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CDK

CDK GlobalNasdaqGS:CDK Stock Report

Last Price

US$43.58

Market Cap

US$5.2b

7D

2.8%

1Y

-15.7%

Updated

16 Jan, 2022

Data

Company Financials +
CDK fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance1/6
Financial Health2/6
Dividends3/6

CDK Stock Overview

CDK Global, Inc., together with its subsidiaries, provides integrated data and technology solutions to the automotive, heavy truck, recreation, and heavy equipment industries in the United States and internationally.

CDK Global Competitors

Mastercard

NYSE:MA

US$365.6b

Discover Financial Services

NYSE:DFS

US$37.4b

Synchrony Financial

NYSE:SYF

US$26.6b

Cars.com

NYSE:CARS

US$1.1b

Price History & Performance

Summary of all time highs, changes and price drops for CDK Global
Historical stock prices
Current Share PriceUS$43.58
52 Week HighUS$55.51
52 Week LowUS$38.54
Beta1.3
1 Month Change7.50%
3 Month Change1.21%
1 Year Change-15.71%
3 Year Change-13.26%
5 Year Change-27.94%
Change since IPO40.58%

Recent News & Updates

Jan 16
CDK Global (NASDAQ:CDK) Has Re-Affirmed Its Dividend Of US$0.15

CDK Global (NASDAQ:CDK) Has Re-Affirmed Its Dividend Of US$0.15

The board of CDK Global, Inc. ( NASDAQ:CDK ) has announced that it will pay a dividend on the 30th of March, with...

Dec 17
Is It Time To Consider Buying CDK Global, Inc. (NASDAQ:CDK)?

Is It Time To Consider Buying CDK Global, Inc. (NASDAQ:CDK)?

CDK Global, Inc. ( NASDAQ:CDK ), is not the largest company out there, but it received a lot of attention from a...

Nov 18
CDK Global (NASDAQ:CDK) Has Affirmed Its Dividend Of US$0.15

CDK Global (NASDAQ:CDK) Has Affirmed Its Dividend Of US$0.15

CDK Global, Inc. ( NASDAQ:CDK ) will pay a dividend of US$0.15 on the 30th of December. The dividend yield will be 1.5...

Nov 05
We Think Shareholders May Want To Consider A Review Of CDK Global, Inc.'s (NASDAQ:CDK) CEO Compensation Package

We Think Shareholders May Want To Consider A Review Of CDK Global, Inc.'s (NASDAQ:CDK) CEO Compensation Package

CDK Global, Inc. ( NASDAQ:CDK ) has not performed well recently and CEO Brian Krzanich will probably need to up their...

Shareholder Returns

CDKUS SoftwareUS Market
7D2.8%-1.6%-0.5%
1Y-15.7%17.2%13.7%

Return vs Industry: CDK underperformed the US Software industry which returned 17.1% over the past year.

Return vs Market: CDK underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is CDK's price volatile compared to industry and market?
CDK volatility
CDK Average Weekly Movement3.5%
Software Industry Average Movement8.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
20146,500Brian Krzanichhttps://www.cdkglobal.com

CDK Global, Inc., together with its subsidiaries, provides integrated data and technology solutions to the automotive, heavy truck, recreation, and heavy equipment industries in the United States and internationally. It offers subscription-based software and technology solutions to automotive retailers, as well as to retailers and manufacturers of heavy trucks, construction and agricultural equipment, motorcycles, boats, and other marine and recreational vehicles. The company’s flagship Dealer Management System provides software solutions that facilitates the sale of new and used vehicles, consumer financing, repair and maintenance services, and vehicle and parts inventory management.

CDK Global Fundamentals Summary

How do CDK Global's earnings and revenue compare to its market cap?
CDK fundamental statistics
Market CapUS$5.16b
Earnings (TTM)US$207.00m
Revenue (TTM)US$1.70b

24.9x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CDK income statement (TTM)
RevenueUS$1.70b
Cost of RevenueUS$877.00m
Gross ProfitUS$822.50m
ExpensesUS$615.50m
EarningsUS$207.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.75
Gross Margin48.40%
Net Profit Margin12.18%
Debt/Equity Ratio343.3%

How did CDK perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

35%

Payout Ratio

Does CDK pay a reliable dividends?

See CDK dividend history and benchmarks
When do you need to buy CDK by to receive an upcoming dividend?
CDK Global dividend dates
Ex Dividend DateFeb 28 2022
Dividend Pay DateMar 30 2022
Days until Ex dividend42 days
Days until Dividend pay date72 days

Does CDK pay a reliable dividends?

See CDK dividend history and benchmarks

Valuation

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

24.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CDK ($43.58) is trading above our estimate of fair value ($6.11)

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 (24.9x) compared to the US Software industry average (43.2x).

PE vs Market: CDK is poor value based on its PE Ratio (24.9x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: CDK is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CDK is overvalued based on its PB Ratio (11.5x) compared to the US Software industry average (5.1x).


Future Growth

How is CDK Global forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDK's forecast earnings growth (23.5% per year) is above the savings rate (2%).

Earnings vs Market: CDK's earnings (23.5% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CDK's revenue (5.6% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: CDK's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CDK's Return on Equity is forecast to be very high in 3 years time (60.7%).


Past Performance

How has CDK Global performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDK has high quality earnings.

Growing Profit Margin: CDK's current net profit margins (12.2%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: CDK's earnings have declined by 6.3% 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 (-14.1%) over the past year, making it difficult to compare to the Software industry average (20%).


Return on Equity

High ROE: Whilst CDK's Return on Equity (46.69%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is CDK Global's financial position?


Financial Position Analysis

Short Term Liabilities: CDK's short term assets ($476.7M) exceed its short term liabilities ($335.1M).

Long Term Liabilities: CDK's short term assets ($476.7M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: CDK's net debt to equity ratio (325.8%) is considered high.

Reducing Debt: CDK's debt to equity ratio has increased from 286.7% to 343.3% over the past 5 years.

Debt Coverage: CDK's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: CDK's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Dividend

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

1.38%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 17 2022Ex Dividend DateFeb 28 2022Dividend Pay DateMar 30 202230 days from Ex DividendBuy in the next 42 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CDK's dividend (1.38%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: CDK's dividend (1.38%) is low compared to the top 25% of dividend payers in the US market (3.44%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.3%), 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 (18.1% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Brian Krzanich (61 yo)

3.17yrs

Tenure

US$12,648,188

Compensation

Mr. Brian Matthew Krzanich is Chief Executive Officer, President & Director at CDK Global Inc. since November 7, 2018. Mr. Krzanich serves as a Director of Electric Last Mile, Inc. He serves as a Director...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD12.65M) is above average for companies of similar size in the US market ($USD6.40M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: CDK's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: CDK's board of directors are considered experienced (7.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

CDK Global, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: CDK Global, Inc.
  • Ticker: CDK
  • Exchange: NasdaqGS
  • Founded: 2014
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$5.157b
  • Shares outstanding: 118.33m
  • Website: https://www.cdkglobal.com

Number of Employees


Location

  • CDK Global, Inc.
  • 1950 Hassell Road
  • Hoffman Estates
  • Illinois
  • 60169-6308
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:05
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2021/06/30


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.