DAYFORCE INC (DAY)
US15677J1088 - Common Stock
Taking everything into account, DAY scores 3 out of 10 in our fundamental rating. DAY was compared to 82 industry peers in the Professional Services industry. DAY may be in some trouble as it scores bad on both profitability and health. DAY is valued quite expensive, but it does show an excellent growth.
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.
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's Return On Assets of 0.52% is on the low side compared to the rest of the industry. DAY is outperformed by 60.76% of its industry peers.
DAY has a Return On Equity of 1.90%. This is comparable to the rest of the industry: DAY outperforms 40.51% of its industry peers.
With a Return On Invested Capital value of 2.80%, DAY is not doing good in the industry: 60.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 1.9% | ||
| ROIC | 2.8% |
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
With a Profit Margin value of 2.89%, DAY perfoms like the industry average, outperforming 53.16% of the companies in the same industry.
With a decent Operating Margin value of 8.19%, DAY is doing good in the industry, outperforming 67.09% of the companies in the same industry.
In the last couple of years the Operating Margin of DAY has grown nicely.
With a Gross Margin value of 44.27%, DAY perfoms like the industry average, outperforming 51.90% of the companies in the same industry.
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 | 8.19% | ||
| PM (TTM) | 2.89% | ||
| GM | 44.27% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAY 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.
The debt/assets ratio for DAY has been reduced compared to a year ago.
2.2 Solvency
DAY has an Altman-Z score of 1.19. This is a bad value and indicates that DAY is not financially healthy and even has some risk of bankruptcy.
DAY's Altman-Z score of 1.19 is on the low side compared to the rest of the industry. DAY is outperformed by 68.35% of its industry peers.
DAY has a debt to FCF ratio of 9.94. This is a negative value and a sign of low solvency as DAY would need 9.94 years to pay back of all of its debts.
DAY's Debt to FCF ratio of 9.94 is on the low side compared to the rest of the industry. DAY is outperformed by 60.76% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that DAY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.49, DAY perfoms like the industry average, outperforming 45.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 9.94 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.34
WACC8.15%
2.3 Liquidity
DAY has a Current Ratio of 1.11. 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 worse Current ratio (1.11) than 69.62% of its industry peers.
DAY has a Quick Ratio of 1.11. 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 Quick ratio of 1.11 is on the low side compared to the rest of the industry. DAY is outperformed by 69.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
DAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.92%, 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 45.20% on average per year.
The Revenue has grown by 17.56% 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 15.37% yearly.
EPS 1Y (TTM)67.92%
EPS 3Y45.2%
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)17.56%
Revenue growth 3Y21.57%
Revenue growth 5Y15.37%
Sales Q2Q%15.69%
3.2 Future
The Earnings Per Share is expected to grow by 28.14% on average over the next years. This is a very strong growth
Based on estimates for the next years, DAY will show a quite strong growth in Revenue. The Revenue will grow by 17.14% on average per year.
EPS Next Y20.92%
EPS Next 2Y18.63%
EPS Next 3Y20.42%
EPS Next 5Y28.14%
Revenue Next Year15.04%
Revenue Next 2Y14.11%
Revenue Next 3Y14.55%
Revenue Next 5Y17.14%
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
The Price/Earnings ratio is 36.83, which means the current valuation is very expensive for DAY.
Based on the Price/Earnings ratio, DAY is valued a bit more expensive than the industry average as 65.82% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of DAY to the average of the S&P500 Index (31.46), we can say DAY is valued inline with the index average.
The Price/Forward Earnings ratio is 31.05, which means the current valuation is very expensive for DAY.
68.35% of the companies in the same industry are cheaper than DAY, based on the Price/Forward Earnings ratio.
DAY's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.83 | ||
| Fwd PE | 31.05 |
4.2 Price Multiples
DAY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DAY is more expensive than 73.42% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAY indicates a slightly more expensive valuation: DAY is more expensive than 64.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 84.61 | ||
| EV/EBITDA | 34.35 |
4.3 Compensation for Growth
The 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 20.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.76
PEG (5Y)N/A
EPS Next 2Y18.63%
EPS Next 3Y20.42%
5. Dividend
5.1 Amount
DAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DAYFORCE INC
NYSE:DAY (10/22/2024, 1:07:53 PM)
65.555
+0.77 (+1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.83 | ||
| Fwd PE | 31.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 1.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.19% | ||
| PM (TTM) | 2.89% | ||
| GM | 44.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)67.92%
EPS 3Y45.2%
EPS 5Y
EPS Q2Q%
EPS Next Y20.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.56%
Revenue growth 3Y21.57%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y