ENDAVA PLC- SPON ADR (DAVA) Stock Fundamental Analysis
USA - NYSE:DAVA - US29260V1052 - ADR
9.45 USD
-0.43 (-4.35%)
9.5994 USD
+0.15 (+1.58%)
Overall DAVA gets a fundamental rating of 5 out of 10. We evaluated DAVA against 86 industry peers in the IT Services industry. DAVA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
In the past year DAVA had a positive cash flow from operations.
Each year in the past 5 years DAVA has been profitable.
Each year in the past 5 years DAVA had a positive operating cash flow.
1.2 Ratios
DAVA's Return On Assets of 2.27% is in line compared to the rest of the industry. DAVA outperforms 52.33% of its industry peers.
The Return On Equity of DAVA (3.64%) is comparable to the rest of the industry.
DAVA has a Return On Invested Capital (2.93%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for DAVA is significantly below the industry average of 21.79%.
| 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 has a Profit Margin (2.75%) which is comparable to the rest of the industry.
DAVA's Profit Margin has declined in the last couple of years.
DAVA's Operating Margin of 4.08% is in line compared to the rest of the industry. DAVA outperforms 51.16% of its industry peers.
DAVA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 25.08%, DAVA is doing worse than 69.77% of the companies in the same industry.
DAVA's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for DAVA has been reduced compared to 1 year ago.
The number of shares outstanding for DAVA has been increased compared to 5 years ago.
DAVA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.71 indicates that DAVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
DAVA has a Altman-Z score (2.71) which is in line with its industry peers.
DAVA has a debt to FCF ratio of 4.74. This is a neutral value as DAVA would need 4.74 years to pay back of all of its debts.
DAVA has a better Debt to FCF ratio (4.74) than 60.47% of its industry peers.
DAVA has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
DAVA has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: DAVA outperforms 51.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.74 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.23
WACC12.55%
2.3 Liquidity
A Current Ratio of 2.32 indicates that DAVA has no problem at all paying 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.
A Quick Ratio of 2.32 indicates that DAVA has no problem at all paying its short term obligations.
DAVA has a Quick ratio of 2.32. This is in the better half 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
The Earnings Per Share has been growing slightly by 0.33% over the past year.
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.
Looking at the last year, DAVA shows a small growth in Revenue. The Revenue has grown by 4.26% in the last 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 18.03% on average per year.
Based on estimates for the next years, DAVA will show a small growth in Revenue. The Revenue will grow by 7.04% on average per year.
EPS Next Y2.49%
EPS Next 2Y14.54%
EPS Next 3Y23.12%
EPS Next 5Y18.03%
Revenue Next Year-2.16%
Revenue Next 2Y0.7%
Revenue Next 3Y1.95%
Revenue Next 5Y7.04%
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
DAVA is valuated cheaply with a Price/Earnings ratio of 6.14.
Compared to the rest of the industry, the Price/Earnings ratio of DAVA indicates a rather cheap valuation: DAVA is cheaper than 94.19% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DAVA to the average of the S&P500 Index (27.27), we can say DAVA is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.97, the valuation of DAVA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAVA indicates a rather cheap valuation: DAVA is cheaper than 95.35% of the companies listed in the same industry.
DAVA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 5.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAVA indicates a rather cheap valuation: DAVA is cheaper than 87.21% of the companies listed in the same industry.
DAVA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DAVA is cheaper than 91.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.58 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DAVA does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as DAVA's earnings are expected to grow with 23.12% in the coming years.
PEG (NY)2.47
PEG (5Y)2.41
EPS Next 2Y14.54%
EPS Next 3Y23.12%
5. Dividend
5.1 Amount
DAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.45
-0.43 (-4.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners89.22%
Inst Owner Change-8.25%
Ins Owners0.61%
Ins Owner ChangeN/A
Market Cap561.84M
Analysts76.47
Price Target17.14 (81.38%)
Short Float %3.3%
Short Ratio1.83
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)-24.31%
PT rev (3m)-27.18%
EPS NQ rev (1m)-18.59%
EPS NQ rev (3m)-19.65%
EPS NY rev (1m)-2.68%
EPS NY rev (3m)-16.78%
Revenue NQ rev (1m)-3.18%
Revenue NQ rev (3m)-4.45%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 5.97 | ||
| P/S | 0.53 | ||
| P/FCF | 8.58 | ||
| P/OCF | 7.82 | ||
| P/B | 0.71 | ||
| P/tB | 47.14 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)1.54
EY16.3%
EPS(NY)1.58
Fwd EY16.74%
FCF(TTM)1.1
FCFY11.65%
OCF(TTM)1.21
OCFY12.79%
SpS17.69
BVpS13.35
TBVpS0.2
PEG (NY)2.47
PEG (5Y)2.41
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 | 2.71 |
F-Score8
WACC12.55%
ROIC/WACC0.23
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 Y2.49%
EPS Next 2Y14.54%
EPS Next 3Y23.12%
EPS Next 5Y18.03%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.65%
Revenue growth 5Y17.08%
Sales Q2Q%-3.93%
Revenue Next Year-2.16%
Revenue Next 2Y0.7%
Revenue Next 3Y1.95%
Revenue Next 5Y7.04%
EBIT growth 1Y56.46%
EBIT growth 3Y-31.05%
EBIT growth 5Y6.31%
EBIT Next Year29.79%
EBIT Next 3Y23.09%
EBIT Next 5Y18.19%
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%