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

Flawless balance sheet with high growth potential.


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

1.7%

DAVA

2.0%

US IT

1.3%

US Market


1 Year Return

52.1%

DAVA

23.1%

US IT

5.9%

US Market

Return vs Industry: DAVA exceeded the US IT industry which returned 23.1% over the past year.

Return vs Market: DAVA exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

DAVAIndustryMarket
7 Day1.7%2.0%1.3%
30 Day-2.6%-0.1%-1.9%
90 Day-2.1%-2.2%-1.8%
1 Year52.1%52.1%24.5%23.1%8.3%5.9%
3 Yearn/a97.9%89.7%45.6%36.2%
5 Yearn/a154.6%131.0%66.1%47.9%

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 compared to its fair value and its price relative to the market?

63.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DAVA ($38.02) is trading above our estimate of fair value ($29.07)

Significantly Undervalued: DAVA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DAVA is poor value based on its PE Ratio (63.1x) compared to the IT industry average (35.9x).

PE vs Market: DAVA is poor value based on its PE Ratio (63.1x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: DAVA is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: DAVA is overvalued based on its PB Ratio (9.5x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Endava forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DAVA's forecast earnings growth (25.8% per year) is above the savings rate (2.7%).

Earnings vs Market: DAVA's earnings (25.8% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: DAVA's revenue (18.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: DAVA's revenue (18.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DAVA's Return on Equity is forecast to be high in 3 years time (27.1%)


Next Steps

Past Performance

How has Endava performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DAVA's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: DAVA's earnings growth over the past year (26.5%) exceeds its 5-year average (13% per year).

Earnings vs Industry: DAVA earnings growth over the past year (26.5%) exceeded the IT industry 8.4%.


Return on Equity

High ROE: DAVA's Return on Equity (14.4%) is considered low.


Return on Assets

ROA vs Industry: DAVA has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: DAVA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Endava's financial position?


Financial Position Analysis

Short Term Liabilities: DAVA's short term assets (£136.9M) exceeds its short term liabilities (£54.2M)

Long Term Liabilities: DAVA's short term assets (136.9M) exceeds its long term liabilities (2.1M)


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 1.8%.

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

Inventory Level: DAVA has a low level of unsold assets or inventory.

Debt Coverage by Assets: DAVA's debt is not covered by short term assets (assets are -136879x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DAVA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

John Cotterell (58yo)

19.7yrs

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

2.3yrs

Average Tenure

49yo

Average Age

Experienced Management: DAVA's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: DAVA's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • John Cotterell (58yo)

    CEO & Director

    • Tenure: 19.7yrs
  • Mark Thurston (55yo)

    CFO & Director

    • Tenure: 4.5yrs
  • Laurence Madsen

    Investor Relations Manager

    • Tenure: 1.3yrs
  • Rohit Bhoothalingam (46yo)

    General Counsel

    • Tenure: 0.6yrs
  • Brian Estep

    Executive VP of North America & Global TMTR Lead

    • Tenure: 0.8yrs
  • Justin Marcucci

    Chief Digital Officer

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

    Chief Operating Officer

    • Tenure: 2.3yrs
  • Julian Bull (49yo)

    Chief Commercial Officer

    • Tenure: 3.3yrs
  • Toby Dixon

    Managing Director of Germany

    • Tenure: 3.5yrs
  • Michael Greenberg

    Executive VP of North America & Global BFSI Lead

    • Tenure: 1.3yrs

Board Members

  • John Cotterell (58yo)

    CEO & Director

    • Tenure: 19.7yrs
  • Mark Thurston (55yo)

    CFO & Director

    • Tenure: 4.5yrs
  • Mike Kinton (72yo)

    Independent Director

    • Tenure: 13.5yrs
  • Andy Allan (63yo)

    Independent Director

    • Tenure: 13.5yrs
  • Sulina Connal (51yo)

    Director

    • Tenure: 0.08yrs
  • Ben Druskin (51yo)

    Independent Director

    • Tenure: 2.1yrs
  • David Pattillo (59yo)

    Independent Director

    • Tenure: 2.8yrs
  • Trevor Smith (65yo)

    Independent Chairman of the Board

    • Tenure: 3.3yrs

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$1.997b
  • Shares outstanding: 52.52m
  • 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

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 Analysis2019/10/15 00:35
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.