Overall DAY gets a fundamental rating of 4 out of 10. We evaluated DAY against 87 industry peers in the Professional Services industry. DAY has a medium profitability rating, but doesn't score so well on its financial health evaluation. DAY is quite expensive at the moment. It does show a decent growth rate.

Quickly go to:

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

Looking at the Return On Assets, with a value of -1.72%, DAY is in line with its industry, outperforming 40.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of -5.55%, DAY is in line with its industry, outperforming 40.23% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.28%, DAY is in line with its industry, outperforming 41.38% of the companies in the same industry.

		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.
DAY has a Operating Margin of 7.41%. This is in the better half of the industry: DAY outperforms 63.22% of its industry peers.
DAY's Operating Margin has been stable in the last couple of years.
The Gross Margin of DAY (49.77%) is better than 70.11% 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	7.41%
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.
The number of shares outstanding for DAY has been increased compared to 1 year ago.
DAY has more shares outstanding than it did 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 1.33. This is a bad value and indicates that DAY is not financially healthy and even has some risk of bankruptcy.
DAY has a Altman-Z score of 1.33. This is in the lower half of the industry: DAY underperforms 67.82% 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.
With a Debt to FCF ratio value of 7.33, DAY perfoms like the industry average, outperforming 50.57% of the companies in the same industry.
DAY has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
DAY has a Debt to Equity ratio of 0.23. This is comparable to the rest of the industry: DAY outperforms 55.17% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.23
Debt/FCF	7.33
Altman-Z	1.33

ROIC/WACC0.4

WACC8.31%

2.3 Liquidity

A Current Ratio of 1.04 indicates that DAY should not have too much problems paying its short term obligations.
DAY's Current ratio of 1.04 is on the low side compared to the rest of the industry. DAY is outperformed by 72.41% of its industry peers.
A Quick Ratio of 1.04 indicates that DAY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, DAY is doing worse than 72.41% of the companies in the same industry.

		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.
Looking at the last year, DAY shows a quite strong growth in Revenue. The Revenue has grown by 11.73% in the last year.
Measured over the past years, DAY shows a quite strong growth in Revenue. The Revenue has been growing by 16.39% on average per year.

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.
The Revenue is expected to grow by 9.74% on average over the next years. This is quite good.

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

With a Price/Earnings ratio of 32.02, DAY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of DAY is on the same level as its industry peers.
DAY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.39.
A Price/Forward Earnings ratio of 25.13 indicates a quite expensive valuation of DAY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAY is on the same level as its industry peers.
DAY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	32.02
Fwd PE	25.13

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 64.37% of the companies listed in the same industry.
DAY's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	66.83
EV/EBITDA	33.43

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DAY does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as DAY's earnings are expected to grow with 18.61% in the coming years.