DOUBLEVERIFY HOLDINGS INC (DV) Stock Fundamental Analysis
USA - NYSE:DV - US25862V1052 - Common Stock
11.28 USD
-0.05 (-0.44%)
11.38 USD
+0.1 (+0.89%)
Taking everything into account, DV scores 6 out of 10 in our fundamental rating. DV was compared to 98 industry peers in the Media industry. DV has an excellent financial health rating, but there are some minor concerns on its profitability. DV shows excellent growth, but is valued quite expensive already. With these ratings, DV could be worth investigating further for growth 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.
In the past 5 years DV always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DV (4.06%) is better than 74.49% of its industry peers.
DV has a better Return On Equity (4.84%) than 65.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.98%, DV is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DV is below the industry average of 8.86%.
The last Return On Invested Capital (4.98%) for DV is above the 3 year average (4.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 4.84% | ||
| ROIC | 4.98% |
ROA(3y)4.78%
ROA(5y)4.32%
ROE(3y)5.59%
ROE(5y)5.07%
ROIC(3y)4.71%
ROIC(5y)3.99%
1.3 Margins
DV has a better Profit Margin (7.38%) than 74.49% of its industry peers.
DV's Profit Margin has declined in the last couple of years.
DV's Operating Margin of 12.07% is fine compared to the rest of the industry. DV outperforms 65.31% of its industry peers.
In the last couple of years the Operating Margin of DV has declined.
The Gross Margin of DV (82.10%) is better than 93.88% of its industry peers.
DV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.07% | ||
| PM (TTM) | 7.38% | ||
| GM | 82.1% |
OM growth 3Y16.07%
OM growth 5Y-10.13%
PM growth 3Y-0.94%
PM growth 5Y-7.66%
GM growth 3Y-0.57%
GM growth 5Y-0.97%
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.
The number of shares outstanding for DV has been reduced compared to 1 year ago.
The number of shares outstanding for DV has been increased compared to 5 years ago.
The debt/assets ratio for DV has been reduced compared to a year ago.
2.2 Solvency
DV has an Altman-Z score of 6.76. This indicates that DV is financially healthy and has little risk of bankruptcy at the moment.
DV has a better Altman-Z score (6.76) than 89.80% of its industry peers.
DV has a debt to FCF ratio of 0.11. This is a very positive value and a sign of high solvency as it would only need 0.11 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.11, DV belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
DV has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DV (0.01) is better than 83.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.11 | ||
| Altman-Z | 6.76 |
ROIC/WACC0.57
WACC8.77%
2.3 Liquidity
DV has a Current Ratio of 4.41. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
DV has a better Current ratio (4.41) than 94.90% of its industry peers.
DV has a Quick Ratio of 4.41. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
DV has a Quick ratio of 4.41. This is amongst the best in the industry. DV outperforms 94.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.41 | ||
| Quick Ratio | 4.41 |
3. Growth
3.1 Past
The earnings per share for DV have decreased strongly by -11.43% in the last year.
The Earnings Per Share has been growing by 16.45% on average over the past years. This is quite good.
Looking at the last year, DV shows a quite strong growth in Revenue. The Revenue has grown by 16.54% in the last year.
The Revenue has been growing by 29.17% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-11.43%
EPS 3Y21.14%
EPS 5Y16.45%
EPS Q2Q%50%
Revenue 1Y (TTM)16.54%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%21.25%
3.2 Future
The Earnings Per Share is expected to grow by 47.38% on average over the next years. This is a very strong growth
Based on estimates for the next years, DV will show a quite strong growth in Revenue. The Revenue will grow by 12.83% on average per year.
EPS Next Y6.68%
EPS Next 2Y22.81%
EPS Next 3Y20.76%
EPS Next 5Y47.38%
Revenue Next Year14.06%
Revenue Next 2Y13%
Revenue Next 3Y12.78%
Revenue Next 5Y12.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.39, DV can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as DV.
When comparing the Price/Earnings ratio of DV to the average of the S&P500 Index (27.86), we can say DV is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 23.37, the valuation of DV can be described as rather expensive.
DV's Price/Forward Earnings ratio is in line with the industry average.
DV's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.39 | ||
| Fwd PE | 23.37 |
4.2 Price Multiples
DV's Enterprise Value to EBITDA is on the same level as the industry average.
DV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DV is cheaper than 70.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.31 | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DV does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of DV may justify a higher PE ratio.
