ENDAVA PLC- SPON ADR (DAVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAVA - US29260V1052 - ADR
6.67 USD
+0.17 (+2.62%)
6.66 USD
-0.01 (-0.15%)
We assign a fundamental rating of 4 out of 10 to DAVA. DAVA was compared to 85 industry peers in the IT Services industry. The financial health of DAVA is average, but there are quite some concerns on its profitability. DAVA scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year DAVA was profitable.
DAVA had a positive operating cash flow in the past year.
DAVA had positive earnings in each of the past 5 years.
DAVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DAVA has a Return On Assets of 1.16%. This is comparable to the rest of the industry: DAVA outperforms 48.24% of its industry peers.
DAVA has a Return On Equity (1.90%) which is in line with its industry peers.
DAVA has a Return On Invested Capital of 2.23%. This is comparable to the rest of the industry: DAVA outperforms 51.76% of its industry peers.
DAVA had an Average Return On Invested Capital over the past 3 years of 5.99%. This is significantly below the industry average of 29.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 1.9% | ||
| ROIC | 2.23% |
ROA(3y)5.4%
ROA(5y)7.77%
ROE(3y)7.6%
ROE(5y)11.34%
ROIC(3y)5.99%
ROIC(5y)9.17%
1.3 Margins
DAVA has a Profit Margin (1.43%) which is in line with its industry peers.
DAVA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.16%, DAVA perfoms like the industry average, outperforming 45.88% of the companies in the same industry.
DAVA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 24.19%, DAVA is doing worse than 74.12% of the companies in the same industry.
DAVA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.16% | ||
| PM (TTM) | 1.43% | ||
| GM | 24.19% |
OM growth 3Y-34.74%
OM growth 5Y-9.2%
PM growth 3Y-39.96%
PM growth 5Y-13.58%
GM growth 3Y-8.99%
GM growth 5Y-2.39%
2. Health
2.1 Basic Checks
DAVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DAVA has been reduced compared to 1 year ago.
Compared to 5 years ago, DAVA has more shares outstanding
DAVA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.33 indicates that DAVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
DAVA has a Altman-Z score (2.33) which is in line with its industry peers.
The Debt to FCF ratio of DAVA is 4.49, which is a neutral value as it means it would take DAVA, 4.49 years of fcf income to pay off all of its debts.
DAVA has a Debt to FCF ratio of 4.49. This is comparable to the rest of the industry: DAVA outperforms 54.12% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that DAVA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.40, DAVA is in line with its industry, outperforming 45.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.49 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.3
WACC7.39%
2.3 Liquidity
DAVA has a Current Ratio of 2.18. This indicates that DAVA is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.18, DAVA is doing good in the industry, outperforming 63.53% of the companies in the same industry.
DAVA has a Quick Ratio of 2.18. This indicates that DAVA is financially healthy and has no problem in meeting its short term obligations.
DAVA's Quick ratio of 2.18 is fine compared to the rest of the industry. DAVA outperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
DAVA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.59%.
Measured over the past 5 years, DAVA shows a small growth in Earnings Per Share. The EPS has been growing by 2.54% on average per year.
DAVA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.07%.
The Revenue has been growing by 17.08% on average over the past years. This is quite good.
EPS 1Y (TTM)3.59%
EPS 3Y-16.39%
EPS 5Y2.54%
EPS Q2Q%-40.94%
Revenue 1Y (TTM)1.07%
Revenue growth 3Y5.65%
Revenue growth 5Y17.08%
Sales Q2Q%-8.65%
3.2 Future
DAVA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.02% yearly.
The Revenue is expected to grow by 1.79% on average over the next years.
EPS Next Y-29.02%
EPS Next 2Y-6.38%
EPS Next 3Y2.12%
EPS Next 5Y4.02%
Revenue Next Year-4.48%
Revenue Next 2Y-0.51%
Revenue Next 3Y0.93%
Revenue Next 5Y1.79%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DAVA is valuated cheaply with a Price/Earnings ratio of 4.87.
Compared to the rest of the industry, the Price/Earnings ratio of DAVA indicates a rather cheap valuation: DAVA is cheaper than 94.12% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DAVA to the average of the S&P500 Index (26.28), we can say DAVA is valued rather cheaply.
A Price/Forward Earnings ratio of 5.04 indicates a rather cheap valuation of DAVA.
Based on the Price/Forward Earnings ratio, DAVA is valued cheaply inside the industry as 95.29% of the companies are valued more expensively.
