DAYFORCE INC (DAY)
US15677J1088 - Common Stock
We assign a fundamental rating of 4 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.
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.
DAY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DAY has a Return On Assets of 0.65%. This is in the lower half of the industry: DAY underperforms 62.82% of its industry peers.
DAY has a Return On Equity of 2.07%. This is in the lower half of the industry: DAY underperforms 61.54% of its industry peers.
With a Return On Invested Capital value of 2.54%, DAY is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 2.07% | ||
| ROIC | 2.54% |
ROA(3y)-0.44%
ROA(5y)-0.02%
ROE(3y)-1.53%
ROE(5y)-0.12%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DAY has a Profit Margin (3.12%) which is comparable to the rest of the industry.
DAY has a Operating Margin of 7.28%. This is comparable to the rest of the industry: DAY outperforms 57.69% of its industry peers.
In the last couple of years the Operating Margin of DAY has grown nicely.
DAY's Gross Margin of 45.05% is in line compared to the rest of the industry. DAY outperforms 53.85% 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 | 7.28% | ||
| PM (TTM) | 3.12% | ||
| GM | 45.05% |
OM growth 3Y164.31%
OM growth 5Y9.17%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.78%
GM growth 5Y0.09%
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.
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
Based on the Altman-Z score of 1.55, we must say that DAY is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DAY (1.55) is worse than 71.79% of its industry peers.
DAY has a debt to FCF ratio of 6.72. This is a slightly negative value and a sign of low solvency as DAY would need 6.72 years to pay back of all of its debts.
DAY has a Debt to FCF ratio (6.72) which is in line with its industry peers.
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 43.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.27
WACC9.31%
2.3 Liquidity
A Current Ratio of 1.15 indicates that DAY should not have too much problems paying its short term obligations.
DAY has a worse Current ratio (1.15) than 64.10% of its industry peers.
DAY has a Quick Ratio of 1.15. 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 1.15. This is in the lower half of the industry: DAY underperforms 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.85% over the past year.
DAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.20% yearly.
Looking at the last year, DAY shows a quite strong growth in Revenue. The Revenue has grown by 16.85% in the last year.
DAY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.37% yearly.
EPS 1Y (TTM)52.85%
EPS 3Y45.2%
EPS 5YN/A
EPS Q2Q%27.03%
Revenue 1Y (TTM)16.85%
Revenue growth 3Y21.57%
Revenue growth 5Y15.37%
Sales Q2Q%16.56%
3.2 Future
Based on estimates for the next years, DAY will show a very strong growth in Earnings Per Share. The EPS will grow by 23.26% on average per year.
DAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.70% yearly.
EPS Next Y23.4%
EPS Next 2Y22.36%
EPS Next 3Y22.5%
EPS Next 5Y23.26%
Revenue Next Year15.63%
Revenue Next 2Y13.91%
Revenue Next 3Y13.57%
Revenue Next 5Y13.7%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 39.27, DAY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of DAY indicates a slightly more expensive valuation: DAY is more expensive than 71.79% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.55. DAY is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 32.87, the valuation of DAY can be described as expensive.
67.95% of the companies in the same industry are cheaper than DAY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DAY to the average of the S&P500 Index (24.00), we can say DAY is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.27 | ||
| Fwd PE | 32.87 |
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.
Based on the Price/Free Cash Flow ratio, DAY is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.29 | ||
| EV/EBITDA | 38.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as DAY's earnings are expected to grow with 22.50% in the coming years.
PEG (NY)1.68
PEG (5Y)N/A
EPS Next 2Y22.36%
EPS Next 3Y22.5%
5. Dividend
5.1 Amount
DAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DAYFORCE INC
NYSE:DAY (12/27/2024, 9:37:46 AM)
73.835
-0.32 (-0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners115.59%
Inst Owner ChangeN/A
Ins Owners1.11%
Ins Owner Change1.55%
Market Cap11.64B
Analysts76.67
Price Target84.91 (15%)
Short Float %7.43%
Short Ratio6.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)20.48%
Min EPS beat(2)8.73%
Max EPS beat(2)32.23%
EPS beat(4)4
Avg EPS beat(4)23.68%
Min EPS beat(4)0.92%
Max EPS beat(4)52.85%
EPS beat(8)7
Avg EPS beat(8)26.73%
EPS beat(12)11
Avg EPS beat(12)44.09%
EPS beat(16)15
Avg EPS beat(16)38.53%
Revenue beat(2)2
Avg Revenue beat(2)1.04%
Min Revenue beat(2)0.37%
Max Revenue beat(2)1.71%
Revenue beat(4)3
Avg Revenue beat(4)0.34%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)1.71%
Revenue beat(8)7
Avg Revenue beat(8)0.94%
Revenue beat(12)11
Avg Revenue beat(12)1.07%
Revenue beat(16)15
Avg Revenue beat(16)1.48%
PT rev (1m)15.83%
PT rev (3m)19.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.09%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.27 | ||
| Fwd PE | 32.87 | ||
| P/S | 6.87 | ||
| P/FCF | 64.29 | ||
| P/OCF | 40.15 | ||
| P/B | 4.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 38.42 |
EPS(TTM)1.88
EY2.55%
EPS(NY)2.25
Fwd EY3.04%
FCF(TTM)1.15
FCFY1.56%
OCF(TTM)1.84
OCFY2.49%
SpS10.75
BVpS16.21
TBVpS-0.42
PEG (NY)1.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 2.07% | ||
| ROCE | 3.21% | ||
| ROIC | 2.54% | ||
| ROICexc | 2.91% | ||
| ROICexgc | 13.49% | ||
| OM | 7.28% | ||
| PM (TTM) | 3.12% | ||
| GM | 45.05% | ||
| FCFM | 10.69% |
ROA(3y)-0.44%
ROA(5y)-0.02%
ROE(3y)-1.53%
ROE(5y)-0.12%
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 3Y188.83%
ROICexcg growth 5Y-4.54%
ROICexc growth 3Y204.74%
ROICexc growth 5Y18.19%
OM growth 3Y164.31%
OM growth 5Y9.17%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.78%
GM growth 5Y0.09%
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.72 | ||
| Debt/EBITDA | 3.74 | ||
| Cap/Depr | 54.48% | ||
| Cap/Sales | 6.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.73% | ||
| Profit Quality | 342.34% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 1.55 |
F-Score7
WACC9.31%
ROIC/WACC0.27
Cap/Depr(3y)91.57%
Cap/Depr(5y)97.37%
Cap/Sales(3y)7.12%
Cap/Sales(5y)7.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)52.85%
EPS 3Y45.2%
EPS 5YN/A
EPS Q2Q%27.03%
EPS Next Y23.4%
EPS Next 2Y22.36%
EPS Next 3Y22.5%
EPS Next 5Y23.26%
Revenue 1Y (TTM)16.85%
Revenue growth 3Y21.57%
Revenue growth 5Y15.37%
Sales Q2Q%16.56%
Revenue Next Year15.63%
Revenue Next 2Y13.91%
Revenue Next 3Y13.57%
Revenue Next 5Y13.7%
EBIT growth 1Y9.8%
EBIT growth 3Y221.32%
EBIT growth 5Y25.94%
EBIT Next Year50.9%
EBIT Next 3Y30.08%
EBIT Next 5Y26.03%
FCF growth 1Y2221.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y219.74%
OCF growth 3YN/A
OCF growth 5Y85.48%