We assign a fundamental rating of 4 out of 10 to DAY. DAY was compared to 89 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. While showing a medium growth rate, DAY is valued expensive at the moment.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

The Return On Assets of DAY (-1.72%) is comparable to the rest of the industry.
DAY has a Return On Equity of -5.55%. This is comparable to the rest of the industry: DAY outperforms 41.57% of its industry peers.
DAY has a Return On Invested Capital (3.28%) which is comparable to the rest of the industry.

		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.
Looking at the Operating Margin, with a value of 7.41%, DAY is in the better half of the industry, outperforming 64.04% 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.
Looking at the Gross Margin, with a value of 49.77%, DAY is in the better half of the industry, outperforming 69.66% of the companies in the same industry.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAY is destroying value.
The number of shares outstanding for DAY has been increased compared to 1 year ago.
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

Based on the Altman-Z score of 1.33, we must say that DAY is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.33, DAY is not doing good in the industry: 64.04% of the companies in the same industry are doing better.
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 in line with its industry peers.
DAY has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.23, DAY perfoms like the industry average, outperforming 56.18% 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

WACC8.31%

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 is not doing good in the industry: 70.79% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 1.04, DAY is doing worse than 70.79% of the companies in the same industry.

		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

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.
Looking at the last year, DAY shows a quite strong growth in Revenue. The Revenue has grown by 11.73% in the last year.
Measured over the past years, DAY shows a quite strong growth in Revenue. The Revenue has been growing by 16.39% on average per year.

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.
The Revenue is expected to grow by 9.74% on average over the next years. This is quite good.

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

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 32.07, which means the current valuation is very expensive for DAY.
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.
A Price/Forward Earnings ratio of 25.17 indicates a quite expensive valuation of 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 (25.57), we can say DAY is valued inline with the index average.

		Industry Rank	Sector Rank
PE	32.07
Fwd PE	25.17

4.2 Price Multiples

DAY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DAY is more expensive than 62.92% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DAY.

		Industry Rank	Sector Rank
P/FCF	66.94
EV/EBITDA	33.38

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as DAY's earnings are expected to grow with 18.61% in the coming years.