Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin-1.3%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin3.1%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
B
Years to Pay Off Debt11.9 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$2.8B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$3.8B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
C
Free Cash Flow$915M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income125.7%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$299M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit80.0%
Operating Margin-1.3%
Net Margin3.1%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
Gross Profit %
80.0%▼
80.8%▲
80.7%▲
79.3%
Operating Margin %
-1.3%▼
2.0%▲
-1.6%▲
-3.5%
Net Income %
3.1%▼
6.8%▲
2.3%▲
-3.0%
Diluted EPS
0.31▼
0.52▲
0.14▲
-0.16
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$6.6B
$5.8B
$3.9B
$3.0B
N/A
Total Debt
$1.3B▼
$1.8B▲
$902M▲
$838M•
N/A
Working Capital
$3.8B▲
$3.0B▲
$2.2B▲
$1.6B•
N/A
Years to Pay Debt
11.87
10.03
18.58
-16.70
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$915M▲
$775M▲
$598M▲
$354M•
N/A
Owner Earnings
$299M
$334M
$155M
$49M
N/A
CapEx % of Net Income
125.7%
52.0%
128.5%
N/A
N/A
Income Statement
2025
2024
2023
2022
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
193,836
265,941
111,002
13,094
Net Income From Continuing Operation Net Minority Interest
107,741
183,746
48,568
-50,160
Reconciled Depreciation
55,756
54,933
44,465
34,629
Reconciled Cost Of Revenue
686,957
515,531
409,908
346,743
EBITDA
193,836
265,941
111,002
13,094
EBIT
138,080
211,008
66,537
-21,535
Net Interest Income
183,365
148,253
97,157
18,396
Interest Expense
11,059
7,068
6,302
16,535
Interest Income
194,424
155,321
103,459
34,931
Normalized Income
107,741
183,746
48,568
-50,160
Net Income From Continuing And Discontinued Operation
107,741
183,746
48,568
-50,160
Total Expenses
3,471,531
2,629,991
2,161,823
1,733,795
Total Operating Income As Reported
-44,373
54,284
-33,464
-58,695
Diluted Average Shares
363,471
358,636
350,292
315,410
Basic Average Shares
347,309
336,172
324,033
315,410
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
107,741
183,746
48,568
-50,160
Net Income Common Stockholders
107,741
183,746
48,568
-50,160
Net Income
107,741
183,746
48,568
-50,160
Net Income Including Noncontrolling Interests
107,741
183,746
48,568
-50,160
Net Income Continuous Operations
107,741
183,746
48,568
-50,160
Tax Provision
19,280
20,194
11,667
12,090
Pretax Income
127,021
203,940
60,235
-38,070
Other Income Expense
-11,971
1,403
-3,458
2,229
Other Non Operating Income Expenses
-11,971
1,403
-3,458
2,229
Net Non Operating Interest Income Expense
183,365
148,253
97,157
18,396
Interest Expense Non Operating
11,059
7,068
6,302
16,535
Interest Income Non Operating
194,424
155,321
103,459
34,931
Operating Income
-44,373
54,284
-33,464
-58,695
Operating Expense
2,784,574
2,114,460
1,751,915
1,387,052
Research And Development
1,548,451
1,152,703
962,447
752,351
Selling General And Administration
1,236,123
961,757
789,468
634,701
Selling And Marketing Expense
956,423
756,605
609,276
495,288
General And Administrative Expense
279,700
205,152
180,192
139,413
Other Gand A
279,700
205,152
180,192
139,413
Gross Profit
2,740,201
2,168,744
1,718,451
1,328,357
Cost Of Revenue
686,957
515,531
409,908
346,743
Total Revenue
3,427,158
2,684,275
2,128,359
1,675,100
Operating Revenue
3,427,158
2,684,275
2,128,359
1,675,100
Balance Sheet
2025
2024
2023
2022
2021
Ordinary Shares Number
352,526
342,119
331,080
319,190
Share Issued
352,526
342,119
331,080
319,190
Net Debt
582,144
366,322
411,896
399,862
Total Debt
1,279,005
1,842,180
902,337
837,521
Tangible Book Value
3,186,670
2,350,271
1,663,043
