ENDAVA PLC- SPON ADR (DAVA)
US29260V1052 - ADR
We assign a fundamental rating of 4 out of 10 to DAVA. DAVA was compared to 83 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.
1. Profitability
1.1 Basic Checks
In the past year DAVA was profitable.
In the past year DAVA had a positive cash flow from operations.
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
DAVA has a Return On Assets of 0.72%. This is comparable to the rest of the industry: DAVA outperforms 53.09% of its industry peers.
Looking at the Return On Equity, with a value of 1.12%, DAVA is in line with its industry, outperforming 55.56% of the companies in the same industry.
With a Return On Invested Capital value of 0.77%, DAVA perfoms like the industry average, outperforming 46.91% of the companies in the same industry.
DAVA had an Average Return On Invested Capital over the past 3 years of 9.56%. This is in line with the industry average of 9.35%.
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 Rank | Sector 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%
1.3 Margins
DAVA has a Profit Margin (0.94%) which is in line with its industry peers.
DAVA's Profit Margin has declined in the last couple of years.
DAVA has a Operating Margin (1.17%) which is in line with its industry peers.
In the last couple of years the Operating Margin of DAVA has declined.
DAVA's Gross Margin of 23.27% is on the low side compared to the rest of the industry. DAVA is outperformed by 71.60% of its industry peers.
In the last couple of years the Gross Margin of DAVA has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DAVA is still creating some value.
Compared to 1 year ago, DAVA has more shares outstanding
DAVA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DAVA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.40 indicates that DAVA is not in any danger for bankruptcy at the moment.
DAVA has a Altman-Z score of 4.40. This is in the better half of the industry: DAVA outperforms 66.67% 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.
With a Debt to FCF ratio value of 5.16, DAVA perfoms like the industry average, outperforming 48.15% 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.
Looking at the Debt to Equity ratio, with a value of 0.28, DAVA is in line with its industry, outperforming 58.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.16 | ||
| Altman-Z | 4.4 |
ROIC/WACC0.09
WACC8.43%
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.
The Current ratio of DAVA (1.90) is better than 61.73% of its industry peers.
DAVA has a Quick 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 Quick ratio of 1.90 is fine compared to the rest of the industry. DAVA outperforms 61.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
The earnings per share for DAVA have decreased strongly by -53.11% in the last year.
DAVA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.26% yearly.
Looking at the last year, DAVA shows a decrease in Revenue. The Revenue has decreased by -5.02% in the last year.
DAVA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.81% yearly.
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 20.27% yearly.
Based on estimates for the next years, DAVA will show a quite strong growth in Revenue. The Revenue will grow by 9.86% on average per year.
EPS Next Y3.24%
EPS Next 2Y20.49%
EPS Next 3Y22.97%
EPS Next 5Y20.27%
Revenue Next Year8.41%
Revenue Next 2Y9.44%
Revenue Next 3Y10.71%
Revenue Next 5Y9.86%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 24.43, the valuation of DAVA can be described as rather expensive.
Based on the Price/Earnings ratio, DAVA is valued a bit cheaper than the industry average as 61.73% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.55, DAVA is valued at the same level.
With a Price/Forward Earnings ratio of 14.83, DAVA is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAVA indicates a rather cheap valuation: DAVA is cheaper than 80.25% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DAVA to the average of the S&P500 Index (24.00), we can say DAVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 14.83 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAVA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.8 | ||
| EV/EBITDA | 33.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DAVA's earnings are expected to grow with 22.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.54
PEG (5Y)2.96
EPS Next 2Y20.49%
EPS Next 3Y22.97%
5. Dividend
5.1 Amount
DAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ENDAVA PLC- SPON ADR
NYSE:DAVA (12/26/2024, 8:06:32 PM)
After market: 30.54 0 (0%)30.54
-0.3 (-0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners76.57%
Inst Owner Change1.52%
Ins Owners0.58%
Ins Owner ChangeN/A
Market Cap1.82B
Analysts78.95
Price Target38.36 (25.61%)
Short Float %2.22%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)0%
PT rev (3m)-9.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.62%
EPS NY rev (1m)0.97%
EPS NY rev (3m)-6.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.33%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 14.83 | ||
| P/S | 1.94 | ||
| P/FCF | 39.8 | ||
| P/OCF | 34.3 | ||
| P/B | 2.31 | ||
| P/tB | 88 | ||
| EV/EBITDA | 33.56 |
EPS(TTM)1.25
EY4.09%
EPS(NY)2.06
Fwd EY6.74%
FCF(TTM)0.77
FCFY2.51%
OCF(TTM)0.89
OCFY2.92%
SpS15.78
BVpS13.23
TBVpS0.35
PEG (NY)7.54
PEG (5Y)2.96
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.4 |
F-Score3
WACC8.43%
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 Y3.24%
EPS Next 2Y20.49%
EPS Next 3Y22.97%
EPS Next 5Y20.27%
Revenue 1Y (TTM)-5.02%
Revenue growth 3Y18.4%
Revenue growth 5Y20.81%
Sales Q2Q%3.52%
Revenue Next Year8.41%
Revenue Next 2Y9.44%
Revenue Next 3Y10.71%
Revenue Next 5Y9.86%
EBIT growth 1Y-91.39%
EBIT growth 3Y-31.84%
EBIT growth 5Y-9.4%
EBIT Next Year57.25%
EBIT Next 3Y29.1%
EBIT Next 5Y24.01%
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%