DAVA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.87 | ||
| Fwd PE | 5.04 |
4.2 Price Multiples
89.41% of the companies in the same industry are more expensive than DAVA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAVA indicates a rather cheap valuation: DAVA is cheaper than 95.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.9 | ||
| EV/EBITDA | 6.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.92
EPS Next 2Y-6.38%
EPS Next 3Y2.12%
5. Dividend
5.1 Amount
DAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.67
+0.17 (+2.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners62.35%
Inst Owner Change-24.65%
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap352.46M
Revenue(TTM)755.39M
Net Income(TTM)10.81M
Analysts73.75
Price Target11.51 (72.56%)
Short Float %6.59%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.17%
Min EPS beat(2)-19.17%
Max EPS beat(2)2.83%
EPS beat(4)3
Avg EPS beat(4)1.78%
Min EPS beat(4)-19.17%
Max EPS beat(4)18.52%
EPS beat(8)6
Avg EPS beat(8)4.65%
EPS beat(12)9
Avg EPS beat(12)6.62%
EPS beat(16)13
Avg EPS beat(16)6.3%
Revenue beat(2)0
Avg Revenue beat(2)-3%
Min Revenue beat(2)-4.03%
Max Revenue beat(2)-1.97%
Revenue beat(4)0
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-4.03%
Max Revenue beat(4)-1.97%
Revenue beat(8)0
Avg Revenue beat(8)-2.63%
Revenue beat(12)0
Avg Revenue beat(12)-2.15%
Revenue beat(16)2
Avg Revenue beat(16)-1.38%
PT rev (1m)-30.77%
PT rev (3m)-47.68%
EPS NQ rev (1m)-20.09%
EPS NQ rev (3m)-41.16%
EPS NY rev (1m)-7.92%
EPS NY rev (3m)-30.74%
Revenue NQ rev (1m)-3.01%
Revenue NQ rev (3m)-5.69%
Revenue NY rev (1m)-2.11%
Revenue NY rev (3m)-3.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.87 | ||
| Fwd PE | 5.04 | ||
| P/S | 0.35 | ||
| P/FCF | 4.9 | ||
| P/OCF | 4.36 | ||
| P/B | 0.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.66 |
EPS(TTM)1.37
EY20.54%
EPS(NY)1.32
Fwd EY19.85%
FCF(TTM)1.36
FCFY20.41%
OCF(TTM)1.53
OCFY22.92%
SpS19.04
BVpS14.34
TBVpS-0.36
PEG (NY)N/A
PEG (5Y)1.92
Graham Number21.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 1.9% | ||
| ROCE | 2.94% | ||
| ROIC | 2.23% | ||
| ROICexc | 2.37% | ||
| ROICexgc | 9.97% | ||
| OM | 3.16% | ||
| PM (TTM) | 1.43% | ||
| GM | 24.19% | ||
| FCFM | 7.15% |
ROA(3y)5.4%
ROA(5y)7.77%
ROE(3y)7.6%
ROE(5y)11.34%
ROIC(3y)5.99%
ROIC(5y)9.17%
ROICexc(3y)7.62%
ROICexc(5y)12.23%
ROICexgc(3y)23.85%
ROICexgc(5y)34.64%
ROCE(3y)7.91%
ROCE(5y)12.11%
ROICexgc growth 3Y-38.47%
ROICexgc growth 5Y-7.84%
ROICexc growth 3Y-47.64%
ROICexc growth 5Y-20.33%
OM growth 3Y-34.74%
OM growth 5Y-9.2%
PM growth 3Y-39.96%
PM growth 5Y-13.58%
GM growth 3Y-8.99%
GM growth 5Y-2.39%
F-Score8
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.49 | ||
| Debt/EBITDA | 3.31 | ||
| Cap/Depr | 14.77% | ||
| Cap/Sales | 0.88% | ||
| Interest Coverage | 2.7 | ||
| Cash Conversion | 87.93% | ||
| Profit Quality | 499.57% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | 2.33 |
F-Score8
WACC7.39%
ROIC/WACC0.3
Cap/Depr(3y)21.99%
Cap/Depr(5y)27.65%
Cap/Sales(3y)1.02%
Cap/Sales(5y)1.28%
Profit Quality(3y)209.96%
Profit Quality(5y)189.49%
High Growth Momentum
Growth
EPS 1Y (TTM)3.59%
EPS 3Y-16.39%
EPS 5Y2.54%
EPS Q2Q%-40.94%
EPS Next Y-29.02%
EPS Next 2Y-6.38%
EPS Next 3Y2.12%
EPS Next 5Y4.02%
Revenue 1Y (TTM)1.07%
Revenue growth 3Y5.65%
Revenue growth 5Y17.08%
Sales Q2Q%-8.65%
Revenue Next Year-4.48%
Revenue Next 2Y-0.51%
Revenue Next 3Y0.93%
Revenue Next 5Y1.79%
EBIT growth 1Y173.93%
EBIT growth 3Y-31.05%
EBIT growth 5Y6.31%
EBIT Next Year-4.9%
EBIT Next 3Y9.68%
EBIT Next 5Y6.37%
FCF growth 1Y-48.48%
FCF growth 3Y-23.34%
FCF growth 5Y9.6%
OCF growth 1Y-47.67%
OCF growth 3Y-24.1%
OCF growth 5Y6.85%
ENDAVA PLC- SPON ADR / DAVA FAQ
What is the fundamental rating for DAVA stock?
ChartMill assigns a fundamental rating of 4 / 10 to DAVA.
Can you provide the valuation status for ENDAVA PLC- SPON ADR?
ChartMill assigns a valuation rating of 7 / 10 to ENDAVA PLC- SPON ADR (DAVA). This can be considered as Undervalued.
How profitable is ENDAVA PLC- SPON ADR (DAVA) stock?
ENDAVA PLC- SPON ADR (DAVA) has a profitability rating of 3 / 10.
What are the PE and PB ratios of ENDAVA PLC- SPON ADR (DAVA) stock?
The Price/Earnings (PE) ratio for ENDAVA PLC- SPON ADR (DAVA) is 4.87 and the Price/Book (PB) ratio is 0.47.
What is the earnings growth outlook for ENDAVA PLC- SPON ADR?
The Earnings per Share (EPS) of ENDAVA PLC- SPON ADR (DAVA) is expected to decline by -29.02% in the next year.