Recent News
On July 29, 2025 Endava opened a new office in Perth to support clients in Western Australia and strengthen Asia‑Pacific delivery capacity. On July 15, 2025 Endava announced a partnership with Goji to deliver an Accelerated Integration Gateway Framework for private funds, aiming to speed integrations and shorten time to market.
Technical Analysis
ADX at 33.18 signals a strong trend environment; that strength raises the likelihood that existing directional forces persist near term and therefore amplifies the implications of the other indicators.
DI+ sits at 17.29 with a peak & reversal, which signals a bearish shift in directional momentum; DI- at 32.54 and decreasing implies waning downside pressure, creating a mixed directional picture that favors continuation of the recent move rather than a fresh trend initiation.
MACD stands at -0.73 and has been increasing, and it sits above the signal line (-0.84), indicating a recent bullish crossover in momentum even though MACD remains below zero; that crossover supports the possibility of a short-term bounce against the prevailing weakness.
MRO at -36.58 with a peak & reversal shows the price sits materially below the model target, which points to a potential for upward mean reversion while the peak-and-reversal qualifier tempers conviction in sustained strength.
RSI of 38.56 and decreasing reflects ongoing selling pressure without reaching classic oversold territory; the reading supports lower-to-sideways near-term price bias until momentum stabilizes.
Price at $8.97 trades below the 12‑day EMA ($9.27, decreasing) and the 20‑day average ($9.16), with the 26‑day EMA at $9.98 and the 50‑day average at $11.38 overhead; those relationships keep the short-term technical bias cautious. The SuperTrend upper band at $10.11 and Bollinger upper band near $9.38 mark nearby resistance; lower Bollinger at $8.94 anchors immediate support near the recent low range.
Fundamental Analysis
Total revenue of $186,776,000 accompanies a revenue growth rate of -4.14%. Quarter‑over‑quarter revenue growth reads 9.77604% while year‑over‑year revenue shows -135.979% in the provided figure; the headline shows nominal revenue contraction on the principal metric and mixed sequential momentum.
EBIT of $11,994,000 yields an EBIT margin of 6.422%. That margin sits below the industry peer mean of 15.196% and below the industry peer median of 16.705%, while remaining above the industry peer low of -4.292%. Quarter‑over‑quarter EBIT margin change equals -23.955% and year‑over‑year change equals -13.016%, both indicating significant margin compression versus recent periods and pressuring near‑term profitability.
Operating margin at 4.653% declined sharply QoQ by -44.902% and YoY by -36.977%, reinforcing the margin squeeze observed at the EBIT level and constraining free cash generation.
Net income totaled $1,168,000 and EPS came in at $0.24 versus an estimate of $0.23, an EPS surprise ratio of 4.35%, which indicates slight upside to consensus on the earnings line despite weak margins.
Cash and short‑term investments sum to $59,466,000 against total debt of $228,052,000 and net debt of $121,598,000. Debt to assets equals 24.37% and sits slightly below the industry peer mean of 25.016%, while interest coverage equals 3.67 and remains well below the industry peer mean of 26.220, indicating thinner interest servicing capacity relative to peers.
Operating cash flow reads negative at -$2,308,000 and free cash flow equals -$4,079,000, producing a free cash flow yield of -0.483%. Cash conversion cycle stands at 44.12 days, a touch above the industry peer mean of 40.66 days, suggesting moderately slower working capital conversion versus peers.
Return metrics stay compressed: return on equity 0.20% and return on assets 0.123% reflect minimal current profitability on invested capital. Book value per share sits at $10.37 with a price‑to‑book of 1.45 and a peg of 1.82; forward EPS of $0.515 implies a forward P/E of 34.12 based on the provided forwardEPS and forwardPE figures.
