Attractive stocks have exceptional fundamentals. In the case of Endava plc (NYSE:DAVA), there’s is a company with impressive financial health as well as a excellent growth outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Endava here.
Exceptional growth potential with flawless balance sheet
DAVA is an attractive stock for growth-seeking investors, with an expected earnings growth of 42% in the upcoming year. Earnings growth is paired with an eye-catching top-line trajectory of 50%, which indicates a high-quality bottom-line expansion, as opposed to those driven simple by unsustainable cost-cutting activities. DAVA’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that DAVA manages its cash and cost levels well, which is an important determinant of the company’s health. DAVA appears to have made good use of debt, producing operating cash levels of 607x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Endava, I’ve put together three pertinent factors you should further research:
- Historical Performance: What has DAVA’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is DAVA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether DAVA is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DAVA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.