Taking everything into account, DAY scores 4 out of 10 in our fundamental rating. DAY was compared to 88 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. DAY is quite expensive at the moment. It does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

DAY had positive earnings in the past year.
DAY had a positive operating cash flow in the past year.
In multiple years DAY reported negative net income over the last 5 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 has a Return On Equity (-5.55%) which is comparable to the rest of the industry.
The Return On Invested Capital of DAY (3.28%) 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.
DAY has a Operating Margin of 7.41%. This is in the better half 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 Gross Margin of 49.77%. This is in the better half of the industry: DAY outperforms 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.
DAY has more shares outstanding than it did 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

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.
Looking at the Altman-Z score, with a value of 1.33, DAY is doing worse than 65.91% 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 (7.33) which is in line with its industry peers.
A Debt/Equity ratio of 0.23 indicates that DAY is not too dependend on debt financing.
DAY has a Debt to Equity ratio of 0.23. This is comparable to the rest of the industry: DAY outperforms 55.68% of its industry peers.

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

ROIC/WACC0.4

WACC8.29%

2.3 Liquidity

DAY has a Current 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.
With a Current ratio value of 1.04, DAY is not doing good in the industry: 72.73% 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 72.73% 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

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.
DAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.73%.
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

Based on estimates for the next years, DAY will show a small growth in Earnings Per Share. The EPS will grow by 3.60% on average per year.
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 2Y17.84%

EPS Next 3Y18.2%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 32.14, 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 27.21, DAY is valued at the same level.
Based on the Price/Forward Earnings ratio of 25.25, the valuation of DAY can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as DAY.
When comparing the Price/Forward Earnings ratio of DAY to the average of the S&P500 Index (24.26), we can say DAY is valued inline with the index average.

		Industry Rank	Sector Rank
PE	32.14
Fwd PE	25.25

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.
DAY's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	67.08
EV/EBITDA	33.38

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 18.20% in the coming years. This may justify a more expensive valuation.