Our prognosis on Duck Creek (NASDAQ:DCT) to bounce back in May


USD 11.90  0.33  2.85%   

As many millenniums are trying to avoid business services space, it makes sense to review Duck Creek Technologies a little further and try to understand its current market patterns. We will analyze why Duck Creek investors may still consider a stake in the business. Is Duck Creek Technologies valuation sustainable? Here I will cover a perspective on valuation of Duck Creek to give you a better outlook on taking a position in this stock.
Published over three months ago
View all stories for Duck Creek | View All Stories
The company has 25.38 M in debt with debt to equity (D/E) ratio of 0.03, which may show that the firm is not taking advantage of profits from borrowing.
Our investment recommendation module complements current analysts and expert consensus on Duck Creek. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
We determine the current worth of Duck Creek Technologies using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Duck Creek Technologies based exclusively on its fundamental and basic technical indicators. By analyzing Duck Creek's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Duck Creek's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Duck Creek. We calculate exposure to Duck Creek's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Duck Creek's related companies.

Duck Creek Technologies Investment Alerts

Duck Creek investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Duck Creek Technologies performance across your portfolios.Please check all investment alerts for Duck Creek

Duck Creek Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Duck Creek value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Duck Creek competition to find correlations between indicators driving the intrinsic value of Duck Creek.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Duck Creek, but it might be worth checking our own buy vs. sell analysis

Is Duck Creek valued wisely by the market?

Duck Creek Technologies reported the last year's revenue of 260.35 M. Reported Net Loss for the year was (16.93 M) with profit before taxes, overhead, and interest of 150.26 M.
 2019 2020 2021 2022 (projected)
Interest Expense356 K100 K90 K92.37 K
Gross Profit114.5 M150.26 M172.8 M154.92 M

Margins Breakdown

Duck Creek profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Duck Creek itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Duck Creek profit margins.
Operating Margin21.79
EBITDA Margin0.0231
Gross Margin0.52
Profit Margin(0.0806)

Duck Creek Net Income Per Employee is increasing over the last 8 years. Also, Duck Creek Average Assets is increasing over the last 5 years.

Is Duck Creek showing indication of lower volatility?

Newest mean deviation is at 2.58. Duck Creek Technologies exhibits very low volatility with skewness of -0.07 and kurtosis of 0.78. However, we advise investors to further study Duck Creek Technologies technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Duck Creek's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Duck Creek's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Duck Creek Implied Volatility

Duck Creek's implied volatility exposes the market's sentiment of Duck Creek Technologies stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Duck Creek's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Duck Creek stock will not fluctuate a lot when Duck Creek's options are near their expiration.

Our Conclusion on Duck Creek

Whereas few other entities in the software—application industry are either recovering or due for a correction, Duck Creek may not be as strong as the others in terms of longer-term growth potentials. All things considered, as of the 31st of March 2022, our analysis shows that Duck Creek responds to the market. The firm is undervalued and projects very low odds of financial turmoil for the next 2 years. Our ongoing 90 days buy-hold-sell advice on the firm is Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Duck Creek Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com