ENDAVA PLC ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The prospective high growth for the next fiscal years is among the main assets of the company
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The group usually releases upbeat results with huge surprise rates.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● Technically, the stock approaches a strong medium-term resistance at USD 55.5.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● With an expected P/E ratio at 125.63 and 67.6 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
