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ENDAVA PLC- SPON ADR (DAVA) Stock Fundamental Analysis

NYSE:DAVA - New York Stock Exchange, Inc. - US29260V1052 - ADR - Currency: USD

32.5  +0.41 (+1.28%)

After market: 32.5 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to DAVA. DAVA was compared to 82 industry peers in the IT Services industry. DAVA has only an average score on both its financial health and profitability. DAVA has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year DAVA was profitable.
DAVA had a positive operating cash flow in the past year.
Each year in the past 5 years DAVA has been profitable.
DAVA had a positive operating cash flow in each of the past 5 years.
DAVA Yearly Net Income VS EBIT VS OCF VS FCFDAVA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

1.2 Ratios

The Return On Assets of DAVA (0.72%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.12%, DAVA is in line with its industry, outperforming 56.96% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.77%, DAVA is in line with its industry, outperforming 46.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DAVA is in line with the industry average of 9.88%.
The 3 year average ROIC (9.56%) for DAVA is well above the current ROIC(0.77%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 0.72%
ROE 1.12%
ROIC 0.77%
ROA(3y)9.09%
ROA(5y)8.43%
ROE(3y)12.79%
ROE(5y)12.33%
ROIC(3y)9.56%
ROIC(5y)9.48%
DAVA Yearly ROA, ROE, ROICDAVA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

With a Profit Margin value of 0.94%, DAVA perfoms like the industry average, outperforming 53.16% of the companies in the same industry.
DAVA's Profit Margin has declined in the last couple of years.
The Operating Margin of DAVA (1.17%) is comparable to the rest of the industry.
DAVA's Operating Margin has declined in the last couple of years.
DAVA has a worse Gross Margin (23.27%) than 70.89% of its industry peers.
DAVA's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 1.17%
PM (TTM) 0.94%
GM 23.27%
OM growth 3Y-42.43%
OM growth 5Y-25.01%
PM growth 3Y-38.1%
PM growth 5Y-22.63%
GM growth 3Y-12.29%
GM growth 5Y-7.83%
DAVA Yearly Profit, Operating, Gross MarginsDAVA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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5

2. Health

2.1 Basic Checks

DAVA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DAVA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DAVA has more shares outstanding
Compared to 1 year ago, DAVA has a worse debt to assets ratio.
DAVA Yearly Shares OutstandingDAVA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
DAVA Yearly Total Debt VS Total AssetsDAVA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 4.56 indicates that DAVA is not in any danger for bankruptcy at the moment.
DAVA has a Altman-Z score of 4.56. This is in the better half of the industry: DAVA outperforms 67.09% of its industry peers.
The Debt to FCF ratio of DAVA is 5.16, which is a neutral value as it means it would take DAVA, 5.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.16, DAVA is in line with its industry, outperforming 48.10% of the companies in the same industry.
DAVA has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
DAVA has a Debt to Equity ratio of 0.28. This is comparable to the rest of the industry: DAVA outperforms 58.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 5.16
Altman-Z 4.56
ROIC/WACC0.09
WACC8.47%
DAVA Yearly LT Debt VS Equity VS FCFDAVA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.3 Liquidity

DAVA has a Current Ratio of 1.90. This is a normal value and indicates that DAVA is financially healthy and should not expect problems in meeting its short term obligations.
DAVA's Current ratio of 1.90 is fine compared to the rest of the industry. DAVA outperforms 62.03% of its industry peers.
A Quick Ratio of 1.90 indicates that DAVA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.90, DAVA is in the better half of the industry, outperforming 62.03% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.9
Quick Ratio 1.9
DAVA Yearly Current Assets VS Current LiabilitesDAVA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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6

3. Growth

3.1 Past

DAVA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.11%.
The Earnings Per Share has been growing by 8.26% on average over the past years. This is quite good.
The Revenue has decreased by -5.02% in the past year.
Measured over the past years, DAVA shows a very strong growth in Revenue. The Revenue has been growing by 20.81% on average per year.
EPS 1Y (TTM)-53.11%
EPS 3Y-4.56%
EPS 5Y8.26%
EPS Q2Q%-34.87%
Revenue 1Y (TTM)-5.02%
Revenue growth 3Y18.4%
Revenue growth 5Y20.81%
Sales Q2Q%3.52%

3.2 Future

DAVA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.87% yearly.
DAVA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.41% yearly.
EPS Next Y3.37%
EPS Next 2Y20.08%
EPS Next 3Y22.4%
EPS Next 5Y20.87%
Revenue Next Year8.43%
Revenue Next 2Y9.35%
Revenue Next 3Y10.57%
Revenue Next 5Y10.41%

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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
DAVA Yearly Revenue VS EstimatesDAVA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B 1.5B 2B
DAVA Yearly EPS VS EstimatesDAVA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1 2 3 4 5

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4

4. Valuation

4.1 Price/Earnings Ratio

DAVA is valuated quite expensively with a Price/Earnings ratio of 26.42.
DAVA's Price/Earnings ratio is a bit cheaper when compared to the industry. DAVA is cheaper than 64.56% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. DAVA is around the same levels.
A Price/Forward Earnings ratio of 16.05 indicates a correct valuation of DAVA.
Based on the Price/Forward Earnings ratio, DAVA is valued a bit cheaper than 79.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, DAVA is valued rather cheaply.
Industry RankSector Rank
PE 26.42
Fwd PE 16.05
DAVA Price Earnings VS Forward Price EarningsDAVA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAVA is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as DAVA.
Industry RankSector Rank
P/FCF 42.79
EV/EBITDA 35.55
DAVA Per share dataDAVA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as DAVA's earnings are expected to grow with 22.40% in the coming years.
PEG (NY)7.83
PEG (5Y)3.2
EPS Next 2Y20.08%
EPS Next 3Y22.4%

