Dayforce Stock: A Deep Dive Into Analyst Perspectives (10 Ratings)

In the last three months, 10 analysts have published ratings on Dayforce DAY, offering a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Dayforce and provided 12-month price targets. The average target is $71.3, accompanied by a high estimate of $82.00 and a low estimate of $62.00. This upward trend is apparent, with the current average reflecting a 6.24% increase from the previous average price target of $67.11.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Dayforce is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Dayforce. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Dayforce compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Dayforce's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Dayforce's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Dayforce analyst ratings.

Unveiling the Story Behind Dayforce

Dayforce provides payroll and human capital management solutions targeting clients with 100-100,000 employees. Following the 2012 acquisition of Dayforce, Dayforce pivoted away from its legacy on-premises Bureau business to become a cloud HCM provider. As of fiscal 2022, about 80% of group revenue was derived from the flagship Dayforce platform geared toward enterprise clients. The remaining revenue is about evenly split between cloud platform Powerpay, targeting small businesses in Canada, and legacy Bureau products.

Understanding the Numbers: Dayforce's Finances

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining Dayforce's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 15.69% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Dayforce's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -0.43%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -0.07%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Dayforce's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.02%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Dayforce's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.5.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.