Dayforce Inc (DAY) Stock Analysis
Verdict: WATCH (do not buy)
Negative net margins and massive insider selling at $70 create a valuation ceiling that current 11% growth cannot justify.
Investment score: 42/100
Analysis as of
Is Dayforce Inc stock worth reviewing? The TradeMates thesis
The TradeMates model rates Dayforce as an AVOID due to extreme valuation disconnects and significant insider selling.
7-factor investment score
- Valuation: 25/100 (weight 20%)
- Financial Health: 45/100 (weight 15%)
- Technical Momentum: 60/100 (weight 15%)
- Earnings Quality: 40/100 (weight 15%)
- Insider Sentiment: 10/100 (weight 10%)
- Analyst Consensus: 45/100 (weight 10%)
- Risk-Adjusted Return: 50/100 (weight 15%)
Dayforce Inc opportunities and risks
What speaks for DAY
- Cloud HCM Transition momentum
What speaks against DAY
- Aggressive Insider Selling at $70 ceiling
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| DAY | n/a | 5.9x | 81.7x | 52.9% | -7.9% | 1.5% |
| ADP | 20.5x | 4.1x | 13.7x | 47.5% | 20.1% | 5.8% |
| PAYX | 21.3x | 5.5x | 13.5x | 73.9% | 25.8% | 6.2% |
| PAYC | 15.2x | 3.6x | 9.9x | 79.7% | 22.4% | 5.8% |
| PCTY | 24.2x | 3.6x | 12.5x | 69.3% | 14.9% | 7.6% |
| KFY | 13.4x | 1.3x | 6.6x | 88.2% | 9.3% | 7.9% |
| Peer median | 20.5x | 3.6x | 12.5x | 73.9% | 20.1% | 6.2% |
Frequently asked questions about Dayforce Inc (DAY)
Is DAY stock a good investment?
The TradeMates model rates Dayforce Inc as WATCH (do not buy) with an investment score of 42/100. The TradeMates model rates Dayforce as an AVOID due to extreme valuation disconnects and significant insider selling. This is algorithmic model output, not personal investment advice.
Is DAY stock a buy?
The TradeMates model verdict for DAY is WATCH (do not buy) with an investment score of 42/100. Treat this as a model signal to review, not a personal buy recommendation.