Latest news with #Endavaplc
Yahoo
15-05-2025
- Business
- Yahoo
Is There Now An Opportunity In Endava plc (NYSE:DAVA)?
While Endava plc (NYSE:DAVA) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$34.49 at one point, and dropping to the lows of US$15.64. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Endava's current trading price of US$15.64 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Endava's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Great news for investors – Endava is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $25.30, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Endava's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. Check out our latest analysis for Endava Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for Endava. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? Since DAVA is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on DAVA for a while, now might be the time to enter the stock. Its buoyant future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy DAVA. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 2 warning signs for Endava you should be aware of. If you are no longer interested in Endava, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Business Wire
14-05-2025
- Business
- Business Wire
Endava Announces Third Quarter Fiscal Year 2025 Results
LONDON--(BUSINESS WIRE)--Endava plc (NYSE: DAVA) ("Endava" or the "Company"), the technology-driven business transformation group whose AI-native approach combines cutting edge technology with deep industry expertise, today announced results for the three months ended March 31, 2025, the third quarter of its 2025 fiscal year ("Q3 FY2025"). 'The business environment continues to evolve rapidly and the quarter just ended has been challenging. Clients' desire to innovate remains strong; however, they are slow at signing larger contracts in the current uncertain macroeconomic environment. The opportunity pipeline continues to grow but the conversion into revenue is not happening as we would have expected. In this uncertain environment, we are focusing on what we can control to best position the business for the long term. Additionally, our board of directors has authorized the repurchase of up to $50 million of additional Endava shares, reflecting our confidence in our cash flow outlook and long-term strategy,' said John Cotterell, Endava's CEO. THIRD QUARTER FISCAL YEAR 2025 FINANCIAL HIGHLIGHTS: Revenue for Q3 FY2025 was £194.8 million, an increase of 11.7% compared to £174.4 million in the same period in the prior year. Revenue increase at constant currency (a non-IFRS measure)* was 12.4% for Q3 FY2025. Profit before tax for Q3 FY2025 was £13.6 million, compared to loss before tax of £(0.5) million in the same period in the prior year. Adjusted profit before tax (a non-IFRS measure)* for Q3 FY2025 was £24.6 million, or 12.6% of revenue, compared to £15.5 million, or 8.9% of revenue, in the same period in the prior year. Profit for the period was £10.9 million, resulting in diluted earnings per share ("EPS") of £0.18, compared to loss for the period of £(1.7) million and diluted loss per share of £(0.03) in the same period in the prior year. Adjusted profit for the period (a non-IFRS measure)* was £20.1 million, resulting in adjusted diluted EPS (a non-IFRS measure)* of £0.34, compared to adjusted profit for the period of £12.7 million and adjusted diluted EPS of £0.22 in the same period in the prior year. CASH FLOW: Net cash from operating activities was £18.7 million in Q3 FY2025, compared to net cash from operating activities of £3.0 million in the same period in the prior year. Adjusted free cash flow (a non-IFRS measure)* was £17.5 million in Q3 FY2025, compared to £2.2 million in the same period in the prior year. At March 31, 2025, Endava had cash and cash equivalents of £68.3 million, compared to £62.4 million at June 30, 2024. * Definitions of the non-IFRS measures used by the Company and a reconciliation of such measures to the related IFRS financial measure can be found under the sections below titled 'Non-IFRS Financial Information' and 'Reconciliation of IFRS Financial Measures to Non-IFRS Financial Measures.' OTHER METRICS FOR THE QUARTER ENDED MARCH 31, 2025: Headcount totaled 11,365 at March 31, 2025, with an average of 10,272 operational employees in Q3 FY2025, compared to a headcount of 11,025 at March 31, 2024 and an average of 10,127 operational employees in the same period in the prior year. Number of clients with over £1 million in revenue on a rolling twelve-month basis