CERIDIAN HCM HOLDING INC (CDAY.CA) Stock Fundamental Analysis
TSX:CDAY - Toronto Stock Exchange - US15677J1088 - Common Stock - Currency: CAD
Overall CDAY gets a fundamental rating of 4 out of 10. We evaluated CDAY against 6 industry peers in the Professional Services industry. There are concerns on the financial health of CDAY while its profitability can be described as average. CDAY is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
CDAY had positive earnings in the past year.
In the past year CDAY had a positive cash flow from operations.
CDAY had negative earnings in 4 of the past 5 years.
Of the past 5 years CDAY 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.04%, CDAY is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
CDAY has a better Return On Equity (0.18%) than 62.50% of its industry peers.
With a decent Return On Invested Capital value of 2.29%, CDAY is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.04% | ||
| ROE | 0.18% | ||
| ROIC | 2.29% |
ROA(3y)-0.66%
ROA(5y)-0.4%
ROE(3y)-2.35%
ROE(5y)-1.42%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CDAY's Profit Margin of 0.28% is fine compared to the rest of the industry. CDAY outperforms 62.50% of its industry peers.
CDAY's Operating Margin of 7.74% is fine compared to the rest of the industry. CDAY outperforms 62.50% of its industry peers.
CDAY has a Gross Margin of 42.19%. This is in the lower half of the industry: CDAY underperforms 62.50% of its industry peers.
In the last couple of years the Gross Margin of CDAY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.74% | ||
| PM (TTM) | 0.28% | ||
| GM | 42.19% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.28%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CDAY is destroying value.
Compared to 1 year ago, CDAY has more shares outstanding
The debt/assets ratio for CDAY has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that CDAY is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CDAY (1.17) is worse than 62.50% of its industry peers.
CDAY has a debt to FCF ratio of 22.77. This is a negative value and a sign of low solvency as CDAY would need 22.77 years to pay back of all of its debts.
CDAY's Debt to FCF ratio of 22.77 is in line compared to the rest of the industry. CDAY outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that CDAY is somewhat dependend on debt financing.
CDAY's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. CDAY is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 22.77 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.28
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.09 indicates that CDAY should not have too much problems paying its short term obligations.
CDAY has a Current ratio of 1.09. This is in the better half of the industry: CDAY outperforms 62.50% of its industry peers.
A Quick Ratio of 1.09 indicates that CDAY should not have too much problems paying its short term obligations.
CDAY's Quick ratio of 1.09 is fine compared to the rest of the industry. CDAY outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
CDAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.00%, which is quite impressive.
CDAY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.61% yearly.
CDAY shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.63%.
CDAY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.19% yearly.
EPS 1Y (TTM)105%
EPS 3Y19.61%
EPS 5YN/A
EPS Q2Q%85%
Revenue 1Y (TTM)21.63%
Revenue growth 3Y14.78%
Revenue growth 5Y13.19%
Sales Q2Q%19.61%
3.2 Future
CDAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.72% yearly.
Based on estimates for the next years, CDAY will show a quite strong growth in Revenue. The Revenue will grow by 17.41% on average per year.
EPS Next Y76.11%
EPS Next 2Y49.35%
EPS Next 3Y40.92%
EPS Next 5Y42.72%
Revenue Next Year22.54%
Revenue Next 2Y18.66%
Revenue Next 3Y17.44%
Revenue Next 5Y17.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 55.26 indicates a quite expensive valuation of CDAY.
Based on the Price/Earnings ratio, CDAY is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
CDAY is valuated expensively when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 39.59 indicates a quite expensive valuation of CDAY.
Based on the Price/Forward Earnings ratio, CDAY is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
CDAY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.26 | ||
| Fwd PE | 39.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CDAY is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as CDAY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 198.43 | ||
| EV/EBITDA | 51.25 |
4.3 Compensation for Growth
CDAY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CDAY's earnings are expected to grow with 40.92% in the coming years.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y49.35%
EPS Next 3Y40.92%
5. Dividend
5.1 Amount
No dividends for CDAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CDAY (3/20/2024, 7:00:00 PM)
92.28
+0.34 (+0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners85.76%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.41B
Analysts76.67
Price Target105.21 (14.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.89%
Min EPS beat(2)7.19%
Max EPS beat(2)22.6%
EPS beat(4)3
Avg EPS beat(4)28.5%
Min EPS beat(4)-3.23%
Max EPS beat(4)87.42%
EPS beat(8)7
Avg EPS beat(8)52.78%
EPS beat(12)11
Avg EPS beat(12)42.08%
EPS beat(16)14
Avg EPS beat(16)46.25%
Revenue beat(2)2
Avg Revenue beat(2)0.09%
Min Revenue beat(2)0.09%
Max Revenue beat(2)0.09%
Revenue beat(4)4
Avg Revenue beat(4)0.54%
Min Revenue beat(4)0.09%
Max Revenue beat(4)1.34%
Revenue beat(8)7
Avg Revenue beat(8)0.44%
Revenue beat(12)10
Avg Revenue beat(12)0.86%
Revenue beat(16)11
Avg Revenue beat(16)0.39%
PT rev (1m)0%
PT rev (3m)0.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.26 | ||
| Fwd PE | 39.59 | ||
| P/S | 7.32 | ||
| P/FCF | 198.43 | ||
| P/OCF | 61.94 | ||
| P/B | 4.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 51.25 |
EPS(TTM)1.67
EY1.81%
EPS(NY)2.33
Fwd EY2.53%
FCF(TTM)0.47
FCFY0.5%
OCF(TTM)1.49
OCFY1.61%
SpS12.6
BVpS19.71
TBVpS-2.16
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.04% | ||
| ROE | 0.18% | ||
| ROCE | 3.18% | ||
| ROIC | 2.29% | ||
| ROICexc | 2.68% | ||
| ROICexgc | 16.01% | ||
| OM | 7.74% | ||
| PM (TTM) | 0.28% | ||
| GM | 42.19% | ||
| FCFM | 3.69% |
ROA(3y)-0.66%
ROA(5y)-0.4%
ROE(3y)-2.35%
ROE(5y)-1.42%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.28%
GM growth 5Y-0.66%
F-Score8
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 22.77 | ||
| Debt/EBITDA | 5.48 | ||
| Cap/Depr | 108.46% | ||
| Cap/Sales | 8.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.56% | ||
| Profit Quality | 1337.5% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.17 |
F-Score8
WACC8.14%
ROIC/WACC0.28
Cap/Depr(3y)101.27%
Cap/Depr(5y)94.3%
Cap/Sales(3y)6.97%
Cap/Sales(5y)6.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)105%
EPS 3Y19.61%
EPS 5YN/A
EPS Q2Q%85%
EPS Next Y76.11%
EPS Next 2Y49.35%
EPS Next 3Y40.92%
EPS Next 5Y42.72%
Revenue 1Y (TTM)21.63%
Revenue growth 3Y14.78%
Revenue growth 5Y13.19%
Sales Q2Q%19.61%
Revenue Next Year22.54%
Revenue Next 2Y18.66%
Revenue Next 3Y17.44%
Revenue Next 5Y17.41%
EBIT growth 1Y376.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year136.31%
EBIT Next 3Y51.44%
EBIT Next 5Y42.35%
FCF growth 1Y159.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y699.3%
OCF growth 3Y37.87%
OCF growth 5YN/A