Taking everything into account, DAY scores 4 out of 10 in our fundamental rating. DAY was compared to 88 industry peers in the Professional Services industry. While DAY is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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

The Return On Assets of DAY (-1.72%) is comparable to the rest of the industry.
DAY has a Return On Equity (-5.55%) which is comparable to the rest of the industry.
DAY has a Return On Invested Capital (3.28%) which is in line with 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

DAY's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.41%, DAY is doing good in 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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, DAY has an improved debt to assets ratio.

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.
The Debt to FCF ratio of DAY is 7.33, which is on the high side as it means it would take DAY, 7.33 years of fcf income to pay off all of its debts.
DAY has a Debt to FCF ratio of 7.33. This is comparable to the rest of the industry: DAY outperforms 51.14% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that DAY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.23, DAY is in line with its industry, outperforming 55.68% of the companies in the same industry.

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

ROIC/WACC0.4

WACC8.31%

2.3 Liquidity

DAY has a Current Ratio of 1.04. 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 (1.04) than 72.73% of its industry peers.
DAY has a Quick Ratio of 1.04. This is a normal value and indicates that DAY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.04, DAY is doing worse than 72.73% 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

DAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.89%, which is quite good.
The Earnings Per Share has been growing by 34.49% on average over the past years. This is a very strong growth
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 2Y17.84%

EPS Next 3Y18.2%

EPS Next 5Y3.6%

Revenue Next Year11.03%

Revenue Next 2Y11.19%

Revenue Next 3Y11.28%

Revenue Next 5Y9.74%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

DAY is valuated quite expensively with a Price/Earnings ratio of 32.06.
DAY's Price/Earnings is on the same level as the industry average.
DAY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.19, the valuation of DAY can be described as expensive.
DAY's Price/Forward Earnings is on the same level as the industry average.
DAY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	32.06
Fwd PE	25.19

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.
DAY's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	66.93
EV/EBITDA	33.38

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 18.20% in the coming years.