was 136 at March 31, 2025, compared to 142 clients at March 31, 2024. Top 10 clients accounted for 39% of revenue in Q3 FY2025, compared to 34% in the same period in the prior year. By geographic region, 37% of revenue was generated in North America, 22% was generated in Europe, 35% was generated in the United Kingdom and 6% was generated in the rest of the world in Q3 FY2025. This compares to 30% in North America, 28% in Europe, 35% in the United Kingdom and 7% in the Rest of the World in the same period in the prior year. By industry vertical, 19% of revenue was generated from Payments, 21% from BCM, 9% from Insurance, 18% from TMT, 8% from Mobility, 12% from Healthcare, and 13% from Other in Q3 FY2025. This compares to 24% from Payments, 14% from BCM, 9% from Insurance, 24% from TMT, 10% from Mobility, 4% from Healthcare, and 15% from Other in the same period in the prior year. OUTLOOK: Fourth Quarter Fiscal Year 2025: Endava expects revenue will be in the range of £186.0 million to £188.0 million, representing a constant currency revenue change of between (1.0)% and 0.0% on a year over year basis. Endava expects adjusted diluted EPS to be in the range of £0.22 to £0.24 per share. Full Fiscal Year 2025: Endava expects revenue will be in the range of £771.5 million to £773.5 million, representing a constant currency revenue increase of between 6.0% and 6.5% on a year over year basis. Endava expects adjusted diluted EPS to be in the range of £1.11 to £1.13 per share. This above guidance for the fourth quarter and full fiscal year 2025 assumes the exchange rates on April 30, 2025 (when the exchange rate was 1 British Pound to 1.34 US Dollar and 1.18 Euro). Endava is not able, at this time, to reconcile its expectations for the fourth quarter and full fiscal year 2025 for a rate of revenue growth or decline at constant currency or adjusted diluted EPS to their respective most directly comparable IFRS measures as a result of the uncertainty regarding, and the potential variability of, reconciling items such as share-based compensation expense, amortisation of acquired intangible assets, foreign currency exchange losses / (gains), net, and fair value movement of contingent consideration, as applicable. Accordingly, a reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Endava's results computed in accordance with IFRS. The guidance provided above is forward-looking in nature. Actual results may differ materially. See 'Forward-Looking Statements' below. SHARE REPURCHASE PROGRAM: As of April 30, 2025, the Company had repurchased 1,975,906 American Depositary Shares ("ADS") for $39.7 million under its share repurchase program. As of April 30, 2025, the Company had $60.3 million remaining for repurchase under its share repurchase authorization. Additionally, the Board of Directors of Endava has approved an additional $50 million of share repurchases under the existing program. CONFERENCE CALL DETAILS: The Company will host a conference call at 8:00 am ET today, May 14, 2025, to review its Q3 FY2025 results. To participate in Endava's Q3 FY2025 earnings conference call, please dial in at least five minutes prior to the scheduled start time (844) 481-2736 or (412) 317-0665 for international participants, Conference ID: Endava Call. Investors may listen to the call on Endava's Investor Relations website at The webcast will be recorded and available for replay until Wednesday June 11, 2025. ABOUT ENDAVA PLC: Endava is a leading provider of next-generation technology services, dedicated to enabling its customers to accelerate growth, tackle complex challenges and thrive in evolving markets. By combining innovative technologies and deep industry expertise with an AI-native approach, Endava consults and partners with customers to create solutions that drive transformation, augment intelligence and deliver lasting impact. From ideation to production, it supports customers with tailor-made solutions at every stage of their digital transformation, regardless of industry, region or scale. Endava's clients span payments, insurance, finance and banking, technology, media, telecommunications, healthcare and life sciences, mobility, retail and consumer goods and more. As of March 31, 2025, 11,365 Endavans are helping clients break new ground across locations in Europe, the Americas, Asia Pacific and the Middle East. NON-IFRS FINANCIAL INFORMATION: To supplement Endava's Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows presented in accordance with IFRS, the Company uses non-IFRS measures of certain components of financial performance