DAYFORCE INC (DAY) Stock Fundamental Analysis
NYSE:DAY - New York Stock Exchange, Inc. - US15677J1088 - Common Stock - Currency: USD
Overall DAY gets a fundamental rating of 3 out of 10. We evaluated DAY against 81 industry peers in the Professional Services industry. Both the profitability and financial health of DAY have multiple concerns. DAY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DAY was profitable.
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.
Of the past 5 years DAY 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DAY (0.27%) is worse than 60.49% of its industry peers.
The Return On Equity of DAY (1.00%) is worse than 60.49% of its industry peers.
The Return On Invested Capital of DAY (2.46%) is comparable to the rest of the industry.
| 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's Profit Margin of 1.43% is in line compared to the rest of the industry. DAY outperforms 45.68% of its industry peers.
DAY's Profit Margin has declined in the last couple of years.
DAY has a Operating Margin of 5.62%. This is comparable to the rest of the industry: DAY outperforms 54.32% of its industry peers.
In the last couple of years the Operating Margin of DAY has remained more or less at the same level.
DAY has a Gross Margin (46.93%) which is comparable to the rest of the industry.
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
DAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DAY has more shares outstanding than it did 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 0.99. This is a bad value and indicates that DAY is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.99, DAY is not doing good in the industry: 72.84% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 5.79, DAY is in line with its industry, outperforming 48.15% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that DAY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, DAY is in line with its industry, outperforming 58.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.3
WACC8.28%
2.3 Liquidity
A Current Ratio of 1.02 indicates that DAY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.02, DAY is not doing good in the industry: 72.84% of the companies in the same industry are doing better.
A Quick Ratio of 1.02 indicates that DAY should not have too much problems paying its short term obligations.
DAY has a worse Quick ratio (1.02) than 72.84% 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.
The Earnings Per Share has been growing by 34.49% on average over the past years. This is a very strong growth
The Revenue has grown by 14.97% in the past year. This is quite good.
Measured over the past years, DAY shows a quite strong growth in Revenue. The Revenue has been growing by 16.39% on average per year.
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
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.
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
DAY is valuated quite expensively with a Price/Earnings ratio of 26.89.
The rest of the industry has a similar Price/Earnings ratio as DAY.
The average S&P500 Price/Earnings ratio is at 27.45. DAY is around the same levels.
The Price/Forward Earnings ratio is 21.26, which indicates a rather expensive current valuation of DAY.
DAY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. DAY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 21.26 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than DAY, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as DAY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.64 | ||
| EV/EBITDA | 30.99 |
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 18.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.6
PEG (5Y)0.78
EPS Next 2Y16.65%
EPS Next 3Y18.4%
5. Dividend
5.1 Amount
No dividends for DAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
57.27
+1.77 (+3.19%)
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 Change21.61%
Market Cap9.16B
Analysts75.83
Price Target69.32 (21.04%)
Short Float %4.25%
Short Ratio3.19
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)-7.45%
PT rev (3m)-14.19%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)-1.66%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 21.26 | ||
| P/S | 5.06 | ||
| P/FCF | 43.64 | ||
| P/OCF | 28.47 | ||
| P/B | 3.53 | ||
| P/tB | 106.1 | ||
| EV/EBITDA | 30.99 |
EPS(TTM)2.13
EY3.72%
EPS(NY)2.69
Fwd EY4.7%
FCF(TTM)1.31
FCFY2.29%
OCF(TTM)2.01
OCFY3.51%
SpS11.32
BVpS16.21
TBVpS0.54
PEG (NY)1.6
PEG (5Y)0.78
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 | 0.99 |
F-Score7
WACC8.28%
ROIC/WACC0.3
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%