ENDAVA PLC- SPON ADR (DAVA)
US29260V1052 - ADR
Overall DAVA gets a fundamental rating of 7 out of 10. We evaluated DAVA against 86 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making DAVA a very profitable company, without any liquidiy or solvency issues. DAVA is not valued too expensively and it also shows a decent growth rate. With these ratings, DAVA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
DAVA had positive earnings in the past year.
In the past year DAVA had a positive cash flow from operations.
DAVA had positive earnings in each of the past 5 years.
Each year in the past 5 years DAVA had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.59%, DAVA is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Return On Equity of DAVA (11.01%) is better than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.48%, DAVA is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DAVA is above the industry average of 12.82%.
The last Return On Invested Capital (8.48%) for DAVA is well below the 3 year average (14.82%), which needs to be investigated, but indicates that DAVA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 11.01% | ||
| ROIC | 8.48% |
ROA(3y)11.62%
ROA(5y)10.25%
ROE(3y)16.79%
ROE(5y)14.68%
ROIC(3y)14.82%
ROIC(5y)13.45%
1.3 Margins
The Profit Margin of DAVA (8.92%) is better than 75.00% of its industry peers.
DAVA's Profit Margin has improved in the last couple of years.
DAVA has a better Operating Margin (9.25%) than 67.86% of its industry peers.
DAVA's Operating Margin has improved in the last couple of years.
DAVA's Gross Margin of 29.20% is on the low side compared to the rest of the industry. DAVA is outperformed by 63.10% of its industry peers.
DAVA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.25% | ||
| PM (TTM) | 8.92% | ||
| GM | 29.2% |
OM growth 3Y29.36%
OM growth 5Y3.2%
PM growth 3Y27.66%
PM growth 5Y6.3%
GM growth 3Y4.86%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DAVA is creating some value.
The number of shares outstanding for DAVA remains at a similar level compared to 1 year ago.
The number of shares outstanding for DAVA has been increased compared to 5 years ago.
The debt/assets ratio for DAVA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.44 indicates that DAVA is not in any danger for bankruptcy at the moment.
DAVA's Altman-Z score of 7.44 is amongst the best of the industry. DAVA outperforms 86.90% of its industry peers.
The Debt to FCF ratio of DAVA is 0.58, which is an excellent value as it means it would take DAVA, only 0.58 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.58, DAVA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that DAVA is not too dependend on debt financing.
The Debt to Equity ratio of DAVA (0.07) is better than 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 7.44 |
ROIC/WACC1
WACC8.52%
2.3 Liquidity
A Current Ratio of 3.33 indicates that DAVA has no problem at all paying its short term obligations.
The Current ratio of DAVA (3.33) is better than 83.33% of its industry peers.
A Quick Ratio of 3.33 indicates that DAVA has no problem at all paying its short term obligations.
DAVA's Quick ratio of 3.33 is amongst the best of the industry. DAVA outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 3.33 |
3. Growth
3.1 Past
DAVA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.90%.
The Earnings Per Share has been growing by 33.64% on average over the past years. This is a very strong growth
DAVA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.90%.
DAVA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.57% yearly.
EPS 1Y (TTM)-11.9%
EPS 3Y31.42%
EPS 5Y33.64%
EPS growth Q2Q-47.37%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y31.31%
Revenue growth 5Y29.57%
Revenue growth Q2Q-10.55%
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 10.09% yearly.
DAVA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.65% yearly.
EPS Next Y-47.83%
EPS Next 2Y-15.63%
EPS Next 3Y-1.46%
EPS Next 5Y10.09%
Revenue Next Year-8%
Revenue Next 2Y0.48%
Revenue Next 3Y5.67%
Revenue Next 5Y11.65%
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
Based on the Price/Earnings ratio of 12.97, the valuation of DAVA can be described as correct.
Based on the Price/Earnings ratio, DAVA is valued cheaper than 82.14% of the companies in the same industry.
DAVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.02.
Based on the Price/Forward Earnings ratio of 14.81, the valuation of DAVA can be described as correct.
DAVA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DAVA is cheaper than 79.76% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, DAVA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 14.81 |
4.2 Price Multiples
64.29% of the companies in the same industry are more expensive than DAVA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAVA indicates a rather cheap valuation: DAVA is cheaper than 80.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.6 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
DAVA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-15.63%
EPS Next 3Y-1.46%
5. Dividend
5.1 Amount
No dividends for DAVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ENDAVA PLC- SPON ADR
NYSE:DAVA (4/29/2024, 7:04:00 PM)
After market: 30.52 +0.57 (+1.9%)29.95
+0.13 (+0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap1.73B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 14.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
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PEG (NY)N/A
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 11.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.25% | ||
| PM (TTM) | 8.92% | ||
| GM | 29.2% | ||
| 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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.33 | ||
| Quick Ratio | 3.33 | ||
| 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)-11.9%
EPS 3Y31.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y-47.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.9%
Revenue growth 3Y31.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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