in this press release. These measures include revenue growth/(decline) rate at constant currency, adjusted profit before tax, adjusted profit for the period, adjusted diluted EPS and adjusted free cash flow. Revenue growth/(decline) rate at constant currency is calculated by translating revenue from entities reporting in foreign currencies into British Pounds using the comparable foreign currency exchange rates from the prior period. For example, the average currency rates in effect for the fiscal quarter ended March 31, 2024 were used to convert revenue for the fiscal quarter ended March 31, 2025 and the revenue for the comparable prior period. Adjusted profit before tax ("Adjusted PBT") is defined as the Company's profit before tax adjusted to exclude the impact of share-based compensation expense, amortisation of acquired intangible assets, realised and unrealised foreign currency exchange (gains)/losses, net, restructuring costs, and fair value movement of contingent consideration, all of which are non-cash items except for realised foreign currency exchange (gains)/losses, net. Our Adjusted PBT margin is our Adjusted PBT as a percentage of our total revenue. Adjusted profit for the period is defined as Adjusted PBT less the adjusted tax charge for the period. The adjusted tax charge is the tax charge adjusted for the tax impact of the adjustments to PBT and the release of the deferred tax liability relating to Romanian withholding tax. Adjusted diluted EPS is defined as Adjusted profit for the period, divided by weighted average number of shares outstanding - diluted. Adjusted free cash flow is the Company's net cash from operating activities, plus grants received, less net purchases of non-current assets (tangible and intangible). Adjusted free cash flow is not intended to be a measure of residual cash available for management's discretionary use since it omits significant sources and uses of cash flow, including mandatory debt repayments and changes in working capital. Management believes these measures help illustrate underlying trends in the Company's business and uses the measures to establish budgets and operational goals, communicated internally and externally, for managing the Company's business and evaluating its performance. Management also believes the presentation of its non-IFRS financial measures enhances an investor's overall understanding of the Company's historical financial performance. The presentation of the Company's non-IFRS financial measures is not meant to be considered in isolation or as a substitute for the Company's financial results prepared in accordance with IFRS, and its non-IFRS measures may be different from non-IFRS measures used by other companies. Investors should review the reconciliation of the Company's non-IFRS financial measures to the comparable IFRS financial measures included below, and not rely on any single financial measure to evaluate the Company's business. FORWARD-LOOKING STATEMENTS: This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of terms and phrases such as 'believe,' 'expect,' "intends," "outlook," 'may,' 'will,' and other similar terms and phrases. Such forward-looking statements include, but are not limited to, statements regarding the macroeconomic environment, our share repurchase program and management's financial outlook for the fourth quarter and full fiscal year 2025. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: Endava's ability to achieve its revenue growth goals including as a result of a slower conversion of its pipeline; Endava's expectations of future operating results or financial performance; Endava's ability to accurately forecast and achieve its announced guidance; Endava's ability to retain existing clients and attract new clients, including its ability to increase revenue from existing clients and diversify its revenue concentration; Endava's ability to attract and retain highly-skilled IT professionals at cost-effective rates; Endava's ability to successfully identify acquisition targets, consummate acquisitions and successfully integrate acquired businesses and personnel; Endava's ability to penetrate new industry verticals and geographies and grow its revenue in current industry verticals and geographies; Endava's ability to maintain favorable pricing and utilization rates to support its gross margin; the effects of increased competition as well as innovations by new and existing competitors in its market; the size of Endava's addressable market and market trends; Endava's ability to adapt to technological change and