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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2787
Positioning
Market Dominance
Services
Computer Software
$1.8B
John E. Cotterell
Endava plc provides technology services for clients in consumer products, healthcare, mobility, and retail verticals in Europe, Latin America, North America, and internationally. The company was founded in 2000 and is headquartered in London, the United Kingdom.
Headcount
11.9K
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = DAVA ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$DAVA Endava plc | 45 | 66 | 71 | 10 | 9.2x | 2.2x | 14.6% | 9.1% | 25.1% | 4.1% | 2.8% | 13.2% | 0.0% | 37.0x | $1.8B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
Endava plc (DAVA) receives a "Reduce" rating with a composite score of 45.1/100. It ranks #2787 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
Pending Verification
Lagging peers — losers tend to keep underperforming
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
High volatility — wider range of outcomes increases timing risk
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for DAVA.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 66 | 81 | -15DRAG |
| MOMENTUM | 10 | 5 | +5NEUTRAL |
| VALUATION | 71 | 81 | -10DRAG |
| INVESTMENT | 59 | 94 | -35DRAG |
| STABILITY | 31 | 22 | +9ALPHA |
| SHORT INT | 45 | 42 | +3NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 16.6% vs WACC 7.7% (spread +8.9%)
GM 25% vs sector 65%, OM 4% vs sector 5%
Capital turnover 4.98x
Rev growth 13%, 8yr history
Interest coverage 2.0x, Net debt/EBITDA 3.9x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Endava plc (DAVA) as a Reduce with a composite score of 45.1/100 at a current price of $4.53. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Endava plc holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 45.1/100 places it at rank #2787 in our full universe.
Narrow
High
Standard
Undervalued
Value factor score of 71 suggests attractive pricing.
Stable competitive position in a defensive sector.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
Endava plc represents a reduce based on multi-factor quantitative performance.
Endava plc receives a Reduce rating from our analysis, with a composite score of 45.1/100 and 2 out of 5 stars, ranking #2787 out of 7,333 stocks. DAVA's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
DAVA earns a quality score of 66/100, indicating above-average business quality. The company reports a return on equity of 14.6% (sector avg: 5.7%), gross margins of 25.1% (sector avg: 64.6%), net margins of 2.8% (sector avg: 2.8%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
DAVA carries a solid value score of 71/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 9.23x, an EV/EBITDA of 2.18x, a P/B ratio of 0.33x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
With an investment score of 59/100, DAVA exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 13.2% vs. a sector average of 8.6% and a return on assets of 9.1% (sector: 2.4%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
Endava plc is experiencing notably weak momentum with a score of just 10/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 13.2% year-over-year, while a beta of 1.51 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
DAVA's stability score of 31/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.51 and a debt-to-equity ratio of 37.00x (sector avg: 0.3x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 45/100 for DAVA suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 1.51), elevated leverage (D/E: 37.00x), small-cap liquidity risk. With a $1.8B market cap (small-cap), Endava plc may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Endava plc is a small-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #2787 of 7,333 overall (62nd percentile). Key comparisons include ROE of 14.6% exceeding the 5.7% sector median and operating margins of 4.1% below the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While DAVA currently exhibits a REDUCE profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
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Improvement in Momentum (10) would have the largest impact on the composite score.
EV/EBITDA 81% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 154% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 61% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Investing.com -- Endava plc (NYSE:DAVA) reported better-than-expected second-quarter fiscal 2026 results on Thursday, with the technology transformation company's shares surging 5.5% as investors cheered its progress in artificial intelligence initiatives despite ongoing revenue challenges.
US stock futures traded higher on Wednesday, with the S&P 500 and Nasdaq 100 indices turning positive for the year. Analysts noted a bullish signal in the market, with over 60% of S&P 500 components reaching new 20-day highs, which has historically been followed by strong performance.
US stock futures traded lower on Wednesday, but the S&P 500 and Nasdaq 100 indices turned positive for the year after Tuesday's advance. Analysts noted a bullish signal in the market, with over 60% of S&P 500 components reaching new 20-day highs, which has historically been followed by strong performance.
Endava (NYSE:DAVA) reported second-quarter fiscal 2026 revenue of GBP 184.1 million, which Chief Executive Officer John Cotterell said reflects continued investment in an “AI-native” shift and early client traction for the company’s Dava.Flow engagement model. Revenue fell 5.9% year over year but ro
Endava experienced a significant stock decline of 29.5% after reporting Q1 fiscal 2026 results that missed previous guidance, with sales declining 8.7% year-over-year and management lowering annual performance targets.