, over three months by -22.24% and over the past year by +277.66%.
Current recommended Stop Loss: 101.90 (which is 12.7% or 1.3 ATR below the current price).
DigitalOcean Holdings has received a consensus analysts rating of 3.64. Therefore, it is recommended to hold DOCN.
- StrongBuy: 3
- Buy: 4
- Hold: 6
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 175.2 | 50.2% |
P/E Trailing = 61.3971
P/E Forward = 112.3596
P/S = 14.565
P/B = 17.09
P/EG = 1.5379
Revenue TTM = 1.01b USD
EBIT TTM = 149.7m USD
EBITDA TTM = 321.8m USD
Long Term Debt = 609.4m USD (from longTermDebt, last quarter)
Short Term Debt = 441.4m USD (from shortTermDebt, last quarter)
Debt = 2.11b USD (from shortLongTermDebtTotal, last quarter) + Leases 608.9m
Net Debt = 1.34b USD (calculated: Debt 2.11b - CCE 767.0m)
Enterprise Value = 16.1b USD (14.7b + Debt 2.11b - CCE 767.0m)
Interest Coverage Ratio = 5.36 (Ebit TTM 149.7m / Interest Expense TTM 27.9m)
EV/FCF = 1000.0x (Enterprise Value 16.1b / FCF TTM 14.9m)
FCF Yield = 0.09% (FCF TTM 14.9m / Enterprise Value 16.1b)
FCF Margin = 1.47% (FCF TTM 14.9m / Revenue TTM 1.01b)
Net Margin = 23.27% (Net Income TTM 235.2m / Revenue TTM 1.01b)
Gross Margin = 57.22% ((Revenue TTM 1.01b - Cost of Revenue TTM 432.5m) / Revenue TTM)
Gross Margin QoQ = 55.00% (prev 56.11%)
Tobins Q-Ratio = 5.14 (Enterprise Value 16.1b / Total Assets 3.12b)
Interest Expense / Debt = 1.32% (Interest Expense 27.9m / Debt 2.11b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 118.2m (EBIT 149.7m * (1 - 21.00%))
Current Ratio = 1.31 (Total Current Assets 1.02b / Total Current Liabilities 776.1m)
Debt / Equity = 2.26 (Debt 2.11b / totalStockholderEquity, last quarter 930.7m)
Debt / EBITDA = 4.17 (Net Debt 1.34b / EBITDA 321.8m)
Debt / FCF = 90.09 (Net Debt 1.34b / FCF TTM 14.9m)
Total Stockholder Equity = 429.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 9.71% (Net Income 235.2m / Total Assets 3.12b)
RoE = 54.71% (Net Income TTM 235.2m / Total Stockholder Equity 429.9m)
RoCE = 14.40% (EBIT 149.7m / Capital Employed (Equity 429.9m + L.T.Debt 609.4m))
RoIC = 4.32% (NOPAT 118.2m / Invested Capital 2.74b)
WACC = 11.43% (E(14.7b)/V(16.8b) * Re(12.92%) + D(2.11b)/V(16.8b) * Rd(1.32%) * (1-Tc(0.21)))
Discount Rate = 12.92% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 84.92 | Cagr: 14.24%
[DCF] Terminal Value 62.52% ; FCFF base≈47.4m ; Y1≈41.5m ; Y5≈33.6m
[DCF] Fair Price = N/A (negative equity: EV 358.5m - Net Debt 1.34b = -982.1m; debt exceeds intrinsic value)
EPS Correlation: 44.83 | EPS CAGR: 6.14% | SUE: 4.0 | # QB: 9
Revenue Correlation: 99.21 | Revenue CAGR: 15.09% | SUE: 1.13 | # QB: 4
EPS current Quarter (2026-09-30): EPS=0.32 | Chg30d=+16.36% | Revisions=+59% | Analysts=16
EPS current Year (2026-12-31): EPS=1.45 | Chg30d=+21.52% | Revisions=+82% | GrowthEPS=-31.5% | GrowthRev=+30.7%
EPS next Year (2027-12-31): EPS=1.85 | Chg30d=+5.38% | Revisions=+56% | GrowthEPS=+27.4% | GrowthRev=+53.6%
[Analyst] Revisions Ratio: +75% (up=37, down=4)