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%)
Overall CDAY gets a fundamental rating of 4 out of 10. We evaluated CDAY against 6 industry peers in the Professional Services industry. There are concerns on the financial health of CDAY while its profitability can be described as average. CDAY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
In the past 5 years CDAY reported 4 times negative net income.
CDAY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.04%, CDAY is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
With a decent Return On Equity value of 0.18%, CDAY is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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
CDAY's Profit Margin of 0.28% is fine compared to the rest of the industry. CDAY outperforms 62.50% of its industry peers.
CDAY has a Operating Margin of 7.74%. This is in the better half of the industry: CDAY outperforms 62.50% of its industry peers.
CDAY has a worse Gross Margin (42.19%) 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CDAY 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.
The Altman-Z score of CDAY (1.17) is worse than 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.
The Debt to FCF ratio of CDAY (22.77) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.53 indicates that 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
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.
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
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.
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
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
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.
The average S&P500 Price/Earnings ratio is at 26.15. CDAY is valued rather expensively when compared to this.
CDAY is valuated quite expensively with a Price/Forward Earnings ratio of 39.59.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, CDAY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.26 | ||
| Fwd PE | 39.59 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than CDAY, based on the Enterprise Value to EBITDA ratio.
CDAY's Price/Free Cash Flow ratio is in line with the industry average.
| 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.
CDAY's earnings are expected to grow with 40.92% in the coming years. This may justify a more expensive valuation.
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 |
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
Revenue(TTM)1.45B
Net Income(TTM)4.00M
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
Graham NumberN/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
ROICexgc growth 3YN/A
ROICexgc 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
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 of CERIDIAN HCM HOLDING INC (CDAY.CA) 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.
How financially healthy is CERIDIAN HCM HOLDING INC?
The financial health rating of CERIDIAN HCM HOLDING INC (CDAY.CA) is 3 / 10.
What is the earnings growth outlook for CERIDIAN HCM HOLDING INC?
The Earnings per Share (EPS) of CERIDIAN HCM HOLDING INC (CDAY.CA) is expected to grow by 76.11% in the next year.