industry trends and innovate solutions for its clients; Endava's plans for growth and future operations, including its ability to manage its growth; Endava's ability to effectively manage its international operations, including Endava's exposure to foreign currency exchange rate fluctuations; Endava's future financial performance, including trends in revenue, cost of sales, gross profit, selling, general and administrative expenses, finance income and expense and taxes; the impact of unstable market and economic conditions, including as a result of actual or anticipated changes in interest rates, economic inflation and the responses by central banking authorities to control such inflation, and the imposition of tariffs in the United States and abroad; and the impact of political instability, natural disaster, events of terrorism and wars, including the military conflict between Ukraine and Russia and related sanctions, as well as other risks and uncertainties discussed in the 'Risk Factors' section of Endava's Annual Report on Form 20-F for the year ended June 30, 2024 filed with the SEC on September 19, 2024 and in other filings that Endava makes from time to time with the SEC, including our Current Report on Form 6-K filed with the SEC on March 28, 2025. In addition, the forward-looking statements included in this press release represent Endava's views and expectations as of the date hereof and are based on information currently available to Endava. Endava anticipates that subsequent events and developments may cause its views to change. Endava specifically disclaims any obligation to update the forward-looking statements in this press release except as required by law. These forward-looking statements should not be relied upon as representing Endava's views as of any date subsequent to the date hereof. 2025 2024 2025 2024 £'000 £'000 £'000 £'000 REVENUE 585,479 546,338 194,838 174,365 Cost of sales Direct cost of sales (417,317 ) (389,864 ) (134,251 ) (130,452 ) Allocated cost of sales (20,896 ) (19,938 ) (6,998 ) (6,720 ) Total cost of sales (438,213 ) (409,802 ) (141,249 ) (137,172 ) GROSS PROFIT 147,266 136,536 53,589 37,193 Selling, general and administrative expenses (124,449 ) (117,643 ) (37,135 ) (39,025 ) OPERATING PROFIT / (LOSS) 22,817 18,893 16,454 (1,832 ) Net finance (expense) / income (2,503 ) 8,496 (2,857 ) 1,303 PROFIT / (LOSS) BEFORE TAX 20,314 27,389 13,597 (529 ) Tax on profit on ordinary activities (270 ) (8,413 ) (2,651 ) (1,208 ) PROFIT / (LOSS) FOR THE PERIOD 20,044 18,976 10,946 (1,737 ) OTHER COMPREHENSIVE INCOME Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations and net investment hedge impact (21,554 ) (1,061 ) (7,741 ) (2,930 ) (1,510 ) 17,915 3,205 (4,667 ) EARNINGS PER SHARE (EPS): Weighted average number of shares outstanding - Basic 59,234,601 58,213,743 59,164,297 58,439,085 Weighted average number of shares outstanding - Diluted 59,566,531 58,657,357 59,434,080 58,799,599 Basic EPS (£) 0.34 0.33 0.19 (0.03 ) Diluted EPS (£) 0.34 0.32 0.18 (0.03 ) Expand CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2025 June 30, 2024 March 31, 2024 (1) £'000 £'000 £'000 ASSETS - NON-CURRENT Goodwill 490,478 515,724 262,720 Intangible assets 110,471 127,797 56,436 Property, plant and equipment 15,036 20,638 22,204 Lease right-of-use assets 44,240 53,294 52,645 Deferred tax assets 20,792 18,323 20,694 Financial assets and other receivables 9,141 10,499 7,380 TOTAL 690,158 746,275 422,079 ASSETS - CURRENT Trade and other receivables 193,131 193,673 177,355 Corporation tax receivable 10,084 11,402 2,760 Financial assets 119 183 185 Cash and cash equivalents 68,277 62,358 190,021 TOTAL 271,611 267,616 370,321 TOTAL ASSETS 961,769 1,013,891 792,400 LIABILITIES - CURRENT Lease liabilities 13,922 14,450 14,300 Trade and other payables 101,156 116,569 82,931 Corporation tax payable 6,088 8,556 2,524 Contingent consideration 80 8,444 4,619 Deferred consideration 3,349 5,840 3,205 TOTAL 124,595 153,859 107,579 LIABILITIES - NON CURRENT Borrowings 136,456 144,754 — Lease liabilities 35,225 43,557 42,961 Deferred tax liabilities 19,202 30,814 13,108 Contingent consideration 329 — — Deferred consideration — 943 3,411 Other liabilities 377 509 548 TOTAL 191,589 220,577 60,028 EQUITY Share capital 1,189 1,180 1,169 Share premium 21,280 21,280 21,208 Merger relief reserve 63,440 63,440 49,643 Retained earnings 619,216 573,640 570,878 Other reserves (41,613 ) (20,059 ) (18,079 ) Treasury shares (17,922 ) — — Investment in own shares (5 ) (26 ) (26 ) TOTAL 645,585 639,455 624,793 TOTAL LIABILITIES AND