DOUBLEVERIFY HOLDINGS INC (DV)
US25862V1052 - Common Stock
DV gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. DV scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DV is growing strongly while it is still valued neutral. This is a good combination! With these ratings, DV could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
DV had positive earnings in the past year.
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
DV's Return On Assets of 5.27% is amongst the best of the industry. DV outperforms 80.43% of its industry peers.
DV has a Return On Equity of 6.05%. This is in the better half of the industry: DV outperforms 76.09% of its industry peers.
DV has a Return On Invested Capital of 4.81%. This is in the better half of the industry: DV outperforms 77.17% of its industry peers.
DV had an Average Return On Invested Capital over the past 3 years of 4.10%. This is significantly below the industry average of 10.18%.
The 3 year average ROIC (4.10%) for DV is below the current ROIC(4.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 6.05% | ||
| ROIC | 4.81% |
ROA(3y)4.4%
ROA(5y)4.44%
ROE(3y)5.09%
ROE(5y)5.5%
ROIC(3y)4.1%
ROIC(5y)4.56%
1.3 Margins
DV has a better Profit Margin (11.23%) than 81.16% of its industry peers.
In the last couple of years the Profit Margin of DV has grown nicely.
With an excellent Operating Margin value of 13.09%, DV belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
DV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 81.51%, DV belongs to the best of the industry, outperforming 87.32% 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 | 13.09% | ||
| PM (TTM) | 11.23% | ||
| GM | 81.51% |
OM growth 3Y13.46%
OM growth 5Y25.08%
PM growth 3Y14.09%
PM growth 5Y32.4%
GM growth 3Y-1.58%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DV is destroying value.
The number of shares outstanding for DV has been increased compared to 1 year ago.
DV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DV is higher compared to a year ago.
2.2 Solvency
DV has an Altman-Z score of 13.70. This indicates that DV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 13.70, DV belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Debt to FCF ratio of DV is 0.04, which is an excellent value as it means it would take DV, only 0.04 years of fcf income to pay off all of its debts.
DV's Debt to FCF ratio of 0.04 is amongst the best of the industry. DV outperforms 82.61% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that DV is not too dependend on debt financing.
DV has a Debt to Equity ratio of 0.00. This is in the better half of the industry: DV outperforms 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 13.7 |
ROIC/WACC0.49
WACC9.85%
2.3 Liquidity
DV has a Current Ratio of 7.30. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DV (7.30) is better than 93.84% of its industry peers.
DV has a Quick Ratio of 7.30. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
DV's Quick ratio of 7.30 is amongst the best of the industry. DV outperforms 93.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.3 | ||
| Quick Ratio | 7.3 |
3. Growth
3.1 Past
DV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.03%, which is quite impressive.
DV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 83.14% yearly.
Looking at the last year, DV shows a very strong growth in Revenue. The Revenue has grown by 23.50%.
DV shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.57% yearly.
EPS 1Y (TTM)31.03%
EPS 3Y46.89%
EPS 5Y83.14%
EPS growth Q2Q-42.86%
Revenue 1Y (TTM)23.5%
Revenue growth 3Y32.9%
Revenue growth 5Y40.57%
Revenue growth Q2Q14.84%
3.2 Future
The Earnings Per Share is expected to grow by 47.93% on average over the next years. This is a very strong growth
Based on estimates for the next years, DV will show a very strong growth in Revenue. The Revenue will grow by 20.48% on average per year.
EPS Next Y-10.1%
EPS Next 2Y13.82%
EPS Next 3Y28.15%
EPS Next 5Y47.93%
Revenue Next Year21.73%
Revenue Next 2Y21.55%
Revenue Next 3Y21.5%
Revenue Next 5Y20.48%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
The Price/Earnings ratio is 51.42, which means the current valuation is very expensive for DV.
Based on the Price/Earnings ratio, DV is valued a bit cheaper than 63.04% of the companies in the same industry.
When comparing the Price/Earnings ratio of DV to the average of the S&P500 Index (28.60), we can say DV is valued expensively.
Based on the Price/Forward Earnings ratio of 36.79, the valuation of DV can be described as expensive.
DV's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.15. DV is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.42 | ||
| Fwd PE | 36.79 |
4.2 Price Multiples
DV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DV is cheaper than 80.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DV is valued a bit cheaper than the industry average as 76.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.3 | ||
| EV/EBITDA | 24.93 |
4.3 Compensation for Growth
DV has an outstanding profitability rating, which may justify a higher PE ratio.
DV's earnings are expected to grow with 28.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y13.82%
EPS Next 3Y28.15%
5. Dividend
5.1 Amount
No dividends for DV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOUBLEVERIFY HOLDINGS INC
NYSE:DV (5/17/2024, 7:04:00 PM)
After market: 19.45 -0.09 (-0.46%)19.54
+0.66 (+3.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.42 | ||
| Fwd PE | 36.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 6.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.09% | ||
| PM (TTM) | 11.23% | ||
| GM | 81.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.3 | ||
| Quick Ratio | 7.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)31.03%
EPS 3Y46.89%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.5%
Revenue growth 3Y32.9%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y