CERIDIAN HCM HOLDING INC (CDAY.CA) Stock Fundamental Analysis
Canada - 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. While CDAY is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past year CDAY had a positive cash flow from operations.
CDAY had negative earnings in 4 of the past 5 years.
CDAY had a positive operating cash flow in 4 of the past 5 years.
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.
CDAY has a better Operating Margin (7.74%) than 62.50% of its industry peers.
CDAY's Gross Margin of 42.19% is on the low side compared to the rest of the industry. CDAY is outperformed by 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
CDAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CDAY has more shares outstanding
The debt/assets ratio for CDAY has been reduced compared to a year ago.
2.2 Solvency
CDAY has an Altman-Z score of 1.17. 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 1.17, 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.
CDAY has a Debt to FCF ratio (22.77) which is comparable to the rest of the 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.
Looking at the Current ratio, with a value of 1.09, CDAY is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.09, CDAY is in the better half of 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
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.
Looking at the last year, CDAY shows a very strong growth in Revenue. The Revenue has grown by 21.63%.
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
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 17.41% on average per year.
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
CDAY is valuated quite expensively with a Price/Earnings ratio of 55.26.
Compared to the rest of the industry, the Price/Earnings ratio of CDAY indicates a somewhat cheap valuation: CDAY is cheaper than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.31. 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.
87.50% of the companies in the same industry are more expensive than CDAY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.85. CDAY is valued rather expensively when compared to this.
| 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 62.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CDAY is on the same level as its industry peers.
| 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
CDAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CDAY (3/20/2024, 7:00:00 PM)
92.28
+0.34 (+0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners85.76%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.41B
Analysts76.67
Price Target105.21 (14.01%)
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%
PT rev (3m)0.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.26 | ||
| Fwd PE | 39.59 | ||
| P/S | 7.32 | ||
| P/FCF | 198.43 | ||
| P/OCF | 61.94 | ||
| P/B | 4.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 51.25 |
EPS(TTM)1.67
EY1.81%
EPS(NY)2.33
Fwd EY2.53%
FCF(TTM)0.47
FCFY0.5%
OCF(TTM)1.49
OCFY1.61%
SpS12.6
BVpS19.71
TBVpS-2.16
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.04% | ||
| ROE | 0.18% | ||
| ROCE | 3.18% | ||
| ROIC | 2.29% | ||
| ROICexc | 2.68% | ||
| ROICexgc | 16.01% | ||
| 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 | 1.17 |
F-Score8
WACC8.14%
ROIC/WACC0.28
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 Year22.54%
Revenue Next 2Y18.66%
Revenue Next 3Y17.44%
Revenue Next 5Y17.41%
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