EQUITY 961,769 1,013,891 792,400 Expand CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended March 31 Three Months Ended March 31 2025 2024 (2) 2025 2024 (2) £'000 £'000 £'000 £'000 OPERATING ACTIVITIES Profit / (Loss) for the period 20,044 18,976 10,946 (1,737 ) Income tax charge 270 8,413 2,651 1,208 Non-cash adjustments 64,720 43,760 18,513 11,927 Tax paid (6,943 ) (7,707 ) (3,157 ) (2,893 ) Net changes in working capital (23,010 ) (8,811 ) (10,294 ) (5,497 ) Net cash from operating activities 55,081 54,631 18,659 3,008 INVESTING ACTIVITIES Purchase of non-current assets (tangibles and intangibles) (2,932 ) (3,696 ) (1,361 ) (1,496 ) Proceeds from disposal of non-current assets 255 36 219 63 Payment for acquisition of subsidiary, net of cash acquired (6,676 ) (19,223 ) (776 ) (12,513 ) Other acquisition-related settlements — (6,680 ) — — Interest received 978 5,599 258 2,077 Net cash used in investing activities (8,375 ) (23,964 ) (1,660 ) (11,869 ) FINANCING ACTIVITIES Proceeds from sublease 92 129 28 42 Proceeds from bank loans 35,000 — 25,000 — Repayment of borrowings (40,842 ) — (10,000 ) — Repayment of lease liabilities (9,357 ) (9,152 ) (3,198 ) (2,857 ) Repayment of lease interest (1,447 ) (1,641 ) (458 ) (516 ) Interest and debt financing costs paid (6,510 ) (1,611 ) (2,228 ) (1,028 ) Grant received 274 822 — 592 Proceeds from exercise of options — 6,586 — 3,457 Payment for repurchase of own shares (17,808 ) — (17,808 ) — Net cash used in financing activities (40,598 ) (4,867 ) (8,664 ) (310 ) Net change in cash and cash equivalents 6,108 25,800 8,335 (9,171 ) Cash and cash equivalents at the beginning of the period 62,358 164,703 60,065 198,602 Exchange differences on cash and cash equivalents (189 ) (482 ) (123 ) 590 Cash and cash equivalents at the end of the period 68,277 190,021 68,277 190,021 Expand RECONCILIATION OF IFRS FINANCIAL MEASURES TO NON-IFRS FINANCIAL MEASURES Nine Months Ended March 31 Three Months Ended March 31 2025 2024 2025 2024 £'000 £'000 £'000 £'000 PROFIT / (LOSS) BEFORE TAX 20,314 27,389 13,597 (529 ) Adjustments: Share-based compensation expense 28,186 29,740 6,221 6,184 Amortisation of acquired intangible assets 16,236 9,930 4,054 2,845 Foreign currency exchange losses, net 1,446 2,864 4,866 179 Restructuring costs 5,494 7,259 — 7,259 Fair value movement of contingent consideration (5,963 ) (9,148 ) (4,092 ) (442 ) Total adjustments 45,399 40,645 11,049 16,025 ADJUSTED PROFIT BEFORE TAX 65,713 68,034 24,646 15,496 PROFIT / (LOSS) FOR THE PERIOD 20,044 18,976 10,946 (1,737 ) Adjustments: Adjustments to profit before tax 45,399 40,645 11,049 16,025 Release of Romanian withholding tax (3,800 ) — — — Tax impact of adjustments (8,539 ) (6,503 ) (1,857 ) (1,587 ) ADJUSTED PROFIT FOR THE PERIOD 53,104 53,118 20,138 12,701 Expand Nine Months Ended March 31 Three Months Ended March 31 2025 2024 2025 2024 £'000 £'000 £'000 £'000 NET CASH FROM OPERATING ACTIVITIES 55,081 54,631 18,659 3,008 Adjustments: Grant received 274 822 — 592 Net purchase of non-current assets (tangibles and intangibles) (2,677 ) (3,660 ) (1,142 ) (1,433 ) ADJUSTED FREE CASH FLOW 52,678 51,793 17,517 2,167 Expand SUPPLEMENTARY INFORMATION DEPRECIATION AND AMORTISATION Nine Months Ended March 31 Three Months Ended March 31 2025 2024 2025 2024 £'000 £'000 £'000 £'000 Direct cost of sales 15,571 14,898 5,158 4,849 Selling, general and administrative expenses 18,525 12,410 4,805 3,698 Total 34,096 27,308 9,963 8,547 Expand EMPLOYEES, TOP 10 CUSTOMERS AND REVENUE SPLIT Nine Months Ended March 31 Three Months Ended March 31 2025 2024 2025 2024 Closing number of total employees (including directors) 11,365 11,025 11,365 11,025 Average operational employees 10,452 10,446 10,272 10,127 Top 10 customers % 36 % 34 % 39 % 34 % Number of clients with > £1m of revenue (rolling 12 months) 136 142 136 142 Geographic split of revenue % North America 38 % 31 % 37 % 30 % Europe 24 % 26 % 22 % 28 % UK 33 % 34 % 35 % 35 % Rest of World (RoW) 5 % 9 % 6 % 7 % Industry vertical split of revenue % Payments 19 % 26 % 19 % 24 % Banking and Capital Markets 19 % 14 % 21 % 14 % Insurance 9 % 9 % 9 % 9 % TMT 20 % 23 % 18 % 24 % Mobility 8 % 10 % 8 % 10 % Healthcare 12 % 4 % 12 % 4 % Other 13 % 14 % 13 % 15 % Expand FOOTNOTES (1) Restated to include the effect of revisions arising from provisional to final acquisition accounting for DEK and Mudbath. (2) The presentation of the Condensed Consolidated Statements of Cash Flows has been changed to separately present the repayment of lease interest from the total repayments of lease liabilities.
