A Glimpse Into The Expert Outlook On Dayforce Through 7 Analysts

Providing a diverse range of perspectives from bullish to bearish, 7 analysts have published ratings on Dayforce DAY in the last three months.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $73.71, a high estimate of $82.00, and a low estimate of $62.00. Witnessing a positive shift, the current average has risen by 7.87% from the previous average price target of $68.33.

Interpreting Analyst Ratings: A Closer Look

A clear picture of Dayforce's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Dayforce. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Dayforce compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Dayforce's stock. This comparison reveals trends in analysts' expectations over time.

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.

Delving into Dayforce's Background

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.

Breaking Down Dayforce's Financial Performance

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects 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. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Dayforce's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -0.43%, the company may face hurdles in effective cost management.

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 lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.02%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Dayforce's debt-to-equity ratio is below the industry average. With a ratio of 0.5, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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