ENDAVA PLC- SPON ADR (DAVA) Stock Fundamental Analysis
USA - NYSE:DAVA - US29260V1052 - ADR
6.22 USD
-0.11 (-1.74%)
6.21 USD
-0.01 (-0.16%)
DAVA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. While DAVA seems to be doing ok healthwise, there are quite some concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on DAVA.
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
With a Return On Assets value of 2.27%, DAVA perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
DAVA has a Return On Equity of 3.64%. This is comparable to the rest of the industry: DAVA outperforms 56.47% of its industry peers.
DAVA has a Return On Invested Capital of 2.93%. This is comparable to the rest of the industry: DAVA outperforms 52.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DAVA is significantly below the industry average of 30.25%.
| 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.
In the last couple of years the Profit Margin of DAVA has declined.
DAVA has a Operating Margin (4.08%) which is in line with its industry peers.
DAVA's Operating Margin has declined in the last couple of years.
DAVA has a worse Gross Margin (25.08%) than 69.41% of its industry peers.
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.
DAVA has less shares outstanding than it did 1 year ago.
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
DAVA has an Altman-Z score of 2.49. 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.
With a Altman-Z score value of 2.49, DAVA perfoms like the industry average, outperforming 49.41% of the companies in the same industry.
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's Debt to FCF ratio of 4.74 is in line compared to the rest of the industry. DAVA outperforms 54.12% 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.
The Debt to Equity ratio of DAVA (0.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.74 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.42
WACC7.01%
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.
DAVA's Current ratio of 2.32 is fine compared to the rest of the industry. DAVA outperforms 70.59% of its industry peers.
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 has a Quick ratio of 2.32. This is in the better half of the industry: DAVA outperforms 71.76% 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.
DAVA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.54% yearly.
Looking at the last year, DAVA shows a small growth in Revenue. The Revenue has grown by 4.26% in the last year.
The Revenue has been growing by 17.08% on average over the past years. This is quite good.
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
DAVA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.05% yearly.
DAVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.51% yearly.
EPS Next Y-22.91%
EPS Next 2Y-1.01%
EPS Next 3Y6.25%
EPS Next 5Y14.05%
Revenue Next Year-2.42%
Revenue Next 2Y0.65%
Revenue Next 3Y2.68%
Revenue Next 5Y4.51%
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
The Price/Earnings ratio is 4.17, which indicates a rather cheap valuation of DAVA.
DAVA's Price/Earnings ratio is rather cheap when compared to the industry. DAVA is cheaper than 94.12% of the companies in the same industry.
DAVA is valuated cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
DAVA is valuated cheaply with a Price/Forward Earnings ratio of 5.42.
Based on the Price/Forward Earnings ratio, DAVA is valued cheaply inside the industry as 95.29% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DAVA to the average of the S&P500 Index (34.98), we can say DAVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.17 | ||
| Fwd PE | 5.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAVA is valued cheaply inside the industry as 90.59% of the companies are valued more expensively.
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 | 5.86 | ||
| EV/EBITDA | 5.88 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.64
EPS Next 2Y-1.01%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
DAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.22
-0.11 (-1.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81%
Inst Owner Change-24.66%
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap369.81M
Revenue(TTM)772.25M
Net Income(TTM)21.21M
Analysts76.47
Price Target16.63 (167.36%)
Short Float %4.09%
Short Ratio1.94
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)-2.98%
PT rev (3m)-26.56%
EPS NQ rev (1m)-9.35%
EPS NQ rev (3m)-33.8%
EPS NY rev (1m)-4.48%
EPS NY rev (3m)-26.8%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-3.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.17 | ||
| Fwd PE | 5.42 | ||
| P/S | 0.36 | ||
| P/FCF | 5.86 | ||
| P/OCF | 5.33 | ||
| P/B | 0.48 | ||
| P/tB | 32.16 | ||
| EV/EBITDA | 5.88 |
EPS(TTM)1.49
EY23.95%
EPS(NY)1.15
Fwd EY18.46%
FCF(TTM)1.06
FCFY17.08%
OCF(TTM)1.17
OCFY18.75%
SpS17.07
BVpS12.88
TBVpS0.19
PEG (NY)N/A
PEG (5Y)1.64
Graham Number20.78
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%
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 Turnover0.83
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 | 2.49 |
F-Score8
WACC7.01%
ROIC/WACC0.42
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-22.91%
EPS Next 2Y-1.01%
EPS Next 3Y6.25%
EPS Next 5Y14.05%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.65%
Revenue growth 5Y17.08%
Sales Q2Q%-3.93%
Revenue Next Year-2.42%
Revenue Next 2Y0.65%
Revenue Next 3Y2.68%
Revenue Next 5Y4.51%
EBIT growth 1Y56.46%
EBIT growth 3Y-31.05%
EBIT growth 5Y6.31%
EBIT Next Year8.89%
EBIT Next 3Y19.59%
EBIT Next 5Y15.3%
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%
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 4.17 and the Price/Book (PB) ratio is 0.48.
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.