Yahoo
08-05-2025
- Business
- Yahoo
Is Endava plc (DAVA) the Undervalued Quantum Computing Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Endava plc (NYSE:DAVA) stands against other undervalued quantum computing stocks to buy now. Quantum computing is turning into an essential component of the upcoming technological revolution. It is resolving problems all around in sectors spanning security, finance, medicine, and AI. In comparison to regular computers, quantum systems use qubits that work in multiple states at once, which massively boosts processing power. This does show advancements in the field of science, and as such, it is encouraging new markets. PwC reports that quantum tech is making waves in research, operations, and infrastructure, with specific attention on optimization, system simulation, and modeling risks. According to ResearchAndMarkets, while the quantum industry reached $1.9 billion in 2024, it is expected to hit $7.5 billion by 2030, with a CAGR of 28.7%. Forbes stated that this strong growth comes from institutional support, public-private teamwork, and hardware breakthroughs. Moreover, venture capital invested $1.5 billion into 50 quantum startups last year, almost twice the amount in 2023. The Forbes Technology Council adds that this demonstrates that investors are putting more trust in the quantum sector. Thus, it has the potential to reshape not just the IT sector but global markets too, from portfolio management to trading algorithms, by cutting computation time and risks. In response to this technology, the stock market has been skeptical, as it is uncertain when quantum computing will go mainstream. However, recent advances in error reduction, logical qubit formation, and hybrid quantum-classical models have boosted optimism among investors. These hybrid approaches are already helping with logistics, artificial intelligence, and materials research. Forbes claims that this shift is a complete redefinition of tech investing, with quantum moving from an accessory to a necessity in the tech sector. In contrast, in the financial sector, the industry is getting attention despite being relatively new and in development. IDTechEx predicts it can reach $10 billion worth of value in two decades, driven by the active advancements of quantum startups. With over 50 of these startups turning profitable in just four years, companies are now rapidly adopting the technology, with a rise in demand for quantum programs. Meanwhile, an IDC report in April showed PC shipments grew 4.9% in Q1 2025, unaffected by the rising tariffs. Furthermore, even governments all around the globe are investing in this sector, led by America, Germany, China, and Britain. The UN even declared 2025 the International Year of Quantum Science and Technology. Looking ahead, the technological progress keeps investors hooked with new materials like niobium. When paired with surface encapsulation methods, it has stretched coherence times to 600 microseconds, making qubits perform better. In addition, better chip designs and error correction are helping quantum systems move from labs to real applications. These improvements should cut costs and boost reliability, bringing quantum's theoretical potential into practical use. To curate our list of the 10 Undervalued Quantum Computing Stocks to Buy Now, we relied on the Finviz screener to find the biggest Quantum Computing companies. We narrowed down these companies by choosing ones that have their forward price-to-earnings multiple less than 15, as of the time of writing this article. Next, we ranked the shortlisted stocks based on the hedge fund sentiment surrounding each stock, as per Insider Monkey's Q4 2024 database. The 10 Undervalued Quantum Computing Stocks to Buy Now are listed in ascending order based on the number of hedge fund holders having stakes in the respective stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A tech expert in a suit presenting a new IT strategy in front of a corporate audience. Endava plc (NYSE:DAVA) is a renowned tech company, providing services including digital speed-up, engineering, and modern managed services in North America, Europe, and the UK. It works with many industries like finance, healthcare, automotive, and telecom. The company's quantum division, Dava.X Quantum, is producing hybrid solutions that blend traditional and quantum computing to solve difficult business challenges. The company works with quantum leaders worldwide to create custom solutions that solve real problems. For Q2 FY2025 ended December 31, 2024, Endava plc (NYSE:DAVA) posted a revenue of $248.4 million, a 6.6% rise from last year (9.1% in constant currency). The company's adjusted profit before tax was $27.7 million with an 11.2% margin, while adjusted earnings per share were at $0.38, exceeding expectations. The top 10 clients of Endava plc (NYSE:DAVA) made up 36% of revenue, with average spending up 13% year over year to $9 million. Meanwhile, the