DigitalOcean Holdings (XSWX:DOCN) Profitability Rank: 5 (As of Mar. 2026)


XSWX:DOCN DigitalOcean Holdings Inc XSWX:DOCN
68 GF Score
Price CHF118.84
GF Value CHF41.87
! 6 Warning Signs
View Full Analysis

What is DigitalOcean Holdings Profitability Rank?

DigitalOcean Holdings XSWX:DOCN 68 Profitability Rank is 5 as of Mar. 2026. GuruFocus rates XSWX:DOCN with a GF Score™ of 68/100 and a GF Value™ of CHF41.87. The stock has 6 warning signs investors should review.

DigitalOcean Holdings has the Profitability Rank of 5.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

DigitalOcean Holdings's Operating Margin % for the quarter that ended in Mar. 2026 was 14.18%. As of today, DigitalOcean Holdings's Piotroski F-Score is 6.


DigitalOcean Holdings Profitability Rank Related Terms


XSWX:DOCN vs : Profitability Rank Comparison

For the Software - Infrastructure subindustry, DigitalOcean Holdings's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


DigitalOcean Holdings Profitability Rank vs Software Industry

For the Software industry and Technology sector, DigitalOcean Holdings's Profitability Rank distribution charts can be found below:

* The bar in red indicates where DigitalOcean Holdings's Profitability Rank falls into.


XSWX:DOCN
68GF Score
DigitalOcean Holdings Inc XSWX:DOCN
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

DigitalOcean Holdings Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

DigitalOcean Holdings has the Profitability Rank of 5.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

DigitalOcean Holdings's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=36.571 / 257.905
=14.18 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

DigitalOcean Holdings has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 5 mean?
DigitalOcean Holdings (XSWX:DOCN) has a Profitability Rank of 5 as of Mar. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on DigitalOcean Holdings and its competitors.
Is DigitalOcean Holdings' Profitability Rank too high?
DigitalOcean Holdings' current Profitability Rank is 5. Overall, DigitalOcean Holdings has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does DigitalOcean Holdings' Profitability Rank compare to ?
DigitalOcean Holdings' Profitability Rank of 5 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Software company?
A good Profitability Rank depends on the Software industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on DigitalOcean Holdings and its competitors. DigitalOcean Holdings's current Profitability Rank is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DigitalOcean Holdings stock overvalued right now?
DigitalOcean Holdings (XSWX:DOCN) has a current Profitability Rank of 5. The stock's GF Value™ is CHF41.87, compared to a current price of CHF118.84 — trading 183.8% above its estimated fair value. The current Profitability Rank is 5. DigitalOcean Holdings' overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For DigitalOcean Holdings (XSWX:DOCN), the current Profitability Rank is 5 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is DigitalOcean Holdings (XSWX:DOCN) Overvalued in 2026?

Based on GuruFocus' analysis, DigitalOcean Holdings stock appears to be overvalued. The current stock price of CHF118.84 is trading 183.8% above its estimated GF Value™ of CHF41.87.

Key valuation signals for XSWX:DOCN:

  • Profitability Rank: 5
  • GF Value™: CHF41.87 vs. price of CHF118.84 (183.8% above fair value)
  • GF Score™: 68/100 with 6 warning signs

No single metric tells the full story. See the XSWX:DOCN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


DigitalOcean Holdings Business Description

Comparable Companies
Address 105 Edgeview Drive, Suite 425, Broomfield, CO, USA, 80021
DigitalOcean Holdings Inc is a cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups, and small and medium-sized businesses. The customers use the platform for a wide range of cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, and managed services, among many others. Geographically, the company generates maximum revenue from North America and also has a presence in Europe, Asia, and the Rest of the world.
68GF Score

Get the complete analysis for XSWX:DOCN

Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF118.84
Price
CHF41.87
GF Value