DAVA (Endava) Operating Margin %: -3.37% (As of Mar. 2026)


DAVA Endava PLC DAVA
58 GF Score
Price $2.62
GF Value $32.80
Valuation Possible Value Trap
! 10 Warning Signs
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What is Endava Operating Margin %?

Endava DAVA -1.13% 58 Operating Margin % is -3.37% as of Mar. 2026. GuruFocus rates DAVA with a GF Score™ of 58/100 and a GF Value™ of $32.80 (Possible Value Trap). The stock has 10 warning signs investors should review. Among 2,818 Software companies, Endava ranks worse than 61.28% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Endava's Operating Income for the three months ended in Mar. 2026 was $-8.0 Mil. Endava's Revenue for the three months ended in Mar. 2026 was $238.1 Mil. Therefore, Endava's Operating Margin % for the quarter that ended in Mar. 2026 was -3.37%.

Warning Sign:

Endava PLC operating margin has been in a 5-year decline. The average rate of decline per year is -19.1%.

The historical rank and industry rank for Endava's Operating Margin % or its related term are showing as below:

DAVA' s Operating Margin % Range Over the Past 10 Years
Min: -0.42   Med: 12.95   Max: 17.27
Current: -0.42


DAVA's Operating Margin % is ranked worse than
61.28% of 2818 companies
in the Software industry
Industry Median: 3.875 vs DAVA: -0.42

Endava's 5-Year Average Operating Margin % Growth Rate was -19.10% per year.

Endava's Operating Income for the three months ended in Mar. 2026 was $-8.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $-4.1 Mil.

Warning Sign:

Endava PLC has recorded a loss in operating income at least once over the past 3 years.


Endava  (NYSE:DAVA) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Endava Operating Margin % Related Terms


Endava Operating Margin % Historical Data

* Premium members only.

The historical data trend for Endava's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Endava Operating Margin % Chart

Endava Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.24 14.57 14.20 2.72 4.08

Endava Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.44 4.65 -1.63 -1.60 -3.37

DAVA vs ZPTA, TCX, AMBR: Operating Margin % Comparison

For the Software - Infrastructure subindustry, Endava's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Endava Operating Margin % vs Software Industry

For the Software industry and Technology sector, Endava's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Endava's Operating Margin % falls into.


DAVA
58GF Score
Endava PLC DAVA
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Endava Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Endava's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as

Operating Margin %=Operating Income (A: Jun. 2025 ) / Revenue (A: Jun. 2025 )
=42.75 / 1047.836
=4.08 %

Endava's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=-8.013 / 238.051
=-3.37 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -3.37% mean?
Endava (DAVA) has a Operating Margin % of -3.37% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Endava and its competitors. According to the industry distribution chart, Endava ranks #1727 out of 2818 companies in the Software industry, placing it in the top 61.3%.
Is Endava's Operating Margin % too high?
Endava's current Operating Margin % is -3.37%. Based on the distribution chart, Endava ranks #1727 out of 2818 companies in the Software industry, which is below the industry midpoint. Overall, Endava has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Endava's Operating Margin % compare to ZPTA and TCX?
According to the Software industry distribution chart, Endava ranks #1727 out of 2818 companies for Operating Margin %. This places Endava in the lower half of its industry. The industry median Operating Margin % is 3.88. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Endava and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Endava's current Operating Margin % is -3.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Endava stock overvalued right now?
Based on GuruFocus' analysis, Endava (DAVA) is currently considered Possible Value Trap. The stock's GF Value™ is $32.80, compared to a current price of $2.62 — trading 92% below its estimated fair value. The current Operating Margin % is -3.37%. Endava's overall GF Score™ is 58/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Endava (DAVA), the current Operating Margin % is -3.37% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Endava (DAVA) Overvalued in 2026?

Based on GuruFocus' analysis, Endava stock appears to be undervalued. The current stock price of $2.62 is trading 92% below its estimated GF Value™ of $32.80. GuruFocus considers Endava to be Possible Value Trap.

Key valuation signals for DAVA:

  • Operating Margin %: -3.37%
  • GF Value™: $32.80 vs. price of $2.62 (92% below fair value)
  • GF Score™: 58/100 with 10 warning signs

No single metric tells the full story. See the DAVA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Endava Business Description

Other Exchanges DAVA N:Mexico2Y5:Germany
Address 125 Old Broad Street, London, GBR, EC2N 1AR
Endava is a next-generation IT services company that primarily assists clients with their digital transformation efforts by creating customized software for them. The company was founded in 2006 in the UK, and it continues to generate the majority of revenue in the UK and Europe. Endava's client base is concentrated in the payments and financial services, technology, media, and telecom industries.
58GF Score

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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.62
Price
$32.80
GF Value