1,045,863
Invested Capital
4,715,655
4,327,668
2,767,589
2,149,352
Working Capital
3,790,879
3,048,402
2,175,085
1,584,486
Net Tangible Assets
3,186,670
2,350,271
1,663,043
1,045,863
Capital Lease Obligations
295,556
228,875
160,102
98,674
Common Stock Equity
3,732,206
2,714,363
2,025,354
1,410,505
Total Capitalization
4,715,655
3,693,645
2,767,589
2,149,352
Total Equity Gross Minority Interest
3,732,206
2,714,363
2,025,354
1,410,505
Stockholders Equity
3,732,206
2,714,363
2,025,354
1,410,505
Gains Losses Not Affecting Retained Earnings
15,404
-4,701
-2,218
-12,422
Other Equity Adjustments
15,404
-4,701
-2,218
-12,422
Retained Earnings
137,789
30,048
-153,698
-202,266
Additional Paid In Capital
3,579,010
2,689,013
2,181,267
1,625,190
Capital Stock
3
3
3
3
Common Stock
3
3
3
3
Total Liabilities Net Minority Interest
2,911,638
3,070,976
1,910,718
1,594,347
Total Non Current Liabilities Net Minority Interest
1,320,237
1,208,263
907,666
834,599
Other Non Current Liabilities
11,890
9,383
6,093
6,226
Non Current Deferred Liabilities
68,711
22,693
21,210
12,944
Non Current Deferred Revenue
68,711
22,693
21,210
12,944
Long Term Debt And Capital Lease Obligation
1,239,636
1,176,187
880,363
815,429
Long Term Capital Lease Obligation
256,187
196,905
138,128
76,582
Long Term Debt
983,449
979,282
742,235
738,847
Current Liabilities
1,591,401
1,862,713
1,003,052
759,748
Other Current Liabilities
33
Current Deferred Liabilities
1,193,646
961,853
765,735
543,024
Current Deferred Revenue
1,193,646
961,853
765,735
543,024
Current Debt And Capital Lease Obligation
39,369
665,993
21,974
22,092
Current Capital Lease Obligation
39,369
31,970
21,974
22,092
Current Debt
634,023
Other Current Borrowings
634,023
Pensionand Other Post Retirement Benefit Plans Current
109,765
71,746
61,541
46,736
Payables And Accrued Expenses
248,621
163,121
153,802
147,896
Current Accrued Expenses
46,896
26,751
35,315
98,604
Payables
201,725
136,370
118,487
49,292
Total Tax Payable
52,934
28,639
30,775
25,818
Accounts Payable
148,791
107,731
87,712
23,474
Total Assets
6,643,844
5,785,339
3,936,072
3,004,852
Total Non Current Assets
1,261,564
874,224
757,935
660,618
Other Non Current Assets
36,553
24,077
23,462
27,663
Non Current Deferred Assets
126,708
86,573
73,728
55,338
Goodwill And Other Intangible Assets
545,536
364,092
362,311
364,642
Other Intangible Assets
14,968
3,711
9,617
16,365
Goodwill
530,568
360,381
352,694
348,277
Net PPE
552,767
399,482
298,434
212,975
Accumulated Depreciation
-181,498
-192,807
-128,868
-83,918
Gross PPE
734,265
592,289
427,302
296,893
Leases
99,009
67,855
55,111
27,683
Construction In Progress
329,117
285,015
192,691
134,890
Other Properties
214,674
172,512
126,562
87,629
Machinery Furniture Equipment
91,465
66,907
52,938
46,691
Current Assets
5,382,280
4,911,115
3,178,137
2,344,234
Other Current Assets
90,160
67,042
41,022
27,303
Current Deferred Assets
76,022
56,095
44,938
33,054
Prepaid Assets
17,675
Receivables
741,262
598,919
509,279
399,551
Other Receivables
6,768
Accounts Receivable
741,262
598,919
509,279
399,551
Allowance For Doubtful Accounts Receivable
-19,292
-16,302
-12,096
-5,626
Gross Accounts Receivable
760,554
615,221
521,375
405,177
Cash Cash Equivalents And Short Term Investments
4,474,836
4,189,059
2,582,898
1,884,326
Other Short Term Investments
4,073,531
2,942,076
2,252,559
1,545,341
Cash And Cash Equivalents
401,305
1,246,983
330,339
338,985
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
914,717
775,103
597,548
353,518
Repayment Of Debt
-635,737
-297,653
0
-3
Issuance Of Debt
0
1,033,606
0
0
Capital Expenditure
-135,418
-95,500
-62,406
-64,889
Income Tax Paid Supplemental Data
17,649
20,993
16,505
1,595
End Cash Position
401,305
1,246,983
330,339
