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%)
We assign a fundamental rating of 4 out of 10 to CDAY. CDAY was compared to 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 priced too expensively while it is growing strongly. Keep and eye on this one!
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
- CDAY has a better Return On Assets (0.04%) than 62.50% of its industry peers.
- Looking at the Return On Equity, with a value of 0.18%, CDAY is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- With a decent Return On Invested Capital value of 2.29%, CDAY is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| 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
- CDAY's Profit Margin of 0.28% is fine compared to the rest of the industry. CDAY outperforms 62.50% of its industry peers.
- With a decent Operating Margin value of 7.74%, CDAY is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- With a Gross Margin value of 42.19%, CDAY is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
- 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.
- 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.
- The Altman-Z score of CDAY (1.17) is worse than 62.50% of its industry peers.
- 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 of 22.77. This is comparable to the rest of the industry: CDAY outperforms 50.00% of its industry peers.
- 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 doing worse than 62.50% of the companies in the same industry.
| 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.
- 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
- The Earnings Per Share has grown by an impressive 105.00% over the past year.
- 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.
- CDAY shows a strong growth in Revenue. In the last year, 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
- The Earnings Per Share is expected to grow by 42.72% on average over the next years. This is a very strong growth
- 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.
- 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
- Based on the Price/Earnings ratio of 55.26, the valuation of CDAY can be described as expensive.
- 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 28.60.
- Based on the Price/Forward Earnings ratio of 39.59, the valuation of CDAY can be described as expensive.
- 87.50% of the companies in the same industry are more expensive than CDAY, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of CDAY to the average of the S&P500 Index (25.83), we can say CDAY is valued expensively.
| 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
- 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 |
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.