DOUBLEVERIFY HOLDINGS INC (DV)
US25862V1052 - Common Stock
We assign a fundamental rating of 7 out of 10 to DV. DV was compared to 284 industry peers in the Software industry. DV gets an excellent profitability rating and is at the same time showing great financial health properties. DV is valued quite expensively, but it does show have an excellent growth rating. These ratings would make DV suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year DV was profitable.
In the past year DV had a positive cash flow from operations.
In the past 5 years DV has always been profitable.
Each year in the past 5 years DV had a positive operating cash flow.
1.2 Ratios
DV has a better Return On Assets (4.80%) than 77.03% of its industry peers.
The Return On Equity of DV (5.52%) is better than 72.44% of its industry peers.
DV has a Return On Invested Capital of 4.56%. This is in the better half of the industry: DV outperforms 75.62% of its industry peers.
DV had an Average Return On Invested Capital over the past 3 years of 4.10%. This is significantly below the industry average of 10.33%.
The last Return On Invested Capital (4.56%) for DV is above the 3 year average (4.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 5.52% | ||
| ROIC | 4.56% |
ROA(3y)4.4%
ROA(5y)4.44%
ROE(3y)5.09%
ROE(5y)5.5%
ROIC(3y)4.1%
ROIC(5y)4.56%
1.3 Margins
The Profit Margin of DV (9.96%) is better than 77.39% of its industry peers.
In the last couple of years the Profit Margin of DV has grown nicely.
With an excellent Operating Margin value of 12.04%, DV belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
DV's Operating Margin has improved in the last couple of years.
DV's Gross Margin of 82.18% is amongst the best of the industry. DV outperforms 88.34% of its industry peers.
In the last couple of years the Gross Margin of DV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.04% | ||
| PM (TTM) | 9.96% | ||
| GM | 82.18% |
OM growth 3Y13.46%
OM growth 5Y25.08%
PM growth 3Y14.09%
PM growth 5Y32.4%
GM growth 3Y-1.58%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
DV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DV has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DV has more shares outstanding
Compared to 1 year ago, DV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 13.11 indicates that DV is not in any danger for bankruptcy at the moment.
DV has a better Altman-Z score (13.11) than 90.46% of its industry peers.
The Debt to FCF ratio of DV is 0.03, which is an excellent value as it means it would take DV, only 0.03 years of fcf income to pay off all of its debts.
DV's Debt to FCF ratio of 0.03 is amongst the best of the industry. DV outperforms 81.98% of its industry peers.
DV has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
DV's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. DV outperforms 66.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 13.11 |
ROIC/WACC0.48
WACC9.4%
2.3 Liquidity
A Current Ratio of 7.04 indicates that DV has no problem at all paying its short term obligations.
DV has a Current ratio of 7.04. This is amongst the best in the industry. DV outperforms 91.52% of its industry peers.
A Quick Ratio of 7.04 indicates that DV has no problem at all paying its short term obligations.
DV's Quick ratio of 7.04 is amongst the best of the industry. DV outperforms 91.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.04 | ||
| Quick Ratio | 7.04 |
3. Growth
3.1 Past
DV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.67%, which is quite good.
Measured over the past years, DV shows a very strong growth in Earnings Per Share. The EPS has been growing by 83.14% on average per year.
DV shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.04%.
Measured over the past years, DV shows a very strong growth in Revenue. The Revenue has been growing by 40.57% on average per year.
EPS 1Y (TTM)16.67%
EPS 3Y46.89%
EPS 5Y83.14%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)22.04%
Revenue growth 3Y32.9%
Revenue growth 5Y40.57%
Sales Q2Q%16.56%
3.2 Future
Based on estimates for the next years, DV will show a very strong growth in Earnings Per Share. The EPS will grow by 41.02% on average per year.
DV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.66% yearly.
EPS Next Y-21.78%
EPS Next 2Y6.3%
EPS Next 3Y10.73%
EPS Next 5Y41.02%
Revenue Next Year17.29%
Revenue Next 2Y18.05%
Revenue Next 3Y17.6%
Revenue Next 5Y17.66%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 51.77, DV can be considered very expensive at the moment.
DV's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of DV to the average of the S&P500 Index (29.62), we can say DV is valued expensively.
The Price/Forward Earnings ratio is 39.11, which means the current valuation is very expensive for DV.
DV's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.22. DV is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.77 | ||
| Fwd PE | 39.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DV is valued a bit cheaper than 75.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DV is valued a bit cheaper than the industry average as 78.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.52 | ||
| EV/EBITDA | 24.27 |
4.3 Compensation for Growth
The excellent profitability rating of DV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y6.3%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
No dividends for DV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOUBLEVERIFY HOLDINGS INC
NYSE:DV (9/6/2024, 8:09:15 PM)
After market: 18.25 +0.13 (+0.72%)18.12
-0.97 (-5.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.11B
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)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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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 | 51.77 | ||
| Fwd PE | 39.11 | ||
| 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)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 5.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.04% | ||
| PM (TTM) | 9.96% | ||
| GM | 82.18% | ||
| 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.04 | ||
| Quick Ratio | 7.04 | ||
| 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)16.67%
EPS 3Y46.89%
EPS 5Y
EPS Q2Q%
EPS Next Y-21.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.04%
Revenue growth 3Y32.9%
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