ENDAVA PLC- SPON ADR (DAVA) Stock Fundamental Analysis
NYSE:DAVA - New York Stock Exchange, Inc. - US29260V1052 - ADR - Currency: USD
Taking everything into account, DAVA scores 5 out of 10 in our fundamental rating. DAVA was compared to 82 industry peers in the IT Services industry. DAVA has an average financial health and profitability rating. DAVA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DAVA was profitable.
DAVA had a positive operating cash flow in the past year.
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
With a Return On Assets value of 0.56%, DAVA perfoms like the industry average, outperforming 45.12% of the companies in the same industry.
DAVA has a Return On Equity of 0.84%. This is comparable to the rest of the industry: DAVA outperforms 48.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.50%, DAVA is in line with its industry, outperforming 43.90% of the companies in the same industry.
DAVA had an Average Return On Invested Capital over the past 3 years of 9.56%. This is significantly below the industry average of 21.61%.
The 3 year average ROIC (9.56%) for DAVA is well above the current ROIC(0.50%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 0.84% | ||
| ROIC | 0.5% |
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
The Profit Margin of DAVA (0.72%) is comparable to the rest of the industry.
DAVA's Profit Margin has declined in the last couple of years.
DAVA has a Operating Margin (0.76%) which is in line with its industry peers.
DAVA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 22.92%, DAVA is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DAVA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.76% | ||
| PM (TTM) | 0.72% | ||
| GM | 22.92% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DAVA has been increased compared to 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 3.02. This indicates that DAVA is financially healthy and has little risk of bankruptcy at the moment.
DAVA has a Altman-Z score of 3.02. This is comparable to the rest of the industry: DAVA outperforms 48.78% of its industry peers.
DAVA has a debt to FCF ratio of 5.17. This is a neutral value as DAVA would need 5.17 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.17, DAVA is in line with its industry, outperforming 56.10% of the companies in the same industry.
DAVA has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
DAVA has a Debt to Equity ratio (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.06
WACC8.19%
2.3 Liquidity
DAVA has a Current Ratio of 1.88. This is a normal value and indicates that DAVA is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.88, DAVA is doing good in the industry, outperforming 60.98% of the companies in the same industry.
A Quick Ratio of 1.88 indicates that DAVA should not have too much problems paying its short term obligations.
DAVA's Quick ratio of 1.88 is fine compared to the rest of the industry. DAVA outperforms 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The earnings per share for DAVA have decreased strongly by -24.75% in the last year.
DAVA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.26% yearly.
Looking at the last year, DAVA shows a decrease in Revenue. The Revenue has decreased by -6.79% 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)-6.79%
Revenue growth 3Y18.4%
Revenue growth 5Y20.81%
Sales Q2Q%11.74%
3.2 Future
The Earnings Per Share is expected to grow by 15.83% on average over the next years. This is quite good.
Based on estimates for the next years, DAVA will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y0.87%
EPS Next 2Y2.79%
EPS Next 3Y7.73%
EPS Next 5Y15.83%
Revenue Next Year4.07%
Revenue Next 2Y1.95%
Revenue Next 3Y3.15%
Revenue Next 5Y5.77%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.90, the valuation of DAVA can be described as reasonable.
Based on the Price/Earnings ratio, DAVA is valued cheaper than 93.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.04. DAVA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.24, which indicates a very decent valuation of DAVA.
DAVA's Price/Forward Earnings ratio is rather cheap when compared to the industry. DAVA is cheaper than 93.90% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.64. DAVA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 9.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAVA is on the same level as its industry peers.
71.95% of the companies in the same industry are more expensive than DAVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.3 | ||
| EV/EBITDA | 16.89 |
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)11.42
PEG (5Y)1.2
EPS Next 2Y2.79%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
No dividends for DAVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.95
+0.42 (+2.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners89.32%
Inst Owner Change0.25%
Ins Owners0.61%
Ins Owner ChangeN/A
Market Cap888.84M
Analysts76.47
Price Target23.67 (58.33%)
Short Float %4.83%
Short Ratio2.05
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)17.34%
Min EPS beat(2)16.16%
Max EPS beat(2)18.52%
EPS beat(4)3
Avg EPS beat(4)11.92%
Min EPS beat(4)-4.63%
Max EPS beat(4)18.52%
EPS beat(8)7
Avg EPS beat(8)11.51%
EPS beat(12)10
Avg EPS beat(12)8.98%
EPS beat(16)14
Avg EPS beat(16)9.89%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.21%
Min Revenue beat(4)-2.59%
Max Revenue beat(4)-1.71%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)1
Avg Revenue beat(12)-1.22%
Revenue beat(16)2
Avg Revenue beat(16)-0.85%
PT rev (1m)0.54%
PT rev (3m)-37.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 9.24 | ||
| P/S | 0.86 | ||
| P/FCF | 19.3 | ||
| P/OCF | 16.9 | ||
| P/B | 1 | ||
| P/tB | 22.64 | ||
| EV/EBITDA | 16.89 |
EPS(TTM)1.51
EY10.1%
EPS(NY)1.62
Fwd EY10.82%
FCF(TTM)0.77
FCFY5.18%
OCF(TTM)0.88
OCFY5.92%
SpS17.31
BVpS14.92
TBVpS0.66
PEG (NY)11.42
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 0.84% | ||
| ROCE | 0.69% | ||
| ROIC | 0.5% | ||
| ROICexc | 0.54% | ||
| ROICexgc | 2.7% | ||
| OM | 0.76% | ||
| PM (TTM) | 0.72% | ||
| GM | 22.92% | ||
| FCFM | 4.48% |
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-Score3
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 5.17 | ||
| Debt/EBITDA | 3.62 | ||
| Cap/Depr | 12.44% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 0.82 | ||
| Cash Conversion | 87.04% | ||
| Profit Quality | 617.5% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 3.02 |
F-Score3
WACC8.19%
ROIC/WACC0.06
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 Y0.87%
EPS Next 2Y2.79%
EPS Next 3Y7.73%
EPS Next 5Y15.83%
Revenue 1Y (TTM)-6.79%
Revenue growth 3Y18.4%
Revenue growth 5Y20.81%
Sales Q2Q%11.74%
Revenue Next Year4.07%
Revenue Next 2Y1.95%
Revenue Next 3Y3.15%
Revenue Next 5Y5.77%
EBIT growth 1Y-91.84%
EBIT growth 3Y-31.84%
EBIT growth 5Y-9.4%
EBIT Next Year50.57%
EBIT Next 3Y28.07%
EBIT Next 5Y19.46%
FCF growth 1Y-71.12%
FCF growth 3Y-15.93%
FCF growth 5Y11.88%
OCF growth 1Y-70.57%
OCF growth 3Y-14.72%
OCF growth 5Y9.03%