DAYFORCE INC (DAY.CA) Stock Fundamental Analysis
TSX:DAY - Toronto Stock Exchange - US15677J1088 - Common Stock - Currency: CAD
DAY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 5 industry peers in the Professional Services industry. DAY may be in some trouble as it scores bad on both profitability and health. DAY is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year DAY was profitable.
DAY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: DAY reported negative net income in multiple years.
Of the past 5 years DAY 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.20%, DAY is doing worse than 80.00% of the companies in the same industry.
The Return On Equity of DAY (0.71%) is worse than 60.00% of its industry peers.
With a Return On Invested Capital value of 1.16%, DAY is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.71% | ||
| ROIC | 1.16% |
ROA(3y)-0.02%
ROA(5y)-0.23%
ROE(3y)-0.16%
ROE(5y)-0.81%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DAY (1.03%) is worse than 60.00% of its industry peers.
In the last couple of years the Profit Margin of DAY has declined.
DAY has a worse Operating Margin (4.77%) than 60.00% of its industry peers.
In the last couple of years the Operating Margin of DAY has declined.
DAY's Gross Margin of 46.14% is fine compared to the rest of the industry. DAY outperforms 80.00% of its industry peers.
DAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.77% | ||
| PM (TTM) | 1.03% | ||
| GM | 46.14% |
OM growth 3YN/A
OM growth 5Y-11.41%
PM growth 3YN/A
PM growth 5Y-35.96%
GM growth 3Y7.32%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAY is destroying value.
The number of shares outstanding for DAY has been increased compared to 1 year ago.
The number of shares outstanding for DAY has been increased compared to 5 years ago.
The debt/assets ratio for DAY has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.20, we must say that DAY is in the distress zone and has some risk of bankruptcy.
DAY has a worse Altman-Z score (1.20) than 60.00% of its industry peers.
DAY has a debt to FCF ratio of 7.09. This is a slightly negative value and a sign of low solvency as DAY would need 7.09 years to pay back of all of its debts.
The Debt to FCF ratio of DAY (7.09) is worse than 60.00% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that DAY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, DAY is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 7.09 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.14
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.13 indicates that DAY should not have too much problems paying its short term obligations.
DAY's Current ratio of 1.13 is fine compared to the rest of the industry. DAY outperforms 80.00% of its industry peers.
A Quick Ratio of 1.13 indicates that DAY should not have too much problems paying its short term obligations.
DAY's Quick ratio of 1.13 is fine compared to the rest of the industry. DAY outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.00% over the past year.
DAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.49% yearly.
DAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.27%.
Measured over the past years, DAY shows a quite strong growth in Revenue. The Revenue has been growing by 16.39% on average per year.
EPS 1Y (TTM)32%
EPS 3Y96.74%
EPS 5Y34.49%
EPS Q2Q%20%
Revenue 1Y (TTM)16.27%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%16.39%
3.2 Future
Based on estimates for the next years, DAY will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.39% on average per year.
Based on estimates for the next years, DAY will show a quite strong growth in Revenue. The Revenue will grow by 13.37% on average per year.
EPS Next Y16.71%
EPS Next 2Y18.41%
EPS Next 3Y18.76%
EPS Next 5Y17.39%
Revenue Next Year10.52%
Revenue Next 2Y11.4%
Revenue Next 3Y12.05%
Revenue Next 5Y13.37%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
DAY is valuated quite expensively with a Price/Earnings ratio of 32.75.
Based on the Price/Earnings ratio, DAY is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of DAY to the average of the S&P500 Index (29.62), we can say DAY is valued inline with the index average.
A Price/Forward Earnings ratio of 28.06 indicates a quite expensive valuation of DAY.
80.00% of the companies in the same industry are more expensive than DAY, based on the Price/Forward Earnings ratio.
DAY's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.75 | ||
| Fwd PE | 28.06 |
4.2 Price Multiples
80.00% of the companies in the same industry are cheaper than DAY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DAY is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.11 | ||
| EV/EBITDA | 37.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DAY does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as DAY's earnings are expected to grow with 18.76% in the coming years.