A more expensive valuation may be justified as DV's earnings are expected to grow with 20.76% in the coming years.
PEG (NY)5.45
PEG (5Y)2.21
EPS Next 2Y22.81%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
No dividends for DV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.28
-0.05 (-0.44%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners87.29%
Inst Owner Change0.27%
Ins Owners0.75%
Ins Owner Change-6.86%
Market Cap1.85B
Analysts74.48
Price Target19.64 (74.11%)
Short Float %6.5%
Short Ratio3.06
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)1
Avg EPS beat(2)-24.68%
Min EPS beat(2)-56.48%
Max EPS beat(2)7.12%
EPS beat(4)2
Avg EPS beat(4)-8.8%
Min EPS beat(4)-56.48%
Max EPS beat(4)39.61%
EPS beat(8)5
Avg EPS beat(8)8.98%
EPS beat(12)8
Avg EPS beat(12)14.82%
EPS beat(16)11
Avg EPS beat(16)16.61%
Revenue beat(2)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)1.7%
Max Revenue beat(2)4.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-6%
Max Revenue beat(4)4.75%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)4
Avg Revenue beat(12)-0.95%
Revenue beat(16)6
Avg Revenue beat(16)-0.26%
PT rev (1m)0%
PT rev (3m)5.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.66%
EPS NY rev (1m)0%
EPS NY rev (3m)5.84%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)4.42%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.39 | ||
| Fwd PE | 23.37 | ||
| P/S | 2.58 | ||
| P/FCF | 12.31 | ||
| P/OCF | 10.3 | ||
| P/B | 1.69 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)0.31
EY2.75%
EPS(NY)0.48
Fwd EY4.28%
FCF(TTM)0.92
FCFY8.12%
OCF(TTM)1.1
OCFY9.71%
SpS4.37
BVpS6.66
TBVpS2.8
PEG (NY)5.45
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 4.84% | ||
| ROCE | 7.23% | ||
| ROIC | 4.98% | ||
| ROICexc | 6.09% | ||
| ROICexgc | 17.34% | ||
| OM | 12.07% | ||
| PM (TTM) | 7.38% | ||
| GM | 82.1% | ||
| FCFM | 20.98% |
ROA(3y)4.78%
ROA(5y)4.32%
ROE(3y)5.59%
ROE(5y)5.07%
ROIC(3y)4.71%
ROIC(5y)3.99%
ROICexc(3y)6.45%
ROICexc(5y)5.25%
ROICexgc(3y)19.19%
ROICexgc(5y)18.51%
ROCE(3y)6.84%
ROCE(5y)5.79%
ROICexcg growth 3Y1.44%
ROICexcg growth 5Y-18.15%
ROICexc growth 3Y30%
ROICexc growth 5Y0.7%
OM growth 3Y16.07%
OM growth 5Y-10.13%
PM growth 3Y-0.94%
PM growth 5Y-7.66%
GM growth 3Y-0.57%
GM growth 5Y-0.97%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.11 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 58.38% | ||
| Cap/Sales | 4.12% | ||
| Interest Coverage | 137.02 | ||
| Cash Conversion | 131.29% | ||
| Profit Quality | 284.3% | ||
| Current Ratio | 4.41 | ||
| Quick Ratio | 4.41 | ||
| Altman-Z | 6.76 |
F-Score5
WACC8.77%
ROIC/WACC0.57
Cap/Depr(3y)72.7%
Cap/Depr(5y)57.75%
Cap/Sales(3y)5.31%
Cap/Sales(5y)4.55%
Profit Quality(3y)168.72%
Profit Quality(5y)162.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.43%
EPS 3Y21.14%
EPS 5Y16.45%
EPS Q2Q%50%
EPS Next Y6.68%
EPS Next 2Y22.81%
EPS Next 3Y20.76%
EPS Next 5Y47.38%
Revenue 1Y (TTM)16.54%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%21.25%
Revenue Next Year14.06%
Revenue Next 2Y13%
Revenue Next 3Y12.78%
Revenue Next 5Y12.83%
EBIT growth 1Y16.81%
EBIT growth 3Y45.6%
EBIT growth 5Y16.08%
EBIT Next Year186.04%
EBIT Next 3Y55.82%
EBIT Next 5Y37.43%
FCF growth 1Y125.62%
FCF growth 3Y21.79%
FCF growth 5Y41.34%
OCF growth 1Y78.45%
OCF growth 3Y24.49%
OCF growth 5Y40.24%