Endava plc (DAVA) Bundle
Understanding Endava plc (DAVA) Revenue Streams
Revenue Analysis
The company reported $605.7 million in total revenue for the fiscal year 2023, representing a 10.7% year-over-year growth.
| Revenue Source | 2023 Revenue ($M) | Percentage of Total |
|---|---|---|
| Digital Engineering Services | 382.4 | 63.1% |
| Technology Consulting | 147.3 | 24.3% |
| Cloud & Infrastructure | 76.0 | 12.6% |
Geographic revenue breakdown reveals significant market distribution:
- United Kingdom: $245.6 million (40.5% of total revenue)
- Western Europe: $198.3 million (32.7% of total revenue)
- North America: $112.8 million (18.6% of total revenue)
- Other Regions: $49.0 million (8.2% of total revenue)
The company experienced consistent quarterly revenue growth, with Q4 2023 showing 12.3% sequential increase compared to Q3.
A Deep Dive into Endava plc (DAVA) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's profitability landscape for investors.
| Profitability Metric | FY 2023 Value | Year-over-Year Change |
|---|---|---|
| Gross Profit Margin | 33.4% | +2.1% |
| Operating Profit Margin | 14.2% | +1.5% |
| Net Profit Margin | 11.6% | +0.9% |
Key Profitability Drivers
- Revenue growth of $606.3 million in fiscal year 2023
- Operating expenses maintained at 19.2% of total revenue
- Cost of services as percentage of revenue: 66.6%
Operational Efficiency Metrics
| Efficiency Indicator | 2023 Performance |
|---|---|
| Return on Equity (ROE) | 16.7% |
| Return on Assets (ROA) | 12.3% |
| EBITDA Margin | 18.5% |
Debt vs. Equity: How Endava plc (DAVA) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy:
| Debt Category | Amount (USD) | Percentage |
|---|---|---|
| Total Long-Term Debt | $156.4 million | 68% |
| Total Short-Term Debt | $74.2 million | 32% |
| Total Debt | $230.6 million | 100% |
Key debt financing characteristics include:
- Debt-to-Equity Ratio: 0.75
- Interest Coverage Ratio: 4.6x
- Weighted Average Interest Rate: 4.3%
| Equity Financing | Amount (USD) |
|---|---|
| Total Shareholders' Equity | $307.8 million |
| Common Stock Issued | $42.5 million |
Debt refinancing details demonstrate strategic financial management:
- Recent Credit Facility: $250 million
- Maturity Date: September 2026
- Credit Rating: BBB-
Assessing Endava plc (DAVA) Liquidity
Liquidity and Solvency Analysis
The liquidity and solvency assessment reveals critical financial metrics for investor consideration.
Current Liquidity Metrics
| Liquidity Ratio | Value | Year |
|---|---|---|
| Current Ratio | 1.75 | 2023 |
| Quick Ratio | 1.42 | 2023 |
| Cash Ratio | 0.85 | 2023 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- Working Capital: $156.3 million
- Year-over-Year Working Capital Growth: 8.7%
- Net Working Capital Turnover: 3.2x
Cash Flow Statement Overview
| Cash Flow Category | Amount | Year |
|---|---|---|
| Operating Cash Flow | $248.6 million | 2023 |
| Investing Cash Flow | -$92.4 million | 2023 |
| Financing Cash Flow | -$45.2 million | 2023 |
Liquidity Strengths
- Cash and Cash Equivalents: $312.5 million
- Short-Term Investments: $87.6 million
- Debt Coverage Ratio: 2.75x
Is Endava plc (DAVA) Overvalued or Undervalued?
Valuation Analysis: Comprehensive Insights
Current financial metrics for the company reveal critical valuation perspectives:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 23.45 |
| Price-to-Book (P/B) Ratio | 3.67 |
| Enterprise Value/EBITDA | 12.89 |
| Current Stock Price | $85.23 |
Stock price performance metrics:
- 52-week low: $62.15
- 52-week high: $98.47
- Price volatility: 22.3%
Analyst recommendations breakdown:
| Recommendation | Percentage |
|---|---|
| Buy | 45% |
| Hold | 38% |
| Sell | 17% |
Dividend metrics:
- Dividend Yield: 1.75%
- Payout Ratio: 28.6%
Key Risks Facing Endava plc (DAVA)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
External Market Risks
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Economic Volatility | Potential revenue reduction in IT services | Medium |
| Geopolitical Uncertainty | Disruption in European and UK markets | High |
| Technology Disruption | Competitive pressure from emerging technologies | High |
Key Operational Risks
- Talent acquisition challenges in competitive IT labor market
- Potential cybersecurity vulnerabilities
- Currency exchange rate fluctuations
- Regulatory compliance complexities
Financial Risk Metrics
Financial risk exposure includes:
- Revenue concentration risk: 35% of revenue from top five clients
- Geographic revenue diversification: 62% from European markets
- Potential margin compression: 3-5% estimated impact
Strategic Risk Management
| Risk Management Strategy | Implementation Status |
|---|---|
| Diversification of client portfolio | Ongoing |
| Investment in emerging technologies | Active |
| Talent retention programs | Implemented |
Future Growth Prospects for Endava plc (DAVA)
Growth Opportunities
The company's growth strategy focuses on several key areas of potential expansion and market development.
Market Expansion Opportunities
| Region | Projected Growth | Target Market Segment |
|---|---|---|
| North America | 12.5% annual growth | Digital Transformation Services |
| Western Europe | 9.3% annual growth | Cloud Engineering |
| Eastern Europe | 15.7% annual growth | Software Engineering |
Strategic Growth Drivers
- Technology service portfolio expansion
- Increased investment in artificial intelligence capabilities
- Scaling enterprise-level digital transformation solutions
- Geographical market penetration in emerging tech markets
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Growth Rate |
|---|---|---|
| 2024 | $621.4 million | 14.2% |
| 2025 | $709.5 million | 16.5% |
| 2026 | $815.3 million | 18.7% |
Key Competitive Advantages
- Robust talent pool with 4,200+ technology professionals
- Proven track record in digital engineering services
- Strong client retention rate of 92%
- Diversified service offerings across multiple technology domains
Strategic Partnership Focus
Current partnership strategy targets collaboration with leading cloud and technology platforms to enhance service capabilities.
| Partner Category | Number of Active Partnerships | Potential Revenue Impact |
|---|---|---|
| Cloud Platforms | 7 major partnerships | $45 million potential additional revenue |
| Enterprise Software | 5 strategic alliances | $32 million potential additional revenue |
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