CERIDIAN HCM HOLDING INC (CDAY) Stock Fundamental Analysis
NYSE:CDAY - New York Stock Exchange, Inc. - US15677J1088 - Common Stock - Currency: USD
CDAY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. CDAY has a bad profitability rating. Also its financial health evaluation is rather negative. CDAY is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
CDAY had positive earnings in the past year.
CDAY had a positive operating cash flow in the past year.
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
CDAY has a worse Return On Assets (0.04%) than 61.25% of its industry peers.
CDAY has a Return On Equity of 0.18%. This is in the lower half of the industry: CDAY underperforms 61.25% of its industry peers.
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
CDAY has a worse Profit Margin (0.28%) than 61.25% of its industry peers.
CDAY has a Operating Margin (7.74%) which is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CDAY is destroying value.
The number of shares outstanding for CDAY has been increased compared to 1 year ago.
The debt/assets ratio for CDAY has been reduced compared to a year ago.
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.
With a Altman-Z score value of 1.19, CDAY is not doing good in the industry: 72.50% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 22.77, CDAY is doing worse than 73.75% of the companies in the same industry.
CDAY has a Debt/Equity ratio of 0.53. This is a neutral value indicating CDAY is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, CDAY is in line with its industry, outperforming 42.50% of the companies in the same 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
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.
CDAY's Current ratio of 1.09 is on the low side compared to the rest of the industry. CDAY is outperformed by 68.75% of its industry peers.
A Quick Ratio of 1.09 indicates that CDAY should not have too much problems paying its short term obligations.
The Quick ratio of CDAY (1.09) is worse than 66.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 105.00% over the past year.
CDAY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.61% yearly.
The Revenue has grown by 21.63% in the past year. This is a very strong growth!
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
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
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.
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.
When comparing the Price/Earnings ratio of CDAY to the average of the S&P500 Index (26.46), we can say CDAY is valued expensively.
CDAY is valuated quite expensively with a Price/Forward Earnings ratio of 40.47.
Based on the Price/Forward Earnings ratio, CDAY is valued a bit more expensive than the industry average as 68.75% of the companies are valued more cheaply.
CDAY is valuated expensively when we compare the Price/Forward Earnings ratio to 22.30, 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
73.75% of the companies in the same industry are cheaper than CDAY, based on the Enterprise Value to EBITDA ratio.
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.
A more expensive valuation may be justified as CDAY's earnings are expected to grow with 40.92% in the coming years.
PEG (NY)0.74
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