DAYFORCE INC (DAY)
US15677J1088 - Common Stock
DAY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 83 industry peers in the Professional Services industry. DAY may be in some trouble as it scores bad on both profitability and health. DAY is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year DAY was profitable.
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.
Of the past 5 years DAY 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.52%, DAY is not doing good in the industry: 62.03% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 1.90%, DAY is doing worse than 60.76% of the companies in the same industry.
With a Return On Invested Capital value of 2.80%, DAY is not doing good in the industry: 60.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 1.9% | ||
| ROIC | 2.8% |
ROA(3y)-0.44%
ROA(5y)-0.02%
ROE(3y)-1.53%
ROE(5y)-0.12%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DAY has a Profit Margin (2.89%) which is comparable to the rest of the industry.
With a decent Operating Margin value of 8.19%, DAY is doing good in the industry, outperforming 67.09% of the companies in the same industry.
DAY's Operating Margin has improved in the last couple of years.
DAY has a Gross Margin of 44.27%. This is comparable to the rest of the industry: DAY outperforms 51.90% 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 | 8.19% | ||
| PM (TTM) | 2.89% | ||
| GM | 44.27% |
OM growth 3Y164.31%
OM growth 5Y9.17%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.78%
GM growth 5Y0.09%
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.
DAY has more shares outstanding than it did 5 years ago.
DAY has a better debt/assets ratio than last year.
2.2 Solvency
DAY has an Altman-Z score of 1.27. 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 1.27, DAY is not doing good in the industry: 69.62% of the companies in the same industry are doing better.
DAY has a debt to FCF ratio of 9.94. This is a negative value and a sign of low solvency as DAY would need 9.94 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.94, DAY is not doing good in the industry: 62.03% of the companies in the same industry are doing better.
DAY has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.49, DAY is in line with its industry, outperforming 45.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 9.94 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.33
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.11 indicates that DAY should not have too much problems paying its short term obligations.
DAY has a Current ratio of 1.11. This is in the lower half of the industry: DAY underperforms 69.62% of its industry peers.
DAY has a Quick Ratio of 1.11. 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 Quick ratio (1.11) than 69.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
DAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.85%, 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 45.20% on average per year.
Looking at the last year, DAY shows a very strong growth in Revenue. The Revenue has grown by 21.47%.
The Revenue has been growing by 15.37% on average over the past years. This is quite good.
EPS 1Y (TTM)52.85%
EPS 3Y45.2%
EPS 5YN/A
EPS Q2Q%27.03%
Revenue 1Y (TTM)21.47%
Revenue growth 3Y21.57%
Revenue growth 5Y15.37%
Sales Q2Q%16.56%
3.2 Future
DAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.14% yearly.
Based on estimates for the next years, DAY will show a quite strong growth in Revenue. The Revenue will grow by 17.14% on average per year.
EPS Next Y24.01%
EPS Next 2Y20.46%
EPS Next 3Y22.23%
EPS Next 5Y28.14%
Revenue Next Year15.04%
Revenue Next 2Y14.05%
Revenue Next 3Y13.94%
Revenue Next 5Y17.14%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.74, which means the current valuation is very expensive for DAY.
DAY's Price/Earnings ratio is a bit more expensive when compared to the industry. DAY is more expensive than 68.35% of the companies in the same industry.
DAY is valuated rather expensively when we compare the Price/Earnings ratio to 30.16, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.60, which means the current valuation is very expensive for DAY.
Based on the Price/Forward Earnings ratio, DAY is valued a bit more expensive than the industry average as 68.35% of the companies are valued more cheaply.
DAY is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.74 | ||
| Fwd PE | 32.6 |
4.2 Price Multiples
75.95% of the companies in the same industry are cheaper than DAY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DAY is valued a bit more expensive than 64.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.57 | ||
| EV/EBITDA | 36.96 |
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 22.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.57
PEG (5Y)N/A
EPS Next 2Y20.46%
EPS Next 3Y22.23%
5. Dividend
5.1 Amount
No dividends for DAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DAYFORCE INC
NYSE:DAY (10/31/2024, 6:40:01 PM)
After market: 70.95 0 (0%)70.95
+0.87 (+1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.74 | ||
| Fwd PE | 32.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 1.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.19% | ||
| PM (TTM) | 2.89% | ||
| GM | 44.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)52.85%
EPS 3Y45.2%
EPS 5Y
EPS Q2Q%
EPS Next Y24.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.47%
Revenue growth 3Y21.57%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y