Endava plc (DAVA) Stock Analysis

Endava’s principal competitive advantages stem from its engineering-centric culture, deep domain expertise, and global delivery model. The company is recognized for its ability to execute complex digital transformation projects, particularly those involving legacy system modernization and AI integration. Endava’s multidisciplinary teams—spanning design, engineering, and consulting—enable it to deliver end-to-end solutions, not just staff augmentation or isolated services.

Compared to traditional IT outsourcers like Tata Consultancy Services or Cognizant, Endava focuses on “change the business” initiatives rather than routine maintenance, positioning itself closer to next-generation peers such as EPAM and Globant. Its client base is diversified: no single industry accounts for more than 25% of revenue, and 89.7% of annual revenue comes from repeat clients, indicating high customer satisfaction and stickiness.

Endava’s nearshore delivery model, with a large workforce in Central and Eastern Europe and Latin America, supports both cost efficiency and access to skilled talent. The company’s culture emphasizes agility and innovation, as evidenced by internal programs like Endava Innovation Labs and a strong track record of integrating acquisitions.

However, Endava faces intense competition for talent and must continually invest to stay ahead in AI and cloud capabilities. Its margins (net margin 2.3% in FY24) are currently below some peers, reflecting recent macro headwinds and investment in growth. Nonetheless, its engineering DNA and client-centric approach remain key differentiators.