PEG (NY)1.96
PEG (5Y)0.95
EPS Next 2Y18.41%
EPS Next 3Y18.76%
5. Dividend
5.1 Amount
No dividends for DAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:DAY (2/21/2025, 7:00:00 PM)
92.04
-3.36 (-3.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners112.71%
Inst Owner ChangeN/A
Ins Owners1.23%
Ins Owner ChangeN/A
Market Cap14.63B
Analysts75.83
Price Target123.69 (34.39%)
Short Float %N/A
Short RatioN/A
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)19.71%
Min EPS beat(2)8.73%
Max EPS beat(2)30.69%
EPS beat(4)4
Avg EPS beat(4)18.14%
Min EPS beat(4)0.92%
Max EPS beat(4)32.23%
EPS beat(8)7
Avg EPS beat(8)19.4%
EPS beat(12)11
Avg EPS beat(12)39.36%
EPS beat(16)15
Avg EPS beat(16)39.22%
Revenue beat(2)2
Avg Revenue beat(2)1.46%
Min Revenue beat(2)1.21%
Max Revenue beat(2)1.71%
Revenue beat(4)4
Avg Revenue beat(4)0.89%
Min Revenue beat(4)0.28%
Max Revenue beat(4)1.71%
Revenue beat(8)7
Avg Revenue beat(8)0.8%
Revenue beat(12)11
Avg Revenue beat(12)1.05%
Revenue beat(16)15
Avg Revenue beat(16)1.46%
PT rev (1m)-1.11%
PT rev (3m)3.72%
EPS NQ rev (1m)-4.54%
EPS NQ rev (3m)5.12%
EPS NY rev (1m)2.89%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.75 | ||
| Fwd PE | 28.06 | ||
| P/S | 5.86 | ||
| P/FCF | 60.11 | ||
| P/OCF | 36.67 | ||
| P/B | 4.05 | ||
| P/tB | 505.34 | ||
| EV/EBITDA | 37.27 |
EPS(TTM)2.81
EY3.05%
EPS(NY)3.28
Fwd EY3.56%
FCF(TTM)1.53
FCFY1.66%
OCF(TTM)2.51
OCFY2.73%
SpS15.71
BVpS22.73
TBVpS0.18
PEG (NY)1.96
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.71% | ||
| ROCE | 2.21% | ||
| ROIC | 1.16% | ||
| ROICexc | 1.37% | ||
| ROICexgc | 6.34% | ||
| OM | 4.77% | ||
| PM (TTM) | 1.03% | ||
| GM | 46.14% | ||
| FCFM | 9.74% |
ROA(3y)-0.02%
ROA(5y)-0.23%
ROE(3y)-0.16%
ROE(5y)-0.81%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-13.99%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.53%
OM growth 3YN/A
OM growth 5Y-11.41%
PM growth 3YN/A
PM growth 5Y-35.96%
GM growth 3Y7.32%
GM growth 5Y0.65%
F-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 7.09 | ||
| Debt/EBITDA | 4.12 | ||
| Cap/Depr | 52.24% | ||
| Cap/Sales | 6.23% | ||
| Interest Coverage | 1.85 | ||
| Cash Conversion | 95.71% | ||
| Profit Quality | 947.51% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.2 |
F-Score7
WACC8.56%
ROIC/WACC0.14
Cap/Depr(3y)81.59%
Cap/Depr(5y)88.48%
Cap/Sales(3y)7.12%
Cap/Sales(5y)6.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32%
EPS 3Y96.74%
EPS 5Y34.49%
EPS Q2Q%20%
EPS Next Y16.71%
EPS Next 2Y18.41%
EPS Next 3Y18.76%
EPS Next 5Y17.39%
Revenue 1Y (TTM)16.27%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%16.39%
Revenue Next Year10.52%
Revenue Next 2Y11.4%
Revenue Next 3Y12.05%
Revenue Next 5Y13.37%
EBIT growth 1Y-45.45%
EBIT growth 3YN/A
EBIT growth 5Y3.11%
EBIT Next Year51.7%
EBIT Next 3Y29.93%
EBIT Next 5Y24.82%
FCF growth 1Y63.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.06%
OCF growth 3Y79.26%
OCF growth 5Y40.91%