DOUBLEVERIFY HOLDINGS INC (DV) Stock Fundamental Analysis
NYSE:DV - New York Stock Exchange, Inc. - US25862V1052 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to DV. DV was compared to 282 industry peers in the Software industry. DV is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DV is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, DV could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year DV was profitable.
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
Looking at the Return On Assets, with a value of 4.12%, DV is in the better half of the industry, outperforming 73.76% of the companies in the same industry.
With a decent Return On Equity value of 4.98%, DV is doing good in the industry, outperforming 72.69% of the companies in the same industry.
DV has a Return On Invested Capital of 5.07%. This is in the better half of the industry: DV outperforms 75.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DV is significantly below the industry average of 12.26%.
The 3 year average ROIC (4.71%) for DV is below the current ROIC(5.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 4.98% | ||
| ROIC | 5.07% |
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
DV has a Profit Margin of 7.55%. This is in the better half of the industry: DV outperforms 74.82% of its industry peers.
In the last couple of years the Profit Margin of DV has declined.
DV has a Operating Margin of 12.26%. This is in the better half of the industry: DV outperforms 78.72% of its industry peers.
In the last couple of years the Operating Margin of DV has declined.
With an excellent Gross Margin value of 82.26%, DV belongs to the best of the industry, outperforming 89.01% of the companies in the same industry.
DV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.26% | ||
| PM (TTM) | 7.55% | ||
| GM | 82.26% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DV is destroying value.
DV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DV has more shares outstanding
DV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.16 indicates that DV is not in any danger for bankruptcy at the moment.
DV has a Altman-Z score of 8.16. This is amongst the best in the industry. DV outperforms 80.14% of its industry peers.
The Debt to FCF ratio of DV is 0.12, which is an excellent value as it means it would take DV, only 0.12 years of fcf income to pay off all of its debts.
DV has a Debt to FCF ratio of 0.12. This is amongst the best in the industry. DV outperforms 81.21% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that DV is not too dependend on debt financing.
DV has a better Debt to Equity ratio (0.01) than 63.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 8.16 |
ROIC/WACC0.57
WACC8.93%
2.3 Liquidity
A Current Ratio of 3.72 indicates that DV has no problem at all paying its short term obligations.
The Current ratio of DV (3.72) is better than 81.56% of its industry peers.
A Quick Ratio of 3.72 indicates that DV has no problem at all paying its short term obligations.
DV has a Quick ratio of 3.72. This is amongst the best in the industry. DV outperforms 81.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.72 |
3. Growth
3.1 Past
DV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.68%.
DV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.45% yearly.
The Revenue has grown by 15.31% in the past year. This is quite good.
The Revenue has been growing by 29.17% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-23.68%
EPS 3Y21.14%
EPS 5Y16.45%
EPS Q2Q%-75%
Revenue 1Y (TTM)15.31%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%17.25%
3.2 Future
The Earnings Per Share is expected to grow by 46.96% on average over the next years. This is a very strong growth
DV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.40% yearly.
EPS Next Y0.79%
EPS Next 2Y24.22%
EPS Next 3Y16.8%
EPS Next 5Y46.96%
Revenue Next Year11.24%
Revenue Next 2Y11.46%
Revenue Next 3Y11.89%
Revenue Next 5Y12.4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 53.14, DV can be considered very expensive at the moment.
DV's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of DV to the average of the S&P500 Index (27.45), we can say DV is valued expensively.
The Price/Forward Earnings ratio is 31.21, which means the current valuation is very expensive for DV.
63.83% of the companies in the same industry are more expensive than DV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. DV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.14 | ||
| Fwd PE | 31.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DV is valued cheaply inside the industry as 84.75% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DV indicates a rather cheap valuation: DV is cheaper than 85.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.08 | ||
| EV/EBITDA | 17.53 |
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.
DV has a very decent profitability rating, which may justify a higher PE ratio.
DV's earnings are expected to grow with 16.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)67.37
PEG (5Y)3.23
EPS Next 2Y24.22%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
DV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.41
+0.29 (+1.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.58%
Inst Owner Change-2.05%
Ins Owners0.67%
Ins Owner Change0.13%
Market Cap2.50B
Analysts73.79
Price Target18.64 (20.96%)
Short Float %7.73%
Short Ratio3.7
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)0
Avg EPS beat(2)-40.96%
Min EPS beat(2)-56.48%
Max EPS beat(2)-25.44%
EPS beat(4)1
Avg EPS beat(4)-13.04%
Min EPS beat(4)-56.48%
Max EPS beat(4)39.61%
EPS beat(8)5
Avg EPS beat(8)9.75%
EPS beat(12)8
Avg EPS beat(12)18.74%
EPS beat(16)10
Avg EPS beat(16)-34.23%
Revenue beat(2)1
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-6%
Max Revenue beat(2)4.75%
Revenue beat(4)1
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-6%
Max Revenue beat(4)4.75%
Revenue beat(8)2
Avg Revenue beat(8)-1.41%
Revenue beat(12)4
Avg Revenue beat(12)-0.72%
Revenue beat(16)6
Avg Revenue beat(16)-0.28%
PT rev (1m)-1.64%
PT rev (3m)-19.48%
EPS NQ rev (1m)-7.23%
EPS NQ rev (3m)-32.51%
EPS NY rev (1m)-3.65%
EPS NY rev (3m)-37.14%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)1.82%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.14 | ||
| Fwd PE | 31.21 | ||
| P/S | 3.68 | ||
| P/FCF | 18.08 | ||
| P/OCF | 15.13 | ||
| P/B | 2.43 | ||
| P/tB | 6.17 | ||
| EV/EBITDA | 17.53 |
EPS(TTM)0.29
EY1.88%
EPS(NY)0.49
Fwd EY3.2%
FCF(TTM)0.85
FCFY5.53%
OCF(TTM)1.02
OCFY6.61%
SpS4.19
BVpS6.35
TBVpS2.5
PEG (NY)67.37
PEG (5Y)3.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 4.98% | ||
| ROCE | 7.35% | ||
| ROIC | 5.07% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 17.2% | ||
| OM | 12.26% | ||
| PM (TTM) | 7.55% | ||
| GM | 82.26% | ||
| FCFM | 20.34% |
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-Score6
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 57.94% | ||
| Cap/Sales | 3.97% | ||
| Interest Coverage | 187.19 | ||
| Cash Conversion | 127.19% | ||
| Profit Quality | 269.29% | ||
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.72 | ||
| Altman-Z | 8.16 |
F-Score6
WACC8.93%
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)-23.68%
EPS 3Y21.14%
EPS 5Y16.45%
EPS Q2Q%-75%
EPS Next Y0.79%
EPS Next 2Y24.22%
EPS Next 3Y16.8%
EPS Next 5Y46.96%
Revenue 1Y (TTM)15.31%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%17.25%
Revenue Next Year11.24%
Revenue Next 2Y11.46%
Revenue Next 3Y11.89%
Revenue Next 5Y12.4%
EBIT growth 1Y7.95%
EBIT growth 3Y45.6%
EBIT growth 5Y16.08%
EBIT Next Year173.23%
EBIT Next 3Y52.96%
EBIT Next 5Y36.62%
FCF growth 1Y74.84%
FCF growth 3Y21.79%
FCF growth 5Y41.34%
OCF growth 1Y39.66%
OCF growth 3Y24.49%
OCF growth 5Y40.24%