DAYFORCE INC (DAY) Stock Fundamental Analysis
NYSE:DAY - New York Stock Exchange, Inc. - US15677J1088 - Common Stock - Currency: USD
Taking everything into account, DAY scores 3 out of 10 in our fundamental rating. DAY was compared to 82 industry peers in the Professional Services industry. DAY may be in some trouble as it scores bad on both profitability and health. DAY is valied quite expensively at the moment, while it does show 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
DAY's Return On Assets of 0.27% is in line compared to the rest of the industry. DAY outperforms 41.46% of its industry peers.
The Return On Equity of DAY (1.00%) is comparable to the rest of the industry.
DAY's Return On Invested Capital of 2.46% is in line compared to the rest of the industry. DAY outperforms 41.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 1% | ||
| ROIC | 2.46% |
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
DAY has a Profit Margin of 1.43%. This is comparable to the rest of the industry: DAY outperforms 46.34% of its industry peers.
In the last couple of years the Profit Margin of DAY has declined.
DAY has a Operating Margin (5.62%) which is comparable to the rest of the industry.
DAY's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 46.93%, DAY is in line with its industry, outperforming 58.54% of the companies in the same industry.
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.
Compared to 1 year ago, DAY has more shares outstanding
DAY has more shares outstanding than it did 5 years ago.
DAY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that DAY is in the distress zone and has some risk of bankruptcy.
DAY has a worse Altman-Z score (1.02) than 73.17% 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.
With a Debt to FCF ratio value of 5.79, DAY perfoms like the industry average, outperforming 47.56% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that DAY is not too dependend on debt financing.
DAY has a Debt to Equity ratio (0.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.29
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.02 indicates that DAY should not have too much problems paying its short term obligations.
DAY has a worse Current ratio (1.02) than 71.95% of its industry peers.
A Quick Ratio of 1.02 indicates that DAY should not have too much problems paying its short term obligations.
DAY has a Quick ratio of 1.02. This is in the lower half of the industry: DAY underperforms 71.95% of its industry peers.
| 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.
DAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.49% yearly.
The Revenue has grown by 14.97% in the past year. This is quite good.
DAY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.39% yearly.
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
DAY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.78% yearly.
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 2Y10.63%
Revenue Next 3Y11.72%
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
Based on the Price/Earnings ratio of 28.17, the valuation of DAY can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as DAY.
When comparing the Price/Earnings ratio of DAY to the average of the S&P500 Index (28.04), we can say DAY is valued inline with the index average.
A Price/Forward Earnings ratio of 22.27 indicates a rather expensive valuation of DAY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAY is on the same level as its industry peers.
DAY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.17 | ||
| Fwd PE | 22.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAY is valued a bit more expensive than 68.29% of the companies in the same industry.
DAY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.72 | ||
| EV/EBITDA | 32.37 |
4.3 Compensation for Growth
The 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)1.68
PEG (5Y)0.82
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 |
60
+0.59 (+0.99%)
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 Change22.12%
Market Cap9.59B
Analysts75.45
Price Target70.33 (17.22%)
Short Float %3.88%
Short Ratio2.99
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)-7.66%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.17 | ||
| Fwd PE | 22.27 | ||
| P/S | 5.3 | ||
| P/FCF | 45.72 | ||
| P/OCF | 29.83 | ||
| P/B | 3.7 | ||
| P/tB | 111.16 | ||
| EV/EBITDA | 32.37 |
EPS(TTM)2.13
EY3.55%
EPS(NY)2.69
Fwd EY4.49%
FCF(TTM)1.31
FCFY2.19%
OCF(TTM)2.01
OCFY3.35%
SpS11.32
BVpS16.21
TBVpS0.54
PEG (NY)1.68
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 1% | ||
| ROCE | 3.11% | ||
| ROIC | 2.46% | ||
| ROICexc | 2.96% | ||
| ROICexgc | 38.3% | ||
| 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 | 1.02 |
F-Score7
WACC8.35%
ROIC/WACC0.29
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 2Y10.63%
Revenue Next 3Y11.72%
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%