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DAVA

Endava NYSE:DAVA Stock Report

Last Price

US$82.27

Market Cap

US$4.6b

7D

4.7%

1Y

-38.8%

Updated

28 Sep, 2022

Data

Company Financials +
DAVA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance5/6
Financial Health6/6
Dividends0/6

DAVA Stock Overview

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in Europe, Latin America, North America, and internationally.

Rewards

Earnings are forecast to grow 28.69% per year

Earnings grew by 91.3% over the past year

Risk Analysis

No risks detected for DAVA from our risk checks.

Endava Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Endava
Historical stock prices
Current Share PriceUS$82.27
52 Week HighUS$172.41
52 Week LowUS$73.20
Beta1.22
1 Month Change-15.78%
3 Month Change-6.80%
1 Year Change-38.77%
3 Year Change124.48%
5 Year Changen/a
Change since IPO226.47%

Recent News & Updates

Sep 26

Endava FQ4 2022 Earnings Preview

Endava (NYSE:DAVA) is scheduled to announce FQ4 earnings results on Tuesday, September 27th, before market open. The consensus EPS estimate is $0.57 (+2.51% Y/Y) and the consensus revenue estimate is $208.28M (+15.11% Y/Y).

Sep 04
Estimating The Fair Value Of Endava plc (NYSE:DAVA)

Estimating The Fair Value Of Endava plc (NYSE:DAVA)

In this article we are going to estimate the intrinsic value of Endava plc ( NYSE:DAVA ) by taking the expected future...

Shareholder Returns

DAVAUS ITUS Market
7D4.7%-3.1%-2.0%
1Y-38.8%-36.5%-20.3%

Return vs Industry: DAVA matched the US IT industry which returned -38% over the past year.

Return vs Market: DAVA underperformed the US Market which returned -22.1% over the past year.

Price Volatility

Is DAVA's price volatile compared to industry and market?
DAVA volatility
DAVA Average Weekly Movement6.8%
IT Industry Average Movement7.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: DAVA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DAVA's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200011,853John Cotterellhttps://www.endava.com

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in Europe, Latin America, North America, and internationally. The company offers technology and digital advisory services for payments and financial services, and TMT sectors; IT strategies; business analysis services; program management services; digital product strategy services; and architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. It also engages in the identifying, defining, and embedding collaborative data and analytics; and provision of automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, and telemetry and monitoring services.

Endava Fundamentals Summary

How do Endava's earnings and revenue compare to its market cap?
DAVA fundamental statistics
Market CapUS$4.58b
Earnings (TTM)US$89.36m
Revenue (TTM)US$704.14m

51.2x

P/E Ratio

6.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DAVA income statement (TTM)
RevenueUK£654.76m
Cost of RevenueUK£436.83m
Gross ProfitUK£217.93m
Other ExpensesUK£134.84m
EarningsUK£83.09m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.49
Gross Margin33.28%
Net Profit Margin12.69%
Debt/Equity Ratio0%

How did DAVA perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is DAVA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DAVA?

Other financial metrics that can be useful for relative valuation.

DAVA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.3x
Enterprise Value/EBITDA30.6x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does DAVA's PE Ratio compare to its peers?

DAVA PE Ratio vs Peers
The above table shows the PE ratio for DAVA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average30.4x
GLOB Globant
64.3x32.6%US$8.2b
PRFT Perficient
29.3x20.9%US$2.3b
DXC DXC Technology
10.2x14.1%US$5.5b
DOX Amdocs
17.9x7.4%US$9.8b
DAVA Endava
51.2x28.7%US$4.6b

Price-To-Earnings vs Peers: DAVA is expensive based on its Price-To-Earnings Ratio (51.2x) compared to the peer average (30.4x).


Price to Earnings Ratio vs Industry

How does DAVA's PE Ratio compare vs other companies in the US IT Industry?

Price-To-Earnings vs Industry: DAVA is expensive based on its Price-To-Earnings Ratio (51.2x) compared to the US IT industry average (25.3x)


Price to Earnings Ratio vs Fair Ratio

What is DAVA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DAVA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio51.2x
Fair PE Ratio39.3x

Price-To-Earnings vs Fair Ratio: DAVA is expensive based on its Price-To-Earnings Ratio (51.2x) compared to the estimated Fair Price-To-Earnings Ratio (39.3x).


Share Price vs Fair Value

What is the Fair Price of DAVA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DAVA ($82.27) is trading above our estimate of fair value ($80.91)

Significantly Below Fair Value: DAVA is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Endava forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


28.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DAVA's forecast earnings growth (28.7% per year) is above the savings rate (1.9%).

Earnings vs Market: DAVA's earnings (28.7% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: DAVA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DAVA's revenue (22.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: DAVA's revenue (22.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DAVA's Return on Equity is forecast to be high in 3 years time (24.5%)


Discover growth companies

Past Performance

How has Endava performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


35.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DAVA has high quality earnings.

Growing Profit Margin: DAVA's current net profit margins (12.7%) are higher than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: DAVA's earnings have grown significantly by 35.4% per year over the past 5 years.

Accelerating Growth: DAVA's earnings growth over the past year (91.3%) exceeds its 5-year average (35.4% per year).

Earnings vs Industry: DAVA earnings growth over the past year (91.3%) exceeded the IT industry 20.5%.


Return on Equity

High ROE: DAVA's Return on Equity (19.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Endava's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DAVA's short term assets (£328.2M) exceed its short term liabilities (£128.4M).

