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CERIDIAN HCM HOLDING INC (CDAY) Stock Fundamental Analysis

NYSE:CDAY - New York Stock Exchange, Inc. - US15677J1088 - Common Stock

69.52  +0.07 (+0.1%)

After market: 69.52 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to CDAY. CDAY was compared to 82 industry peers in the Professional Services industry. Both the profitability and financial health of CDAY have multiple concerns. CDAY shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year CDAY was profitable.
CDAY had a positive operating cash flow in the past year.
CDAY had negative earnings in 4 of the past 5 years.
Of the past 5 years CDAY 4 years had a positive operating cash flow.
CDAY Yearly Net Income VS EBIT VS OCF VS FCFCDAY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 50M -50M 100M -100M

1.2 Ratios

With a Return On Assets value of 0.04%, CDAY is not doing good in the industry: 61.25% of the companies in the same industry are doing better.
CDAY's Return On Equity of 0.18% is on the low side compared to the rest of the industry. CDAY is outperformed by 61.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.51%, CDAY is doing worse than 63.75% of the companies in the same industry.
Industry RankSector Rank
ROA 0.04%
ROE 0.18%
ROIC 2.51%
ROA(3y)-0.66%
ROA(5y)-0.4%
ROE(3y)-2.35%
ROE(5y)-1.42%
ROIC(3y)N/A
ROIC(5y)N/A
CDAY Yearly ROA, ROE, ROICCDAY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 -5 -10

1.3 Margins

CDAY has a worse Profit Margin (0.28%) than 61.25% of its industry peers.
CDAY has a Operating Margin (7.74%) which is in line with its industry peers.
CDAY has a Gross Margin of 42.19%. This is comparable to the rest of the industry: CDAY outperforms 55.00% 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 RankSector 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%
CDAY Yearly Profit, Operating, Gross MarginsCDAY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20 30 40

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CDAY is destroying value.
The number of shares outstanding for CDAY has been increased compared to 1 year ago.
Compared to 1 year ago, CDAY has an improved debt to assets ratio.
CDAY Yearly Shares OutstandingCDAY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M
CDAY Yearly Total Debt VS Total AssetsCDAY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B

2.2 Solvency

CDAY has an Altman-Z score of 1.19. 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 1.19, CDAY is not doing good in the industry: 72.50% of the companies in the same industry are doing better.
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.
CDAY has a worse Debt to FCF ratio (22.77) than 73.75% of 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 perfoms like the industry average, outperforming 42.50% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 22.77
Altman-Z 1.19
ROIC/WACC0.3
WACC8.28%
CDAY Yearly LT Debt VS Equity VS FCFCDAY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B 2B

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 doing worse than 68.75% 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.
Looking at the Quick ratio, with a value of 1.09, CDAY is doing worse than 66.25% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09
CDAY Yearly Current Assets VS Current LiabilitesCDAY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

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8

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.
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%.
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 17.67% on average per year.
EPS Next Y76.11%
EPS Next 2Y49.35%
EPS Next 3Y40.92%
EPS Next 5Y42.72%
Revenue Next Year23.9%
Revenue Next 2Y19.31%
Revenue Next 3Y17.87%
Revenue Next 5Y17.67%

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.
CDAY Yearly Revenue VS EstimatesCDAY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
CDAY Yearly EPS VS EstimatesCDAY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4 6

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 56.52 indicates a quite expensive valuation of CDAY.
Compared to the rest of the industry, the Price/Earnings ratio of CDAY indicates a slightly more expensive valuation: CDAY is more expensive than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.94, CDAY is valued quite expensively.
Based on the Price/Forward Earnings ratio of 40.47, the valuation of CDAY can be described as expensive.
68.75% of the companies in the same industry are cheaper than CDAY, based on the Price/Forward Earnings ratio.
CDAY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.11.
Industry RankSector Rank
PE 56.52
Fwd PE 40.47
CDAY Price Earnings VS Forward Price EarningsCDAY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CDAY indicates a slightly more expensive valuation: CDAY is more expensive than 73.75% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CDAY is valued a bit more expensive than the industry average as 72.50% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 202.88
EV/EBITDA 52.32
CDAY Per share dataCDAY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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)0.74
PEG (5Y)N/A
EPS Next 2Y49.35%
EPS Next 3Y40.92%

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0

5. Dividend

5.1 Amount

CDAY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CERIDIAN HCM HOLDING INC

NYSE:CDAY (1/31/2024, 8:04:00 PM)

After market: 69.52 0 (0%)

69.52

+0.07 (+0.1%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-07 2024-02-07/amc
Earnings (Next)05-01 2024-05-01/amc
Inst Owners119.24%
Inst Owner Change0.03%
Ins Owners0.58%
Ins Owner Change0%
Market Cap10.85B
Analysts77.6
Price Target77.9 (12.05%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)0.14%
PT rev (3m)-2.44%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)1.12%
EPS NY rev (1m)0.31%
EPS NY rev (3m)6.53%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.92%
Valuation
Industry RankSector Rank
PE 56.52
Fwd PE 40.47
P/S 7.49
P/FCF 202.88
P/OCF 63.33
P/B 4.79
P/tB N/A
EV/EBITDA 52.32
EPS(TTM)1.23
EY1.77%
EPS(NY)1.72
Fwd EY2.47%
FCF(TTM)0.34
FCFY0.49%
OCF(TTM)1.1
OCFY1.58%
SpS9.29
BVpS14.52
TBVpS-1.59
PEG (NY)0.74
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.04%
ROE 0.18%
ROCE 3.18%
ROIC 2.51%
ROICexc 2.94%
ROICexgc 17.57%
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 RankSector 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 1.19
F-Score8
WACC8.28%
ROIC/WACC0.3
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 Year23.9%
Revenue Next 2Y19.31%
Revenue Next 3Y17.87%
Revenue Next 5Y17.67%
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