DAYFORCE INC (DAY.CA) Stock Fundamental Analysis
TSX:DAY - Toronto Stock Exchange - US15677J1088 - Common Stock - Currency: CAD
Overall DAY gets a fundamental rating of 4 out of 10. We evaluated DAY 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
DAY had positive earnings in the past year.
DAY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: DAY reported negative net income in multiple years.
DAY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of DAY (0.27%) is worse than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 1.00%, DAY is doing worse than 66.67% of the companies in the same industry.
The Return On Invested Capital of DAY (1.64%) is worse than 66.67% of its industry peers.
| 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
The Profit Margin of DAY (1.43%) is worse than 66.67% of its industry peers.
In the last couple of years the Profit Margin of DAY has declined.
DAY has a Operating Margin of 5.62%. This is in the better half 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.
In the last couple of years the Gross Margin of DAY has remained more or less at the same level.
| 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
DAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DAY has been increased compared to 1 year ago.
Compared to 5 years ago, DAY has more shares outstanding
The debt/assets ratio for DAY has been reduced compared to a year ago.
2.2 Solvency
DAY has an Altman-Z score of 1.00. This is a bad value and indicates that DAY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DAY (1.00) is worse than 66.67% of its industry peers.
The Debt to FCF ratio of DAY is 5.79, which is a neutral value as it means it would take DAY, 5.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DAY (5.79) is comparable to the rest of the industry.
DAY has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
DAY's Debt to Equity ratio of 0.24 is in line compared 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 | 1 |
ROIC/WACC0.19
WACC8.43%
2.3 Liquidity
A Current Ratio of 1.02 indicates that DAY should not have too much problems paying its short term obligations.
DAY's Current ratio of 1.02 is in line compared to the rest of the industry. DAY outperforms 50.00% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.02, DAY is in line with its industry, 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
DAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.48%, which is quite impressive.
Measured over the past years, DAY shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.49% on average per year.
The Revenue has grown by 14.97% in the past year. This is quite good.
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.
DAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.62% yearly.
EPS Next Y16.78%
EPS Next 2Y16.65%
EPS Next 3Y18.4%
EPS Next 5Y3.78%
Revenue Next Year10.52%
Revenue Next 2Y10.99%
Revenue Next 3Y11.62%
Revenue Next 5Y9.62%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 25.91, 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 somewhat cheap valuation: DAY is cheaper than 66.67% 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 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.52 indicates a rather expensive valuation of DAY.
Based on the Price/Forward Earnings ratio, DAY is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DAY to the average of the S&P500 Index (21.76), we can say DAY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.91 | ||
| Fwd PE | 20.52 |
4.2 Price Multiples
DAY's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, DAY is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.13 | ||
| EV/EBITDA | 31.49 |
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 18.40% in the coming years.
PEG (NY)1.54
PEG (5Y)0.75
EPS Next 2Y16.65%
EPS Next 3Y18.4%
5. Dividend
5.1 Amount
DAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:DAY (7/11/2025, 7:00:00 PM)
75.67
-4.08 (-5.12%)
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 Cap12.10B
Analysts75.45
Price Target95.15 (25.74%)
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)-8.14%
PT rev (3m)-18.05%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-2.16%
EPS NY rev (1m)-1.66%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.91 | ||
| Fwd PE | 20.52 | ||
| P/S | 4.88 | ||
| P/FCF | 42.13 | ||
| P/OCF | 27.48 | ||
| P/B | 3.41 | ||
| P/tB | 102.41 | ||
| EV/EBITDA | 31.49 |
EPS(TTM)2.92
EY3.86%
EPS(NY)3.69
Fwd EY4.87%
FCF(TTM)1.8
FCFY2.37%
OCF(TTM)2.75
OCFY3.64%
SpS15.5
BVpS22.19
TBVpS0.74
PEG (NY)1.54
PEG (5Y)0.75
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 | 1 |
F-Score7
WACC8.43%
ROIC/WACC0.19
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 Y16.78%
EPS Next 2Y16.65%
EPS Next 3Y18.4%
EPS Next 5Y3.78%
Revenue 1Y (TTM)14.97%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%11.66%
Revenue Next Year10.52%
Revenue Next 2Y10.99%
Revenue Next 3Y11.62%
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%