ENDAVA PLC- SPON ADR (DAVA) Stock Fundamental Analysis
NYSE:DAVA - US29260V1052 - ADR
10 USD
+0.6 (+6.38%)
10 USD
0 (0%)
DAVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. DAVA has an average financial health and profitability rating. DAVA may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year DAVA was profitable.
In the past year DAVA had a positive cash flow from operations.
Each year in the past 5 years DAVA has been profitable.
DAVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DAVA's Return On Assets of 1.89% is in line compared to the rest of the industry. DAVA outperforms 51.76% of its industry peers.
DAVA has a Return On Equity of 2.82%. This is comparable to the rest of the industry: DAVA outperforms 54.12% of its industry peers.
With a Return On Invested Capital value of 2.10%, DAVA perfoms like the industry average, outperforming 49.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DAVA is significantly below the industry average of 21.77%.
The last Return On Invested Capital (2.10%) for DAVA is well below the 3 year average (9.56%), which needs to be investigated, but indicates that DAVA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 2.82% | ||
| ROIC | 2.1% |
ROA(3y)9.09%
ROA(5y)8.43%
ROE(3y)12.79%
ROE(5y)12.33%
ROIC(3y)9.56%
ROIC(5y)9.48%
1.3 Margins
DAVA has a Profit Margin (2.33%) which is comparable to the rest of the industry.
DAVA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.09%, DAVA is in line with its industry, outperforming 47.06% of the companies in the same industry.
DAVA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 24.42%, DAVA is doing worse than 72.94% of the companies in the same industry.
DAVA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.09% | ||
| PM (TTM) | 2.33% | ||
| GM | 24.42% |
OM growth 3Y-42.43%
OM growth 5Y-25.01%
PM growth 3Y-38.1%
PM growth 5Y-22.63%
GM growth 3Y-12.29%
GM growth 5Y-7.83%
2. Health
2.1 Basic Checks
DAVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DAVA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DAVA has been increased compared to 5 years ago.
Compared to 1 year ago, DAVA has a worse debt to assets ratio.
2.2 Solvency
DAVA has an Altman-Z score of 2.84. This is not the best score and indicates that DAVA is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.84, DAVA perfoms like the industry average, outperforming 50.59% of the companies in the same industry.
The Debt to FCF ratio of DAVA is 3.73, which is a good value as it means it would take DAVA, 3.73 years of fcf income to pay off all of its debts.
DAVA has a Debt to FCF ratio (3.73) which is in line with its industry peers.
DAVA has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DAVA (0.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.16
WACC13.52%
2.3 Liquidity
DAVA has a Current Ratio of 2.18. This indicates that DAVA is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.18, DAVA is doing good in the industry, outperforming 63.53% of the companies in the same industry.
A Quick Ratio of 2.18 indicates that DAVA has no problem at all paying its short term obligations.
DAVA's Quick ratio of 2.18 is fine compared to the rest of the industry. DAVA outperforms 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
The earnings per share for DAVA have decreased strongly by -24.75% in the last year.
The Earnings Per Share has been growing by 8.26% on average over the past years. This is quite good.
Looking at the last year, DAVA shows a small growth in Revenue. The Revenue has grown by 5.95% in the last year.
DAVA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.81% yearly.
EPS 1Y (TTM)-24.75%
EPS 3Y-4.56%
EPS 5Y8.26%
EPS Q2Q%54.55%
Revenue 1Y (TTM)5.95%
Revenue growth 3Y18.4%
Revenue growth 5Y20.81%
Sales Q2Q%11.74%
3.2 Future
Based on estimates for the next years, DAVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.03% on average per year.
DAVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.96% yearly.
EPS Next Y1.69%
EPS Next 2Y1.4%
EPS Next 3Y9.59%
EPS Next 5Y16.03%
Revenue Next Year4.04%
Revenue Next 2Y1.76%
Revenue Next 3Y2.95%
Revenue Next 5Y5.96%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.67, which indicates a rather cheap valuation of DAVA.
Based on the Price/Earnings ratio, DAVA is valued cheaper than 94.12% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.43, DAVA is valued rather cheaply.
The Price/Forward Earnings ratio is 6.37, which indicates a rather cheap valuation of DAVA.
Based on the Price/Forward Earnings ratio, DAVA is valued cheaper than 95.29% of the companies in the same industry.
DAVA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 6.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAVA indicates a rather cheap valuation: DAVA is cheaper than 85.88% of the companies listed in the same industry.
