We assign a fundamental rating of 4 out of 10 to DAY. DAY was compared to 88 industry peers in the Professional Services industry. There are concerns on the financial health of DAY while its profitability can be described as average. DAY is valied quite expensively at the moment, while it does show a decent growth rate.

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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.
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

With a Return On Assets value of -1.72%, DAY perfoms like the industry average, outperforming 40.23% of the companies in the same industry.
The Return On Equity of DAY (-5.55%) is comparable to the rest of the industry.
DAY's Return On Invested Capital of 3.28% is in line compared to the rest of the industry. DAY outperforms 41.38% 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

DAY's Profit Margin has declined in the last couple of years.
DAY has a Operating Margin of 7.41%. This is in the better half of the industry: DAY outperforms 63.22% 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 70.11% 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

DAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
DAY has a better debt/assets ratio than last year.

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.
The Altman-Z score of DAY (1.32) is worse than 66.67% 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 (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.
DAY's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. DAY outperforms 55.17% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.23
Debt/FCF	7.33
Altman-Z	1.32

ROIC/WACC0.4

WACC8.31%

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.
DAY's Current ratio of 1.04 is on the low side compared to the rest of the industry. DAY is outperformed by 71.26% of its industry peers.
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.
DAY has a Quick ratio of 1.04. This is in the lower half of the industry: DAY underperforms 71.26% 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

The Earnings Per Share has grown by an nice 14.89% over the past year.
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.
The Revenue has grown by 11.73% in the past year. This is quite good.
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

DAY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.60% yearly.
DAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.74% yearly.

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.
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

DAY is valuated quite expensively with a Price/Earnings ratio of 32.07.
Compared to the rest of the industry, the Price/Earnings ratio of DAY is on the same level as its industry peers.
DAY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.17, the valuation of DAY can be described as expensive.
DAY's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.57. DAY is around the same levels.

		Industry Rank	Sector Rank
PE	32.07
Fwd PE	25.17

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAY indicates a slightly more expensive valuation: DAY is more expensive than 64.37% of the companies listed in the same industry.
DAY's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	66.94
EV/EBITDA	33.33

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.