Endava plc American Depositary Shares (each representing one Class A Ordinary Share) (DAVA)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at Endava as a Graham-style bargain candidate, and my first question is whether the business is sound. The provided figures say no. Revenue growth is -8.37%, profit growth is -999.00%, and in the latest reported quarter, fiscal Q1 2026, revenue was $178.5M while net income was -$394.4M, a -220.93% margin. That is not a cyclical dip; it is a collapse in profitability. The trailing EPS figure of -$10.37 and ROE of -99.81% (FairStock calculation) tell me shareholder capital is being consumed. The balance sheet gives some comfort: at the 2026-10-13 close of $1.99, price-to-book is 0.45 (FairStock calculation), and trailing free cash flow is $22.0M, a 9.6% FCF yield. Yet debt-to-equity of 1.38 and an Altman Z-Score of 1.34 (FairStock calculation) point to financial distress. The Piotroski F-Score of 2/9 (FairStock calculation) confirms weak fundamentals. ROCE of 0.28% (FairStock calculation) is far below what I want. EV/EBITDA of 3,523.59 (FairStock calculation) is meaningless in a good way: EBITDA is nearly nil, so the multiple explodes. Endava employs 11,225 people in technology services, work that can be skilled but is competitive and people-intensive. I see no evidence of a durable moat. A Lynch category is not assigned because only 0 years of filed results are available and the rule needs 3. The stock is statistically cheap on book and cash flow, but cheapness without stable earnings is a trap. I would need evidence that revenue and margins are stabilizing before calling this a Graham-style value.

In plain English: Endava is a technology services company that helps other businesses build and run digital products, and it has about 11,225 employees. In its latest reported quarter, fiscal Q1 2026, it lost a lot of money and its revenue shrank, so the business looks weak right now. At the close on 2026-10-13, the stock price was $1.99, which is far below the value of its accounting net assets, but the losses make it hard to know if that low price is a true bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer