DOUBLEVERIFY HOLDINGS INC (DV) Stock Fundamental Analysis
NYSE:DV - New York Stock Exchange, Inc. - US25862V1052 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to DV. DV was compared to 281 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! This makes DV very considerable for growth and quality 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.
DV had positive earnings in each of the past 5 years.
Each year in the past 5 years DV had a positive operating cash flow.
1.2 Ratios
DV has a Return On Assets of 4.41%. This is in the better half of the industry: DV outperforms 73.31% of its industry peers.
DV has a Return On Equity of 5.19%. This is in the better half of the industry: DV outperforms 70.82% of its industry peers.
DV has a Return On Invested Capital of 4.84%. This is in the better half of the industry: DV outperforms 75.80% 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 12.03%.
The last Return On Invested Capital (4.84%) for DV is above the 3 year average (4.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 5.19% | ||
| ROIC | 4.84% |
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 8.56%, DV is in the better half of the industry, outperforming 74.02% of the companies in the same industry.
DV's Profit Margin has declined in the last couple of years.
DV's Operating Margin of 12.55% is amongst the best of the industry. DV outperforms 80.78% of its industry peers.
In the last couple of years the Operating Margin of DV has declined.
The Gross Margin of DV (82.26%) is better than 88.97% 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 | 12.55% | ||
| PM (TTM) | 8.56% | ||
| 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
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.
DV has more shares outstanding than it did 5 years ago.
DV has a better debt/assets ratio than last year.
2.2 Solvency
DV has an Altman-Z score of 8.14. This indicates that DV is financially healthy and has little risk of bankruptcy at the moment.
DV has a Altman-Z score of 8.14. This is amongst the best in the industry. DV outperforms 81.85% of its industry peers.
DV has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
DV's Debt to FCF ratio of 0.03 is amongst the best of the industry. DV outperforms 81.85% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that DV is not too dependend on debt financing.
The Debt to Equity ratio of DV (0.00) is better than 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 8.14 |
ROIC/WACC0.46
WACC10.59%
2.3 Liquidity
DV has a Current Ratio of 5.40. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DV (5.40) is better than 87.19% of its industry peers.
DV has a Quick Ratio of 5.40. This indicates that DV is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 5.40, DV belongs to the best of the industry, outperforming 87.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.4 | ||
| Quick Ratio | 5.4 |
3. Growth
3.1 Past
The earnings per share for DV have decreased strongly by -21.95% in the last year.
Measured over the past years, DV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.45% on average per year.
The Revenue has grown by 14.73% 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)-21.95%
EPS 3Y21.14%
EPS 5Y16.45%
EPS Q2Q%-26.32%
Revenue 1Y (TTM)14.73%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%10.68%
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 42.73% 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 12.23% on average per year.
EPS Next Y23.69%
EPS Next 2Y18.46%
EPS Next 3Y28.64%
EPS Next 5Y42.73%
Revenue Next Year8.75%
Revenue Next 2Y10.74%
Revenue Next 3Y11.44%
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
DV is valuated quite expensively with a Price/Earnings ratio of 41.97.
DV's Price/Earnings ratio is a bit cheaper when compared to the industry. DV is cheaper than 61.21% of the companies in the same industry.
DV's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.22.
With a Price/Forward Earnings ratio of 33.93, DV can be considered very expensive at the moment.
62.63% of the companies in the same industry are more expensive than DV, based on the Price/Forward Earnings ratio.
DV's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.97 | ||
| Fwd PE | 33.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DV is valued cheaper than 86.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DV is valued cheaply inside the industry as 86.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.47 | ||
| EV/EBITDA | 14.32 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DV has a very decent profitability rating, which may justify a higher PE ratio.
DV's earnings are expected to grow with 28.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.77
PEG (5Y)2.55
EPS Next 2Y18.46%
EPS Next 3Y28.64%
5. Dividend
5.1 Amount
DV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.43
+0.18 (+1.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.02%
Inst Owner Change-0.25%
Ins Owners0.61%
Ins Owner Change0.11%
Market Cap2.18B
Analysts74.48
Price Target19.13 (42.44%)
Short Float %6.26%
Short Ratio3.04
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)7.08%
Min EPS beat(2)-25.44%
Max EPS beat(2)39.61%
EPS beat(4)2
Avg EPS beat(4)15.55%
Min EPS beat(4)-25.44%
Max EPS beat(4)57.87%
EPS beat(8)6
Avg EPS beat(8)28.2%
EPS beat(12)9
Avg EPS beat(12)26.04%
EPS beat(16)10
Avg EPS beat(16)-33.01%
Revenue beat(2)0
Avg Revenue beat(2)-4.25%
Min Revenue beat(2)-6%
Max Revenue beat(2)-2.5%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-6%
Max Revenue beat(4)-1.12%
Revenue beat(8)2
Avg Revenue beat(8)-1.9%
Revenue beat(12)4
Avg Revenue beat(12)-0.74%
Revenue beat(16)5
Avg Revenue beat(16)-0.63%
PT rev (1m)-17.4%
PT rev (3m)-17.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.37%
EPS NY rev (1m)-0.92%
EPS NY rev (3m)-23.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.47%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.97 | ||
| Fwd PE | 33.93 | ||
| P/S | 3.32 | ||
| P/FCF | 16.47 | ||
| P/OCF | 13.67 | ||
| P/B | 2.01 | ||
| P/tB | 4 | ||
| EV/EBITDA | 14.32 |
EPS(TTM)0.32
EY2.38%
EPS(NY)0.4
Fwd EY2.95%
FCF(TTM)0.82
FCFY6.07%
OCF(TTM)0.98
OCFY7.32%
SpS4.04
BVpS6.67
TBVpS3.36
PEG (NY)1.77
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 5.19% | ||
| ROCE | 7.03% | ||
| ROIC | 4.84% | ||
| ROICexc | 6.59% | ||
| ROICexgc | 17.53% | ||
| OM | 12.55% | ||
| PM (TTM) | 8.56% | ||
| GM | 82.26% | ||
| FCFM | 20.17% |
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-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 60.04% | ||
| Cap/Sales | 4.13% | ||
| Interest Coverage | 172.07 | ||
| Cash Conversion | 125.09% | ||
| Profit Quality | 235.66% | ||
| Current Ratio | 5.4 | ||
| Quick Ratio | 5.4 | ||
| Altman-Z | 8.14 |
F-Score7
WACC10.59%
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)-21.95%
EPS 3Y21.14%
EPS 5Y16.45%
EPS Q2Q%-26.32%
EPS Next Y23.69%
EPS Next 2Y18.46%
EPS Next 3Y28.64%
EPS Next 5Y42.73%
Revenue 1Y (TTM)14.73%
Revenue growth 3Y25.45%
Revenue growth 5Y29.17%
Sales Q2Q%10.68%
Revenue Next Year8.75%
Revenue Next 2Y10.74%
Revenue Next 3Y11.44%
Revenue Next 5Y12.23%
EBIT growth 1Y-3.76%
EBIT growth 3Y45.6%
EBIT growth 5Y16.08%
EBIT Next Year173.81%
EBIT Next 3Y53.83%
EBIT Next 5Y36.29%
FCF growth 1Y28.99%
FCF growth 3Y21.79%
FCF growth 5Y41.34%
OCF growth 1Y33.34%
OCF growth 3Y24.49%
OCF growth 5Y40.24%