DAYFORCE INC (DAY.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:DAY • US15677J1088
94.34 CAD
+1.25 (+1.34%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 4 out of 10 to DAY. DAY was compared to 6 industry peers in the Professional Services industry. While DAY is still in line with the averages on profitability rating, there are concerns on its financial health. DAY is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- DAY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- DAY has a Return On Assets (-1.72%) which is in line with its industry peers.
- DAY has a Return On Equity of -5.55%. This is comparable to the rest of the industry: DAY outperforms 50.00% of its industry peers.
- The Return On Invested Capital of DAY (2.19%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.72% | ||
| ROE | -5.55% | ||
| ROIC | 2.19% |
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
- DAY's Profit Margin has declined in the last couple of years.
- DAY's Operating Margin of 7.41% is fine compared to the rest of the industry. DAY outperforms 66.67% of its industry peers.
- In the last couple of years the Operating Margin of DAY has remained more or less at the same level.
- DAY has a Gross Margin of 49.77%. This is amongst the best in the industry. DAY outperforms 83.33% of its industry peers.
- DAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.41% | ||
| PM (TTM) | N/A | ||
| GM | 49.77% |
OM growth 3YN/A
OM growth 5Y0.19%
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.
- DAY has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for DAY has been increased compared to 5 years ago.
- DAY has a better debt/assets ratio than last year.
2.2 Solvency
- DAY has an Altman-Z score of 1.33. This is a bad value and indicates that DAY is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.33, DAY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- DAY has a debt to FCF ratio of 7.33. This is a slightly negative value and a sign of low solvency as DAY would need 7.33 years to pay back of all of its debts.
- DAY has a Debt to FCF ratio (7.33) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.23 indicates that DAY is not too dependend on debt financing.
- DAY has a worse Debt to Equity ratio (0.23) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 7.33 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.26
WACC8.38%
2.3 Liquidity
- DAY has a Current Ratio of 1.04. This is a normal value and indicates that DAY is financially healthy and should not expect problems in meeting its short term obligations.
- DAY has a Current ratio (1.04) which is comparable to the rest of the industry.
- DAY has a Quick Ratio of 1.04. This is a normal value and indicates that DAY is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.04, DAY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.89% 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 11.73%.
- DAY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.39% yearly.
EPS 1Y (TTM)14.89%
EPS 3Y96.74%
EPS 5Y34.49%
EPS Q2Q%-21.28%
Revenue 1Y (TTM)11.73%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%9.45%
3.2 Future
- The Earnings Per Share is expected to grow by 3.60% on average over the next years.
- DAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.74% yearly.
EPS Next Y14.74%
EPS Next 2Y17.9%
EPS Next 3Y18.61%
EPS Next 5Y3.6%
Revenue Next Year11.03%
Revenue Next 2Y11.19%
Revenue Next 3Y11.28%
Revenue Next 5Y9.74%
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 decreasing.
- 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
- With a Price/Earnings ratio of 32.31, DAY can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of DAY is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, DAY is valued at the same level.
- The Price/Forward Earnings ratio is 25.35, which means the current valuation is very expensive for DAY.
- Based on the Price/Forward Earnings ratio, DAY is valued a bit cheaper than 66.67% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. DAY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.31 | ||
| Fwd PE | 25.35 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as DAY.
- DAY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.41 | ||
| EV/EBITDA | 33.61 |
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 18.61% in the coming years.
PEG (NY)2.19
PEG (5Y)0.94
EPS Next 2Y17.9%
EPS Next 3Y18.61%
5. Dividend
5.1 Amount
- No dividends for DAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DAYFORCE INC / DAY.CA FAQ
Can you provide the ChartMill fundamental rating for DAYFORCE INC?
ChartMill assigns a fundamental rating of 4 / 10 to DAY.CA.
Can you provide the valuation status for DAYFORCE INC?
ChartMill assigns a valuation rating of 2 / 10 to DAYFORCE INC (DAY.CA). This can be considered as Overvalued.
How profitable is DAYFORCE INC (DAY.CA) stock?
DAYFORCE INC (DAY.CA) has a profitability rating of 4 / 10.
What are the PE and PB ratios of DAYFORCE INC (DAY.CA) stock?
The Price/Earnings (PE) ratio for DAYFORCE INC (DAY.CA) is 32.31 and the Price/Book (PB) ratio is 4.14.
What is the financial health of DAYFORCE INC (DAY.CA) stock?
The financial health rating of DAYFORCE INC (DAY.CA) is 3 / 10.