DoorDash, Inc. (DASH) Stock Analysis
DoorDash, Inc. (DASH) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
DoorDash, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 7.4% | Below expectations |
| FCF Margin | 15.8% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 15.8% provides financial flexibility for growth and shareholder returns.
Explore DoorDash, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: DoorDash, Inc. earns 7.4% ROIC, Top 50% in Technology
DoorDash, Inc.'s trailing-twelve-month ROIC of 7.4% ranks Top 50% in Technology companies (sector median: 5.2%), driven by NOPAT margin of 5.2% combined with asset turnover of 0.8x. Source: 10-Q filed 2025-11-06. Gross margin of 50.9% with operating margin at 5.3% reflects strong pricing power.
| Metric | DASH | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 7.4% | Warning | Above sector median of 5.2% |
| Return on Equity (ROE) | 10.5% | Adequate | Moderate equity returns |
| Gross Margin | 50.9% | Excellent | Strong pricing power |
| Operating Margin | 5.3% | Adequate | Moderate operational efficiency |
Cash Flow: DoorDash, Inc. generates $2.2B FCF at 15.8% margin, positive NaN/8 quarters
DoorDash, Inc. generated $2.2B in free cash flow (TTM), a 15.8% FCF margin, a margin that ranks Top 50% in Technology. Operating cash flow exceeds net income by 2.6x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | DASH | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 15.8% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $2.2B | Good | Positive cash generation |
| OCF/Net Income | 2.6x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: DoorDash, Inc. at 0.0x leverage
DoorDash, Inc.'s debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-11-06.
| Metric | DASH | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: DoorDash, Inc. trades at 103.4x earnings
DoorDash, Inc. trades at a P/E of 103.4x. Free cash flow yield of 2.2% reflects market expectations for growth.
| Metric | DASH | Rating | Context |
|---|---|---|---|
| P/E Ratio | 103.4x | Warning | Premium valuation |
| EV/Sales | 6.5x | Adequate | Growth premium priced in |
| FCF Yield | 2.2% | Adequate | Lower cash yield |
Capital Allocation: DoorDash, Inc. returns 0.0% shareholder yield
DoorDash, Inc.'s total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-11-06.
| Metric | DASH | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 7.4% | Top 50% | 1.4x above |
| Free Cash Flow Margin | 15.8% | Top 50% | 1.7x above |
| Gross Margin | 50.9% | Bottom 50% | 1.0x below |
| Operating Margin | 5.3% | Top 50% | 1.1x above |
| Return on Equity (ROE) | 10.5% | Top 50% | 2.1x above |
| P/E Ratio | 103.4x | N/A | - |
Financial Scorecard
| Metric | DASH | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 7.4% | Warning | Top 50% of sector (median: 5.2%) |
| Free Cash Flow Margin | 15.8% | Good | Top 50% of sector (median: 9.1%) |
| Gross Margin | 50.9% | Excellent | Bottom 50% of sector (median: 51.8%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 103.4x | Warning | High expectations priced in |
| Free Cash Flow Yield | 2.2% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is DoorDash, Inc.'s Return on Invested Capital (ROIC)?
DoorDash, Inc. (DASH) has a trailing twelve-month Return on Invested Capital (ROIC) of 7.4%. This compares above the sector median of 5.2%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is DoorDash, Inc.'s Free Cash Flow Margin?
DoorDash, Inc. (DASH) has a free cash flow margin of 15.8%, generating $2.2 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is DoorDash, Inc. stock overvalued or undervalued?
DoorDash, Inc. (DASH) trades at a P/E ratio of 103.4x, which is above the sector median of N/A. The EV/Sales multiple is 6.5x. Free cash flow yield is 2.2%, reflecting growth expectations priced into the stock.
Q: What is DoorDash, Inc.'s revenue and earnings growth?
DoorDash, Inc. (DASH) grew revenue by 27.9% year-over-year. Earnings per share increased by 685.2% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does DoorDash, Inc. compare to competitors in Technology?
Compared to other companies in Technology, DoorDash, Inc. (DASH) shows: ROIC of 7.4% is above the sector median of 5.2% (Top 45%). FCF margin of 15.8% exceeds the sector median of 9.1% (Top 34% of sector). Gross margin at 50.9% is 1 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with DoorDash, Inc.?
DoorDash, Inc. (DASH) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.