DoorDash, Inc. (NASDAQ: DASH)

Sector: Consumer Cyclical Industry: Internet Retail CIK: 0001792789
Market Cap 88.88 Bn
P/B 9.36
P/E 103.00
P/S 7.03
ROIC (Qtr) 5.45
Div Yield % 0.00
Rev 1y % (Qtr) 27.35
Total Debt (Qtr) 3.26 Bn
Debt/Equity (Qtr) 0.34

About

DoorDash, Inc., known on the market by its ticker symbol DASH, is a technology company that operates a logistics and food delivery platform. The company's primary business activities revolve around providing services that reduce friction in local commerce and enable local businesses to cater to consumers' expectations of ease, immediacy, quality, and affordability. With its headquarters in the United States, DoorDash has a significant presence in over 25 countries, making it a key player in the global logistics and food delivery industry. DoorDash...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 2.53B provides robust 0.78x coverage of total debt 3.26B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 7.36B provide 90.85x coverage of short-term debt 81M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 13.52B provides 4.15x coverage of total debt 3.26B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 1.99B exceeds capital expenditure of 536M by 3.72x, indicating strong organic growth funding capability.
  • Operating cash flow of 2.53B fully covers other non-current liabilities 155M by 16.31x, showing strong long-term stability.

Bear case

  • Operating cash flow of 2.53B barely covers its investment activities of (1.44B), with a coverage ratio of -1.76, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.44B) provide weak support for R&D spending of 1.31B, which is -1.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 7.36B provide limited coverage of acquisition spending of (1.20B), which is -6.14x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 2.53B shows concerning coverage of stock compensation expenses of 1.05B, with a 2.42 ratio indicating potential earnings quality issues.
  • Operating earnings of 898M show weak coverage of depreciation charges of 730M, with a 1.23 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AMZN Amazon Com Inc 2,526.56 Bn 33.03 3.65 135.42 Bn
2 BABA Alibaba Group Holding Ltd 395.87 Bn 22.47 2.79 39.55 Bn
3 PDD PDD Holdings Inc. 149.89 Bn 10.44 2.55 1.50 Bn
4 MELI Mercadolibre Inc 106.40 Bn 51.23 4.06 9.88 Bn
5 DASH DoorDash, Inc. 88.88 Bn 103.00 7.03 3.26 Bn
6 SE Sea Ltd 73.28 Bn 51.67 3.48 4.24 Bn
7 EBAY Ebay Inc 64.91 Bn 5.04 6.46 7.02 Bn
8 JD JD.com, Inc. 42.35 Bn 9.36 0.23 15.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.76 1.64
EV to Cash from Ops. EV/CFO 33.81 10.76
EV to Debt EV to Debt 26.24 18.39
EV to EBIT EV/EBIT 95.18 20.59
EV to EBITDA EV/EBITDA 60.07 20.75
EV to Free Cash Flow [EV/FCF] EV/FCF 42.91 16.58
EV to Market Cap EV to Market Cap 0.96 -3.15
EV to Revenue EV/Rev 6.76 -4.05
Price to Book Value [P/B] P/B 9.36 5.50
Price to Earnings [P/E] P/E 103.00 36.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -93.84
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -203.90
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -3.46
Interest Coverage Int. cover (Qtr) 0.00 -1,581.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -68.03 -39.45
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 100.85 53.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 601.74 37.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 249.63 -62.59
EBIT Growth (1y) % EBIT 1y % (Qtr) 686.93 8.33
EBT Growth (1y) % EBT 1y % (Qtr) 686.93 -10.66
EPS Growth (1y) % EPS 1y % (Qtr) 563.64 13.44
FCF Growth (1y) % FCF 1y % (Qtr) 11.91 -46.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 31.96 23.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.70 1.17
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.04
Cash Ratio Cash Ratio (Qtr) 1.43 2.14
Current Ratio Curr Ratio (Qtr) 2.05 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.34 0.52
Interest Cover Ratio Int Coverage (Qtr) 0.00 -1,581.43
Times Interest Earned Times Interest Earned (Qtr) 0.00 -1,581.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.90 4.40
EBIT Margin % EBIT Margin % (Qtr) 7.11 -36.99
EBT Margin % EBT Margin % (Qtr) 7.11 -40.80
Gross Margin % Gross Margin % (Qtr) 50.50 44.74
Net Profit Margin % Net Margin % (Qtr) 6.80 -40.62