Endava plc (DAVA) AI Stock Analysis
DAVA AI stock analysis summary
AI ResearchEndava plc (DAVA) provides technology and digital advisory services across Europe, North America, and other international regions. The company delivered revenue of $772.3M in FY2025, but its trailing twelve-month profit margin stands at -56.1%. Over the past year, the stock fell 75.8% to close at $2.06 as of October 16, 2026.
- Market cap
- $108.9M
- Revenue (TTM)
- $727.6M
- P/E
- — fwd 2.0x
- 1Y return
- -75.8% S&P 500 16.8%
- Avg. target
- $5.40 162.0% vs last close
Bull case
- Analysts maintain a mean price target of $5.40, representing 162.0% upside compared to the last close of $2.06.
- The stock trades at a forward P/E of 2.0x, which sits below the median of its US-listed Technology peers of 18.8x.
- Endava generated $48.1M in free cash flow in FY2025 and beat EPS estimates in 3 of the last 4 quarters.
Bear case
- The stock has dropped 75.8% over the past year while the S&P 500 gained 16.8%.
- Trailing twelve-month results show an operating margin of -3.4% and an EPS of -$10.39.
- In the quarter ended March 31, 2026, quarterly revenue fell 8.4% and earnings declined 21.4% year-over-year.
What Endava does
Endava plc provides comprehensive technology services, strategic IT consulting, and digital advisory services to clients in consumer products, healthcare, mobility, retail, payments, financial services, and telecommunications, media, and technology (TMT). Its specialized capabilities include digital product strategy, architecture, extended reality, machine learning, artificial intelligence, product design, user experience, and visual design. Founded in 2000 and based in London, UK, Endava also delivers automated testing, cloud native software engineering, continuous delivery, DevSecOps, intelligent automation, cloud infrastructure services, agile applications management, and telemetry and monitoring solutions across Europe, Latin America, North America, and international markets.
Growth and profitability
Between FY2020 and FY2025, Endava grew revenue at a 5-year CAGR of 17.1%. Annual revenue reached $794.7M in FY2023 with an operating margin of 14.2% before declining to $740.8M in FY2024. In FY2025, revenue rose 4.3% to $772.3M, while net income was $21.2M compared to $94.2M in FY2023. Over the trailing twelve months, revenue reached $727.6M with an operating margin of -3.4% and an EPS of -$10.39. In the latest quarter ended March 31, 2026, quarterly revenue fell 8.4% year-over-year, and quarterly earnings declined 21.4%.
Balance sheet and cash flow
As of March 31, 2026, Endava held $48.6M in cash and short-term investments against total debt of $238.6M, resulting in net debt of $190.0M. Total assets stood at $538.9M and shareholders' equity was $172.6M, yielding a debt-to-equity ratio of 1.38 and a current ratio of 2.07. In FY2025, the company generated $48.1M in free cash flow, spent $4.7M on capital expenditures, and directed $64.8M to share buybacks.
Valuation and performance
At a last close of $2.06 on October 16, 2026, Endava has a market cap of $108.9M and an enterprise value of $359.2M. The stock trades at a forward P/E of 2.0x and a price-to-sales multiple of 0.1x, below the median of its US-listed Technology peers of 18.8x forward P/E and 2.8x price-to-sales. Its price-to-book ratio is 0.5x. Over the past year, Endava shares fell 75.8%, trailing the S&P 500 (SPY) gain of 16.8%.
What analysts expect
Endava holds 2 Strong Buy, 0 Buy, 4 Hold, and 2 Sell ratings from analysts. The mean price target is $5.40, representing an upside of 162.0% from the last close of $2.06. For the fiscal year ending June 30, 2026, analysts estimate EPS of $0.46 and revenue of $722.8M. For the following fiscal year, 8 analysts project revenue to grow 1.0% to $730.2M. Endava beat EPS estimates in 3 of the last 4 quarters.
Key risks and what to watch
- Net debt stands at $190.0M with total debt of $238.6M against cash and short-term investments of $48.6M.
- Analysts forecast EPS for the fiscal year ending June 30, 2026, to fall 59.0% to $0.46.
- The trailing twelve-month return on equity is -99.8%, reflecting recent net losses.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DAVA AI stock analysis
This page is an AI-written research summary of Endava plc (DAVA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DAVA income statement, DAVA balance sheet, DAVA key metrics, DAVA analyst forecast, DAVA chart. See the DAVA stock overview for the latest quote and news.
DAVA AI stock analysis FAQ
What does Endava plc do?
Endava plc is a technology services firm based in London that provides IT consulting, digital product strategy, cloud native engineering, and digital advisory services across Europe, North America, and other global regions.
Does Endava pay a dividend?
Endava does not pay a dividend, but it allocated $64.8M to share buybacks in FY2025.
What is Endava's debt level?
As of March 31, 2026, Endava held $238.6M in total debt and $48.6M in cash and short-term investments, resulting in net debt of $190.0M and a debt-to-equity ratio of 1.38.
What is the analyst price target for DAVA?
Wall Street analysts have a mean price target of $5.40 for DAVA, representing a 162.0% premium over its last close of $2.06 on October 16, 2026.