Deep Dive Into Dayforce Stock: Analyst Perspectives (9 Ratings)

Providing a diverse range of perspectives from bullish to bearish, 9 analysts have published ratings on Dayforce DAY in the last three months.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Dayforce, presenting an average target of $68.22, a high estimate of $95.00, and a low estimate of $55.00. This current average represents a 12.66% decrease from the previous average price target of $78.11.

Exploring Analyst Ratings: An In-Depth Overview

The perception of Dayforce by financial experts is analyzed through recent analyst actions. The following summary presents 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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Dayforce compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Dayforce's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Dayforce's market position. Stay informed and make well-informed 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.

Dayforce: A Financial Overview

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Dayforce's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 16.39%. This signifies a substantial increase in the company's 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: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 2.32%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Dayforce's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.42%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Dayforce's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.13%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a below-average debt-to-equity ratio of 0.48, Dayforce adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

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.