ENDAVA PLC- SPON ADR (DAVA) Stock Fundamental Analysis
USA - NYSE:DAVA - US29260V1052 - ADR
9.2 USD
+0.03 (+0.33%)
9.2899 USD
+0.09 (+0.98%)
We assign a fundamental rating of 5 out of 10 to DAVA. DAVA was compared to 87 industry peers in the IT Services industry. The financial health of DAVA is average, but there are quite some concerns on its profitability. DAVA may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
DAVA had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 2.27%, DAVA is in line with its industry, outperforming 52.87% of the companies in the same industry.
With a Return On Equity value of 3.64%, DAVA perfoms like the industry average, outperforming 56.32% of the companies in the same industry.
DAVA has a Return On Invested Capital (2.93%) which is comparable to the rest of the industry.
DAVA had an Average Return On Invested Capital over the past 3 years of 5.99%. This is significantly below the industry average of 21.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 3.64% | ||
| ROIC | 2.93% |
ROA(3y)5.4%
ROA(5y)7.77%
ROE(3y)7.6%
ROE(5y)11.34%
ROIC(3y)5.99%
ROIC(5y)9.17%
1.3 Margins
With a Profit Margin value of 2.75%, DAVA perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
DAVA's Profit Margin has declined in the last couple of years.
DAVA has a Operating Margin of 4.08%. This is comparable to the rest of the industry: DAVA outperforms 50.57% of its industry peers.
In the last couple of years the Operating Margin of DAVA has declined.
With a Gross Margin value of 25.08%, DAVA is not doing good in the industry: 71.26% 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 | 4.08% | ||
| PM (TTM) | 2.75% | ||
| GM | 25.08% |
OM growth 3Y-34.74%
OM growth 5Y-9.2%
PM growth 3Y-39.96%
PM growth 5Y-13.58%
GM growth 3Y-8.99%
GM growth 5Y-2.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DAVA is destroying value.
DAVA has less shares outstanding than it did 1 year ago.
DAVA has more shares outstanding than it did 5 years ago.
DAVA has a worse debt/assets ratio than last year.
2.2 Solvency
DAVA has an Altman-Z score of 2.70. 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.
DAVA's Altman-Z score of 2.70 is in line compared to the rest of the industry. DAVA outperforms 47.13% of its industry peers.
DAVA has a debt to FCF ratio of 4.74. This is a neutral value as DAVA would need 4.74 years to pay back of all of its debts.
DAVA has a Debt to FCF ratio of 4.74. This is in the better half of the industry: DAVA outperforms 60.92% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that DAVA is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.37, DAVA perfoms like the industry average, outperforming 50.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.74 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.39
WACC7.51%
2.3 Liquidity
DAVA has a Current Ratio of 2.32. This indicates that DAVA is financially healthy and has no problem in meeting its short term obligations.
DAVA's Current ratio of 2.32 is fine compared to the rest of the industry. DAVA outperforms 71.26% of its industry peers.
DAVA has a Quick Ratio of 2.32. This indicates that DAVA is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.32, DAVA is doing good in the industry, outperforming 71.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 2.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.33% over the past year.
DAVA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.54% yearly.
DAVA shows a small growth in Revenue. In the last year, the Revenue has grown by 4.26%.
DAVA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.08% yearly.
EPS 1Y (TTM)0.33%
EPS 3Y-16.39%
EPS 5Y2.54%
EPS Q2Q%9.09%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.65%
Revenue growth 5Y17.08%
Sales Q2Q%-3.93%
3.2 Future
DAVA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.44% yearly.
DAVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y-19.3%
EPS Next 2Y0.73%
EPS Next 3Y5.61%
EPS Next 5Y13.44%
Revenue Next Year-2.42%
Revenue Next 2Y0.72%
Revenue Next 3Y2.05%
Revenue Next 5Y3.95%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
DAVA is valuated cheaply with a Price/Earnings ratio of 6.05.
Compared to the rest of the industry, the Price/Earnings ratio of DAVA indicates a rather cheap valuation: DAVA is cheaper than 94.25% of the companies listed in the same industry.
DAVA is valuated cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.48, the valuation of DAVA can be described as very cheap.