WMDST values the stock as fair‑valued. The fundamental mix—contracting margins, marginal net income, negative free cash flow, and adequate cash reserves—supports that valuation stance while the balance sheet and selected partnerships offer offsetting stability.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-09-04 |
| NEXT REPORT DATE: | 2025-12-04 |
| CASH FLOW | Begin Period Cash Flow | $ 68.3 M |
| Operating Cash Flow | $ -2.31 M | |
| Capital Expenditures | $ -1.77 M | |
| Change In Working Capital | $ -17.18 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -8.93 M | |
| End Period Cash Flow | $ 59.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 186.8 M | |
| Forward Revenue | $ 1.2 B | |
| COSTS | ||
| Cost Of Revenue | $ 140.3 M | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 178.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 46.4 M | |
| EBITDA | $ 12.0 M | |
| EBIT | $ 12.0 M | |
| Operating Income | $ 8.7 M | |
| Interest Income | $ -1.18 M | |
| Interest Expense | — | |
| Net Interest Income | $ -1.18 M | |
| Income Before Tax | $ 3.8 M | |
| Tax Provision | $ 2.6 M | |
| Tax Rate | 25.0 % | |
| Net Income | $ 1.2 M | |
| Net Income From Continuing Operations | $ 1.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.23 | |
| EPS Actual | $ 0.24 | |
| EPS Difference | $ 0.01 | |
| EPS Surprise | 4.348 % | |
| Forward EPS | $ 0.52 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 935.8 M | |
| Intangible Assets | $ 574.2 M | |
| Net Tangible Assets | $ 8.8 M | |
| Total Current Assets | $ 281.9 M | |
| Cash and Short-Term Investments | $ 59.5 M | |
| Cash | $ 59.3 M | |
| Net Receivables | $ 151.2 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 22.7 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 121.7 M | |
| Net Debt | $ 121.6 M | |
| Total Debt | $ 228.1 M | |
| Total Liabilities | $ 352.8 M | |
| EQUITY | ||
| Total Equity | $ 582.9 M | |
| Retained Earnings | $ 575.4 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 10.37 | |
| Shares Outstanding | 56.209 M | |
| Revenue Per-Share | $ 3.32 | |
| VALUATION | Market Capitalization | $ 845.0 M |
| Enterprise Value | $ 1.0 B | |
| Enterprise Multiple | 84.512 | |
| Enterprise Multiple QoQ | 5.033 % | |
| Enterprise Multiple YoY | -31.709 % | |
| Enterprise Multiple IPRWA | high: 140.798 DAVA: 84.512 median: 58.931 mean: 51.709 low: -43.256 |
|
| EV/R | 5.427 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.605 | |
| Asset To Liability | 2.652 | |
| Debt To Capital | 0.281 | |
| Debt To Assets | 0.244 | |
| Debt To Assets QoQ | 26.283 % | |
| Debt To Assets YoY | 1610.175 % | |
| Debt To Assets IPRWA | high: 1.14 mean: 0.25 DAVA: 0.244 median: 0.129 low: 0.006 |
|
| Debt To Equity | 0.391 | |
| Debt To Equity QoQ | 36.073 % | |
| Debt To Equity YoY | 1631.018 % | |
| Debt To Equity IPRWA | high: 4.622 mean: 0.852 DAVA: 0.391 median: 0.253 low: -2.941 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.45 | |
| Price To Book QoQ | -22.445 % | |
| Price To Book YoY | -49.191 % | |
| Price To Book IPRWA | high: 16.127 median: 6.434 mean: 5.101 DAVA: 1.45 low: -1.349 |
|
| Price To Earnings (P/E) | 60.564 | |
| Price To Earnings QoQ | 9497.094 % | |
| Price To Earnings YoY | 4211.154 % | |
| Price To Earnings IPRWA | high: 227.578 median: 76.338 mean: 63.244 DAVA: 60.564 low: -69.969 |
|
| PE/G Ratio | 1.817 | |
| Price To Sales (P/S) | 4.524 | |
| Price To Sales QoQ | -26.948 % | |
| Price To Sales YoY | -51.787 % | |
| Price To Sales IPRWA | high: 17.197 median: 11.089 mean: 9.129 DAVA: 4.524 low: 0.008 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 34.117 | |
| Forward PE/G | 1.024 | |
| Forward P/S | 0.73 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 6.551 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.197 | |
| Asset Turnover Ratio QoQ | -1.874 % | |
| Asset Turnover Ratio YoY | -8.548 % | |
| Asset Turnover Ratio IPRWA | high: 0.719 median: 0.287 mean: 0.242 DAVA: 0.197 low: 0.038 |