342,288
Beginning Cash Position
1,246,983
330,339
342,288
274,463
Effect Of Exchange Rate Changes
11,150
-4,202
1,183
-1,935
Changes In Cash
-856,828
920,846
-13,132
69,760
Financing Cash Flow
-572,483
787,083
58,279
36,023
Cash Flow From Continuing Financing Activities
-572,483
787,083
58,279
36,023
Net Other Financing Charges
-245
Proceeds From Stock Option Exercised
63,254
51,130
58,279
36,026
Net Issuance Payments Of Debt
-635,737
735,953
0
-3
Net Long Term Debt Issuance
-635,737
735,953
0
-3
Long Term Debt Payments
-635,737
-297,653
0
-3
Long Term Debt Issuance
0
1,033,606
0
0
Investing Cash Flow
-1,334,480
-736,840
-731,365
-384,670
Cash Flow From Continuing Investing Activities
-1,334,480
-736,840
-731,365
-384,670
Net Investment Purchase And Sale
-1,081,080
-634,209
-656,461
-273,903
Sale Of Investment
2,518,761
2,019,033
1,901,552
1,139,814
Purchase Of Investment
-3,599,841
-2,653,242
-2,558,013
-1,413,717
Net Business Purchase And Sale
-117,982
-7,131
-12,498
-45,878
Purchase Of Business
-117,982
-7,131
-12,498
-45,878
Net PPE Purchase And Sale
-49,578
-34,719
-27,586
-35,261
Purchase Of PPE
-49,578
-34,719
-27,586
-35,261
Capital Expenditure Reported
-85,840
-60,781
-34,820
-29,628
Operating Cash Flow
1,050,135
870,603
659,954
418,407
Cash Flow From Continuing Operating Activities
1,050,135
870,603
659,954
418,407
Change In Working Capital
53,492
13,343
44,626
6,393
Change In Other Working Capital
146,448
121,501
161,493
117,546
Change In Other Current Assets
-3,806
-1,003
1,018
-5,179
Change In Payables And Accrued Expense
89,517
23,984
17,284
36,292
Change In Accrued Expense
52,889
-1,626
-40,489
37,578
Change In Payable
36,628
25,610
57,773
-1,286
Change In Account Payable
36,628
25,610
57,773
-1,286
Change In Prepaid Assets
-21,299
-26,654
-13,508
-6,565
Change In Receivables
-157,368
-104,485
-121,661
-135,701
Changes In Account Receivables
-157,368
-104,485
-121,661
-135,701
Other Non Cash Items
107,826
83,670
68,977
52,788
Stock Based Compensation
750,671
570,336
482,300
363,154
Provisionand Write Offof Assets
17,024
14,847
11,933
5,215
Amortization Of Securities
-44,516
-51,932
-41,621
4,726
Depreciation Amortization Depletion
55,756
54,933
44,465
34,629
Depreciation And Amortization
55,756
54,933
44,465
34,629
Operating Gains Losses
2,141
1,660
706
1,662
Gain Loss On Sale Of PPE
2,141
1,660
706
1,662
Net Income From Continuing Operations
107,741
183,746
48,568
-50,160
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $3.7B
Warren's Owner Earnings
$299M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$3.4B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
3.38x
vs Current Ratio > 2.0x
❌
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
1 loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $0.14 to $0.31 over 2 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+121.4% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $3.4Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 3.38xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 1 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $0.14 to $0.31 over 2 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what DDOG is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
-0.7%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
125.7%
52.0%
128.5%
N/A
N/A
Repurchase of Capital Stock
N/A
N/A
N/A
$0M
$0M
Free Cash Flow
$915M▲
$775M▲
$598M▲
$354M•
N/A•
Warren's Owner Earnings
$299M
$334M
$155M
$49M
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare DDOG against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
DDOG (DDOG) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 80.0%. Operating margin: -1.3%. Net margin: 3.1%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.