Based on the Price/Forward Earnings ratio, DAVA is valued cheaper than 95.40% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, DAVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 7.48 |
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 86.21% 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 91.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.46 | ||
| EV/EBITDA | 7.51 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.38
EPS Next 2Y0.73%
EPS Next 3Y5.61%
5. Dividend
5.1 Amount
DAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.2
+0.03 (+0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81%
Inst Owner Change0%
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap546.98M
Analysts76.47
Price Target17.14 (86.3%)
Short Float %4.28%
Short Ratio2.14
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)3.88%
Min EPS beat(2)2.83%
Max EPS beat(2)4.93%
EPS beat(4)4
Avg EPS beat(4)10.61%
Min EPS beat(4)2.83%
Max EPS beat(4)18.52%
EPS beat(8)7
Avg EPS beat(8)8.35%
EPS beat(12)10
Avg EPS beat(12)8.57%
EPS beat(16)14
Avg EPS beat(16)8.22%
Revenue beat(2)0
Avg Revenue beat(2)-2.89%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-1.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-1.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.24%
Revenue beat(12)0
Avg Revenue beat(12)-1.82%
Revenue beat(16)2
Avg Revenue beat(16)-1.13%
PT rev (1m)-22.12%
PT rev (3m)-27.96%
EPS NQ rev (1m)-26.3%
EPS NQ rev (3m)-27.92%
EPS NY rev (1m)-21.26%
EPS NY rev (3m)-23.37%
Revenue NQ rev (1m)-3.59%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)-1.92%
Revenue NY rev (3m)-2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 7.48 | ||
| P/S | 0.53 | ||
| P/FCF | 8.46 | ||
| P/OCF | 7.71 | ||
| P/B | 0.7 | ||
| P/tB | 46.47 | ||
| EV/EBITDA | 7.51 |
EPS(TTM)1.52
EY16.52%
EPS(NY)1.23
Fwd EY13.37%
FCF(TTM)1.09
FCFY11.82%
OCF(TTM)1.19
OCFY12.97%
SpS17.47
BVpS13.18
TBVpS0.2
PEG (NY)N/A
PEG (5Y)2.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 3.64% | ||
| ROCE | 3.87% | ||
| ROIC | 2.93% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 13.22% | ||
| OM | 4.08% | ||
| PM (TTM) | 2.75% | ||
| GM | 25.08% | ||
| FCFM | 6.22% |
ROA(3y)5.4%
ROA(5y)7.77%
ROE(3y)7.6%
ROE(5y)11.34%
ROIC(3y)5.99%
ROIC(5y)9.17%
ROICexc(3y)7.62%
ROICexc(5y)12.23%
ROICexgc(3y)23.85%
ROICexgc(5y)34.64%
ROCE(3y)7.91%
ROCE(5y)12.11%
ROICexcg growth 3Y-38.47%
ROICexcg growth 5Y-7.84%
ROICexc growth 3Y-47.64%
ROICexc growth 5Y-20.33%
OM growth 3Y-34.74%
OM growth 5Y-9.2%
PM growth 3Y-39.96%
PM growth 5Y-13.58%
GM growth 3Y-8.99%
GM growth 5Y-2.39%
F-Score8
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.74 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 10.43% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 68.91% | ||
| Profit Quality | 226.62% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z | 2.7 |
F-Score8
WACC7.51%
ROIC/WACC0.39
Cap/Depr(3y)21.99%
Cap/Depr(5y)27.65%
Cap/Sales(3y)1.02%
Cap/Sales(5y)1.28%
Profit Quality(3y)209.96%
Profit Quality(5y)189.49%
High Growth Momentum
Growth
EPS 1Y (TTM)0.33%
EPS 3Y-16.39%
EPS 5Y2.54%
EPS Q2Q%9.09%
EPS Next Y-19.3%
EPS Next 2Y0.73%
EPS Next 3Y5.61%
EPS Next 5Y13.44%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.65%
Revenue growth 5Y17.08%
Sales Q2Q%-3.93%
Revenue Next Year-2.42%
Revenue Next 2Y0.72%
Revenue Next 3Y2.05%
Revenue Next 5Y3.95%
EBIT growth 1Y56.46%
EBIT growth 3Y-31.05%
EBIT growth 5Y6.31%
EBIT Next Year8.89%
EBIT Next 3Y18.53%
EBIT Next 5Y14.68%
FCF growth 1Y-1.71%
FCF growth 3Y-23.34%
FCF growth 5Y9.6%
OCF growth 1Y-2.98%
OCF growth 3Y-24.1%
OCF growth 5Y6.85%