company's business in North America jumped 32.7%, thanks to the acquisition of GalaxE. The UK and Europe saw small growth, while other regions fell 43.5% due to economic slowdown. Additionally, Banking & Capital Markets did well with 43.6% growth, though Payments and TMT struggled. Moreover, the company's Healthcare portfolio was able to grow due to GalaxE's contribution. Furthermore, Endava just started its first-ever share buyback program that is worth $100 million. Endava plc (NYSE:DAVA)'s Dava.X Quantum plays a key role in the company's future plans, helping businesses prepare for quantum computing with better security and hybrid applications. As such, for Q3 FY2025, the company expects revenue between $251-254 million, with earnings of $0.39-0.41 per share. For the full year, it is looking at $1.01-1.02 billion in revenue and earnings of $1.52-1.56 per share. However, the company's weakness in the UK and instability in the global market are posing challenges. Overall, DAVA ranks 9th on our list of undervalued quantum computing stocks to buy now. While we acknowledge the potential of DAVA as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DAVA but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
30-04-2025
- Business
- Yahoo
Endava to Announce Q3 FY2025 Financial Results on May 14, 2025
LONDON, April 30, 2025--(BUSINESS WIRE)--Endava plc (NYSE: DAVA), a leading next-generation technology services provider, today announced it will release results for the third quarter ended March 31, 2025, on Wednesday May 14, 2025 before the opening of regular U.S. market hours. Following the release, John Cotterell, Endava's CEO and Mark Thurston, Endava's CFO, will discuss the results in a conference call beginning at 8:00 am ET. Conference call access information is: Participant Toll Free Dial-In Number: 1-844-481-2736Participant International Dial-In Number: 1-412-317-0665 Conference ID: Endava CallWebcast: Additionally, a replay will be available on our investor relations website after the call. ABOUT ENDAVA PLC: We are a leading provider of next-generation technology services, dedicated to enabling our customers to drive real impact and meaningful change. By combining world-class engineering, deep industry expertise and a customer-centric mindset, we consult and partner with our customers to create technological solutions that fuel transformation and empower businesses to succeed in the AI-driven digital shift. From ideation to production, we support our customers with tailor-made solutions at every stage of their digital transformation, regardless of industry, region or scale. Endava's clients span payments, insurance, finance and banking, technology, media, telecommunications, healthcare and life sciences, mobility, retail and consumer goods and more. As of December 31, 2024, 11,668 Endavans are helping clients break new ground across locations in Europe, the Americas, Asia Pacific and the Middle East. For more information, visit View source version on Contacts Investor Relations:Laurence Madsen, Endavainvestors@
Yahoo
04-02-2025
- Business
- Yahoo
Endava to Announce Q2 FY2025 Financial Results on February 20, 2025
LONDON, February 04, 2025--(BUSINESS WIRE)--Endava plc (NYSE: DAVA), a leading next-generation technology services provider, today announced it will release results for the second quarter ended December 31, 2024, on Thursday February 20, 2025 before the opening of regular U.S. market hours. Following the release, John Cotterell, Endava's CEO and Mark Thurston, Endava's CFO, will discuss the results in a conference call beginning at 8:00 am ET. Conference call access information is: Participant Toll Free Dial-In Number: 1-844-481-2736Participant International Dial-In Number: 1-412-317-0665 Conference ID: Endava CallWebcast: Additionally, a replay will be available on our investor relations website after the call. ABOUT ENDAVA PLC: We are a leading provider of next-generation technology services, dedicated to enabling our customers to drive real impact and meaningful change. By combining world-class engineering, deep industry expertise and a customer-centric mindset, we consult and partner with our customers to create technological solutions that fuel transformation and empower businesses to succeed in the AI-driven digital shift. From ideation to production, we support our customers with tailor-made solutions at every stage of their digital transformation, regardless of industry, region or scale. Endava's clients span payments, insurance, finance and banking, technology, media, telecommunications, healthcare and life sciences, mobility, retail and consumer goods and more. As of September 30, 2024, 11,821 Endavans are helping clients break new ground across locations in Europe, the Americas, Asia Pacific and the Middle East. For more information, visit View source version on Contacts Investor Relations:Laurence Madsen, Endavainvestors@ Sign in to access your portfolio
