DOUBLEVERIFY HOLDINGS INC (DV) Stock Fundamental Analysis
USA - NYSE:DV - US25862V1052 - Common Stock
12.78 USD
-0.19 (-1.46%)
12.76 USD
-0.02 (-0.16%)
Taking everything into account, DV scores 6 out of 10 in our fundamental rating. DV was compared to 99 industry peers in the Media industry. DV has an excellent financial health rating, but there are some minor concerns on its profitability. DV is valued quite expensive, but it does show an excellent growth. These ratings could make DV a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
DV had positive earnings in the past year.
In the past year DV had a positive cash flow from operations.
Each year in the past 5 years DV has been profitable.
DV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DV has a better Return On Assets (4.06%) than 74.75% of its industry peers.
DV has a Return On Equity of 4.84%. This is in the better half of the industry: DV outperforms 65.66% of its industry peers.
With a decent Return On Invested Capital value of 4.98%, DV is doing good in the industry, outperforming 61.62% of the companies in the same industry.
DV had an Average Return On Invested Capital over the past 3 years of 4.71%. This is below the industry average of 8.87%.
The last Return On Invested Capital (4.98%) for DV is above the 3 year average (4.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 4.84% | ||
| ROIC | 4.98% |
ROA(3y)4.78%
ROA(5y)4.32%
ROE(3y)5.59%
ROE(5y)5.07%
ROIC(3y)4.71%
ROIC(5y)3.99%
1.3 Margins
Looking at the Profit Margin, with a value of 7.38%, DV is in the better half of the industry, outperforming 74.75% of the companies in the same industry.
In the last couple of years the Profit Margin of DV has declined.
The Operating Margin of DV (12.07%) is better than 65.66% of its industry peers.
DV's Operating Margin has declined in the last couple of years.
DV has a better Gross Margin (82.10%) than 93.94% of its industry peers.
DV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.07% | ||
| PM (TTM) | 7.38% | ||
| GM | 82.1% |
OM growth 3Y16.07%
OM growth 5Y-10.13%
PM growth 3Y-0.94%
PM growth 5Y-7.66%
GM growth 3Y-0.57%
GM growth 5Y-0.97%
2. Health
2.1 Basic Checks
DV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DV has less shares outstanding
The number of shares outstanding for DV has been increased compared to 5 years ago.
DV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.54 indicates that DV is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.54, DV belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
DV has a debt to FCF ratio of 0.11. This is a very positive value and a sign of high solvency as it would only need 0.11 years to pay back of all of its debts.
The Debt to FCF ratio of DV (0.11) is better than 90.91% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that DV is not too dependend on debt financing.
The Debt to Equity ratio of DV (0.01) is better than 82.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.11 | ||
| Altman-Z | 7.54 |
ROIC/WACC0.57
WACC8.7%
2.3 Liquidity
A Current Ratio of 4.41 indicates that DV has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.41, DV belongs to the best of the industry, outperforming 94.95% of the companies in the same industry.
A Quick Ratio of 4.41 indicates that DV has no problem at all paying its short term obligations.
The Quick ratio of DV (4.41) is better than 94.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.41 | ||
| Quick Ratio | 4.41 |
3. Growth
3.1 Past
DV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.43%.
DV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.45% yearly.
Looking at the last year, DV shows a quite strong growth in Revenue. The Revenue has grown by 16.54% in the last year.
Measured over the past years, DV shows a very strong growth in Revenue. The Revenue has been growing by 29.17% on average per year.
EPS 1Y (TTM)-11.43%
EPS 3Y21.14%
EPS 5Y16.45%
EPS Q2Q%50%
Revenue 1Y (TTM)16.54%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%21.25%
3.2 Future
DV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.38% yearly.
The Revenue is expected to grow by 12.83% on average over the next years. This is quite good.
EPS Next Y6.68%
EPS Next 2Y23%
EPS Next 3Y20.76%
EPS Next 5Y47.38%
Revenue Next Year14.06%
Revenue Next 2Y13%
Revenue Next 3Y12.78%
Revenue Next 5Y12.83%
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 accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.23 indicates a quite expensive valuation of DV.
DV's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, DV is valued quite expensively.
The Price/Forward Earnings ratio is 26.40, which means the current valuation is very expensive for DV.
DV's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.88. DV is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.23 | ||
| Fwd PE | 26.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DV is on the same level as its industry peers.
DV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DV is cheaper than 68.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.95 | ||
| EV/EBITDA | 14.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DV does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of DV may justify a higher PE ratio.
