DAYFORCE INC (DAY.CA) Stock Fundamental Analysis
TSX:DAY - Toronto Stock Exchange - US15677J1088 - Common Stock - Currency: CAD
DAY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 6 industry peers in the Professional Services industry. DAY has a bad profitability rating. Also its financial health evaluation is rather negative. DAY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DAY was profitable.
DAY had a positive operating cash flow in the past year.
In multiple years DAY reported negative net income over the last 5 years.
DAY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DAY has a worse Return On Assets (0.27%) than 66.67% of its industry peers.
DAY has a Return On Equity of 1.00%. This is in the lower half of the industry: DAY underperforms 66.67% of its industry peers.
With a Return On Invested Capital value of 1.64%, DAY is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 1% | ||
| ROIC | 1.64% |
ROA(3y)-0.02%
ROA(5y)-0.23%
ROE(3y)-0.16%
ROE(5y)-0.81%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.43%, DAY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
DAY's Profit Margin has declined in the last couple of years.
DAY's Operating Margin of 5.62% is fine compared to the rest of the industry. DAY outperforms 66.67% of its industry peers.
DAY's Operating Margin has been stable in the last couple of years.
DAY has a Gross Margin of 46.93%. This is amongst the best in the industry. DAY outperforms 83.33% of its industry peers.
DAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.62% | ||
| PM (TTM) | 1.43% | ||
| GM | 46.93% |
OM growth 3YN/A
OM growth 5Y0.19%
PM growth 3YN/A
PM growth 5Y-35.96%
GM growth 3Y7.32%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAY is destroying value.
DAY has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DAY has been increased compared to 5 years ago.
The debt/assets ratio for DAY has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that DAY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.93, DAY is in line with its industry, outperforming 50.00% of the companies in the same industry.
DAY has a debt to FCF ratio of 5.79. This is a neutral value as DAY would need 5.79 years to pay back of all of its debts.
DAY's Debt to FCF ratio of 5.79 is in line compared to the rest of the industry. DAY outperforms 50.00% of its industry peers.
DAY has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
DAY has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: DAY outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.2
WACC8.21%
2.3 Liquidity
DAY has a Current Ratio of 1.02. This is a normal value and indicates that DAY is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DAY (1.02) is comparable to the rest of the industry.
DAY has a Quick Ratio of 1.02. This is a normal value and indicates that DAY is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.02, DAY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.48% over the past year.
The Earnings Per Share has been growing by 34.49% on average over the past years. This is a very strong growth
Looking at the last year, DAY shows a quite strong growth in Revenue. The Revenue has grown by 14.97% in the last year.
The Revenue has been growing by 16.39% on average over the past years. This is quite good.
EPS 1Y (TTM)31.48%
EPS 3Y96.74%
EPS 5Y34.49%
EPS Q2Q%34.88%
Revenue 1Y (TTM)14.97%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%11.66%
3.2 Future
The Earnings Per Share is expected to grow by 3.78% on average over the next years.
Based on estimates for the next years, DAY will show a quite strong growth in Revenue. The Revenue will grow by 9.62% on average per year.
EPS Next Y16.76%
EPS Next 2Y16.66%
EPS Next 3Y17.44%
EPS Next 5Y3.78%
Revenue Next Year10.58%
Revenue Next 2Y10.68%
Revenue Next 3Y11.76%
Revenue Next 5Y9.62%
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 decreasing.
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
The Price/Earnings ratio is 25.08, which means the current valuation is very expensive for DAY.
Compared to the rest of the industry, the Price/Earnings ratio of DAY indicates a rather cheap valuation: DAY is cheaper than 83.33% of the companies listed in the same industry.
DAY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.82, which indicates a rather expensive current valuation of DAY.
83.33% of the companies in the same industry are more expensive than DAY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DAY to the average of the S&P500 Index (36.36), we can say DAY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.08 | ||
| Fwd PE | 19.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAY is on the same level as its industry peers.
DAY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DAY is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.7 | ||
| EV/EBITDA | 29.03 |
4.3 Compensation for Growth
DAY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as DAY's earnings are expected to grow with 17.44% in the coming years.