Long Term Liabilities: DAVA's short term assets (£328.2M) exceed its long term liabilities (£60.7M).


Debt to Equity History and Analysis

Debt Level: DAVA is debt free.

Reducing Debt: DAVA has no debt compared to 5 years ago when its debt to equity ratio was 60.1%.

Debt Coverage: DAVA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DAVA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Endava current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Endava Dividend Yield vs Market
How does Endava dividend yield compare to the market?
SegmentDividend Yield
Company (Endava)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (IT)1.6%
Analyst forecast in 3 Years (Endava)0%

Notable Dividend: Unable to evaluate DAVA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DAVA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DAVA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DAVA's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DAVA has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

John Cotterell (61 yo)

22.58yrs

Tenure

UK£3,860,000

Compensation

Mr. John E. Cotterell serves as the Chief Executive Officer of Endava (UK) Limited and at Endava plc since February 2000. Mr. Cotterell served as the Managing Director at Alexander Mann Group Limited. He s...


CEO Compensation Analysis

John Cotterell's Compensation vs Endava Earnings
How has John Cotterell's remuneration changed compared to Endava's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

UK£83m

Mar 31 2022n/an/a

UK£72m

Dec 31 2021n/an/a

UK£65m

Sep 30 2021n/an/a

UK£57m

Jun 30 2021UK£4mUK£350k

UK£43m

Mar 31 2021n/an/a

UK£34m

Dec 31 2020n/an/a

UK£35m

Sep 30 2020n/an/a

UK£14m

Jun 30 2020UK£3mUK£350k

UK£21m

Mar 31 2020n/an/a

UK£24m

Dec 31 2019n/an/a

UK£15m

Sep 30 2019n/an/a

UK£36m

Jun 30 2019UK£3mUK£350k

UK£24m

Mar 31 2019n/an/a

UK£21m

Dec 31 2018n/an/a

UK£19m

Sep 30 2018n/an/a

UK£16m

Jun 30 2018UK£623kUK£280k

UK£19m

Compensation vs Market: John's total compensation ($USD4.15M) is below average for companies of similar size in the US market ($USD6.87M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DAVA's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: DAVA's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of DAVA?
Owner TypeNumber of SharesOwnership Percentage
Employee Share Scheme96,4300.2%
General Public7,116,96812.8%
Individual Insiders18,204,85632.7%
Institutions30,230,74654.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 69.46% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.17%
John Cotterell
9,000,000£740.4m0%no data
12.32%
T. Rowe Price Group, Inc.
6,855,250£564.0m16.52%0.06%
4.4%
Baron Capital Group, Inc.
2,446,074£201.2m6%0.51%
4.04%
David Heron
2,250,000£185.1m0%no data
3.69%
Alex Day
2,051,766£168.8m0%no data
3.33%
Capital Research and Management Company
1,853,597£152.5m-6.07%0.01%
3.22%
Grandeur Peak Global Advisors, LLC
1,792,862£147.5m0.69%3.19%
2.99%
Goran Stevanovic
1,662,500£136.8m0%no data
2.15%
Wasatch Advisors Inc
1,194,576£98.3m0.13%0.45%
1.99%
Massachusetts Financial Services Company
1,108,482£91.2m2.68%0.02%
1.66%
BlackRock, Inc.
925,425£76.1m0.62%no data
1.48%
1832 Asset Management L.P.
823,400£67.7m15.13%0.1%
1.37%
Acadian Asset Management LLC
761,519£62.7m-18.07%0.23%
1.21%
Valentin Metzger
671,505£55.2m0%no data
1.18%
Invesco Ltd.
656,357£54.0m35.99%0.02%
0.96%
CDAM (UK) Ltd.
531,881£43.8m-4.49%6.18%
0.91%
FMR LLC
506,443£41.7m-18.57%no data
0.88%
Lord, Abbett & Co. LLC
489,215£40.2m-21%0.14%
0.87%
Ensign Peak Advisors Inc.
483,480£39.8m0.11%0.09%
0.83%
Julian Bull
463,578£38.1m0%no data
0.83%
WCM Investment Management, LLC
463,346£38.1m-12.8%0.08%
0.8%
Federated Hermes, Inc.
446,832£36.8m0%0.11%
0.76%
Driehaus Capital Management LLC
423,669£34.9m20.53%0.36%
0.71%
AXA Investment Managers S.A.
396,733£32.6m-0.25%0.07%
0.71%
Oberweis Asset Management, Inc.
395,888£32.6m-4.56%2.34%

Company Information

Endava plc's employee growth, exchange listings and data sources


Key Information

  • Name: Endava plc
  • Ticker: DAVA
  • Exchange: NYSE
  • Founded: 2000
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: US$4.578b
  • Shares outstanding: 55.65m
  • Website: https://www.endava.com

Number of Employees


Location

  • Endava plc
  • 125 Old Broad Street
  • London
  • Greater London
  • EC2N 1AR
  • United Kingdom


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DAVANYSE (New York Stock Exchange)YesSPON ADS EACH REP 1 ORD SHS CL AUSUSDJul 2018
2Y5DB (Deutsche Boerse AG)YesSPON ADS EACH REP 1 ORD SHS CL ADEEURJul 2018
DAVA NBMV (Bolsa Mexicana de Valores)YesSPON ADS EACH REP 1 ORD SHS CL AMXMXNJul 2018

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.