CERIDIAN HCM HOLDING INC (CDAY.CA) Stock Fundamental Analysis
TSX:CDAY - Toronto Stock Exchange - US15677J1088 - Common Stock - Currency: CAD
Overall CDAY gets a fundamental rating of 4 out of 10. We evaluated CDAY against 5 industry peers in the Professional Services industry. CDAY has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
CDAY has a Return On Assets of 0.04%. This is in the better half 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'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
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.
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.
Compared to 1 year ago, CDAY has more shares outstanding
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.
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 in line with its industry peers.
A Debt/Equity ratio of 0.53 indicates that CDAY is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, CDAY is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| 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.
With a decent Current ratio value of 1.09, CDAY is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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.
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
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.
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.
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 29.62. CDAY is valued rather expensively when compared to this.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.70. CDAY is valued rather expensively when compared to this.
| 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.
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.
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