PEG (NY)1.5
PEG (5Y)0.73
EPS Next 2Y16.66%
EPS Next 3Y17.44%
5. Dividend
5.1 Amount
DAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:DAY (8/6/2025, 7:00:00 PM)
73.48
-0.43 (-0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners111.67%
Inst Owner ChangeN/A
Ins Owners1.32%
Ins Owner ChangeN/A
Market Cap11.75B
Analysts75.45
Price Target96.55 (31.4%)
Short Float %N/A
Short RatioN/A
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)17.58%
Min EPS beat(2)4.47%
Max EPS beat(2)30.69%
EPS beat(4)4
Avg EPS beat(4)19.03%
Min EPS beat(4)4.47%
Max EPS beat(4)32.23%
EPS beat(8)8
Avg EPS beat(8)20.24%
EPS beat(12)11
Avg EPS beat(12)34.76%
EPS beat(16)15
Avg EPS beat(16)39.43%
Revenue beat(2)2
Avg Revenue beat(2)0.64%
Min Revenue beat(2)0.06%
Max Revenue beat(2)1.21%
Revenue beat(4)4
Avg Revenue beat(4)0.84%
Min Revenue beat(4)0.06%
Max Revenue beat(4)1.71%
Revenue beat(8)7
Avg Revenue beat(8)0.6%
Revenue beat(12)11
Avg Revenue beat(12)1.02%
Revenue beat(16)15
Avg Revenue beat(16)1.2%
PT rev (1m)1.47%
PT rev (3m)-8.3%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.08 | ||
| Fwd PE | 19.82 | ||
| P/S | 4.72 | ||
| P/FCF | 40.7 | ||
| P/OCF | 26.55 | ||
| P/B | 3.29 | ||
| P/tB | 98.93 | ||
| EV/EBITDA | 29.03 |
EPS(TTM)2.93
EY3.99%
EPS(NY)3.71
Fwd EY5.05%
FCF(TTM)1.81
FCFY2.46%
OCF(TTM)2.77
OCFY3.77%
SpS15.58
BVpS22.31
TBVpS0.74
PEG (NY)1.5
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 1% | ||
| ROCE | 3.11% | ||
| ROIC | 1.64% | ||
| ROICexc | 1.97% | ||
| ROICexgc | 25.5% | ||
| OM | 5.62% | ||
| PM (TTM) | 1.43% | ||
| GM | 46.93% | ||
| FCFM | 11.59% |
ROA(3y)-0.02%
ROA(5y)-0.23%
ROE(3y)-0.16%
ROE(5y)-0.81%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-2.73%
ROICexc growth 3YN/A
ROICexc growth 5Y10.24%
OM growth 3YN/A
OM growth 5Y0.19%
PM growth 3YN/A
PM growth 5Y-35.96%
GM growth 3Y7.32%
GM growth 5Y0.65%
F-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 52.02% | ||
| Cap/Sales | 6.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.55% | ||
| Profit Quality | 810.04% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 0.93 |
F-Score7
WACC8.21%
ROIC/WACC0.2
Cap/Depr(3y)81.59%
Cap/Depr(5y)88.48%
Cap/Sales(3y)7.12%
Cap/Sales(5y)6.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.48%
EPS 3Y96.74%
EPS 5Y34.49%
EPS Q2Q%34.88%
EPS Next Y16.76%
EPS Next 2Y16.66%
EPS Next 3Y17.44%
EPS Next 5Y3.78%
Revenue 1Y (TTM)14.97%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%11.66%
Revenue Next Year10.58%
Revenue Next 2Y10.68%
Revenue Next 3Y11.76%
Revenue Next 5Y9.62%
EBIT growth 1Y-33.29%
EBIT growth 3YN/A
EBIT growth 5Y16.61%
EBIT Next Year52.69%
EBIT Next 3Y28.6%
EBIT Next 5Y24.9%
FCF growth 1Y492.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y132.37%
OCF growth 3Y79.26%
OCF growth 5Y40.91%