A more expensive valuation may be justified as DV's earnings are expected to grow with 20.76% in the coming years.
PEG (NY)6.17
PEG (5Y)2.51
EPS Next 2Y23%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
DV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.78
-0.19 (-1.46%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change0.36%
Ins Owners0.7%
Ins Owner Change-6.84%
Market Cap2.09B
Analysts74.48
Price Target19.64 (53.68%)
Short Float %6.56%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-24.68%
Min EPS beat(2)-56.48%
Max EPS beat(2)7.12%
EPS beat(4)2
Avg EPS beat(4)-8.8%
Min EPS beat(4)-56.48%
Max EPS beat(4)39.61%
EPS beat(8)5
Avg EPS beat(8)8.98%
EPS beat(12)8
Avg EPS beat(12)14.82%
EPS beat(16)11
Avg EPS beat(16)16.61%
Revenue beat(2)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)1.7%
Max Revenue beat(2)4.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-6%
Max Revenue beat(4)4.75%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)4
Avg Revenue beat(12)-0.95%
Revenue beat(16)6
Avg Revenue beat(16)-0.26%
PT rev (1m)5.32%
PT rev (3m)7.28%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-21.45%
EPS NY rev (1m)5.01%
EPS NY rev (3m)1.98%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)2.21%
Revenue NY rev (3m)4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.23 | ||
| Fwd PE | 26.4 | ||
| P/S | 2.93 | ||
| P/FCF | 13.95 | ||
| P/OCF | 11.66 | ||
| P/B | 1.92 | ||
| P/tB | 4.57 | ||
| EV/EBITDA | 14.03 |
EPS(TTM)0.31
EY2.43%
EPS(NY)0.48
Fwd EY3.79%
FCF(TTM)0.92
FCFY7.17%
OCF(TTM)1.1
OCFY8.57%
SpS4.37
BVpS6.66
TBVpS2.8
PEG (NY)6.17
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 4.84% | ||
| ROCE | 7.23% | ||
| ROIC | 4.98% | ||
| ROICexc | 6.09% | ||
| ROICexgc | 17.34% | ||
| OM | 12.07% | ||
| PM (TTM) | 7.38% | ||
| GM | 82.1% | ||
| FCFM | 20.98% |
ROA(3y)4.78%
ROA(5y)4.32%
ROE(3y)5.59%
ROE(5y)5.07%
ROIC(3y)4.71%
ROIC(5y)3.99%
ROICexc(3y)6.45%
ROICexc(5y)5.25%
ROICexgc(3y)19.19%
ROICexgc(5y)18.51%
ROCE(3y)6.84%
ROCE(5y)5.79%
ROICexcg growth 3Y1.44%
ROICexcg growth 5Y-18.15%
ROICexc growth 3Y30%
ROICexc growth 5Y0.7%
OM growth 3Y16.07%
OM growth 5Y-10.13%
PM growth 3Y-0.94%
PM growth 5Y-7.66%
GM growth 3Y-0.57%
GM growth 5Y-0.97%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.11 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 58.38% | ||
| Cap/Sales | 4.12% | ||
| Interest Coverage | 137.02 | ||
| Cash Conversion | 131.29% | ||
| Profit Quality | 284.3% | ||
| Current Ratio | 4.41 | ||
| Quick Ratio | 4.41 | ||
| Altman-Z | 7.54 |
F-Score5
WACC8.7%
ROIC/WACC0.57
Cap/Depr(3y)72.7%
Cap/Depr(5y)57.75%
Cap/Sales(3y)5.31%
Cap/Sales(5y)4.55%
Profit Quality(3y)168.72%
Profit Quality(5y)162.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.43%
EPS 3Y21.14%
EPS 5Y16.45%
EPS Q2Q%50%
EPS Next Y6.68%
EPS Next 2Y23%
EPS Next 3Y20.76%
EPS Next 5Y47.38%
Revenue 1Y (TTM)16.54%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%21.25%
Revenue Next Year14.06%
Revenue Next 2Y13%
Revenue Next 3Y12.78%
Revenue Next 5Y12.83%
EBIT growth 1Y16.81%
EBIT growth 3Y45.6%
EBIT growth 5Y16.08%
EBIT Next Year179.83%
EBIT Next 3Y54.76%
EBIT Next 5Y37.43%
FCF growth 1Y125.62%
FCF growth 3Y21.79%
FCF growth 5Y41.34%
OCF growth 1Y78.45%
OCF growth 3Y24.49%
OCF growth 5Y40.24%