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Should you consider ENDAVA PLC- SPON ADR (NYSE:DAVA) for quality investing?

By Mill Chart

Last update: Oct 9, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ENDAVA PLC- SPON ADR (NYSE:DAVA) is suited for quality investing. Investors should of course do their own research, but we spotted ENDAVA PLC- SPON ADR showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of ENDAVA PLC- SPON ADR

  • ENDAVA PLC- SPON ADR has demonstrated significant revenue growth over the past 5 years, with a 29.57% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a robust ROIC excluding cash and goodwill at 52.38%, ENDAVA PLC- SPON ADR showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a favorable Debt/Free Cash Flow Ratio of 0.62, ENDAVA PLC- SPON ADR showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • ENDAVA PLC- SPON ADR demonstrates consistent Profit Quality over the past 5 years, with a strong 139.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • ENDAVA PLC- SPON ADR has demonstrated consistent growth in EBIT over the past 5 years, with a strong 33.73%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • ENDAVA PLC- SPON ADR has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall DAVA gets a fundamental rating of 6 out of 10. We evaluated DAVA against 88 industry peers in the IT Services industry. DAVA gets an excellent profitability rating and is at the same time showing great financial health properties. DAVA is valued quite expensively, but it does show have an excellent growth rating. This makes DAVA very considerable for growth and quality investing!

Our latest full fundamental report of DAVA contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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