NYSE:DAVA

Stock Analysis Report

Executive Summary

Endava plc provides technology services for clients in the consumer products, healthcare, logistics, and retail verticals in Europe, Latin America, and the United States.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Endava's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.2%

NYSE:DAVA

-3.8%

US IT

1.2%

US Market


1 Year Return

50.9%

NYSE:DAVA

15.2%

US IT

1.7%

US Market

DAVA outperformed the IT industry which returned 15.2% over the past year.

DAVA outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

DAVAIndustryMarket
7 Day6.2%-3.8%1.2%
30 Day9.1%0.6%4.9%
90 Day5.4%3.2%3.7%
1 Year50.9%50.9%16.4%15.2%3.9%1.7%
3 Yearn/a99.6%91.3%47.2%37.7%
5 Yearn/a140.0%115.7%60.0%42.4%

Price Volatility Vs. Market

How volatile is Endava's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Endava undervalued based on future cash flows and its price relative to the stock market?

72.91x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Endava's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Endava's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Endava is overvalued based on earnings compared to the US IT industry average.

Endava is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Endava is poor value based on expected growth next year.


Price Based on Value of Assets

Endava is overvalued based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Endava expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Endava's revenue is expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).

Endava's earnings are expected to grow significantly at over 20% yearly.

Endava's revenue growth is expected to exceed the United States of America market average.

Endava's earnings growth is expected to exceed the United States of America market average.

Endava's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Endava is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Endava performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Endava's year on year earnings growth rate has been positive over the past 5 years.

Endava's 1-year earnings growth exceeds its 5-year average (12.6% vs 12%)

Endava's earnings growth has exceeded the US IT industry average in the past year (12.6% vs 11.2%).


Return on Equity

Endava has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Endava used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

Endava's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Endava's financial position?


Financial Position Analysis

Endava is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Endava's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Endava's level of debt (-0%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (3.9% vs -0% today).

Operating cash flow is negative therefore debt is not well covered.

Endava has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are -8201.9x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Endava's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Endava's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Endava has not reported any payouts.

Unable to verify if Endava's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Endava has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Endava's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Endava's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

John Cotterell (58yo)

19.6yrs

Tenure

0

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


Management Age and Tenure

2.2yrs

Average Tenure

49yo

Average Age

The tenure for the Endava management team is about average.


Board Age and Tenure

4.4yrs

Average Tenure

59yo

Average Age

The tenure for the Endava board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • John Cotterell (58yo)

    CEO & Director

    • Tenure: 19.6yrs
  • Mark Thurston (55yo)

    CFO & Director

    • Tenure: 4.4yrs
  • Laurence Madsen

    Investor Relations Manager

    • Tenure: 1.2yrs
  • Rohit Bhoothalingam (46yo)

    General Counsel

    • Tenure: 0.5yrs
  • Brian Estep

    Executive VP of North America & Global TMTR Lead

    • Tenure: 0.7yrs
  • Justin Marcucci

    Chief Digital Officer

    • Tenure: 0yrs
  • Rob Machin (46yo)

    Chief Operating Officer

    • Tenure: 2.2yrs
  • Julian Bull (49yo)

    Chief Commercial Officer

    • Tenure: 3.2yrs
  • Toby Dixon

    Managing Director of Germany

    • Tenure: 3.4yrs
  • Michael Greenberg

    Executive VP of North America & Global BFSI Lead

    • Tenure: 1.2yrs

Board Members

  • John Cotterell (58yo)

    CEO & Director

    • Tenure: 19.6yrs
  • Mark Thurston (55yo)

    CFO & Director

    • Tenure: 4.4yrs
  • Mike Kinton (72yo)

    Independent Director

    • Tenure: 13.4yrs
  • Andy Allan (63yo)

    Independent Director

    • Tenure: 13.4yrs
  • Ben Druskin (50yo)

    Independent Director

    • Tenure: 2yrs
  • David Pattillo (59yo)

    Independent Director

    • Tenure: 2.7yrs
  • Trevor Smith (65yo)

    Chairman of the Board

    • Tenure: 3.2yrs

Company Information

Endava plc's company bio, 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
  • Market Cap: US$1.935b
  • Shares outstanding: 49.55m
  • 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)YesADSUSUSDJul 2018
2Y5DB (Deutsche Boerse AG)YesADSDEEURJul 2018
DAVA NBMV (Bolsa Mexicana de Valores)YesADSMXMXNJul 2018

Biography

Endava plc provides technology services for clients in the consumer products, healthcare, logistics, and retail verticals in Europe, Latin America, and the United States. It offers strategy, creative and u ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 01:06
End of Day Share Price2019/09/13 00:00
Earnings2019/03/31
Annual Earnings2018/06/30


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.