DAYFORCE INC (DAY) Stock Fundamental Analysis
NYSE:DAY - New York Stock Exchange, Inc. - US15677J1088 - Common Stock - Currency: USD
Overall DAY gets a fundamental rating of 3 out of 10. We evaluated DAY against 82 industry peers in the Professional Services industry. Both the profitability and financial health of DAY have multiple concerns. While showing a medium growth rate, DAY is valued expensive at the moment.
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
With a Return On Assets value of 0.27%, DAY perfoms like the industry average, outperforming 40.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 1.00%, DAY is in line with its industry, outperforming 40.24% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.46%, DAY is in line with its industry, outperforming 41.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 1% | ||
| ROIC | 2.46% |
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 (1.43%) which is comparable to the rest of the industry.
DAY's Profit Margin has declined in the last couple of years.
DAY's Operating Margin of 5.62% is in line compared to the rest of the industry. DAY outperforms 54.88% of its industry peers.
DAY's Operating Margin has been stable in the last couple of years.
DAY has a Gross Margin (46.93%) which is in line with its industry peers.
DAY's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAY is destroying value.
Compared to 1 year ago, DAY has more shares outstanding
DAY has more shares outstanding than it did 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 0.95. This is a bad value and indicates that DAY is not financially healthy and even has some risk of bankruptcy.
DAY's Altman-Z score of 0.95 is on the low side compared to the rest of the industry. DAY is outperformed by 73.17% of its industry peers.
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 has a Debt to FCF ratio (5.79) which is in line with its industry peers.
A Debt/Equity ratio of 0.24 indicates that DAY is not too dependend on debt financing.
The Debt to Equity ratio of DAY (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.28
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.02 indicates that DAY should not have too much problems paying its short term obligations.
The Current ratio of DAY (1.02) is worse than 73.17% of its industry peers.
A Quick Ratio of 1.02 indicates that DAY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, DAY is doing worse than 73.17% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 34.49% on average over the past years. This is a very strong growth
DAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.97%.
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)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
Based on estimates for the next years, DAY will show a small growth in Earnings Per Share. The EPS will grow by 3.78% 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 9.62% on average per year.
EPS Next Y16.76%
EPS Next 2Y16.66%
EPS Next 3Y17.44%
EPS Next 5Y3.78%
Revenue Next Year10.58%
Revenue Next 2Y10.63%
Revenue Next 3Y11.72%
Revenue Next 5Y9.62%
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.
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 25.46 indicates a quite expensive valuation of DAY.
Compared to the rest of the industry, the Price/Earnings ratio of DAY is on the same level as its industry peers.
DAY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 20.13, DAY is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as DAY.
The average S&P500 Price/Forward Earnings ratio is at 35.33. DAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.46 | ||
| Fwd PE | 20.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAY is valued a bit more expensive than the industry average as 67.07% of the companies are valued more cheaply.
DAY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.33 | ||
| EV/EBITDA | 29.78 |
4.3 Compensation for Growth
The 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 17.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)0.74
EPS Next 2Y16.66%
EPS Next 3Y17.44%
5. Dividend
5.1 Amount
DAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.24
-0.64 (-1.17%)
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 Change22.21%
Market Cap8.67B
Analysts75.45
Price Target69.32 (27.8%)
Short Float %3.88%
Short Ratio2.99
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)-0.73%
PT rev (3m)-14.19%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-2.16%
EPS NY rev (1m)-1.68%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.46 | ||
| Fwd PE | 20.13 | ||
| P/S | 4.79 | ||
| P/FCF | 41.33 | ||
| P/OCF | 26.96 | ||
| P/B | 3.35 | ||
| P/tB | 100.49 | ||
| EV/EBITDA | 29.78 |
EPS(TTM)2.13
EY3.93%
EPS(NY)2.69
Fwd EY4.97%
FCF(TTM)1.31
FCFY2.42%
OCF(TTM)2.01
OCFY3.71%
SpS11.32
BVpS16.21
TBVpS0.54
PEG (NY)1.52
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 1% | ||
| ROCE | 3.11% | ||
| ROIC | 2.46% | ||
| ROICexc | 2.96% | ||
| ROICexgc | 38.3% | ||
| 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 | 0.95 |
F-Score7
WACC8.7%
ROIC/WACC0.28
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 Y16.76%
EPS Next 2Y16.66%
EPS Next 3Y17.44%
EPS Next 5Y3.78%
Revenue 1Y (TTM)14.97%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%11.66%
Revenue Next Year10.58%
Revenue Next 2Y10.63%
Revenue Next 3Y11.72%
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%