CERIDIAN HCM HOLDING INC (CDAY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CDAY - US15677J1088 - Common Stock
92.28 CAD
+0.34 (+0.37%)
CDAY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 6 industry peers in the Professional Services industry. CDAY has a bad profitability rating. Also its financial health evaluation is rather negative. CDAY is not overvalued while it is showing excellent growth. This is an interesting combination.
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
- CDAY's Return On Assets of 0.04% is fine compared to the rest of the industry. CDAY outperforms 62.50% of its industry peers.
- CDAY has a Return On Equity of 0.18%. This is in the better half of the industry: CDAY outperforms 62.50% of its industry peers.
- CDAY has a better Return On Invested Capital (2.29%) than 62.50% of its industry peers.
| 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
- With a decent Profit Margin value of 0.28%, CDAY is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- The Operating Margin of CDAY (7.74%) is better than 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
- 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
- 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.
- With a Altman-Z score value of 1.17, CDAY is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
- 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 perfoms like the industry average, outperforming 50.00% 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.
- 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
- 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.
- The Quick ratio of CDAY (1.09) is better 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.
- The Earnings Per Share has been growing by 19.61% on average over the past years. This is quite good.
- The Revenue has grown by 21.63% in the past year. This is a very strong growth!
- 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
- 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.
- 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
- 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.
- The average S&P500 Price/Earnings ratio is at 27.21. CDAY is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 39.59, CDAY can be considered very expensive at the moment.
- 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.
- CDAY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.26 | ||
| Fwd PE | 39.59 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CDAY indicates a somewhat cheap valuation: CDAY is cheaper than 62.50% of the companies listed 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.
- 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 |
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.