DOUBLEVERIFY HOLDINGS INC (DV) Stock Fundamental Analysis
NYSE:DV - New York Stock Exchange, Inc. - US25862V1052 - Common Stock - Currency: USD
DV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. DV has an excellent financial health rating, but there are some minor concerns on its profitability. DV is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make DV suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year DV was profitable.
DV had a positive operating cash flow in the past year.
Each year in the past 5 years DV has been profitable.
Each year in the past 5 years DV had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.12%, DV is in the better half of the industry, outperforming 73.14% of the companies in the same industry.
DV's Return On Equity of 4.98% is fine compared to the rest of the industry. DV outperforms 71.38% of its industry peers.
DV has a Return On Invested Capital of 5.07%. This is in the better half of the industry: DV outperforms 75.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DV is significantly below the industry average of 12.70%.
The last Return On Invested Capital (5.07%) for DV is above the 3 year average (4.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 4.98% | ||
| ROIC | 5.07% |
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
Looking at the Profit Margin, with a value of 7.55%, DV is in the better half of the industry, outperforming 74.20% of the companies in the same industry.
In the last couple of years the Profit Margin of DV has declined.
DV has a Operating Margin of 12.26%. This is in the better half of the industry: DV outperforms 79.15% of its industry peers.
DV's Operating Margin has declined in the last couple of years.
DV has a Gross Margin of 82.26%. This is amongst the best in the industry. DV outperforms 88.34% of its industry peers.
DV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.26% | ||
| PM (TTM) | 7.55% | ||
| GM | 82.26% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DV is destroying value.
DV has less shares outstanding than it did 1 year ago.
DV has more shares outstanding than it did 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 7.26. This indicates that DV is financially healthy and has little risk of bankruptcy at the moment.
DV's Altman-Z score of 7.26 is fine compared to the rest of the industry. DV outperforms 77.39% of its industry peers.
DV has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
DV has a better Debt to FCF ratio (0.12) than 80.92% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that DV is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, DV is in the better half of the industry, outperforming 64.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 7.26 |
ROIC/WACC0.46
WACC11.05%
2.3 Liquidity
DV has a Current Ratio of 3.72. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DV (3.72) is better than 79.86% of its industry peers.
DV has a Quick Ratio of 3.72. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
DV has a better Quick ratio (3.72) than 79.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.72 |
3. Growth
3.1 Past
DV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.68%.
The Earnings Per Share has been growing by 16.45% on average over the past years. This is quite good.
The Revenue has grown by 15.31% in the past year. This is quite good.
Measured over the past years, DV shows a very strong growth in Revenue. The Revenue has been growing by 29.17% on average per year.
EPS 1Y (TTM)-23.68%
EPS 3Y21.14%
EPS 5Y16.45%
EPS Q2Q%-75%
Revenue 1Y (TTM)15.31%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%17.25%
3.2 Future
DV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.73% yearly.
DV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.23% yearly.
EPS Next Y4.61%
EPS Next 2Y16.09%
EPS Next 3Y27.99%
EPS Next 5Y42.73%
Revenue Next Year9.25%
Revenue Next 2Y10.56%
Revenue Next 3Y11.41%
Revenue Next 5Y12.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 45.28, DV can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DV is valued a bit cheaper than the industry average as 61.13% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DV to the average of the S&P500 Index (25.82), we can say DV is valued expensively.
A Price/Forward Earnings ratio of 30.45 indicates a quite expensive valuation of DV.
62.54% of the companies in the same industry are more expensive than DV, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DV to the average of the S&P500 Index (21.76), we can say DV is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.28 | ||
| Fwd PE | 30.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DV is valued cheaply inside the industry as 86.22% of the companies are valued more expensively.
DV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DV is cheaper than 87.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.4 | ||
| EV/EBITDA | 15.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 27.99% in the coming years.
PEG (NY)9.82
PEG (5Y)2.75
EPS Next 2Y16.09%
EPS Next 3Y27.99%
5. Dividend
5.1 Amount
DV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.13
-0.62 (-4.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.02%
Inst Owner Change-2.05%
Ins Owners0.61%
Ins Owner Change0.11%
Market Cap2.13B
Analysts74.48
Price Target18.95 (44.33%)
Short Float %5.62%
Short Ratio2.68
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)0
Avg EPS beat(2)-40.96%
Min EPS beat(2)-56.48%
Max EPS beat(2)-25.44%
EPS beat(4)1
Avg EPS beat(4)-13.04%
Min EPS beat(4)-56.48%
Max EPS beat(4)39.61%
EPS beat(8)5
Avg EPS beat(8)9.75%
EPS beat(12)8
Avg EPS beat(12)18.74%
EPS beat(16)10
Avg EPS beat(16)-34.23%
Revenue beat(2)1
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-6%
Max Revenue beat(2)4.75%
Revenue beat(4)1
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-6%
Max Revenue beat(4)4.75%
Revenue beat(8)2
Avg Revenue beat(8)-1.41%
Revenue beat(12)4
Avg Revenue beat(12)-0.72%
Revenue beat(16)6
Avg Revenue beat(16)-0.28%
PT rev (1m)-9.23%
PT rev (3m)-19.04%
EPS NQ rev (1m)-26.38%
EPS NQ rev (3m)-37.95%
EPS NY rev (1m)-15.43%
EPS NY rev (3m)-34.75%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)-2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.28 | ||
| Fwd PE | 30.45 | ||
| P/S | 3.13 | ||
| P/FCF | 15.4 | ||
| P/OCF | 12.89 | ||
| P/B | 2.07 | ||
| P/tB | 5.26 | ||
| EV/EBITDA | 15.04 |
EPS(TTM)0.29
EY2.21%
EPS(NY)0.43
Fwd EY3.28%
FCF(TTM)0.85
FCFY6.49%
OCF(TTM)1.02
OCFY7.76%
SpS4.19
BVpS6.35
TBVpS2.5
PEG (NY)9.82
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 4.98% | ||
| ROCE | 7.35% | ||
| ROIC | 5.07% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 17.2% | ||
| OM | 12.26% | ||
| PM (TTM) | 7.55% | ||
| GM | 82.26% | ||
| FCFM | 20.34% |
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-Score6
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 57.94% | ||
| Cap/Sales | 3.97% | ||
| Interest Coverage | 187.19 | ||
| Cash Conversion | 127.19% | ||
| Profit Quality | 269.29% | ||
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.72 | ||
| Altman-Z | 7.26 |
F-Score6
WACC11.05%
ROIC/WACC0.46
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)-23.68%
EPS 3Y21.14%
EPS 5Y16.45%
EPS Q2Q%-75%
EPS Next Y4.61%
EPS Next 2Y16.09%
EPS Next 3Y27.99%
EPS Next 5Y42.73%
Revenue 1Y (TTM)15.31%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%17.25%
Revenue Next Year9.25%
Revenue Next 2Y10.56%
Revenue Next 3Y11.41%
Revenue Next 5Y12.23%
EBIT growth 1Y7.95%
EBIT growth 3Y45.6%
EBIT growth 5Y16.08%
EBIT Next Year173.23%
EBIT Next 3Y52.96%
EBIT Next 5Y36.29%
FCF growth 1Y74.84%
FCF growth 3Y21.79%
FCF growth 5Y41.34%
OCF growth 1Y39.66%
OCF growth 3Y24.49%
OCF growth 5Y40.24%