DAYFORCE INC (DAY.CA) Stock Fundamental Analysis
TSX:DAY - Toronto Stock Exchange - US15677J1088 - Common Stock - Currency: CAD
Overall DAY gets a fundamental rating of 4 out of 10. We evaluated DAY against 6 industry peers in the Professional Services industry. Both the profitability and financial health of DAY have multiple concerns. DAY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DAY had positive earnings in the past year.
In the past year DAY had a positive cash flow from operations.
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
The Return On Assets of DAY (0.27%) is worse than 66.67% of its industry peers.
DAY has a Return On Equity of 1.00%. This is in the lower half of the industry: DAY underperforms 66.67% of its industry peers.
DAY has a Return On Invested Capital of 1.64%. This is in the lower half of the industry: DAY underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 1% | ||
| ROIC | 1.64% |
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 has a Profit Margin of 1.43%. This is in the lower half of the industry: DAY underperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of DAY has declined.
The Operating Margin of DAY (5.62%) is better than 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 better Gross Margin (46.93%) than 83.33% of its industry peers.
In the last couple of years the Gross Margin of DAY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.62% | ||
| PM (TTM) | 1.43% | ||
| GM | 46.93% |
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
DAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DAY has more shares outstanding
The number of shares outstanding for DAY has been increased compared to 5 years ago.
Compared to 1 year ago, DAY has an improved debt to assets ratio.
2.2 Solvency
DAY has an Altman-Z score of 1.00. 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 1.00, DAY is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of DAY is 5.79, which is a neutral value as it means it would take DAY, 5.79 years of fcf income to pay off all of its debts.
DAY's Debt to FCF ratio of 5.79 is in line compared to the rest of the industry. DAY outperforms 50.00% of its industry peers.
DAY has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
DAY has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 1 |
ROIC/WACC0.2
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.02 indicates that DAY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.02, DAY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
DAY has a Quick Ratio of 1.02. 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 Quick ratio of 1.02. This is comparable to the rest of the industry: DAY outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.48% over the past year.
Measured over the past years, DAY shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.49% on average per year.
The Revenue has grown by 14.97% in the past year. This is quite good.
The Revenue has been growing by 16.39% on average over the past years. This is quite good.
EPS 1Y (TTM)31.48%
EPS 3Y96.74%
EPS 5Y34.49%
EPS Q2Q%34.88%
Revenue 1Y (TTM)14.97%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%11.66%
3.2 Future
The Earnings Per Share is expected to grow by 3.78% on average over the next years.
The Revenue is expected to grow by 9.62% on average over the next years. This is quite good.
EPS Next Y16.78%
EPS Next 2Y16.65%
EPS Next 3Y18.4%
EPS Next 5Y3.78%
Revenue Next Year10.52%
Revenue Next 2Y10.99%
Revenue Next 3Y11.62%
Revenue Next 5Y9.62%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 25.91 indicates a quite expensive valuation of DAY.
66.67% of the companies in the same industry are more expensive than DAY, based on the Price/Earnings ratio.
DAY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.52, the valuation of DAY can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DAY is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. DAY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.91 | ||
| Fwd PE | 20.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DAY.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAY indicates a somewhat cheap valuation: DAY is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.13 | ||
| EV/EBITDA | 31.49 |
4.3 Compensation for Growth
DAY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DAY's earnings are expected to grow with 18.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)0.75
EPS Next 2Y16.65%
EPS Next 3Y18.4%
5. Dividend
5.1 Amount
No dividends for DAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:DAY (7/11/2025, 7:00:00 PM)
75.67
-4.08 (-5.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners111.67%
Inst Owner ChangeN/A
Ins Owners1.32%
Ins Owner ChangeN/A
Market Cap12.10B
Analysts75.45
Price Target95.15 (25.74%)
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)17.58%
Min EPS beat(2)4.47%
Max EPS beat(2)30.69%
EPS beat(4)4
Avg EPS beat(4)19.03%
Min EPS beat(4)4.47%
Max EPS beat(4)32.23%
EPS beat(8)8
Avg EPS beat(8)20.24%
EPS beat(12)11
Avg EPS beat(12)34.76%
EPS beat(16)15
Avg EPS beat(16)39.43%
Revenue beat(2)2
Avg Revenue beat(2)0.64%
Min Revenue beat(2)0.06%
Max Revenue beat(2)1.21%
Revenue beat(4)4
Avg Revenue beat(4)0.84%
Min Revenue beat(4)0.06%
Max Revenue beat(4)1.71%
Revenue beat(8)7
Avg Revenue beat(8)0.6%
Revenue beat(12)11
Avg Revenue beat(12)1.02%
Revenue beat(16)15
Avg Revenue beat(16)1.2%
PT rev (1m)-8.14%
PT rev (3m)-18.05%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-2.16%
EPS NY rev (1m)-1.66%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.91 | ||
| Fwd PE | 20.52 | ||
| P/S | 4.88 | ||
| P/FCF | 42.13 | ||
| P/OCF | 27.48 | ||
| P/B | 3.41 | ||
| P/tB | 102.41 | ||
| EV/EBITDA | 31.49 |
EPS(TTM)2.92
EY3.86%
EPS(NY)3.69
Fwd EY4.87%
FCF(TTM)1.8
FCFY2.37%
OCF(TTM)2.75
OCFY3.64%
SpS15.5
BVpS22.19
TBVpS0.74
PEG (NY)1.54
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 1% | ||
| ROCE | 3.11% | ||
| ROIC | 1.64% | ||
| ROICexc | 1.97% | ||
| ROICexgc | 25.5% | ||
| OM | 5.62% | ||
| PM (TTM) | 1.43% | ||
| GM | 46.93% | ||
| FCFM | 11.59% |
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-2.73%
ROICexc growth 3YN/A
ROICexc growth 5Y10.24%
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%
F-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 52.02% | ||
| Cap/Sales | 6.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.55% | ||
| Profit Quality | 810.04% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 1 |
F-Score7
WACC8.36%
ROIC/WACC0.2
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)31.48%
EPS 3Y96.74%
EPS 5Y34.49%
EPS Q2Q%34.88%
EPS Next Y16.78%
EPS Next 2Y16.65%
EPS Next 3Y18.4%
EPS Next 5Y3.78%
Revenue 1Y (TTM)14.97%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%11.66%
Revenue Next Year10.52%
Revenue Next 2Y10.99%
Revenue Next 3Y11.62%
Revenue Next 5Y9.62%
EBIT growth 1Y-33.29%
EBIT growth 3YN/A
EBIT growth 5Y16.61%
EBIT Next Year52.69%
EBIT Next 3Y28.6%
EBIT Next 5Y24.9%
FCF growth 1Y492.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y132.37%
OCF growth 3Y79.26%
OCF growth 5Y40.91%