DOUBLEVERIFY HOLDINGS INC (DV)
US25862V1052 - Common Stock
Taking everything into account, DV scores 7 out of 10 in our fundamental rating. DV was compared to 277 industry peers in the Software industry. DV scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DV is growing strongly while it is still valued neutral. This is a good combination! This makes DV very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year DV was profitable.
DV had a positive operating cash flow in the past year.
DV had positive earnings in each of the past 5 years.
In the past 5 years DV always reported a positive cash flow from operatings.
1.2 Ratios
DV's Return On Assets of 5.27% is amongst the best of the industry. DV outperforms 80.07% of its industry peers.
Looking at the Return On Equity, with a value of 6.05%, DV is in the better half of the industry, outperforming 75.72% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.81%, DV is in the better half of the industry, outperforming 76.45% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DV is significantly below the industry average of 10.02%.
The 3 year average ROIC (4.10%) for DV is below the current ROIC(4.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 6.05% | ||
| ROIC | 4.81% |
ROA(3y)4.4%
ROA(5y)4.44%
ROE(3y)5.09%
ROE(5y)5.5%
ROIC(3y)4.1%
ROIC(5y)4.56%
1.3 Margins
The Profit Margin of DV (11.23%) is better than 80.43% of its industry peers.
DV's Profit Margin has improved in the last couple of years.
DV has a Operating Margin of 13.09%. This is amongst the best in the industry. DV outperforms 84.42% of its industry peers.
In the last couple of years the Operating Margin of DV has grown nicely.
DV has a Gross Margin of 81.51%. This is amongst the best in the industry. DV outperforms 87.32% of its industry peers.
In the last couple of years the Gross Margin of DV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.09% | ||
| PM (TTM) | 11.23% | ||
| GM | 81.51% |
OM growth 3Y13.46%
OM growth 5Y25.08%
PM growth 3Y14.09%
PM growth 5Y32.4%
GM growth 3Y-1.58%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DV is destroying value.
DV has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DV has been increased compared to 5 years ago.
DV has a worse debt/assets ratio than last year.
2.2 Solvency
DV has an Altman-Z score of 12.85. This indicates that DV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.85, DV belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
DV has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
The Debt to FCF ratio of DV (0.04) is better than 82.97% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that DV is not too dependend on debt financing.
DV has a better Debt to Equity ratio (0.00) than 67.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 12.85 |
ROIC/WACC0.46
WACC10.48%
2.3 Liquidity
A Current Ratio of 7.30 indicates that DV has no problem at all paying its short term obligations.
DV has a Current ratio of 7.30. This is amongst the best in the industry. DV outperforms 92.39% of its industry peers.
A Quick Ratio of 7.30 indicates that DV has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 7.30, DV belongs to the best of the industry, outperforming 92.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.3 | ||
| Quick Ratio | 7.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.03% over the past year.
The Earnings Per Share has been growing by 83.14% on average over the past years. This is a very strong growth
The Revenue has grown by 23.50% in the past year. This is a very strong growth!
Measured over the past years, DV shows a very strong growth in Revenue. The Revenue has been growing by 40.57% on average per year.
EPS 1Y (TTM)31.03%
EPS 3Y46.89%
EPS 5Y83.14%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)23.5%
Revenue growth 3Y32.9%
Revenue growth 5Y40.57%
Sales Q2Q%14.84%
3.2 Future
Based on estimates for the next years, DV will show a very strong growth in Earnings Per Share. The EPS will grow by 47.93% on average per year.
DV is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.48% yearly.
EPS Next Y-20.71%
EPS Next 2Y5.4%
EPS Next 3Y18.39%
EPS Next 5Y47.93%
Revenue Next Year16.77%
Revenue Next 2Y17.81%
Revenue Next 3Y19.26%
Revenue Next 5Y20.48%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 47.89, which means the current valuation is very expensive for DV.
Based on the Price/Earnings ratio, DV is valued a bit cheaper than 61.96% of the companies in the same industry.
When comparing the Price/Earnings ratio of DV to the average of the S&P500 Index (28.05), we can say DV is valued expensively.
The Price/Forward Earnings ratio is 39.96, which means the current valuation is very expensive for DV.
The rest of the industry has a similar Price/Forward Earnings ratio as DV.
The average S&P500 Price/Forward Earnings ratio is at 20.07. DV is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.89 | ||
| Fwd PE | 39.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DV is valued cheaper than 82.25% of the companies in the same industry.
73.91% of the companies in the same industry are more expensive than DV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.22 | ||
| EV/EBITDA | 23.01 |
4.3 Compensation for Growth
DV has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DV's earnings are expected to grow with 18.39% in the coming years.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y5.4%
EPS Next 3Y18.39%
5. Dividend
5.1 Amount
DV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOUBLEVERIFY HOLDINGS INC
NYSE:DV (5/31/2024, 7:04:00 PM)
After market: 18.2 0 (0%)18.2
-0.27 (-1.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.89 | ||
| Fwd PE | 39.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 6.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.09% | ||
| PM (TTM) | 11.23% | ||
| GM | 81.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.3 | ||
| Quick Ratio | 7.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)31.03%
EPS 3Y46.89%
EPS 5Y
EPS Q2Q%
EPS Next Y-20.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.5%
Revenue growth 3Y32.9%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y