We assign a fundamental rating of 3 out of 10 to CDAY. CDAY was compared to 87 industry peers in the Professional Services industry. Both the profitability and financial health of CDAY have multiple concerns. CDAY is valued quite expensively, but it does show have an excellent growth rating.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CDAY was profitable.
CDAY had a positive operating cash flow in the past year.

1.2 Ratios

Looking at the Return On Assets, with a value of 0.04%, CDAY is doing worse than 61.25% of the companies in the same industry.
CDAY's Return On Equity of 0.18% is on the low side compared to the rest of the industry. CDAY is outperformed by 61.25% of its industry peers.
The Return On Invested Capital of CDAY (2.51%) is worse than 63.75% of its industry peers.

		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

CDAY has a worse Profit Margin (0.28%) than 61.25% of its industry peers.
The Operating Margin of CDAY (7.74%) is comparable to the rest of the industry.
CDAY has a Gross Margin (42.19%) which is in line with 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CDAY is destroying value.
CDAY has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, CDAY has an improved debt to assets ratio.

2.2 Solvency

CDAY has an Altman-Z score of 1.19. This is a bad value and indicates that CDAY is not financially healthy and even 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.
With a Debt to FCF ratio value of 22.77, CDAY is not doing good in the industry: 73.75% of the companies in the same industry are doing better.
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 in line compared to the rest of the industry. CDAY outperforms 42.50% of its industry peers.

		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.
The Current ratio of CDAY (1.09) is worse 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 has a worse Quick ratio (1.09) than 66.25% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.09
Quick Ratio	1.09

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
Looking at the last year, CDAY shows a very strong growth in Revenue. 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

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 17.67% on average per year.

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

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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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 75.00% of the companies in the same industry.
CDAY is valuated expensively when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 40.47 indicates a quite expensive valuation of CDAY.
Based on the Price/Forward Earnings ratio, CDAY is valued a bit more expensive than 68.75% of the companies in the same industry.
CDAY is valuated expensively when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.

		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 the industry average as 73.75% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, CDAY is valued a bit 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.