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. Both the profitability and financial health of CDAY have multiple concerns. CDAY is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
- CDAY had positive earnings in the past year.
- In the past year CDAY had a positive cash flow from operations.
1.2 Ratios
- With a decent Return On Assets value of 0.04%, CDAY is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- CDAY has a better Return On Equity (0.18%) than 62.50% of its industry peers.
- CDAY's Return On Invested Capital of 2.29% is fine compared to the rest of the industry. CDAY outperforms 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.
- CDAY's Operating Margin of 7.74% is fine compared to the rest of the industry. CDAY outperforms 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.
- 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
- 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.
- CDAY has a Altman-Z score of 1.17. This is in the lower half of the industry: CDAY underperforms 62.50% of its industry peers.
- 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.
- 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.
- 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
- 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 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.
- With a decent Quick ratio value of 1.09, CDAY is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing by 19.61% on average over the past years. This is quite good.
- Looking at the last year, CDAY shows a very strong growth in Revenue. The Revenue has grown by 21.63%.
- 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
- The Earnings Per Share is expected to grow by 42.72% on average over the next years. This is a very strong growth
- 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
- 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 55.26, CDAY can be considered very expensive at the moment.
- CDAY's Price/Earnings ratio is a bit cheaper when compared to the industry. CDAY is cheaper than 62.50% of the companies in the same industry.
- CDAY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 39.59, the valuation of CDAY can be described as expensive.
- 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 is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| 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 the industry average as 62.50% of the companies are valued more expensively.
- 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
- 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)0.73
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.