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Market Cap

US$5.4b

Last Updated

2021/04/17 22:49 UTC

Data Sources

Company Financials +

Executive Summary

CDK Global, Inc., together with its subsidiaries, provides software and technology solutions for automotive retailers in the United States, Europe, Canada, and internationally. More Details


Snowflake Analysis

Solid track record unattractive dividend payer.


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

Stable Share Price: CDK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CDK's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

CDK

2.3%

US Software

1.3%

US Market


1 Year Return

54.7%

CDK

56.0%

US Software

53.9%

US Market

Return vs Industry: CDK underperformed the US Software industry which returned 56% over the past year.

Return vs Market: CDK matched the US Market which returned 53.9% over the past year.


Shareholder returns

CDKIndustryMarket
7 Day0.7%2.3%1.3%
30 Day2.9%11.7%5.3%
90 Day5.3%12.0%8.9%
1 Year56.7%54.7%57.1%56.0%56.6%53.9%
3 Year-13.5%-16.5%146.1%138.6%64.4%53.6%
5 Year20.7%14.4%329.3%305.3%120.4%95.7%

Long-Term 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

Valuation

Is CDK Global undervalued compared to its fair value and its price relative to the market?

23.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CDK ($54.44) is trading above our estimate of fair value ($23.34)

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 (23.8x) compared to the US Software industry average (54.5x).

PE vs Market: CDK is poor value based on its PE Ratio (23.8x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: CDK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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.


Future Growth

How is CDK Global forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-46.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDK's earnings are forecast to decline over the next 3 years (-46.3% per year).

Earnings vs Market: CDK's earnings are forecast to decline over the next 3 years (-46.3% per year).

High Growth Earnings: CDK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CDK's revenue (3.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: CDK's revenue (3.7% 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


Past Performance

How has CDK Global performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDK has high quality earnings.

Growing Profit Margin: CDK's current net profit margins (14.3%) are higher than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: CDK's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: CDK's earnings growth over the past year (32.7%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: CDK earnings growth over the past year (32.7%) exceeded the Software industry 16.3%.


Return on Equity

High ROE: CDK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


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 (14.1%).

Interest Coverage: CDK's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Dividend

What is CDK Global current dividend yield, its reliability and sustainability?

1.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CDK's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: CDK's dividend (1.1%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.2%), 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 (22.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Brian Krzanich (60 yo)

2.42yrs

Tenure

US$7,723,661

Compensation

Mr. Brian Matthew 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 & ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD7.72M) is about average for companies of similar size in the US market ($USD6.50M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CDK's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: CDK's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$5.409b
  • Shares outstanding: 121.76m
  • Website: https://www.cdkglobal.com

Number of Employees


Location

  • CDK Global, Inc.
  • 1950 Hassell Road
  • Hoffman Estates
  • Illinois
  • 60169
  • United States

Listings


Biography

CDK Global, Inc., together with its subsidiaries, provides software and technology solutions for automotive retailers in the United States, Europe, Canada, and internationally. The company offers Dealer Ma...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/17 22:49
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.