DAY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Professional Services industry. DAY has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, DAY is valued expensive at the moment.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

DAY has a Return On Assets (-1.72%) which is in line with its industry peers.
DAY's Return On Equity of -5.55% is in line compared to the rest of the industry. DAY outperforms 40.91% of its industry peers.
DAY's Return On Invested Capital of 3.28% is in line compared to the rest of the industry. DAY outperforms 42.05% of its industry peers.

		Industry Rank	Sector Rank
ROA	-1.72%
ROE	-5.55%
ROIC	3.28%

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

In the last couple of years the Profit Margin of DAY has declined.
DAY's Operating Margin of 7.41% is fine compared to the rest of the industry. DAY outperforms 63.64% of its industry peers.
DAY's Operating Margin has been stable in the last couple of years.
DAY has a better Gross Margin (49.77%) than 69.32% 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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

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.
DAY's Altman-Z score of 1.33 is on the low side compared to the rest of the industry. DAY is outperformed by 65.91% of its industry peers.
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 of 7.33. This is comparable to the rest of the industry: DAY outperforms 51.14% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that DAY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.23, DAY perfoms like the industry average, outperforming 55.68% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.23
Debt/FCF	7.33
Altman-Z	1.33

ROIC/WACC0.4

WACC8.29%

2.3 Liquidity

A Current Ratio of 1.04 indicates that DAY should not have too much problems paying its short term obligations.
DAY's Current ratio of 1.04 is on the low side compared to the rest of the industry. DAY is outperformed by 72.73% of its industry peers.
A Quick Ratio of 1.04 indicates that DAY should not have too much problems paying its short term obligations.
The Quick ratio of DAY (1.04) is worse than 72.73% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.04
Quick Ratio	1.04

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WACC

Debt/Equity

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Altman-Z score

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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.
DAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.49% yearly.
The Revenue has grown by 11.73% 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)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

The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 32.14, which means the current valuation is very expensive for DAY.
DAY's Price/Earnings ratio is in line with the industry average.
DAY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.22, which means the current valuation is very expensive for DAY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAY is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of DAY to the average of the S&P500 Index (25.98), we can say DAY is valued inline with the index average.

		Industry Rank	Sector Rank
PE	32.14
Fwd PE	25.22

4.2 Price Multiples

63.64% of the companies in the same industry are cheaper than DAY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAY is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	67.08
EV/EBITDA	33.45

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.
DAY's earnings are expected to grow with 18.61% in the coming years. This may justify a more expensive valuation.