ENDAVA PLC- SPON ADR (DAVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAVA - US29260V1052 - ADR
6.31 USD
+0.26 (+4.3%)
6.18 USD
-0.13 (-2.06%)
We assign a fundamental rating of 4 out of 10 to DAVA. DAVA was compared to 85 industry peers in the IT Services industry. While DAVA seems to be doing ok healthwise, there are quite some concerns on its profitability. DAVA may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Each year in the past 5 years DAVA had a positive operating cash flow.
1.2 Ratios
DAVA has a Return On Assets (1.16%) which is comparable to the rest of the industry.
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 29.77%.
| 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
With a Profit Margin value of 1.43%, DAVA perfoms like the industry average, outperforming 49.41% of the companies in the same industry.
In the last couple of years the Profit Margin of DAVA has declined.
DAVA's Operating Margin of 3.16% is in line compared to the rest of the industry. DAVA outperforms 47.06% of its industry peers.
DAVA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 24.19%, DAVA is not doing good in the industry: 72.94% 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 | 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
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.
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 2.30. 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.
The Altman-Z score of DAVA (2.30) is comparable to the rest of the industry.
DAVA has a debt to FCF ratio of 4.49. This is a neutral value as DAVA would need 4.49 years to pay back of all of its debts.
The Debt to FCF ratio of DAVA (4.49) is comparable to the rest of the industry.
DAVA has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DAVA (0.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.49 | ||
| Altman-Z | 2.3 |
ROIC/WACC0.2
WACC11.09%
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.
DAVA has a better Current ratio (2.18) than 64.71% of its industry peers.
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 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.59% over the past year.
The Earnings Per Share has been growing slightly by 2.54% on average over the past years.
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
Based on estimates for the next years, DAVA will show a small growth in Earnings Per Share. The EPS will grow by 4.02% on average per year.
Based on estimates for the next years, DAVA will show a small growth in Revenue. The Revenue will grow by 1.79% on average per year.
EPS Next Y-22.91%
EPS Next 2Y-1.01%
EPS Next 3Y0.49%
EPS Next 5Y4.02%
Revenue Next Year-2.42%
Revenue Next 2Y0.65%
Revenue Next 3Y1.11%
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 4.64.
Based on the Price/Earnings ratio, DAVA is valued cheaper than 94.12% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.37. DAVA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.30 indicates a rather cheap valuation of DAVA.
Based on the Price/Forward Earnings ratio, DAVA is valued cheaper than 96.47% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DAVA to the average of the S&P500 Index (36.20), we can say DAVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.64 | ||
| Fwd PE | 4.3 |
4.2 Price Multiples
91.76% of the companies in the same industry are more expensive than DAVA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DAVA is valued cheaply inside the industry as 95.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.68 | ||
| EV/EBITDA | 6.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.83
EPS Next 2Y-1.01%
EPS Next 3Y0.49%
5. Dividend
5.1 Amount
No dividends for DAVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.31
+0.26 (+4.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81%
Inst Owner Change-24.65%
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap333.44M
Revenue(TTM)755.39M
Net Income(TTM)10.81M
Analysts76.47
Price Target14.09 (123.3%)
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)-17.81%
PT rev (3m)-37.79%
EPS NQ rev (1m)-20.09%
EPS NQ rev (3m)-41.16%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-24.78%
Revenue NQ rev (1m)-2.83%
Revenue NQ rev (3m)-5.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.64 | ||
| Fwd PE | 4.3 | ||
| P/S | 0.33 | ||
| P/FCF | 4.68 | ||
| P/OCF | 4.16 | ||
| P/B | 0.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.33 |
EPS(TTM)1.36
EY21.55%
EPS(NY)1.47
Fwd EY23.25%
FCF(TTM)1.35
FCFY21.38%
OCF(TTM)1.52
OCFY24.02%
SpS18.87
BVpS14.21
TBVpS-0.36
PEG (NY)N/A
PEG (5Y)1.83
Graham Number20.85
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 | 2.3 |
F-Score8
WACC11.09%
ROIC/WACC0.2
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-22.91%
EPS Next 2Y-1.01%
EPS Next 3Y0.49%
EPS Next 5Y4.02%
Revenue 1Y (TTM)1.07%
Revenue growth 3Y5.65%
Revenue growth 5Y17.08%
Sales Q2Q%-8.65%
Revenue Next Year-2.42%
Revenue Next 2Y0.65%
Revenue Next 3Y1.11%
Revenue Next 5Y1.79%
EBIT growth 1Y173.93%
EBIT growth 3Y-31.05%
EBIT growth 5Y6.31%
EBIT Next Year8.89%
EBIT Next 3Y13.57%
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 4.64 and the Price/Book (PB) ratio is 0.44.
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 -22.91% in the next year.