ENDAVA PLC- SPON ADR (DAVA) Stock Fundamental Analysis
USA - NYSE:DAVA - US29260V1052 - ADR
8.46 USD
-0.06 (-0.7%)
8.34 USD
-0.12 (-1.42%)
Taking everything into account, DAVA scores 4 out of 10 in our fundamental rating. DAVA was compared to 86 industry peers in the IT Services industry. While DAVA seems to be doing ok healthwise, 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
DAVA had positive earnings in the past year.
DAVA had a positive operating cash flow in the past year.
In the past 5 years DAVA has always been profitable.
In the past 5 years DAVA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.27%, DAVA is in line with its industry, outperforming 52.33% of the companies in the same industry.
DAVA has a Return On Equity (3.64%) which is in line with its industry peers.
With a Return On Invested Capital value of 2.93%, DAVA perfoms like the industry average, outperforming 51.16% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DAVA is significantly below the industry average of 21.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 3.64% | ||
| ROIC | 2.93% |
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's Profit Margin of 2.75% is in line compared to the rest of the industry. DAVA outperforms 51.16% of its industry peers.
DAVA's Profit Margin has declined in the last couple of years.
DAVA has a Operating Margin (4.08%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DAVA has declined.
With a Gross Margin value of 25.08%, DAVA is not doing good in the industry: 70.93% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DAVA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.08% | ||
| PM (TTM) | 2.75% | ||
| GM | 25.08% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAVA is destroying value.
DAVA has less shares outstanding than it did 1 year ago.
DAVA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DAVA is higher compared to a year ago.
2.2 Solvency
DAVA has an Altman-Z score of 2.64. This is not the best score and indicates that DAVA is in the grey zone with still only limited risk for bankruptcy at the moment.
DAVA's Altman-Z score of 2.64 is in line compared to the rest of the industry. DAVA outperforms 47.67% of its industry peers.
The Debt to FCF ratio of DAVA is 4.74, which is a neutral value as it means it would take DAVA, 4.74 years of fcf income to pay off all of its debts.
DAVA has a Debt to FCF ratio of 4.74. This is comparable to the rest of the industry: DAVA outperforms 59.30% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that DAVA is not too dependend on debt financing.
DAVA's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. DAVA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.74 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.4
WACC7.41%
2.3 Liquidity
DAVA has a Current Ratio of 2.32. This indicates that DAVA is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.32, DAVA is doing good in the industry, outperforming 70.93% of the companies in the same industry.
DAVA has a Quick Ratio of 2.32. This indicates that DAVA is financially healthy and has no problem in meeting its short term obligations.
DAVA's Quick ratio of 2.32 is fine compared to the rest of the industry. DAVA outperforms 70.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 2.32 |
3. Growth
3.1 Past
DAVA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.33%.
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.
The Revenue has been growing slightly by 4.26% in the past year.
DAVA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.08% yearly.
EPS 1Y (TTM)0.33%
EPS 3Y-16.39%
EPS 5Y2.54%
EPS Q2Q%9.09%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.65%
Revenue growth 5Y17.08%
Sales Q2Q%-3.93%
3.2 Future
Based on estimates for the next years, DAVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.44% on average per year.
Based on estimates for the next years, DAVA will show a small growth in Revenue. The Revenue will grow by 3.95% on average per year.
EPS Next Y-19.3%
EPS Next 2Y0.73%
EPS Next 3Y5.61%
EPS Next 5Y13.44%
Revenue Next Year-2.42%
Revenue Next 2Y0.72%
Revenue Next 3Y2.05%
Revenue Next 5Y3.95%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.57, the valuation of DAVA can be described as very cheap.
94.19% of the companies in the same industry are more expensive than DAVA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DAVA to the average of the S&P500 Index (27.42), we can say DAVA is valued rather cheaply.
The Price/Forward Earnings ratio is 6.88, which indicates a rather cheap valuation of DAVA.
95.35% of the companies in the same industry are more expensive than DAVA, based on the Price/Forward Earnings ratio.
DAVA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAVA is valued cheaper than 87.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DAVA is valued cheaper than 91.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 7.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.19
EPS Next 2Y0.73%
EPS Next 3Y5.61%
5. Dividend
5.1 Amount
No dividends for DAVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.46
-0.06 (-0.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81%
Inst Owner Change-0.15%
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap502.98M
Analysts76.47
Price Target17.14 (102.6%)
Short Float %4.28%
Short Ratio2.14
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)2
Avg EPS beat(2)3.88%
Min EPS beat(2)2.83%
Max EPS beat(2)4.93%
EPS beat(4)4
Avg EPS beat(4)10.61%
Min EPS beat(4)2.83%
Max EPS beat(4)18.52%
EPS beat(8)7
Avg EPS beat(8)8.35%
EPS beat(12)10
Avg EPS beat(12)8.57%
EPS beat(16)14
Avg EPS beat(16)8.22%
Revenue beat(2)0
Avg Revenue beat(2)-2.89%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-1.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-1.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.24%
Revenue beat(12)0
Avg Revenue beat(12)-1.82%
Revenue beat(16)2
Avg Revenue beat(16)-1.13%
PT rev (1m)0%
PT rev (3m)-27.96%
EPS NQ rev (1m)-10.29%
EPS NQ rev (3m)-27.92%
EPS NY rev (1m)-21.26%
EPS NY rev (3m)-23.37%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-4.93%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 6.88 | ||
| P/S | 0.48 | ||
| P/FCF | 7.79 | ||
| P/OCF | 7.09 | ||
| P/B | 0.64 | ||
| P/tB | 42.77 | ||
| EV/EBITDA | 7.09 |
EPS(TTM)1.52
EY17.97%
EPS(NY)1.23
Fwd EY14.53%
FCF(TTM)1.09
FCFY12.84%
OCF(TTM)1.19
OCFY14.1%
SpS17.45
BVpS13.17
TBVpS0.2
PEG (NY)N/A
PEG (5Y)2.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 3.64% | ||
| ROCE | 3.87% | ||
| ROIC | 2.93% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 13.22% | ||
| OM | 4.08% | ||
| PM (TTM) | 2.75% | ||
| GM | 25.08% | ||
| FCFM | 6.22% |
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%
ROICexcg growth 3Y-38.47%
ROICexcg 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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.74 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 10.43% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 68.91% | ||
| Profit Quality | 226.62% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z | 2.64 |
F-Score8
WACC7.41%
ROIC/WACC0.4
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)0.33%
EPS 3Y-16.39%
EPS 5Y2.54%
EPS Q2Q%9.09%
EPS Next Y-19.3%
EPS Next 2Y0.73%
EPS Next 3Y5.61%
EPS Next 5Y13.44%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.65%
Revenue growth 5Y17.08%
Sales Q2Q%-3.93%
Revenue Next Year-2.42%
Revenue Next 2Y0.72%
Revenue Next 3Y2.05%
Revenue Next 5Y3.95%
EBIT growth 1Y56.46%
EBIT growth 3Y-31.05%
EBIT growth 5Y6.31%
EBIT Next Year8.89%
EBIT Next 3Y18.53%
EBIT Next 5Y14.68%
FCF growth 1Y-1.71%
FCF growth 3Y-23.34%
FCF growth 5Y9.6%
OCF growth 1Y-2.98%
OCF growth 3Y-24.1%
OCF growth 5Y6.85%