DOUBLEVERIFY HOLDINGS INC (DV)
US25862V1052 - Common Stock
Taking everything into account, DV scores 7 out of 10 in our fundamental rating. DV was compared to 276 industry peers in the Software industry. DV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DV is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, DV could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
DV had positive earnings in the past year.
DV had a positive operating cash flow in the past year.
Each year in the past 5 years DV has been profitable.
In the past 5 years DV always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.74%, DV belongs to the best of the industry, outperforming 82.12% of the companies in the same industry.
The Return On Equity of DV (6.65%) is better than 78.83% of its industry peers.
DV has a Return On Invested Capital of 5.45%. This is amongst the best in the industry. DV outperforms 81.75% 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 10.12%.
The last Return On Invested Capital (5.45%) for DV is above the 3 year average (4.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 6.65% | ||
| ROIC | 5.45% |
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
DV has a Profit Margin of 12.47%. This is amongst the best in the industry. DV outperforms 84.67% 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 14.96%, DV belongs to the best of the industry, outperforming 85.77% of the companies in the same industry.
DV's Operating Margin has improved in the last couple of years.
DV's Gross Margin of 81.38% is amongst the best of the industry. DV outperforms 87.59% 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 | 14.96% | ||
| PM (TTM) | 12.47% | ||
| GM | 81.38% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DV is destroying value.
The number of shares outstanding for DV has been increased compared to 1 year ago.
Compared to 5 years ago, DV has more shares outstanding
DV has a worse debt/assets ratio than last year.
2.2 Solvency
DV has an Altman-Z score of 19.92. This indicates that DV is financially healthy and has little risk of bankruptcy at the moment.
DV has a better Altman-Z score (19.92) than 95.62% of its industry peers.
DV has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.06, DV belongs to the best of the industry, outperforming 82.48% of the companies in the same industry.
DV has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, DV is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 19.92 |
ROIC/WACC0.55
WACC9.95%
2.3 Liquidity
DV has a Current Ratio of 6.36. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 6.36, DV belongs to the top of the industry, outperforming 92.34% of the companies in the same industry.
DV has a Quick Ratio of 6.36. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 6.36, DV belongs to the top of the industry, outperforming 92.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.36 | ||
| Quick Ratio | 6.36 |
3. Growth
3.1 Past
DV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.00%, which is quite impressive.
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.
Looking at the last year, DV shows a very strong growth in Revenue. The Revenue has grown by 26.55%.
DV shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.57% yearly.
EPS 1Y (TTM)64%
EPS 3Y46.89%
EPS 5Y83.14%
EPS growth Q2Q90%
Revenue 1Y (TTM)26.55%
Revenue growth 3Y32.9%
Revenue growth 5Y40.57%
Revenue growth Q2Q28.92%
3.2 Future
DV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.93% yearly.
DV is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.12% yearly.
EPS Next Y-10.1%
EPS Next 2Y13.82%
EPS Next 3Y28.15%
EPS Next 5Y47.93%
Revenue Next Year21.73%
Revenue Next 2Y21.55%
Revenue Next 3Y21.5%
Revenue Next 5Y21.12%
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
Based on the Price/Earnings ratio of 74.78, the valuation of DV can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DV is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.20, DV is valued quite expensively.
DV is valuated quite expensively with a Price/Forward Earnings ratio of 83.18.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DV is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, DV is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.78 | ||
| Fwd PE | 83.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DV is valued a bit cheaper than 74.82% 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 61.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.25 | ||
| EV/EBITDA | 38.97 |
4.3 Compensation for Growth
DV has an outstanding profitability rating, which may justify a higher PE ratio.
DV's earnings are expected to grow with 28.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y13.82%
EPS Next 3Y28.15%
5. Dividend
5.1 Amount
DV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOUBLEVERIFY HOLDINGS INC
NYSE:DV (4/24/2024, 11:13:27 AM)
30.66
+0.17 (+0.56%)
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 Cap5.26B
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(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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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 | 74.78 | ||
| Fwd PE | 83.18 | ||
| 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)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 6.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.96% | ||
| PM (TTM) | 12.47% | ||
| GM | 81.38% | ||
| 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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.36 | ||
| Quick Ratio | 6.36 | ||
| 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)
Growth
EPS 1Y (TTM)64%
EPS 3Y46.89%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.55%
Revenue growth 3Y32.9%
Revenue growth 5Y
Revenue growth 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