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 has a correct valuation and a medium growth rate.
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
DAVA has a Return On Assets (0.56%) which is in line with its industry peers.
DAVA has a Return On Equity (0.84%) which is in line with its industry peers.
With a Return On Invested Capital value of 0.50%, DAVA perfoms like the industry average, 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 21.78%.
The last Return On Invested Capital (0.50%) 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 | 0.56% | ||
| ROE | 0.84% | ||
| ROIC | 0.5% |
ROA(3y)9.09%
ROA(5y)8.43%
ROE(3y)12.78%
ROE(5y)12.33%
ROIC(3y)9.56%
ROIC(5y)9.48%
1.3 Margins
DAVA has a Profit Margin (0.73%) which 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 of 0.76%. This is comparable to the rest of the industry: DAVA outperforms 42.68% of its industry peers.
In the last couple of years the Operating Margin of DAVA has declined.
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.
DAVA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.76% | ||
| PM (TTM) | 0.73% | ||
| GM | 22.92% |
OM growth 3Y-42.57%
OM growth 5Y-25.11%
PM growth 3Y-38.25%
PM growth 5Y-22.74%
GM growth 3Y-12.29%
GM growth 5Y-7.83%
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.
Compared to 1 year ago, DAVA has more shares outstanding
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
An Altman-Z score of 3.10 indicates that DAVA is not in any danger for bankruptcy at the moment.
DAVA has a Altman-Z score (3.10) which is comparable to the rest of the industry.
DAVA has a debt to FCF ratio of 5.31. This is a neutral value as DAVA would need 5.31 years to pay back of all of its debts.
The Debt to FCF ratio of DAVA (5.31) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.25 indicates that DAVA is not too dependend on debt financing.
DAVA has a Debt to Equity ratio of 0.25. This is comparable to the rest of the industry: DAVA outperforms 57.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 5.31 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.06
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.88 indicates that DAVA should not have too much problems paying its short term obligations.
DAVA has a better Current ratio (1.88) than 60.98% of its industry peers.
DAVA has a Quick 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.
DAVA has a better Quick ratio (1.88) than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
DAVA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.75%.
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.
The Revenue has been growing by 20.81% on average over the past years. This is a very strong growth!
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 19.04% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.69% on average over the next years. This is quite good.
EPS Next Y9.29%
EPS Next 2Y11.16%
EPS Next 3Y13.92%
EPS Next 5Y19.04%
Revenue Next Year5.9%
Revenue Next 2Y5.8%
Revenue Next 3Y6.6%
Revenue Next 5Y8.69%
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 reasonably with a Price/Earnings ratio of 10.85.
Based on the Price/Earnings ratio, DAVA is valued cheaper than 93.90% of the companies in the same industry.
DAVA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.43.
A Price/Forward Earnings ratio of 8.64 indicates a reasonable valuation of DAVA.
Based on the Price/Forward Earnings ratio, DAVA is valued cheaper than 92.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, DAVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
DAVA's Enterprise Value to EBITDA is on the same level as the industry average.
DAVA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DAVA is cheaper than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.62 | ||
| EV/EBITDA | 17.75 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DAVA's earnings are expected to grow with 13.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)1.31
EPS Next 2Y11.16%
EPS Next 3Y13.92%
5. Dividend
5.1 Amount
No dividends for DAVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.28
+0.84 (+5.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change-0.78%
Ins Owners0.58%
Ins Owner ChangeN/A
Market Cap967.92M
Analysts77.78
Price Target31.74 (94.96%)
Short Float %2.04%
Short Ratio1.4
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)-5.72%
PT rev (3m)-21.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.94%
EPS NY rev (1m)0.45%
EPS NY rev (3m)5.77%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)-1.2%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 8.64 | ||
| P/S | 0.94 | ||
| P/FCF | 21.62 | ||
| P/OCF | 18.87 | ||
| P/B | 1.09 | ||
| P/tB | 24.73 | ||
| EV/EBITDA | 17.75 |
EPS(TTM)1.5
EY9.21%
EPS(NY)1.88
Fwd EY11.58%
FCF(TTM)0.75
FCFY4.63%
OCF(TTM)0.86
OCFY5.3%
SpS17.24
BVpS14.87
TBVpS0.66
PEG (NY)1.17
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 0.84% | ||
| ROCE | 0.69% | ||
| ROIC | 0.5% | ||
| ROICexc | 0.54% | ||
| ROICexgc | 2.69% | ||
| OM | 0.76% | ||
| PM (TTM) | 0.73% | ||
| GM | 22.92% | ||
| FCFM | 4.37% |
ROA(3y)9.09%
ROA(5y)8.43%
ROE(3y)12.78%
ROE(5y)12.33%
ROIC(3y)9.56%
ROIC(5y)9.48%
ROICexc(3y)13.4%
ROICexc(5y)13.07%
ROICexgc(3y)36.97%
ROICexgc(5y)34.67%
ROCE(3y)13.1%
ROCE(5y)12.99%
ROICexcg growth 3Y-39.64%
ROICexcg growth 5Y-33.63%
ROICexc growth 3Y-51.15%
ROICexc growth 5Y-40.48%
OM growth 3Y-42.57%
OM growth 5Y-25.11%
PM growth 3Y-38.25%
PM growth 5Y-22.74%
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 | 5.31 | ||
| Debt/EBITDA | 3.6 | ||
| Cap/Depr | 12.38% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 0.82 | ||
| Cash Conversion | 84.86% | ||
| Profit Quality | 602% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 3.1 |
F-Score3
WACC8.04%
ROIC/WACC0.06
Cap/Depr(3y)34.69%
Cap/Depr(5y)33.75%
Cap/Sales(3y)1.53%
Cap/Sales(5y)1.59%
Profit Quality(3y)177.13%
Profit Quality(5y)174.51%
High Growth Momentum
Growth
EPS 1Y (TTM)-24.75%
EPS 3Y-4.56%
EPS 5Y8.26%
EPS Q2Q%54.55%
EPS Next Y9.29%
EPS Next 2Y11.16%
EPS Next 3Y13.92%
EPS Next 5Y19.04%
Revenue 1Y (TTM)-6.79%
Revenue growth 3Y18.4%
Revenue growth 5Y20.81%
Sales Q2Q%11.74%
Revenue Next Year5.9%
Revenue Next 2Y5.8%
Revenue Next 3Y6.6%
Revenue Next 5Y8.69%
EBIT growth 1Y-91.84%
EBIT growth 3Y-32%
EBIT growth 5Y-9.53%
EBIT Next Year50.57%
EBIT Next 3Y28.07%
EBIT Next 5Y22.66%
FCF growth 1Y-71.82%
FCF growth 3Y-16.15%
FCF growth 5Y11.7%
OCF growth 1Y-71.19%
OCF growth 3Y-14.93%
OCF growth 5Y8.87%