CDK Global
Market Cap
US$6.0b
Last Updated
2019/10/24 00:39 UTC
Data Sources
Company Financials +
Executive Summary
CDK Global, Inc. provides software and technology solutions for automotive retailers in the United States, Europe, Canada, and internationally.
Snowflake
Fundamentals
Acceptable track record with moderate growth potential.
Similar Companies
Share Price & News
How has CDK Global's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
2.3%
CDK
-3.0%
US Software
0.4%
US Market
1 Year Return
-13.6%
CDK
23.8%
US Software
11.4%
US Market
Return vs Industry: CDK underperformed the US Software industry which returned 19.3% over the past year.
Return vs Market: CDK underperformed the US Market which returned 8.9% over the past year.
Shareholder returns
| CDK | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | -3.0% | 0.4% |
| 30 Day | 4.9% | -3.1% | 0.3% |
| 90 Day | -8.2% | -9.0% | -1.2% |
| 1 Year | -12.6%-13.6% | 25.6%23.8% | 13.9%11.4% |
| 3 Year | -5.4%-8.2% | 110.3%101.8% | 47.2%37.6% |
| 5 Year | 59.0%51.1% | 159.3%140.5% | 62.4%44.6% |
Price Volatility Vs. Market
How volatile is CDK Global's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is There Now An Opportunity In CDK Global, Inc. (NASDAQ:CDK)?3 weeks ago | Simply Wall St
Did You Miss CDK Global's (NASDAQ:CDK) 69% Share Price Gain?1 month ago | Simply Wall St
Could CDK Global, Inc. (NASDAQ:CDK) Have The Makings Of Another Dividend Aristocrat?Valuation
Is CDK Global undervalued compared to its fair value and its price relative to the market?
26.48x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CDK ($49.33) is trading above our estimate of fair value ($40.52)
Significantly Below Fair Value: CDK is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CDK is good value based on its PE Ratio (26.5x) compared to the Software industry average (45x).
PE vs Market: CDK is poor value based on its PE Ratio (26.5x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: CDK is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: CDK has negative assets, so we can't compare its PB Ratio to the US Software industry average.
Next Steps
Future Growth
How is CDK Global forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
21.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDK's forecast earnings growth (21.1% per year) is above the savings rate (2.7%).
Earnings vs Market: CDK's earnings (21.1% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CDK's revenue (4.8% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: CDK's revenue (4.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CDK's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has CDK Global performed over the past 5 years?
12.5%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: CDK's earnings have grown by 12.5% per year over the past 5 years.
Accelerating Growth: CDK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CDK had negative earnings growth (-22.9%) over the past year, making it difficult to compare to the Software industry average (19.1%).
Return on Equity
High ROE: CDK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
ROA vs Industry: CDK has a higher Return on Assets than the Software industry average last year.
Return on Capital Employed
ROCE Improving: CDK has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is CDK Global's financial position?
Financial Position Analysis
Short Term Liabilities: CDK has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: CDK has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: CDK has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: CDK's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: CDK's debt is not well covered by operating cash flow (16.6%).
Interest Coverage: CDK's interest payments on its debt are well covered by EBIT (4.4x coverage).
Balance Sheet
Inventory Level: CDK has a low level of unsold assets or inventory.
Debt Coverage by Assets: CDK has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Next Steps
Dividend
What is CDK Global's current dividend yield, its reliability and sustainability?
1.22%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: CDK's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: CDK's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (3.68%).
Stable Dividend: Whilst dividend payments have been stable, CDK has been paying a dividend for less than 10 years.
Growing Dividend: CDK's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.2%), CDK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CDK's dividends in 3 years are forecast to be well covered by earnings (17.3% payout ratio).
Next Steps
Management
What is the CEO of CDK Global's salary, the management and board of directors tenure and is there insider trading?
