DOUBLEVERIFY HOLDINGS INC (DV) Stock Fundamental Analysis
NYSE:DV - New York Stock Exchange, Inc. - US25862V1052 - Common Stock - Currency: USD
Overall DV gets a fundamental rating of 7 out of 10. We evaluated DV against 283 industry peers in the Software industry. DV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DV is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make DV suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year DV was profitable.
DV had a positive operating cash flow in the past year.
In the past 5 years DV has always been profitable.
DV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.41%, DV is doing good in the industry, outperforming 74.18% of the companies in the same industry.
DV's Return On Equity of 5.19% is fine compared to the rest of the industry. DV outperforms 72.73% of its industry peers.
With a decent Return On Invested Capital value of 4.84%, DV is doing good in the industry, outperforming 74.55% 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 significantly below the industry average of 11.63%.
The last Return On Invested Capital (4.84%) for DV is above the 3 year average (4.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 5.19% | ||
| ROIC | 4.84% |
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
The Profit Margin of DV (8.56%) is better than 74.91% of its industry peers.
In the last couple of years the Profit Margin of DV has declined.
DV has a Operating Margin of 12.55%. This is amongst the best in the industry. DV outperforms 81.82% of its industry peers.
In the last couple of years the Operating Margin of DV has declined.
DV has a Gross Margin of 82.26%. This is amongst the best in the industry. DV outperforms 87.27% of its industry peers.
In the last couple of years the Gross Margin of DV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.55% | ||
| PM (TTM) | 8.56% | ||
| 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
DV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DV has less shares outstanding than it did 1 year ago.
DV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DV has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.28 indicates that DV is not in any danger for bankruptcy at the moment.
The Altman-Z score of DV (9.28) is better than 81.09% of its industry peers.
DV has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
The Debt to FCF ratio of DV (0.03) is better than 80.00% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that DV is not too dependend on debt financing.
DV has a better Debt to Equity ratio (0.00) than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 9.28 |
ROIC/WACC0.35
WACC13.77%
2.3 Liquidity
DV has a Current Ratio of 5.40. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DV (5.40) is better than 90.18% of its industry peers.
DV has a Quick Ratio of 5.40. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
DV has a better Quick ratio (5.40) than 90.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.4 | ||
| Quick Ratio | 5.4 |
3. Growth
3.1 Past
The earnings per share for DV have decreased strongly by -24.39% in the last year.
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 14.73% in the last year.
The Revenue has been growing by 29.17% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-24.39%
EPS 3Y19.87%
EPS 5Y16.45%
EPS Q2Q%-31.58%
Revenue 1Y (TTM)14.73%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%10.67%
3.2 Future
Based on estimates for the next years, DV will show a very strong growth in Earnings Per Share. The EPS will grow by 45.31% on average per year.
Based on estimates for the next years, DV will show a quite strong growth in Revenue. The Revenue will grow by 13.76% on average per year.
EPS Next Y65.5%
EPS Next 2Y35.8%
EPS Next 3Y71.57%
EPS Next 5Y45.31%
Revenue Next Year12.59%
Revenue Next 2Y13.28%
Revenue Next 3Y13.97%
Revenue Next 5Y13.76%
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
Based on the Price/Earnings ratio of 45.84, the valuation of DV can be described as expensive.
DV's Price/Earnings ratio is a bit cheaper when compared to the industry. DV is cheaper than 60.36% of the companies in the same industry.
DV's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.41.
With a Price/Forward Earnings ratio of 27.70, DV can be considered very expensive at the moment.
DV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DV is cheaper than 67.27% of the companies in the same industry.
DV is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.84 | ||
| Fwd PE | 27.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DV indicates a rather cheap valuation: DV is cheaper than 83.27% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DV indicates a rather cheap valuation: DV is cheaper than 83.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.14 | ||
| EV/EBITDA | 17.2 |
4.3 Compensation for Growth
DV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 71.57% in the coming years.
PEG (NY)0.7
PEG (5Y)2.79
EPS Next 2Y35.8%
EPS Next 3Y71.57%
5. Dividend
5.1 Amount
DV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.21
-0.69 (-4.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.02%
Inst Owner Change0.63%
Ins Owners0.61%
Ins Owner Change0.08%
Market Cap2.40B
Analysts76.77
Price Target23.15 (62.91%)
Short Float %5.17%
Short Ratio3.76
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)4.42%
Min EPS beat(2)-30.77%
Max EPS beat(2)39.61%
EPS beat(4)2
Avg EPS beat(4)14.21%
Min EPS beat(4)-30.77%
Max EPS beat(4)57.87%
EPS beat(8)6
Avg EPS beat(8)27.53%
EPS beat(12)9
Avg EPS beat(12)25.6%
EPS beat(16)10
Avg EPS beat(16)-33.34%
Revenue beat(2)0
Avg Revenue beat(2)-4.26%
Min Revenue beat(2)-6.01%
Max Revenue beat(2)-2.5%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-6.01%
Max Revenue beat(4)-1.12%
Revenue beat(8)2
Avg Revenue beat(8)-1.9%
Revenue beat(12)4
Avg Revenue beat(12)-0.74%
Revenue beat(16)5
Avg Revenue beat(16)-0.63%
PT rev (1m)0%
PT rev (3m)2.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)0%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.84 | ||
| Fwd PE | 27.7 | ||
| P/S | 3.66 | ||
| P/FCF | 18.14 | ||
| P/OCF | 15.06 | ||
| P/B | 2.22 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 17.2 |
EPS(TTM)0.31
EY2.18%
EPS(NY)0.51
Fwd EY3.61%
FCF(TTM)0.78
FCFY5.51%
OCF(TTM)0.94
OCFY6.64%
SpS3.88
BVpS6.4
TBVpS3.22
PEG (NY)0.7
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 5.19% | ||
| ROCE | 7.03% | ||
| ROIC | 4.84% | ||
| ROICexc | 6.59% | ||
| ROICexgc | 17.53% | ||
| OM | 12.55% | ||
| PM (TTM) | 8.56% | ||
| GM | 82.26% | ||
| FCFM | 20.17% |
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-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 60.04% | ||
| Cap/Sales | 4.13% | ||
| Interest Coverage | 172.07 | ||
| Cash Conversion | 125.09% | ||
| Profit Quality | 235.66% | ||
| Current Ratio | 5.4 | ||
| Quick Ratio | 5.4 | ||
| Altman-Z | 9.28 |
F-Score7
WACC13.77%
ROIC/WACC0.35
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)-24.39%
EPS 3Y19.87%
EPS 5Y16.45%
EPS Q2Q%-31.58%
EPS Next Y65.5%
EPS Next 2Y35.8%
EPS Next 3Y71.57%
EPS Next 5Y45.31%
Revenue 1Y (TTM)14.73%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%10.67%
Revenue Next Year12.59%
Revenue Next 2Y13.28%
Revenue Next 3Y13.97%
Revenue Next 5Y13.76%
EBIT growth 1Y-3.76%
EBIT growth 3Y45.6%
EBIT growth 5Y16.08%
EBIT Next Year193.06%
EBIT Next 3Y57.72%
EBIT Next 5Y39.71%
FCF growth 1Y28.99%
FCF growth 3Y21.79%
FCF growth 5Y41.34%
OCF growth 1Y33.34%
OCF growth 3Y24.49%
OCF growth 5Y40.24%