Dave (DAVE) AI Stock Analysis

• Market Cap: $3.76B
• Dividend Yield: N/A
• Average Volume (3M): 439.79K
• Price to Earnings (P/E): 77.5
• Beta (1Y): 2.18
• Revenue Growth: 39.29%
• EPS Growth: N/A
• Country: US
• Employees: 274
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 1.97
• Shares Outstanding: 11,826,259
• 10 Day Avg. Volume: 462,935
• 30 Day Avg. Volume: 439,785
• PEG Ratio: -4.80
• Price to Book (P/B): 16.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.95
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 2.45
• Enterprise Value/Gross Profit: 9.33
• Enterprise Value/Ebitda: 12.91
• 1Y Price Target: $238.17
• Price Target Upside: -15.48% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 79 Outperform
• Price Target: $311.00 ▲(10.37%Upside)

Dave's overall stock score of 71 is primarily driven by strong financial performance and positive earnings call sentiment. The robust revenue growth and cash flow generation capabilities are significant strengths, while the high P/E ratio and overbought technical indicators present potential risks. The company's strategic advancements and improved credit performance further contribute to a positive outlook, though careful management of operational efficiency and external challenges remains crucial.

Positive Factors

Fee Structure

Dave’s new fee structure for ExtraCash is benefitting financial results in terms of greater ExtraCash generation, monetization, and member lifetime value.

Operating Performance

DAVE is well positioned to sustain its impressive operating performance, thereby driving further share price appreciation.

Revenue Growth

DAVE during 1Q25 issued ~98% of its ExtraCash advances to repeat customers, generating accelerating revenue growth of 47% yoy.

Technology Investments

Significant investments in technology are driving operational efficiency and scalability, allowing Dave to serve its member base with a small team.

Negative Factors

Valuation

DAVE trades at a level that continues to trail the valuations of a group of its closest peers in the fintech lending space.

Valuation Discrepancy

Despite a strong rally, DAVE trades at a valuation level that trails the valuations of its closest peers in the fintech lending space.

Dave Business Overview & Revenue Model

Company Description

Dave (DAVE) is a financial technology company that provides a range of banking and personal financial management services. The company's core offerings include budgeting tools, cash advance services, and a spending account with a debit card. Dave aims to help its users avoid bank overdraft fees, improve their financial health, and manage their expenses more effectively.

How the Company Makes Money

Dave makes money primarily through its subscription service, which offers users access to premium features like budgeting tools and cash advance options for a monthly fee. Additionally, the company generates revenue from interchange fees when customers use their Dave debit cards for transactions. Dave also partners with various financial institutions and service providers to enhance its product offerings and expand its market reach, contributing to its revenue streams.

Dave Financial Statement Overview

Summary

Dave's financial performance is characterized by strong revenue growth and cash flow generation. However, challenges in operational efficiency, as indicated by a negative EBIT margin, are notable. The company maintains a stable financial position with low debt levels and a strong equity buffer.

Income Statement

Dave's income statement shows a strong improvement in revenue, with a TTM revenue growth rate of 6.98% and a significant increase from previous years. The gross profit margin is healthy at 72.56% for the TTM period, indicating effective cost management. However, the EBIT margin is negative at -20.44%, reflecting challenges in operational efficiency. While the company has managed to turn a net profit in the TTM period, the negative EBIT suggests potential issues in core operations.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 63.20% in the TTM period, providing a buffer against liabilities. However, the debt-to-equity ratio has significantly improved to a low of 0.002, indicating very low leverage. Return on equity is relatively modest at 26.29%, suggesting efficient use of equity but with room for improvement. Overall, the balance sheet indicates financial stability but highlights the need for careful management of operational efficiency.

Cash Flow

Dave's cash flow statement is strong, with a robust free cash flow growth rate of 21.35% in the TTM period, reflecting effective cash management. The operating cash flow to net income ratio is a healthy 2.90, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 2.89 further supports the company's ability to generate cash from operations. These metrics suggest a strong cash position that can support future growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	381.43M	347.08M	259.09M	204.80M	153.00M	121.80M
Gross Profit	351.67M	316.70M	135.26M	172.90M	129.50M	100.15M
EBITDA	71.79M	76.02M	-31.08M	-113.18M	-14.27M	-5.08M
Net Income	52.44M	57.87M	-48.52M	-128.90M	-20.00M	-6.96M
Balance Sheet
Total Assets	315.65M	299.33M	294.02M	321.49M	147.19M	76.41M
Cash, Cash Equivalents and Short-Term Investments	47.10M	90.29M	155.94M	191.96M	32.00M	22.45M
Total Debt	469.00K	75.55M	181.29M	178.15M	73.64M	6.11M
Total Liabilities	116.19M	116.23M	206.96M	214.93M	108.45M	26.56M
Stockholders Equity	199.46M	183.10M	87.06M	106.56M	-33.40M	49.84M
Cash Flow
Free Cash Flow	151.57M	124.88M	25.17M	-54.20M	-47.18M	-13.37M
Operating Cash Flow	152.04M	125.14M	33.75M	-44.88M	-40.70M	-9.15M
Investing Cash Flow	-140.03M	-45.84M	-14.38M	-285.58M	3.00M	3.42M
Financing Cash Flow	-20.43M	-71.00M	22.00K	321.77M	65.05M	4.24M

Dave Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 281.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAVE, the sentiment is Positive. The current price of 281.79 is above the 20-day moving average (MA) of 231.74, above the 50-day MA of 187.28, and above the 200-day MA of 104.67, indicating a bullish trend. The MACD of 21.99 indicates Negative momentum. The RSI at 74.48 is Negative, neither overbought nor oversold. The STOCH value of 88.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAVE.

Dave Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAVE	79 Outperform	$3.76B	77.53	32.09%	―	39.29%	―
OLO	69 Neutral	$1.69B	578.29	0.49%	―	23.31%	―
OLO	69 Neutral	$1.69B	578.29	0.49%	―	23.31%	―
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
SEMR	63 Neutral	$1.36B	196.77	2.81%	―	22.75%	-47.45%
SEMR	63 Neutral	$1.36B	196.77	2.81%	―	22.75%	-47.45%
AMPL	63 Neutral	$1.66B	―	-32.87%	―	8.56%	-4.21%
AMPL	63 Neutral	$1.66B	―	-32.87%	―	8.56%	-4.21%
SPT	55 Neutral	$1.23B	―	-36.95%	―	17.79%	16.49%
SPT	55 Neutral	$1.23B	―	-36.95%	―	17.79%	16.49%

Dave Corporate Events

Dave Inc. Stockholders Approve Key Proposals at Annual Meeting

At the 2025 annual meeting held on June 2, Dave Inc. stockholders voted on two key proposals. The first was the election of Michael Pope and Yadin Rozov as Class I directors for three-year terms ending in 2028. The second proposal ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Approximately 90.84% of the voting power was represented at the meeting, indicating strong shareholder engagement.

The most recent analyst rating on (DAVE) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Dave stock, see the DAVE Stock Forecast page.