CERIDIAN HCM HOLDING INC (CDAY.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CDAY • US15677J1088
92.28 CAD
+0.34 (+0.37%)
Last: Mar 20, 2024, 07:00 PM
Taking everything into account, CDAY scores 4 out of 10 in our fundamental rating. CDAY was compared to 6 industry peers in the Professional Services industry. CDAY may be in some trouble as it scores bad on both profitability and health. CDAY is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year CDAY was profitable.
- In the past year CDAY had a positive cash flow from operations.
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.
- With a decent Return On Equity value of 0.18%, CDAY is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 2.29%, CDAY is in the better half of 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
- The Profit Margin of CDAY (0.28%) is better than 62.50% of its industry peers.
- The Operating Margin of CDAY (7.74%) is better than 62.50% of its industry peers.
- The Gross Margin of CDAY (42.19%) is worse than 62.50% of its industry peers.
- CDAY's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CDAY is destroying value.
- Compared to 1 year ago, CDAY has more shares outstanding
- Compared to 1 year ago, CDAY has an improved debt to assets ratio.
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.
- Looking at the Altman-Z score, with a value of 1.17, CDAY is doing worse than 62.50% of the companies in the same industry.
- 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 has a Debt to FCF ratio (22.77) which is in line with its industry peers.
- CDAY has a Debt/Equity ratio of 0.53. This is a neutral value indicating CDAY is somewhat dependend on debt financing.
- The Debt to Equity ratio of CDAY (0.53) is worse than 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
- CDAY has a Current Ratio of 1.09. This is a normal value and indicates that CDAY is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of CDAY (1.09) is better than 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 has a better Quick ratio (1.09) than 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.
- Measured over the past years, CDAY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.61% on average per year.
- CDAY shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.63%.
- The Revenue has been growing by 13.19% on average over the past years. This is quite good.
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.
- CDAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.41% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- The Price/Earnings ratio is 55.26, which means the current valuation is very expensive for CDAY.
- 62.50% of the companies in the same industry are more expensive than CDAY, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, CDAY is valued quite expensively.
- The Price/Forward Earnings ratio is 39.59, which means the current valuation is very expensive for CDAY.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CDAY indicates a rather cheap valuation: CDAY is cheaper than 87.50% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of CDAY to the average of the S&P500 Index (25.57), we can say CDAY is valued expensively.
| 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 62.50% of the companies in the same industry.
- 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
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CDAY's earnings are expected to grow with 40.92% in the coming years. This may justify a more expensive valuation.
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 |
CERIDIAN HCM HOLDING INC / CDAY.CA FAQ
Can you provide the ChartMill fundamental rating for CERIDIAN HCM HOLDING INC?
ChartMill assigns a fundamental rating of 4 / 10 to CDAY.CA.
What is the valuation status for CDAY stock?
ChartMill assigns a valuation rating of 4 / 10 to CERIDIAN HCM HOLDING INC (CDAY.CA). This can be considered as Fairly Valued.
What is the profitability of CDAY stock?
CERIDIAN HCM HOLDING INC (CDAY.CA) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for CDAY stock?
The Earnings per Share (EPS) of CERIDIAN HCM HOLDING INC (CDAY.CA) is expected to grow by 76.11% in the next year.