DAYFORCE INC (DAY) Stock Fundamental Analysis
USA - NYSE:DAY - US15677J1088 - Common Stock
68.5 USD
0 (0%)
68.5 USD
0 (0%)
Taking everything into account, DAY scores 4 out of 10 in our fundamental rating. DAY was compared to 86 industry peers in the Professional Services industry. While DAY is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, DAY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
DAY had positive earnings in the past year.
In the past year DAY had a positive cash flow from operations.
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 has a Return On Assets of 0.58%. This is comparable to the rest of the industry: DAY outperforms 44.19% of its industry peers.
The Return On Equity of DAY (1.81%) is comparable to the rest of the industry.
The Return On Invested Capital of DAY (3.04%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.81% | ||
| ROIC | 3.04% |
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 (2.65%) is comparable to the rest of the industry.
DAY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.02%, DAY is in line with its industry, outperforming 59.30% of the companies in the same industry.
In the last couple of years the Operating Margin of DAY has remained more or less at the same level.
The Gross Margin of DAY (48.65%) is better than 65.12% 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 | 7.02% | ||
| PM (TTM) | 2.65% | ||
| GM | 48.65% |
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
DAY has an Altman-Z score of 1.36. 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 (1.36) is worse than 69.77% of its industry peers.
The Debt to FCF ratio of DAY is 5.42, which is a neutral value as it means it would take DAY, 5.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.42, DAY is in line with its industry, outperforming 52.33% of the companies in the same industry.
DAY has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
DAY's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. DAY outperforms 56.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.38
WACC8.04%
2.3 Liquidity
DAY has a Current Ratio of 1.04. This is a normal value and indicates that DAY is financially healthy and should not expect problems in meeting its short term obligations.
DAY has a worse Current ratio (1.04) than 72.09% of its industry peers.
DAY has a Quick Ratio of 1.04. This is a normal value and indicates that DAY is financially healthy and should not expect problems in meeting its short term obligations.
DAY has a Quick ratio of 1.04. This is in the lower half of the industry: DAY underperforms 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
DAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.97%, 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.
DAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.46%.
The Revenue has been growing by 16.39% on average over the past years. This is quite good.
EPS 1Y (TTM)26.97%
EPS 3Y96.74%
EPS 5Y34.49%
EPS Q2Q%27.08%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%9.78%
3.2 Future
Based on estimates for the next years, DAY will show a small growth in Earnings Per Share. The EPS will grow by 3.60% on average per year.
DAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.69% yearly.
EPS Next Y23.81%
EPS Next 2Y17.94%
EPS Next 3Y18.3%
EPS Next 5Y3.6%
Revenue Next Year11.14%
Revenue Next 2Y11.35%
Revenue Next 3Y11.68%
Revenue Next 5Y9.69%
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
Based on the Price/Earnings ratio of 30.31, the valuation of DAY can be described as expensive.
DAY's Price/Earnings is on the same level as the industry average.
DAY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.87, DAY is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as DAY.
DAY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.31 | ||
| Fwd PE | 24.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAY is valued a bit more expensive than the industry average as 69.77% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.21 | ||
| EV/EBITDA | 32.8 |
4.3 Compensation for Growth
DAY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DAY's earnings are expected to grow with 18.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)0.88
EPS Next 2Y17.94%
EPS Next 3Y18.3%
5. Dividend
5.1 Amount
DAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.5
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105.34%
Inst Owner ChangeN/A
Ins Owners1.32%
Ins Owner Change-0.3%
Market Cap10.81B
Revenue(TTM)1.85B
Net Income(TTM)49.00M
Analysts67.62
Price Target69.44 (1.37%)
Short Float %2.67%
Short Ratio1.5
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)10.13%
Min EPS beat(2)4.47%
Max EPS beat(2)15.78%
EPS beat(4)4
Avg EPS beat(4)14.92%
Min EPS beat(4)4.47%
Max EPS beat(4)30.69%
EPS beat(8)8
Avg EPS beat(8)21.19%
EPS beat(12)11
Avg EPS beat(12)27.08%
EPS beat(16)15
Avg EPS beat(16)36.85%
Revenue beat(2)2
Avg Revenue beat(2)0.28%
Min Revenue beat(2)0.06%
Max Revenue beat(2)0.51%
Revenue beat(4)4
Avg Revenue beat(4)0.87%
Min Revenue beat(4)0.06%
Max Revenue beat(4)1.71%
Revenue beat(8)7
Avg Revenue beat(8)0.53%
Revenue beat(12)11
Avg Revenue beat(12)0.96%
Revenue beat(16)15
Avg Revenue beat(16)0.94%
PT rev (1m)-0.23%
PT rev (3m)-1.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.26%
EPS NY rev (1m)0%
EPS NY rev (3m)6.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.31 | ||
| Fwd PE | 24.87 | ||
| P/S | 5.84 | ||
| P/FCF | 48.21 | ||
| P/OCF | 32.26 | ||
| P/B | 4 | ||
| P/tB | 61.1 | ||
| EV/EBITDA | 32.8 |
EPS(TTM)2.26
EY3.3%
EPS(NY)2.75
Fwd EY4.02%
FCF(TTM)1.42
FCFY2.07%
OCF(TTM)2.12
OCFY3.1%
SpS11.73
BVpS17.12
TBVpS1.12
PEG (NY)1.27
PEG (5Y)0.88
Graham Number29.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.81% | ||
| ROCE | 3.84% | ||
| ROIC | 3.04% | ||
| ROICexc | 3.72% | ||
| ROICexgc | 44.19% | ||
| OM | 7.02% | ||
| PM (TTM) | 2.65% | ||
| GM | 48.65% | ||
| FCFM | 12.11% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 5.42 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 50.99% | ||
| Cap/Sales | 5.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.43% | ||
| Profit Quality | 457.55% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.36 |
F-Score8
WACC8.04%
ROIC/WACC0.38
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)26.97%
EPS 3Y96.74%
EPS 5Y34.49%
EPS Q2Q%27.08%
EPS Next Y23.81%
EPS Next 2Y17.94%
EPS Next 3Y18.3%
EPS Next 5Y3.6%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y19.78%
Revenue growth 5Y16.39%
Sales Q2Q%9.78%
Revenue Next Year11.14%
Revenue Next 2Y11.35%
Revenue Next 3Y11.68%
Revenue Next 5Y9.69%
EBIT growth 1Y-2.69%
EBIT growth 3YN/A
EBIT growth 5Y16.61%
EBIT Next Year52.9%
EBIT Next 3Y27.85%
EBIT Next 5Y16.58%
FCF growth 1Y187.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y79.29%
OCF growth 3Y79.26%
OCF growth 5Y40.91%