Stock

Dropbox

DBX
63
Software - Infrastructure · Technology
Also trades as: 0SGO.L GBP 0.35 (+2.10%)
Price
$34.36
+0.22 (+0.64%)
Market Cap
$8.75B
Exchange
NASDAQ
Winston Score
63
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 10, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
23/30
Growth
Mixed
6/20
Cash Flow
Exceptional
10/10
Stability
Mixed
3/10
Valuation
Strong
8/10
Ownership
Good
10/15
Dividends
Not counted
n/a

60 of 95 counted points = Winston Score 63. Pillars marked n/a do not apply to this company and are left out of the total.

Share count falling — buybacks

−31.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 395.8M (2021) → 272.8M (2025)

§Winston Score History

The full picture

Dropbox is a cloud storage and file-sharing company. It lets individuals and businesses store files online and access them from any device, anywhere. The company is best known for its Dropbox storage platform and also offers Dropbox Sign (formerly HelloSign), a tool for signing documents electronically.

Dropbox makes most of its money through subscriptions — users pay monthly or yearly for more storage and extra features. It serves hundreds of millions of registered users across more than 180 countries, with a focus on individual professionals and small-to-medium businesses. Its main competitive advantage is a large, loyal user base built through a "freemium" model, where free users often upgrade to paid plans over time. The key risk is intense competition from much larger rivals like Google, Microsoft, and Apple, all of which bundle cloud storage into products people already use daily.

Score breakdown

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Quality

Profit per sale
Gross Margin
80.2%
Premium pricing power — 80.2% gross margin
Profit after running costs
Operating Margin
26.1%
Excellent — 26.1% operating margin
Return on the money invested
ROCE
14.8%
Good — 14.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-0.0%
Shrinking sales (-0.0% YoY)
Profit growth
EPS YoY
+9.6%
Earnings growing (+9.6% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
221%
Turns 221% of profit into real cash
Spare cash per sale
FCF Margin
37.8%
Converts sales into free cash efficiently (37.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
—
Data not available
Covers its interest
Interest Cover
4.34x
Adequate interest coverage (4.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
18.9x
Fair value — P/E 18.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+7.8
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (18.9 → 11.1)

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Dividends

Not applicable for this business.
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