DOUBLEVERIFY HOLDINGS INC (DV)
US25862V1052 - Common Stock
Taking everything into account, DV scores 7 out of 10 in our fundamental rating. DV was compared to 277 industry peers in the Software industry. DV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DV is not overvalued while it is showing excellent growth. This is an interesting combination. This makes DV very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year DV was profitable.
DV had a positive operating cash flow in the past year.
In the past 5 years DV has always been profitable.
DV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DV has a better Return On Assets (5.27%) than 80.07% of its industry peers.
With a decent Return On Equity value of 6.05%, DV is doing good in the industry, outperforming 76.81% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.81%, DV is in the better half of the industry, outperforming 77.90% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DV is significantly below the industry average of 10.19%.
The last Return On Invested Capital (4.81%) for DV is above the 3 year average (4.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 6.05% | ||
| ROIC | 4.81% |
ROA(3y)4.4%
ROA(5y)4.44%
ROE(3y)5.09%
ROE(5y)5.5%
ROIC(3y)4.1%
ROIC(5y)4.56%
1.3 Margins
Looking at the Profit Margin, with a value of 11.23%, DV belongs to the top of the industry, outperforming 81.52% of the companies in the same industry.
In the last couple of years the Profit Margin of DV has grown nicely.
The Operating Margin of DV (13.09%) is better than 84.78% of its industry peers.
DV's Operating Margin has improved in the last couple of years.
DV's Gross Margin of 81.51% is amongst the best of the industry. DV outperforms 87.68% of its industry peers.
In the last couple of years the Gross Margin of DV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.09% | ||
| PM (TTM) | 11.23% | ||
| GM | 81.51% |
OM growth 3Y13.46%
OM growth 5Y25.08%
PM growth 3Y14.09%
PM growth 5Y32.4%
GM growth 3Y-1.58%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DV is destroying value.
The number of shares outstanding for DV has been increased compared to 1 year ago.
Compared to 5 years ago, DV has more shares outstanding
DV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 13.28 indicates that DV is not in any danger for bankruptcy at the moment.
The Altman-Z score of DV (13.28) is better than 91.67% of its industry peers.
The Debt to FCF ratio of DV is 0.04, which is an excellent value as it means it would take DV, only 0.04 years of fcf income to pay off all of its debts.
DV has a Debt to FCF ratio of 0.04. This is amongst the best in the industry. DV outperforms 82.61% of its industry peers.
DV has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DV (0.00) is better than 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 13.28 |
ROIC/WACC0.49
WACC9.92%
2.3 Liquidity
A Current Ratio of 7.30 indicates that DV has no problem at all paying its short term obligations.
With an excellent Current ratio value of 7.30, DV belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
DV has a Quick Ratio of 7.30. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 7.30, DV belongs to the top of the industry, outperforming 94.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.3 | ||
| Quick Ratio | 7.3 |
3. Growth
3.1 Past
DV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.03%, which is quite impressive.
DV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 83.14% yearly.
The Revenue has grown by 23.50% in the past year. This is a very strong growth!
The Revenue has been growing by 40.57% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)31.03%
EPS 3Y46.89%
EPS 5Y83.14%
EPS growth Q2Q-42.86%
Revenue 1Y (TTM)23.5%
Revenue growth 3Y32.9%
Revenue growth 5Y40.57%
Revenue growth Q2Q14.84%
3.2 Future
Based on estimates for the next years, DV will show a very strong growth in Earnings Per Share. The EPS will grow by 47.93% on average per year.
The Revenue is expected to grow by 20.48% on average over the next years. This is a very strong growth
EPS Next Y-10.1%
EPS Next 2Y13.82%
EPS Next 3Y28.15%
EPS Next 5Y47.93%
Revenue Next Year21.73%
Revenue Next 2Y21.55%
Revenue Next 3Y21.5%
Revenue Next 5Y20.48%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 51.42, which means the current valuation is very expensive for DV.
63.77% of the companies in the same industry are more expensive than DV, based on the Price/Earnings ratio.
DV is valuated expensively when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 36.79, the valuation of DV can be described as expensive.
60.14% of the companies in the same industry are more expensive than DV, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, DV is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.42 | ||
| Fwd PE | 36.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DV indicates a rather cheap valuation: DV is cheaper than 82.25% of the companies listed in the same industry.
76.09% of the companies in the same industry are more expensive than DV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.29 | ||
| EV/EBITDA | 23.97 |
4.3 Compensation for Growth
The excellent profitability rating of DV may justify a higher PE ratio.
A more expensive valuation may be justified as DV's earnings are expected to grow with 28.15% in the coming years.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y13.82%
EPS Next 3Y28.15%
5. Dividend
5.1 Amount
No dividends for DV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOUBLEVERIFY HOLDINGS INC
NYSE:DV (5/17/2024, 7:04:00 PM)
After market: 19.45 -0.09 (-0.46%)19.54
+0.66 (+3.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.42 | ||
| Fwd PE | 36.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 6.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.09% | ||
| PM (TTM) | 11.23% | ||
| GM | 81.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.3 | ||
| Quick Ratio | 7.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)31.03%
EPS 3Y46.89%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.5%
Revenue growth 3Y32.9%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y