DAY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 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

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.
DAY had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

DAY has a Return On Assets of -1.72%. This is comparable to the rest of the industry: DAY outperforms 40.91% of its industry peers.
DAY has a Return On Equity (-5.55%) which 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 42.05% 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

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 63.64% of the companies in the same industry.
DAY's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 49.77%, DAY is doing good in the industry, outperforming 69.32% of the companies in the same industry.
DAY's Gross Margin has been stable in the last couple of years.

		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.
Compared to 1 year ago, DAY has more shares outstanding
DAY has more shares outstanding than it did 5 years ago.
DAY has a better debt/assets ratio than last year.

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.
DAY has a worse Altman-Z score (1.33) than 65.91% 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.
Looking at the Debt to FCF ratio, with a value of 7.33, DAY is in line with its industry, outperforming 51.14% of the companies in the same industry.
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

A Current Ratio of 1.04 indicates that DAY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.04, DAY is doing worse than 72.73% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that DAY should not have too much problems paying its short term obligations.
DAY has a worse Quick ratio (1.04) than 72.73% 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.
DAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.49% yearly.
The Revenue has grown by 11.73% in the past year. This is quite good.
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)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.
Based on estimates for the next years, DAY will show a quite strong growth in Revenue. The Revenue will grow by 9.74% on average per year.

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.
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

DAY is valuated quite expensively with a Price/Earnings ratio of 32.14.
The rest of the industry has a similar Price/Earnings ratio as DAY.
The average S&P500 Price/Earnings ratio is at 27.21. DAY is around the same levels.
With a Price/Forward Earnings ratio of 25.22, DAY can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as DAY.
DAY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	32.14
Fwd PE	25.22

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DAY is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAY is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	67.08
EV/EBITDA	33.45

4.3 Compensation for Growth

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