High Gross Profit Margin
Positive Net Profit Margin
Low Debt Levels
Strong Liquidity Position
Adequate Cash Reserves
Strong Market Position and Growth
Diverse Revenue Streams
Improving Unit Economics
Long Runway for Growth
Investment in Technology and Innovation
Extremely High P/E Ratio
High EV/EBITDA Ratio
Negative Operating Profit Margin
Low Return on Equity
Interest Coverage Ratio
Dependence on Market Conditions
Challenges in New Verticals
DoorDash demonstrates a strong business model with a significant market presence and diversified revenue streams. Future prospects are promising, driven by potential growth in new verticals and technological advancements. However, the company faces challenges from market dependencies and the need for continued improvement in newer categories.
Analysis Date: February 11, 2025
Last Updated: March 11, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$6.03
Current Market Price: $164.35
IV/P Ratio: 0.04x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-2627.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for DASH
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (553.23)
P/B ratio ≤ 1.5 (8.72)
Current ratio ≥ 2.0 (1.66x)
Long-term debt < Net current assets (0.16x)
Margin of safety (-2627.0%)
DASH does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
DASH has a net profit margin of 1.15%, indicating that the company is able to retain profit from its revenues despite being low.
The operating profit margin is slightly negative at -0.34%, suggesting that operating expenses are exceeding revenues, which could raise concerns about operational efficiency.
The return on equity (ROE) stands at just 1.67%, indicating that the company is not efficiently generating profit from its equity base.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
1.67%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.10%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
47.01%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
1.15%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
DASH has a debt-to-equity ratio of 0.069, indicating a conservative approach to leveraging and a solid foundation for financial stability.
A current ratio of 1.66 demonstrates that DASH has sufficient short-term assets to cover its short-term liabilities, suggesting good liquidity.
With cash per share at $12.81, DASH maintains healthy liquidity to manage operations and unforeseen expenses.
The interest coverage ratio is 0.0, indicating that the company is not generating enough earnings to cover its interest expenses, which is a significant risk factor.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.07x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.66x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
DoorDash continues to dominate the U.S. restaurant delivery market, maintaining a significant share and experiencing consistent growth. The CEO highlighted that they remain a small percentage of U.S. restaurant sales, indicating substantial room for growth and further penetration.
The company is exploring multiple verticals beyond restaurants, including grocery and retail, showcasing a diversified approach to revenue generation. This strategy reduces reliance on a single revenue source and allows for growth in various markets.
DoorDash reported a focus on enhancing contribution margins and profitability, particularly in international markets, which are now gross profit positive. They are committed to increasing overall profit dollars rather than focusing solely on margin percentages.
The company's growth is susceptible to external factors like economic conditions, competition, and market saturation. The CEO acknowledged that they operate in a challenging environment where consumer behavior can shift rapidly.
The company sees significant potential to improve both penetration and frequency of orders. The CEO emphasized that they are still in the early days of exploring new markets and verticals, presenting a clear path for future growth.
DoorDash is exploring advancements in technology, including autonomous delivery and AI, which can enhance operational efficiency and customer experience. The CEO mentioned the importance of mastering the physical world while leveraging AI to improve service.
While there is growth potential in new verticals, the CEO mentioned that grocery delivery is still nascent and requires continued product improvements to meet customer expectations and reduce delivery issues.