2.0yrs
Average management tenure
CEO
Brian Krzanich (59yo)
0.9yrs
Tenure
US$14,461,291
Compensation
Mr. Brian M. Krzanich is Chief Executive Officer, President & Director at CDK Global Inc. since November 7, 2018. He serves as a Director of MiaSole, Inc. Mr. Krzanich served as a Director of Deere & Compa ...
CEO Compensation Analysis
Compensation vs. Market: Brian has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Insufficient data to compare Brian's compensation with company performance.
Management Age and Tenure
2.0yrs
Average Tenure
48.5yo
Average Age
Experienced Management: CDK's management team is considered experienced (2 years average tenure).
Board Age and Tenure
5.1yrs
Average Tenure
59yo
Average Age
Experienced Board: CDK's board of directors are considered experienced (5.1 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 588 |
| Max Price | US$47.76 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 2,500 |
| Max Price | US$50.96 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 7,900 |
| Max Price | US$50.68 |
Ownership Breakdown
Management Team
John Holt (62yo)
Senior Vice President of Digital
- Tenure: 0yrs
- Compensation: US$1.26m
Lee Brunz (49yo)
Executive VP
- Tenure: 5.1yrs
- Compensation: US$1.19m
Brian Krzanich (59yo)
President
- Tenure: 0.9yrs
- Compensation: US$14.46m
Joe Tautges (43yo)
Executive VP & CFO
- Tenure: 2.2yrs
- Compensation: US$2.89m
Dean Crutchfield (58yo)
Executive VP & Chief Information Officer
- Tenure: 3.3yrs
- Compensation: US$717.50k
Mahesh Shah (42yo)
Executive VP and Chief Product & Technology Officer
- Tenure: 0.5yrs
- Compensation: US$2.10m
Amy Byrne (48yo)
Executive VP and Chief Human Resources & Communications Officer
- Tenure: 0.8yrs
- Compensation: US$761.01k
Katie Coleman
Senior Director of Investor Relation
- Tenure: 0yrs
Jennifer Williams (45yo)
VP, Corporate Controller & Chief Accounting Officer
- Tenure: 2yrs
Kathy Gilbert
Director of Sales and Business Development
- Tenure: 0yrs
Board Members
Robert Radway (59yo)
Independent Director
- Tenure: 5.1yrs
- Compensation: US$279.98k
Frank Sowinski (62yo)
Independent Director
- Tenure: 5.1yrs
- Compensation: US$303.75k
Eileen Voynick (64yo)
Independent Director
- Tenure: 3.1yrs
- Compensation: US$280.99k
Les Brun (67yo)
Chairman of the Board
- Tenure: 5.1yrs
- Compensation: US$431.25k
Steve Schuckenbrock (58yo)
Independent Director
- Tenure: 3.1yrs
- Compensation: US$279.96k
Willie Deese (64yo)
Independent Director
- Tenure: 5.1yrs
- Compensation: US$296.25k
Brian Krzanich (59yo)
President
- Tenure: 0.9yrs
- Compensation: US$14.46m
Stephen Miles (51yo)
Independent Director
- Tenure: 5.1yrs
- Compensation: US$281.25k
Amy Hillman (54yo)
Independent Director
- Tenure: 5.1yrs
- Compensation: US$227.50k
Company Information
CDK Global, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: CDK Global, Inc.
- Ticker: CDK
- Exchange: NasdaqGS
- Founded: 2014
- Industry: Application Software
- Sector: Software
- Market Cap: US$5.989b
- Shares outstanding: 121.41m
- Website: https://www.cdkglobal.com
Number of Employees
Location
- CDK Global, Inc.
- 1950 Hassell Road
- Hoffman Estates
- Illinois
- 60169
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CDK | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Sep 2014 |
| C2G | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 2014 |
| 0HQR | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Sep 2014 |
Biography
CDK Global, Inc. provides software and technology solutions for automotive retailers in the United States, Europe, Canada, and internationally. The company offers Dealer Management System (DMS), a portfoli ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/24 00:39 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.