DAYFORCE INC (DAY) Stock Fundamental Analysis
NYSE:DAY - New York Stock Exchange, Inc. - US15677J1088 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to DAY. DAY was compared to 81 industry peers in the Professional Services industry. DAY has a bad profitability rating. Also its financial health evaluation is rather negative. DAY is valued quite expensively, but it does show have an excellent growth rating.
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.
Of the past 5 years DAY 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.20%, DAY is doing worse than 61.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 0.71%, DAY is doing worse than 60.26% of the companies in the same industry.
With a Return On Invested Capital value of 1.74%, DAY is not doing good in the industry: 70.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.71% | ||
| ROIC | 1.74% |
ROA(3y)-0.02%
ROA(5y)-0.23%
ROE(3y)-0.16%
ROE(5y)-0.81%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DAY has a Profit Margin (1.03%) which is in line with its industry peers.
DAY's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.77%, DAY perfoms like the industry average, outperforming 44.87% of the companies in the same industry.
In the last couple of years the Operating Margin of DAY has declined.
DAY has a Gross Margin (46.14%) which is in line with 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 | 4.77% | ||
| PM (TTM) | 1.03% | ||
| GM | 46.14% |
OM growth 3YN/A
OM growth 5Y-11.41%
PM growth 3YN/A
PM growth 5Y-35.96%
GM growth 3Y7.32%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAY is destroying value.
DAY has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DAY has more shares outstanding
Compared to 1 year ago, DAY has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.15, we must say that DAY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.15, DAY is doing worse than 74.36% of the companies in the same industry.
The Debt to FCF ratio of DAY is 7.09, which is on the high side as it means it would take DAY, 7.09 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.09, DAY perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that DAY is not too dependend on debt financing.
DAY has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: DAY outperforms 41.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 7.09 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.2
WACC8.66%
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 worse than 60.26% of its industry peers.
A Quick Ratio of 1.13 indicates that DAY should not have too much problems paying its short term obligations.
DAY has a Quick ratio (1.13) which is comparable to the rest of the industry.
| 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.
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.
Looking at the last year, DAY shows a quite strong growth in Revenue. The Revenue has grown by 16.27% in the last year.
The Revenue has been growing by 16.39% on average over the past years. This is quite good.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.39% yearly.
The Revenue is expected to grow by 13.37% on average over the next years. This is quite good.
EPS Next Y16.71%
EPS Next 2Y18.41%
EPS Next 3Y18.76%
EPS Next 5Y17.39%
Revenue Next Year10.52%
Revenue Next 2Y11.4%
Revenue Next 3Y12.05%
Revenue Next 5Y13.37%
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
Based on the Price/Earnings ratio of 31.31, the valuation of DAY can be described as expensive.
DAY's Price/Earnings ratio is a bit more expensive when compared to the industry. DAY is more expensive than 64.10% of the companies in the same industry.
DAY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.43.
DAY is valuated quite expensively with a Price/Forward Earnings ratio of 26.83.
DAY's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.67. DAY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.31 | ||
| Fwd PE | 26.83 |
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 76.92% of the companies listed in the same industry.
DAY's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. DAY is more expensive than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.47 | ||
| EV/EBITDA | 35.54 |
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 18.76% in the coming years.
PEG (NY)1.87
PEG (5Y)0.91
EPS Next 2Y18.41%
EPS Next 3Y18.76%
5. Dividend
5.1 Amount
No dividends for DAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.99
+0.35 (+0.57%)
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 Change10.67%
Market Cap9.86B
Analysts75.83
Price Target81.8 (31.96%)
Short Float %5.09%
Short Ratio4.97
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)-6.05%
PT rev (3m)-4.25%
EPS NQ rev (1m)-4.54%
EPS NQ rev (3m)5.12%
EPS NY rev (1m)2.89%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.31 | ||
| Fwd PE | 26.83 | ||
| P/S | 5.6 | ||
| P/FCF | 57.47 | ||
| P/OCF | 35.06 | ||
| P/B | 3.87 | ||
| P/tB | 483.16 | ||
| EV/EBITDA | 35.54 |
EPS(TTM)1.98
EY3.19%
EPS(NY)2.31
Fwd EY3.73%
FCF(TTM)1.08
FCFY1.74%
OCF(TTM)1.77
OCFY2.85%
SpS11.07
BVpS16.01
TBVpS0.13
PEG (NY)1.87
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.71% | ||
| ROCE | 2.21% | ||
| ROIC | 1.74% | ||
| ROICexc | 2.06% | ||
| ROICexgc | 9.51% | ||
| OM | 4.77% | ||
| 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-13.99%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.53%
OM growth 3YN/A
OM growth 5Y-11.41%
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 | 4.12 | ||
| Cap/Depr | 52.24% | ||
| Cap/Sales | 6.23% | ||
| Interest Coverage | 1.85 | ||
| Cash Conversion | 95.71% | ||
| Profit Quality | 947.51% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.15 |
F-Score7
WACC8.66%
ROIC/WACC0.2
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 Y16.71%
EPS Next 2Y18.41%
EPS Next 3Y18.76%
EPS Next 5Y17.39%
Revenue 1Y (TTM)16.27%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%16.39%
Revenue Next Year10.52%
Revenue Next 2Y11.4%
Revenue Next 3Y12.05%
Revenue Next 5Y13.37%
EBIT growth 1Y-45.45%
EBIT growth 3YN/A
EBIT growth 5Y3.11%
EBIT Next Year51.7%
EBIT Next 3Y29.93%
EBIT Next 5Y24.82%
FCF growth 1Y63.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.06%
OCF growth 3Y79.26%
OCF growth 5Y40.91%