Logo image of CDK

CDK Global Inc (CDK) Stock Fundamental Analysis

NASDAQ:CDK - Nasdaq - US12508E1010 - Common Stock

54.76  -0.08 (-0.15%)

After market: 54.8 +0.04 (+0.07%)

Fundamental Rating

2

CDK gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. Both the profitability and financial health of CDK have multiple concerns. CDK is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

0

1. Profitability

1.1 Basic Checks

CDK had positive earnings in the past year.
CDK Yearly Net Income VS EBIT VS OCF VS FCFCDK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B

1.2 Ratios

Industry RankSector Rank
ROA 8.7%
ROE 57.97%
ROIC 12.39%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
CDK Yearly ROA, ROE, ROICCDK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 200 -200 -400

1.3 Margins

Industry RankSector Rank
OM 25.33%
PM (TTM) 14.28%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
CDK Yearly Profit, Operating, Gross MarginsCDK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 20 40 60

More info and screens

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CDK is creating some value.
CDK has about the same amout of shares outstanding than it did 1 year ago.
Compared to 1 year ago, CDK has an improved debt to assets ratio.
CDK Yearly Shares OutstandingCDK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 50M 100M 150M
CDK Yearly Total Debt VS Total AssetsCDK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 1B 2B 3B

2.2 Solvency

CDK has an Altman-Z score of 3.76. This indicates that CDK is financially healthy and has little risk of bankruptcy at the moment.
CDK has a Debt/Equity ratio of 4.11. This is a high value indicating a heavy dependency on external financing.
Industry RankSector Rank
Debt/Equity 4.11
Debt/FCF N/A
Altman-Z 3.76
ROIC/WACC1.21
WACC10.25%
CDK Yearly LT Debt VS Equity VS FCFCDK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 1B 2B

2.3 Liquidity

A Current Ratio of 1.25 indicates that CDK should not have too much problems paying its short term obligations.
CDK has a Quick Ratio of 1.25. This is a normal value and indicates that CDK is financially healthy and should not expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 1.25
CDK Yearly Current Assets VS Current LiabilitesCDK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B

More info and screens

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.50% over the past year.
Measured over the past years, CDK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.79% on average per year.
Looking at the last year, CDK shows a small growth in Revenue. The Revenue has grown by 3.16% in the last year.
The Revenue has been decreasing by -4.57% on average over the past years.
EPS 1Y (TTM)6.5%
EPS 3Y-5.5%
EPS 5Y9.79%
EPS Q2Q%13.04%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y-9.71%
Revenue growth 5Y-4.57%
Sales Q2Q%6.14%

3.2 Future

The Earnings Per Share is expected to grow by 10.50% on average over the next years. This is quite good.
Based on estimates for the next years, CDK will show a small growth in Revenue. The Revenue will grow by 5.42% on average per year.
EPS Next Y7.22%
EPS Next 2Y8.72%
EPS Next 3Y10.13%
EPS Next 5Y10.5%
Revenue Next Year7.12%
Revenue Next 2Y5.9%
Revenue Next 3Y5.88%
Revenue Next 5Y5.42%

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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
CDK Yearly Revenue VS EstimatesCDK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
CDK Yearly EPS VS EstimatesCDK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

More info and screens

1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 18.56, the valuation of CDK can be described as rather expensive.
When comparing the Price/Earnings ratio of CDK to the average of the S&P500 Index (29.63), we can say CDK is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.79, which indicates a correct valuation of CDK.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, CDK is valued a bit cheaper.
Industry RankSector Rank
PE 18.56
Fwd PE 16.79
CDK Price Earnings VS Forward Price EarningsCDK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.28
CDK Per share dataCDK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.57
PEG (5Y)1.9
EPS Next 2Y8.72%
EPS Next 3Y10.13%

More info and screens

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.09%, CDK has a reasonable but not impressive dividend return.
Compared to an average S&P500 Dividend Yield of 2.27, CDK's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.09%

5.2 History

The dividend of CDK has a limited annual growth rate of 0.56%.
CDK has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)0.56%
Div Incr YearsN/A
Div Non Decr YearsN/A
CDK Yearly Dividends per shareCDK Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

CDK pays out 28.50% of its income as dividend. This is a sustainable payout ratio.
The dividend of CDK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.5%
EPS Next 2Y8.72%
EPS Next 3Y10.13%
CDK Yearly Income VS Free CF VS DividendCDK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B
CDK Dividend Payout.CDK Dividend Payout, showing the Payout Ratio.CDK Dividend Payout.PayoutRetained Earnings

More info and screens

CDK Global Inc

NASDAQ:CDK (7/5/2022, 8:00:03 PM)

After market: 54.8 +0.04 (+0.07%)

54.76

-0.08 (-0.15%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-05 2022-05-05/amc
Earnings (Next)08-15 2022-08-15
Inst Owners0%
Inst Owner Change0%
Ins Owners51.83%
Ins Owner Change0%
Market Cap6.39B
Analysts86.67
Price Target58.65 (7.1%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.09%
Yearly Dividend0.6
Dividend Growth(5Y)0.56%
DP28.5%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 18.56
Fwd PE 16.79
P/S 3.64
P/FCF N/A
P/OCF N/A
P/B 14.77
P/tB N/A
EV/EBITDA 14.28
EPS(TTM)2.95
EY5.39%
EPS(NY)3.26
Fwd EY5.96%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS15.05
BVpS3.71
TBVpSN/A
PEG (NY)2.57
PEG (5Y)1.9
Profitability
Industry RankSector Rank
ROA 8.7%
ROE 57.97%
ROCE N/A
ROIC 12.39%
ROICexc N/A
ROICexgc 46.81%
OM 25.33%
PM (TTM) 14.28%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 3Y0%
ROICexcg growth 5Y0%
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 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 4.11
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.25
Quick Ratio 1.25
Altman-Z 3.76
F-Score6
WACC10.25%
ROIC/WACC1.21
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.5%
EPS 3Y-5.5%
EPS 5Y9.79%
EPS Q2Q%13.04%
EPS Next Y7.22%
EPS Next 2Y8.72%
EPS Next 3Y10.13%
EPS Next 5Y10.5%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y-9.71%
Revenue growth 5Y-4.57%
Sales Q2Q%6.14%
Revenue Next Year7.12%
Revenue Next 2Y5.9%
Revenue Next 3Y5.88%
Revenue Next 5Y5.42%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A