CERIDIAN HCM HOLDING INC (CDAY) Stock Fundamental Analysis
NYSE:CDAY - New York Stock Exchange, Inc. - US15677J1088 - Common Stock - Currency: USD
Taking everything into account, CDAY scores 3 out of 10 in our fundamental rating. CDAY was compared to 81 industry peers in the Professional Services industry. CDAY may be in some trouble as it scores bad on both profitability and health. CDAY is valued quite expensively, but it does show have an excellent growth rating.
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.
In the past 5 years CDAY reported 4 times negative net income.
CDAY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CDAY has a worse Return On Assets (0.04%) than 61.25% of its industry peers.
Looking at the Return On Equity, with a value of 0.18%, CDAY is doing worse than 61.25% of the companies in the same industry.
With a Return On Invested Capital value of 2.51%, CDAY is not doing good in the industry: 63.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.04% | ||
| ROE | 0.18% | ||
| ROIC | 2.51% |
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
With a Profit Margin value of 0.28%, CDAY is not doing good in the industry: 61.25% of the companies in the same industry are doing better.
CDAY's Operating Margin of 7.74% is in line compared to the rest of the industry. CDAY outperforms 60.00% of its industry peers.
With a Gross Margin value of 42.19%, CDAY perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
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
CDAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CDAY has been increased compared to 1 year ago.
Compared to 1 year ago, CDAY has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.19, 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 1.19, CDAY is doing worse than 72.50% of the companies in the same industry.
The Debt to FCF ratio of CDAY is 22.77, which is on the high side as it means it would take CDAY, 22.77 years of fcf income to pay off all of its debts.
CDAY's Debt to FCF ratio of 22.77 is on the low side compared to the rest of the industry. CDAY is outperformed by 73.75% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that CDAY is somewhat dependend on debt financing.
The Debt to Equity ratio of CDAY (0.53) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 22.77 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.3
WACC8.28%
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 worse Current ratio (1.09) than 68.75% of its industry peers.
CDAY has a Quick 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.
CDAY's Quick ratio of 1.09 is on the low side compared to the rest of the industry. CDAY is outperformed by 66.25% 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%.
Measured over the past years, CDAY shows a quite strong growth in Revenue. The Revenue has been growing by 13.19% on average per year.
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
Based on estimates for the next years, CDAY will show a very strong growth in Earnings Per Share. The EPS will grow by 42.72% on average per year.
The Revenue is expected to grow by 17.67% on average over the next years. This is quite good.
EPS Next Y76.11%
EPS Next 2Y49.35%
EPS Next 3Y40.92%
EPS Next 5Y42.72%
Revenue Next Year23.9%
Revenue Next 2Y19.31%
Revenue Next 3Y17.87%
Revenue Next 5Y17.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 56.52, CDAY can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CDAY is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
CDAY is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 40.47, which means the current valuation is very expensive for CDAY.
CDAY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CDAY is more expensive than 68.75% of the companies in the same industry.
CDAY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.52 | ||
| Fwd PE | 40.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CDAY is valued a bit more expensive than 73.75% of the companies in the same industry.
CDAY's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CDAY is more expensive than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 202.88 | ||
| EV/EBITDA | 52.32 |
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.
CDAY's earnings are expected to grow with 40.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y49.35%
EPS Next 3Y40.92%
5. Dividend
5.1 Amount
CDAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
69.52
+0.07 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners119.24%
Inst Owner Change-4.89%
Ins Owners0.58%
Ins Owner Change0%
Market Cap10.85B
Analysts77.6
Price Target77.9 (12.05%)
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)0.14%
PT rev (3m)-2.44%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)1.12%
EPS NY rev (1m)0.31%
EPS NY rev (3m)6.53%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.52 | ||
| Fwd PE | 40.47 | ||
| P/S | 7.49 | ||
| P/FCF | 202.88 | ||
| P/OCF | 63.33 | ||
| P/B | 4.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 52.32 |
EPS(TTM)1.23
EY1.77%
EPS(NY)1.72
Fwd EY2.47%
FCF(TTM)0.34
FCFY0.49%
OCF(TTM)1.1
OCFY1.58%
SpS9.29
BVpS14.52
TBVpS-1.59
PEG (NY)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.04% | ||
| ROE | 0.18% | ||
| ROCE | 3.18% | ||
| ROIC | 2.51% | ||
| ROICexc | 2.94% | ||
| ROICexgc | 17.57% | ||
| 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 | 1.19 |
F-Score8
WACC8.28%
ROIC/WACC0.3
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 Year23.9%
Revenue Next 2Y19.31%
Revenue Next 3Y17.87%
Revenue Next 5Y17.67%
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