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
Overall DAY gets a fundamental rating of 4 out of 10. We evaluated DAY against 6 industry peers in the Professional Services industry. There are concerns on the financial health of DAY while its profitability can be described as average. While showing a medium growth rate, DAY is valued expensive at the moment.
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.
- DAY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -1.72%, DAY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- 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.
- DAY has a Return On Invested Capital (2.19%) which 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.
- With a decent Operating Margin value of 7.41%, DAY is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DAY is destroying value.
- The number of shares outstanding for DAY has been increased compared to 1 year ago.
- DAY has more shares outstanding than it did 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 1.32, we must say that DAY is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.32, DAY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- The Debt to FCF ratio of DAY is 7.33, which is on the high side as it means it would take DAY, 7.33 years of fcf income to pay off all of its debts.
- DAY has a Debt to FCF ratio of 7.33. This is comparable to the rest of the industry: DAY outperforms 50.00% of its industry peers.
- 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 | 1.32 |
ROIC/WACC0.26
WACC8.36%
2.3 Liquidity
- A Current Ratio of 1.04 indicates that DAY should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.04, DAY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- A Quick Ratio of 1.04 indicates that DAY should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.04, DAY is in line with its industry, 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
- DAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.89%, which is quite good.
- 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.
- Looking at the last year, DAY shows a quite strong growth in Revenue. The Revenue has grown by 11.73% in the last year.
- 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
- DAY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.60% yearly.
- Based on estimates for the next years, DAY will show a quite strong growth in Revenue. The Revenue will grow by 9.74% on average per year.
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
- Based on the Price/Earnings ratio of 32.31, the valuation of DAY can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as DAY.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, DAY is valued at the same level.
- Based on the Price/Forward Earnings ratio of 25.35, the valuation of DAY can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DAY indicates a somewhat cheap valuation: DAY is cheaper than 66.67% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of DAY to the average of the S&P500 Index (25.57), we can say DAY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.31 | ||
| Fwd PE | 25.35 |
4.2 Price Multiples
- DAY's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as DAY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.41 | ||
| EV/EBITDA | 33.18 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- DAY's earnings are expected to grow with 18.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.19
PEG (5Y)0.94
EPS Next 2Y17.9%
EPS Next 3Y18.61%
5. Dividend
5.1 Amount
- DAY does not give a dividend.
| 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.