As a leading pioneer of agile software development systems, Endava has distinguished itself as a prominent player in today’s dynamic and tech-dependent world.
Founded in 2000, the UK-based company has grown remarkably fast, and is now well on its way to a destination that has seen it expand its presence across vast swathes of the globe.
Indeed, the firm’s net cash from operating activities has been on a positive trajectory, rising 38% annually to £120.7 million in fiscal 2022.
In fact, Endava’s reach spans all the way from North America to Western Europe, with nearshore delivery centers in Eastern Europe and Latin America. Its services also fan out across various industries, including payments, banking, insurance, telecommunications, and mobility.
With the accelerating demand for digital provisions and the rapid deployment of the cloud, DAVA stands at the cusp of an immense opportunity. So, how high can DAVA go and where will Endava stock be in 2030?
How Does Endava Generate Revenue?
The company’s business model ultimately hinges on the success of its IT and digital solutions. For instance, agile software development, a significant portion of the company’s workload, has been a notable revenue driver of late.
As such, clients across multiple industries approach Endava for bespoke fixes designed to cater to their specific needs. The company’s iterative and collaborative approach to software development ensures continuous value delivery, which fosters long-term relationships and secures recurring revenue.
In the current climate, another one of its core offerings, digital consulting, holds tremendous value, with ventures increasingly turning to Endava to elevate their competitiveness.
Advancing automation methods has played a crucial role in bolstering DAVA’s revenue too, enabling corporations to streamline and enhance their machine learning and AI capabilities.
Ultimately, Endava differentiates itself from its rivals by tailoring its services to fit specific industries, such as private equity, retail goods, and media. Leveraging its expertise and knowledge, DAVA delivers effective user experiences, builds loyalty, and secures consistent revenue streams.
Interestingly, the company’s focus on the payments and financial space has paid off, with the verticals accounting for 53% of its total sales. The prominence of these sectors in Endava’s revenue stream further highlights the achievements of its strategic positioning and its likelihood for sustained profit.
The Impetus For Growth
The future of Endava’s business is likely to be driven by several key catalysts, with the call for a digital revolution and the adoption of cloud applications emerging as important factors.
As a result, organizations active across all industries must follow this path, which will increasingly necessitate the skills of leadership contenders such as DAVA.
Consequently, this trend will be amplified by the continuous evolution of consumer preferences, which will motivate enterprises to remain at the forefront of digital innovation. Endava’s experience and background in this domain place the company in a privileged location to capture a larger share of the growing market.
The enlargement of cloud services will form another big incentive for DAVA, and as companies continue to realize the benefits of cloud computing – like scalability, flexibility, data loss prevention, and enhanced security – the requirement for cloud-based functionality will only rise.
Endava’s history of well-thought-out acquisitions has also presented an avenue whereby the firm has consolidated its share by acquiring and integrating companies with complementary proficiencies and user bases. The assimilation of these acquisitions into its existing practices has proven to be a good plan of action for the company, and future investments could serve as additional spurs for growth.
Furthermore, the increasing urgency for automation across all sectors is another driver for DAVA’s bottom line as businesses look to upgrade their efficiency goals and thus bring down costs.
Lastly, as public-facing industries such as healthcare and entertainment continue to invest in the quest to augment their audience’s experiences, the clamor for Endava’s services in these areas will likely grow, providing another conduit for the company’s expansion.
Conclusion
Operating at the intersection of many rapidly-proliferating sectors, the company is well-placed to capitalize on these fast-moving markets.
The firm’s prudent approach to acquisitions – characterized by seamless integration and synergy realization – has strengthened its market dominance and increased revenue and share price appreciation. Moreover, the company’s focus on delivering effective remedies tailored to its clients’ wishes has helped build strong relationships, establishing a solid foundation for sustainable growth.
The ongoing wave of digital transformation and the rising demand for automation suggests a favorable scenario for Endava. As businesses prioritize digitization and efficiency, the need for DAVA’s services will likely increase, driving its revenue and share price up.
Furthermore, the company’s consistent financial performance – as evidenced by its impressive 20.3% year-on-year revenue spike for the third quarter of 2023 – attests to its strong business model and effective execution of its broader policies. This enviable track record can instill investor confidence, which could lend further upward pressure on its stock price.
Of course, because of the size of the industry in which Endava conducts itself, there will likewise be a massive total addressable market to exploit. Indeed, according to its own literature, DAVA reckons this will be worth $3.4 trillion by 2026.
Therefore, the potential upside presented by Endava appears promising. The company’s customer-centric approach and robust financial performance ensure a strong argument for it to continue delivering value to its shareholders throughout the decade and could easily triple its market cap by 2030.
So to answer the specific question, where will Endava stock be in 2030? Analysts forecast the stock could rise as high as $101 per share over the next 12 months and could easily rise to $150 by 2030.
#1 Stock For The Next 7 Days
When Financhill publishes its #1 stock, listen up. After all, the #1 stock is the cream of the crop, even when markets crash.
Financhill just revealed its top stock for investors right now... so there's no better time to claim your slice of the pie.
See The #1 Stock Now >>The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.