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0

5. Dividend

5.1 Amount

DAVA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ENDAVA PLC- SPON ADR

NYSE:DAVA (2/4/2025, 8:04:00 PM)

After market: 32.5 0 (0%)

32.5

+0.41 (+1.28%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-12 2024-11-12/bmo
Earnings (Next)N/A N/A
Inst Owners76.57%
Inst Owner Change2.1%
Ins Owners0.58%
Ins Owner ChangeN/A
Market Cap1.93B
Analysts78.95
Price Target39.38 (21.17%)
Short Float %2.02%
Short Ratio3.32
Dividend
Industry RankSector 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)5.77%
Min EPS beat(2)-4.63%
Max EPS beat(2)16.16%
EPS beat(4)3
Avg EPS beat(4)7.53%
Min EPS beat(4)-4.63%
Max EPS beat(4)17.64%
EPS beat(8)6
Avg EPS beat(8)9.04%
EPS beat(12)10
Avg EPS beat(12)7.81%
EPS beat(16)14
Avg EPS beat(16)9.28%
Revenue beat(2)0
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-2.59%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-2.59%
Max Revenue beat(4)-1.71%
Revenue beat(8)0
Avg Revenue beat(8)-1.71%
Revenue beat(12)2
Avg Revenue beat(12)-0.83%
Revenue beat(16)2
Avg Revenue beat(16)-0.72%
PT rev (1m)3.21%
PT rev (3m)4.05%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)-18.15%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-5.91%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-3.31%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.26%
Valuation
Industry RankSector Rank
PE 26.42
Fwd PE 16.05
P/S 2.08
P/FCF 42.79
P/OCF 36.89
P/B 2.48
P/tB 94.62
EV/EBITDA 35.55
EPS(TTM)1.23
EY3.78%
EPS(NY)2.02
Fwd EY6.23%
FCF(TTM)0.76
FCFY2.34%
OCF(TTM)0.88
OCFY2.71%
SpS15.62
BVpS13.09
TBVpS0.34
PEG (NY)7.83
PEG (5Y)3.2
Profitability
Industry RankSector Rank
ROA 0.72%
ROE 1.12%
ROCE 1.05%
ROIC 0.77%
ROICexc 0.82%
ROICexgc 3.8%
OM 1.17%
PM (TTM) 0.94%
GM 23.27%
FCFM 4.86%
ROA(3y)9.09%
ROA(5y)8.43%
ROE(3y)12.79%
ROE(5y)12.33%
ROIC(3y)9.56%
ROIC(5y)9.48%
ROICexc(3y)13.4%
ROICexc(5y)13.08%
ROICexgc(3y)36.98%
ROICexgc(5y)34.67%
ROCE(3y)13.11%
ROCE(5y)12.99%
ROICexcg growth 3Y-39.57%
ROICexcg growth 5Y-33.59%
ROICexc growth 3Y-51.03%
ROICexc growth 5Y-40.4%
OM growth 3Y-42.43%
OM growth 5Y-25.01%
PM growth 3Y-38.1%
PM growth 5Y-22.63%
GM growth 3Y-12.29%
GM growth 5Y-7.83%
F-Score3
Asset Turnover0.77
Health
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 5.16
Debt/EBITDA 3.65
Cap/Depr 15%
Cap/Sales 0.78%
Interest Coverage 1.63
Cash Conversion 88.71%
Profit Quality 518.99%
Current Ratio 1.9
Quick Ratio 1.9
Altman-Z 4.56
F-Score3
WACC8.47%
ROIC/WACC0.09
Cap/Depr(3y)34.71%
Cap/Depr(5y)33.76%
Cap/Sales(3y)1.53%
Cap/Sales(5y)1.59%
Profit Quality(3y)177.22%
Profit Quality(5y)174.57%
High Growth Momentum
Growth
EPS 1Y (TTM)-53.11%
EPS 3Y-4.56%
EPS 5Y8.26%
EPS Q2Q%-34.87%
EPS Next Y3.37%
EPS Next 2Y20.08%
EPS Next 3Y22.4%
EPS Next 5Y20.87%
Revenue 1Y (TTM)-5.02%
Revenue growth 3Y18.4%
Revenue growth 5Y20.81%
Sales Q2Q%3.52%
Revenue Next Year8.43%
Revenue Next 2Y9.35%
Revenue Next 3Y10.57%
Revenue Next 5Y10.41%
EBIT growth 1Y-91.39%
EBIT growth 3Y-31.84%
EBIT growth 5Y-9.4%
EBIT Next Year56.82%
EBIT Next 3Y37.68%
EBIT Next 5Y24.63%
FCF growth 1Y-67.61%
FCF growth 3Y-15.93%
FCF growth 5Y11.88%
OCF growth 1Y-66.53%
OCF growth 3Y-14.72%
OCF growth 5Y9.03%