DOUBLEVERIFY HOLDINGS INC (DV) Stock Fundamental Analysis
NYSE:DV - US25862V1052 - Common Stock
16.15 USD
+0.64 (+4.13%)
16.15 USD
0 (0%)
Taking everything into account, DV scores 6 out of 10 in our fundamental rating. DV was compared to 283 industry peers in the Software industry. While DV has a great health rating, its profitability is only average at the moment. DV is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make DV suitable for growth investing!
1. Profitability
1.1 Basic Checks
DV had positive earnings in the past year.
In the past year DV had a positive cash flow from operations.
In the past 5 years DV has always been profitable.
DV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.06%, DV is in the better half of the industry, outperforming 71.38% of the companies in the same industry.
With a decent Return On Equity value of 4.84%, DV is doing good in the industry, outperforming 69.96% of the companies in the same industry.
DV has a better Return On Invested Capital (4.98%) than 74.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DV is significantly below the industry average of 11.99%.
The 3 year average ROIC (4.71%) for DV is below the current ROIC(4.98%), indicating increased profibility in the last year.
| 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 72.08% of its industry peers.
In the last couple of years the Profit Margin of DV has declined.
Looking at the Operating Margin, with a value of 12.07%, DV is in the better half of the industry, outperforming 77.74% of the companies in the same industry.
In the last couple of years the Operating Margin of DV has declined.
DV has a Gross Margin of 82.10%. This is amongst the best in the industry. DV outperforms 89.05% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DV is destroying value.
DV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DV has more shares outstanding
DV has a better debt/assets ratio than last year.
2.2 Solvency
DV has an Altman-Z score of 9.05. This indicates that DV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.05, DV belongs to the best of the industry, outperforming 84.45% of the companies in the same industry.
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 81.27% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that DV is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.01, DV is doing good in the industry, outperforming 64.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.11 | ||
| Altman-Z | 9.05 |
ROIC/WACC0.44
WACC11.28%
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's Current ratio of 4.41 is amongst the best of the industry. DV outperforms 85.87% of its industry peers.
A Quick Ratio of 4.41 indicates that DV has no problem at all paying its short term obligations.
The Quick ratio of DV (4.41) is better than 85.87% 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
Based on estimates for the next years, DV will show a very strong growth in Earnings Per Share. The EPS will grow by 47.38% on average per year.
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 2Y23%
EPS Next 3Y20.76%
EPS Next 5Y47.38%
Revenue Next Year13.97%
Revenue Next 2Y12.88%
Revenue Next 3Y12.84%
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.
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
DV is valuated quite expensively with a Price/Earnings ratio of 52.10.
DV's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.24, DV is valued quite expensively.
A Price/Forward Earnings ratio of 33.36 indicates a quite expensive valuation of DV.
DV's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of DV to the average of the S&P500 Index (35.82), we can say DV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.1 | ||
| Fwd PE | 33.36 |
4.2 Price Multiples
DV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DV is cheaper than 83.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DV is valued cheaper than 84.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.63 | ||
| EV/EBITDA | 17.84 |
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.
DV has a very decent profitability rating, which 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)7.8
PEG (5Y)3.17
EPS Next 2Y23%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
DV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.15
+0.64 (+4.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change0.36%
Ins Owners0.7%
Ins Owner Change0.12%
Market Cap2.64B
Analysts73.79
Price Target19.64 (21.61%)
Short Float %7.05%
Short Ratio3.87
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)5.32%
PT rev (3m)3.59%
EPS NQ rev (1m)9.56%
EPS NQ rev (3m)-21.45%
EPS NY rev (1m)5.01%
EPS NY rev (3m)1.98%
Revenue NQ rev (1m)2.31%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)2.13%
Revenue NY rev (3m)4.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.1 | ||
| Fwd PE | 33.36 | ||
| P/S | 3.7 | ||
| P/FCF | 17.63 | ||
| P/OCF | 14.74 | ||
| P/B | 2.42 | ||
| P/tB | 5.78 | ||
| EV/EBITDA | 17.84 |
EPS(TTM)0.31
EY1.92%
EPS(NY)0.48
Fwd EY3%
FCF(TTM)0.92
FCFY5.67%
OCF(TTM)1.1
OCFY6.78%
SpS4.37
BVpS6.66
TBVpS2.8
PEG (NY)7.8
PEG (5Y)3.17
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 | 9.05 |
F-Score5
WACC11.28%
ROIC/WACC0.44
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 2Y23%
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 Year13.97%
Revenue Next 2Y12.88%
Revenue Next 3Y12.84%
Revenue Next 5Y12.83%
EBIT growth 1Y16.81%
EBIT growth 3Y45.6%
EBIT growth 5Y16.08%
EBIT Next Year179.83%
EBIT Next 3Y54.76%
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%