DAVA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DAVA is cheaper than 91.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.84 | ||
| EV/EBITDA | 8.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DAVA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.93
PEG (5Y)0.81
EPS Next 2Y1.4%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
No dividends for DAVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10
+0.6 (+6.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners89.22%
Inst Owner Change-8.25%
Ins Owners0.61%
Ins Owner ChangeN/A
Market Cap594.54M
Analysts76.47
Price Target22.01 (120.1%)
Short Float %4.69%
Short Ratio2.73
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)2
Avg EPS beat(2)11.73%
Min EPS beat(2)4.93%
Max EPS beat(2)18.52%
EPS beat(4)3
Avg EPS beat(4)8.75%
Min EPS beat(4)-4.63%
Max EPS beat(4)18.52%
EPS beat(8)7
Avg EPS beat(8)11.02%
EPS beat(12)10
Avg EPS beat(12)8.55%
EPS beat(16)14
Avg EPS beat(16)8.9%
Revenue beat(2)0
Avg Revenue beat(2)-3.07%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-2.32%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-1.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.15%
Revenue beat(12)0
Avg Revenue beat(12)-1.72%
Revenue beat(16)2
Avg Revenue beat(16)-1.03%
PT rev (1m)-7%
PT rev (3m)-30.67%
EPS NQ rev (1m)-6.08%
EPS NQ rev (3m)-34.01%
EPS NY rev (1m)0.82%
EPS NY rev (3m)-6.95%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 6.37 | ||
| P/S | 0.56 | ||
| P/FCF | 8.84 | ||
| P/OCF | 8.08 | ||
| P/B | 0.68 | ||
| P/tB | 9.86 | ||
| EV/EBITDA | 8.86 |
EPS(TTM)1.5
EY15%
EPS(NY)1.57
Fwd EY15.7%
FCF(TTM)1.13
FCFY11.31%
OCF(TTM)1.24
OCFY12.38%
SpS17.73
BVpS14.67
TBVpS1.01
PEG (NY)3.93
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 2.82% | ||
| ROCE | 2.87% | ||
| ROIC | 2.1% | ||
| ROICexc | 2.28% | ||
| ROICexgc | 10.46% | ||
| OM | 3.09% | ||
| PM (TTM) | 2.33% | ||
| GM | 24.42% | ||
| FCFM | 6.38% |
ROA(3y)9.09%
ROA(5y)8.43%
ROE(3y)12.79%
ROE(5y)12.33%
ROIC(3y)9.56%
ROIC(5y)9.48%
ROICexc(3y)13.4%
ROICexc(5y)13.08%
ROICexgc(3y)36.98%
ROICexgc(5y)34.67%
ROCE(3y)13.11%
ROCE(5y)12.99%
ROICexcg growth 3Y-39.57%
ROICexcg growth 5Y-33.59%
ROICexc growth 3Y-51.03%
ROICexc growth 5Y-40.4%
OM growth 3Y-42.43%
OM growth 5Y-25.01%
PM growth 3Y-38.1%
PM growth 5Y-22.63%
GM growth 3Y-12.29%
GM growth 5Y-7.83%
F-Score4
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.73 | ||
| Debt/EBITDA | 2.73 | ||
| Cap/Depr | 12.16% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 86.64% | ||
| Profit Quality | 273.53% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | 2.84 |
F-Score4
WACC13.52%
ROIC/WACC0.16
Cap/Depr(3y)34.71%
Cap/Depr(5y)33.76%
Cap/Sales(3y)1.53%
Cap/Sales(5y)1.59%
Profit Quality(3y)177.22%
Profit Quality(5y)174.57%
High Growth Momentum
Growth
EPS 1Y (TTM)-24.75%
EPS 3Y-4.56%
EPS 5Y8.26%
EPS Q2Q%54.55%
EPS Next Y1.69%
EPS Next 2Y1.4%
EPS Next 3Y9.59%
EPS Next 5Y16.03%
Revenue 1Y (TTM)5.95%
Revenue growth 3Y18.4%
Revenue growth 5Y20.81%
Sales Q2Q%11.74%
Revenue Next Year4.04%
Revenue Next 2Y1.76%
Revenue Next 3Y2.95%
Revenue Next 5Y5.96%
EBIT growth 1Y-43.1%
EBIT growth 3Y-31.84%
EBIT growth 5Y-9.4%
EBIT Next Year47.64%
EBIT Next 3Y21.48%
EBIT Next 5Y19.67%
FCF growth 1Y-59.45%
FCF growth 3Y-15.93%
FCF growth 5Y11.88%
OCF growth 1Y-60.61%
OCF growth 3Y-14.72%
OCF growth 5Y9.03%