TICKER DAVA
ISIN US29260V1052
Market cap. USD
388,460,250
Shs outstanding 56,958,981

website

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in Europe, Latin America, North America, and internationally. The company offers technology and digital advisory services for payments and financial services, and TMT sectors; IT strategies; business analysis services; program management services; digital product strategy services; and architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. It also engages in the identifying, defining, and embedding collaborative data and analytics; and provision of automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, and telemetry and monitoring services. The company was founded in 2000 and is headquartered in London, the United Kingdom.

Strategy:

Return at exit: 1.1%
Underperforming amid volatility and valuation concerns
• Rotated out due to relative underperformance compared to other opportunities in our model’s universe. • Dramatic market performance decline stands out: -32% over 3 months, -60% over 6 months, and -80% over 1 year, with price at just 18% of 52-week high. • Recent Q1 earnings missed expectations with 8.6% year-over-year revenue decline and shift from profit to loss, triggering 23% single-day stock drop. • Multiple analyst downgrades from William Blair and others reflect concerns about growth trajectory, despite P/E of 24.8. • Some positive developments include strategic $100M Paysafe partnership and increasing AI-native service offerings (now 70% of services), which may eventually stabilize performance. • This change reflects portfolio rotation, not a sell signal.
Strategies