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Review of Door Dash (DASH)
23 Feb 2022 (235 views)  

I do not own any Door Dash stock.

It reported strong 4Q results and the stock soared 20%. See report

The key points are:
  • DoorDash shares soared on Thursday after the company reported fourth-quarter results that beat on the top line and showed strong order numbers.
  • The company also gave upbeat full-year guidance, suggesting that it expects demand for food delivery to remain strong despite the easing of Covid-19 restrictions.
  • Fourth-quarter revenue came in at $1.3 billion, beating analyst estimates of $1.28 billion.
The stock went IPO on 20 Dec 2020 at $105 and soared 80% on opening.

The current price is now $93, i.e. slightly below the IPO price. 

Although the revenue is strong, the company is still unprofitable. The EPS (TTM) is minus $1.39.

The book value per share is $13.55 and the cash per share is $10.91.

The revenue per share is $14.51. The margin is negative 9.5%. 

To be profitable, DASH has to increase its margin by at least 9.5%. 

Assuming it is able to increase the margin by 20% giving an EPS of $1.51. the PE ratio is 61 times. 

It is difficult for DASH to increase the margin by 20%. 

I will still avoid this stock. 

Note - This is a personal view. I am not giving investment advice. 



 


Review of Door Dash (DASH)
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I do not own any Door Dash stock.

It reported strong 4Q results and the stock soared 20%. See report

The key points are:
  • DoorDash shares soared on Thursday after the company reported fourth-quarter results that beat on the top line and showed strong order numbers.
  • The company also gave upbeat full-year guidance, suggesting that it expects demand for food delivery to remain strong despite the easing of Covid-19 restrictions.
  • Fourth-quarter revenue came in at $1.3 billion, beating analyst estimates of $1.28 billion.
The stock went IPO on 20 Dec 2020 at $105 and soared 80% on opening.

The current price is now $93, i.e. slightly below the IPO price. 

Although the revenue is strong, the company is still unprofitable. The EPS (TTM) is minus $1.39.

The book value per share is $13.55 and the cash per share is $10.91.

The revenue per share is $14.51. The margin is negative 9.5%. 

To be profitable, DASH has to increase its margin by at least 9.5%. 

Assuming it is able to increase the margin by 20% giving an EPS of $1.51. the PE ratio is 61 times. 

It is difficult for DASH to increase the margin by 20%. 

I will still avoid this stock. 

Note - This is a personal view. I am not giving investment advice.