Last Updated: 14 Sep 2024
Executive Summary
Endava Ltd (DAVA) is a leading provider of technology services to clients in various sectors, including consumer products, healthcare, logistics, and retail. The company has a strong global presence with operations in Europe, Latin America, and North America. Endava's financial performance has been solid, with consistent revenue growth and profitability. The stock is currently trading at $33.45, offering a compelling entry point for investors.
Company Overview
Endava was founded in 2000 and is headquartered in London, United Kingdom. The company employs over 11,000 professionals and serves a diverse client base. Endava's services include software development, application management, cloud computing, and data analytics. The company has a proven track record of delivering innovative solutions that meet the evolving needs of its clients.
Fundamental Analysis
Endava's financial performance has been impressive in recent years. The company's revenue has grown consistently, reaching $736.1 million in the trailing twelve months (TTM). Gross profit margin has remained stable at around 37%. Endava's profitability metrics are also strong, with an EBITDA margin of 10% and a net profit margin of 5.7%. The company's earnings per share (EPS) have grown at a compound annual growth rate (CAGR) of 15% over the past five years.
Technical Analysis
Technically, Endava's stock has been consolidating in a range between $24.51 and $81.06 over the past 52 weeks. The stock is currently trading near the lower end of this range, providing a potential buying opportunity. The 50-day moving average ($30.53) and the 200-day moving average ($44.1) are both trending upwards, indicating a bullish bias.
Short Term Outlook
In the short term, Endava's stock is expected to continue its consolidation within the current range. However, a breakout above the $35 resistance level could signal a move towards the analyst target price of $41.12. Key support levels to watch are $30 and $25.
Long Term Outlook
Endava's long-term outlook is positive. The company is well-positioned to benefit from the growing demand for technology services. Endava's strong financial performance, global presence, and commitment to innovation make it an attractive investment for long-term investors.
Analyst Recommendations
Analysts are generally bullish on Endava's stock. Three analysts have a "Strong Buy" rating, five have a "Buy" rating, and six have a "Hold" rating. The consensus analyst price target is $41.12, representing a potential upside of 23% from the current price.
