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 4 out of 10. We evaluated DAY against 83 industry peers in the Professional Services industry. DAY has a bad profitability rating. Also its financial health evaluation is rather negative. DAY shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year DAY was profitable.
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 worse Return On Assets (0.20%) than 60.24% of its industry peers.
DAY's Return On Equity of 0.71% is on the low side compared to the rest of the industry. DAY is outperformed by 60.24% of its industry peers.
DAY's Return On Invested Capital of 2.32% is in line compared to the rest of the industry. DAY outperforms 43.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.71% | ||
| ROIC | 2.32% |
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
With a Profit Margin value of 1.03%, DAY perfoms like the industry average, outperforming 43.37% of the companies in the same industry.
In the last couple of years the Profit Margin of DAY has declined.
With a Operating Margin value of 6.34%, DAY perfoms like the industry average, outperforming 57.83% 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.
DAY has a Gross Margin of 46.14%. This is comparable to the rest of the industry: DAY outperforms 59.04% 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 | 6.34% | ||
| PM (TTM) | 1.03% | ||
| GM | 46.14% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DAY is destroying value.
Compared to 1 year ago, DAY has more shares outstanding
Compared to 5 years ago, DAY has more shares outstanding
The debt/assets ratio for DAY has been reduced compared to a year ago.
2.2 Solvency
DAY has an Altman-Z score of 1.05. This is a bad value and indicates that DAY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DAY (1.05) is worse than 67.47% of its industry peers.
DAY has a debt to FCF ratio of 7.09. This is a slightly negative value and a sign of low solvency as DAY would need 7.09 years to pay back of all of its debts.
DAY's Debt to FCF ratio of 7.09 is in line compared to the rest of the industry. DAY outperforms 46.99% of its industry peers.
DAY has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
DAY's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. DAY outperforms 44.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 7.09 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.28
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.13 indicates that DAY should not have too much problems paying its short term obligations.
The Current ratio of DAY (1.13) is comparable to the rest of the industry.
DAY has a Quick Ratio of 1.13. 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 1.13. This is comparable to the rest of the industry: DAY outperforms 45.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
DAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.00%, which is quite impressive.
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 16.27% in the last year.
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)32%
EPS 3Y96.74%
EPS 5Y34.49%
EPS Q2Q%20%
Revenue 1Y (TTM)16.27%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%16.39%
3.2 Future
DAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.40% yearly.
The Revenue is expected to grow by 13.85% on average over the next years. This is quite good.
EPS Next Y16.58%
EPS Next 2Y18.52%
EPS Next 3Y18.85%
EPS Next 5Y21.4%
Revenue Next Year10.41%
Revenue Next 2Y11.32%
Revenue Next 3Y12.05%
Revenue Next 5Y13.85%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DAY is valuated quite expensively with a Price/Earnings ratio of 27.35.
DAY's Price/Earnings ratio is in line with the industry average.
DAY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 23.46 indicates a rather expensive valuation of DAY.
The rest of the industry has a similar Price/Forward Earnings ratio as DAY.
The average S&P500 Price/Forward Earnings ratio is at 21.08. DAY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.35 | ||
| Fwd PE | 23.46 |
4.2 Price Multiples
67.47% 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 ratio is a bit more expensive when compared to the industry. DAY is more expensive than 62.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.97 | ||
| EV/EBITDA | 28.65 |
4.3 Compensation for Growth
DAY's 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 18.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.65
PEG (5Y)0.79
EPS Next 2Y18.52%
EPS Next 3Y18.85%
5. Dividend
5.1 Amount
DAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.15
-0.85 (-1.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners112.71%
Inst Owner ChangeN/A
Ins Owners1.23%
Ins Owner Change22.42%
Market Cap8.57B
Analysts75.83
Price Target80.78 (49.18%)
Short Float %4.51%
Short Ratio3.68
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)19.71%
Min EPS beat(2)8.73%
Max EPS beat(2)30.69%
EPS beat(4)4
Avg EPS beat(4)18.14%
Min EPS beat(4)0.92%
Max EPS beat(4)32.23%
EPS beat(8)7
Avg EPS beat(8)19.4%
EPS beat(12)11
Avg EPS beat(12)39.36%
EPS beat(16)15
Avg EPS beat(16)39.22%
Revenue beat(2)2
Avg Revenue beat(2)1.46%
Min Revenue beat(2)1.21%
Max Revenue beat(2)1.71%
Revenue beat(4)4
Avg Revenue beat(4)0.89%
Min Revenue beat(4)0.28%
Max Revenue beat(4)1.71%
Revenue beat(8)7
Avg Revenue beat(8)0.8%
Revenue beat(12)11
Avg Revenue beat(12)1.05%
Revenue beat(16)15
Avg Revenue beat(16)1.46%
PT rev (1m)-1.25%
PT rev (3m)-7.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.05%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.35 | ||
| Fwd PE | 23.46 | ||
| P/S | 4.87 | ||
| P/FCF | 49.97 | ||
| P/OCF | 30.49 | ||
| P/B | 3.37 | ||
| P/tB | 420.09 | ||
| EV/EBITDA | 28.65 |
EPS(TTM)1.98
EY3.66%
EPS(NY)2.31
Fwd EY4.26%
FCF(TTM)1.08
FCFY2%
OCF(TTM)1.78
OCFY3.28%
SpS11.12
BVpS16.09
TBVpS0.13
PEG (NY)1.65
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.71% | ||
| ROCE | 2.93% | ||
| ROIC | 2.32% | ||
| ROICexc | 2.73% | ||
| ROICexgc | 12.65% | ||
| OM | 6.34% | ||
| PM (TTM) | 1.03% | ||
| GM | 46.14% | ||
| FCFM | 9.74% |
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 | 0.47 | ||
| Debt/FCF | 7.09 | ||
| Debt/EBITDA | 3.76 | ||
| Cap/Depr | 52.24% | ||
| Cap/Sales | 6.23% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | 87.49% | ||
| Profit Quality | 947.51% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.05 |
F-Score7
WACC8.34%
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)32%
EPS 3Y96.74%
EPS 5Y34.49%
EPS Q2Q%20%
EPS Next Y16.58%
EPS Next 2Y18.52%
EPS Next 3Y18.85%
EPS Next 5Y21.4%
Revenue 1Y (TTM)16.27%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%16.39%
Revenue Next Year10.41%
Revenue Next 2Y11.32%
Revenue Next 3Y12.05%
Revenue Next 5Y13.85%
EBIT growth 1Y-27.5%
EBIT growth 3YN/A
EBIT growth 5Y16.61%
EBIT Next Year53.05%
EBIT Next 3Y28.59%
EBIT Next 5Y24.9%
FCF growth 1Y63.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.06%
OCF growth 3Y79.26%
OCF growth 5Y40.91%