|
| Receivables Turnover | 1.085 | |
| Receivables Turnover Ratio QoQ | 6.681 % | |
| Receivables Turnover Ratio YoY | -9.177 % | |
| Receivables Turnover Ratio IPRWA | high: 3.883 mean: 1.538 median: 1.268 DAVA: 1.085 low: 0.415 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 84.112 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 44.118 | |
| Cash Conversion Cycle Days QoQ | 64.121 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 62.313 median: 45.1 DAVA: 44.118 mean: 40.658 low: -56.4 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.166 | |
| CapEx To Revenue | -0.009 | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 763.9 M | |
| Net Invested Capital | $ 763.9 M | |
| Invested Capital | $ 763.9 M | |
| Net Tangible Assets | $ 8.8 M | |
| Net Working Capital | $ 160.1 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.489 | |
| Current Ratio | 2.316 | |
| Current Ratio QoQ | 6.221 % | |
| Current Ratio YoY | 33.128 % | |
| Current Ratio IPRWA | high: 3.358 DAVA: 2.316 mean: 1.676 median: 1.461 low: 0.34 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 19.014 | |
| Cost Of Debt | 1.185 % | |
| Interest Coverage Ratio | 3.67 | |
| Interest Coverage Ratio QoQ | -27.106 % | |
| Interest Coverage Ratio YoY | -16.442 % | |
| Interest Coverage Ratio IPRWA | high: 46.876 median: 27.435 mean: 26.22 DAVA: 3.67 low: -32.337 |
|
| Operating Cash Flow Ratio | -0.019 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 39.994 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.703 % | |
| Revenue Growth | -4.138 % | |
| Revenue Growth QoQ | 977.604 % | |
| Revenue Growth YoY | -135.979 % | |
| Revenue Growth IPRWA | high: 15.386 % median: 6.33 % mean: 4.378 % DAVA: -4.138 % low: -11.52 % |
|
| Earnings Growth | 33.333 % | |
| Earnings Growth QoQ | 147.884 % | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | high: 61.628 % DAVA: 33.333 % median: 18.932 % mean: -1.542 % low: -111.765 % |
|
| MARGINS | ||
| Gross Margin | 24.862 % | |
| Gross Margin QoQ | -9.606 % | |
| Gross Margin YoY | 11.961 % | |
| Gross Margin IPRWA | high: 68.47 % median: 32.867 % mean: 31.301 % DAVA: 24.862 % low: 3.216 % |
|
| EBIT Margin | 6.422 % | |
| EBIT Margin QoQ | -23.955 % | |
| EBIT Margin YoY | -13.016 % | |
| EBIT Margin IPRWA | high: 40.753 % median: 16.705 % mean: 15.196 % DAVA: 6.422 % low: -4.292 % |
|
| Return On Sales (ROS) | 4.653 % | |
| Return On Sales QoQ | -44.902 % | |
| Return On Sales YoY | -36.977 % | |
| Return On Sales IPRWA | high: 19.395 % median: 16.057 % mean: 14.659 % DAVA: 4.653 % low: -5.114 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -4.08 M | |
| Free Cash Flow Yield | -0.483 % | |
| Free Cash Flow Yield QoQ | -133.706 % | |
| Free Cash Flow Yield YoY | 335.135 % | |
| Free Cash Flow Yield IPRWA | high: 5.903 % median: 1.788 % mean: 1.197 % DAVA: -0.483 % low: -10.517 % |
|
| Free Cash Growth | -123.581 % | |
| Free Cash Growth QoQ | 172.926 % | |
| Free Cash Growth YoY | -47.231 % | |
| Free Cash Growth IPRWA | high: 539.652 % median: 20.62 % mean: 13.371 % DAVA: -123.581 % low: -467.291 % |
|
| Free Cash To Net Income | -3.492 | |
| Cash Flow Margin | -18.952 % | |
| Cash Flow To Earnings | -1.976 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.123 % | |
| Return On Assets QoQ | -89.086 % | |
| Return On Assets YoY | -160.0 % | |
| Return On Assets IPRWA | high: 8.172 % median: 2.924 % mean: 2.569 % DAVA: 0.123 % low: -6.078 % |
|
| Return On Capital Employed (ROCE) | 1.473 % | |
| Return On Equity (ROE) | 0.002 | |
| Return On Equity QoQ | -88.208 % | |
| Return On Equity YoY | -168.966 % | |
| Return On Equity IPRWA | high: 0.157 median: 0.071 mean: 0.056 DAVA: 0.002 low: -0.139 |
|
| DuPont ROE | 0.19 % | |
| Return On Invested Capital (ROIC) | 1.178 % | |
| Return On Invested Capital QoQ | -30.46 % | |
| Return On Invested Capital YoY | -105.262 % | |
| Return On Invested Capital IPRWA | high: 7.923 % mean: 4.419 % median: 4.105 % DAVA: 1.178 % low: -7.46 % |
|