CDK Global
Market Cap
US$5.1b
Last Updated
2020/10/28 23:50 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
Rewards
Risk Analysis
Snowflake Analysis
Solid track record and slightly overvalued.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-6.4%
CDK
-5.0%
US Software
-4.6%
US Market
1 Year Return
-15.5%
CDK
45.7%
US Software
11.5%
US Market
Return vs Industry: CDK underperformed the US Software industry which returned 45.7% over the past year.
Return vs Market: CDK underperformed the US Market which returned 11.5% over the past year.
Shareholder returns
| CDK | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.4% | -5.0% | -4.6% |
| 30 Day | -3.3% | -1.7% | -0.9% |
| 90 Day | -5.8% | 4.7% | 2.2% |
| 1 Year | -14.4%-15.5% | 46.7%45.7% | 14.0%11.5% |
| 3 Year | -30.5%-32.8% | 125.6%118.1% | 34.5%25.6% |
| 5 Year | -11.4%-16.0% | 224.7%205.8% | 73.0%53.6% |
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
How Many CDK Global, Inc. (NASDAQ:CDK) Shares Do Institutions Own?4 weeks ago | Simply Wall St
Is Now The Time To Look At Buying CDK Global, Inc. (NASDAQ:CDK)?1 month ago | Simply Wall St
CDK Global (NASDAQ:CDK) Is Very Good At Capital AllocationValuation
Is CDK Global undervalued compared to its fair value and its price relative to the market?
17.35x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CDK ($42.35) 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 (17.4x) compared to the US Software industry average (56.9x).
PE vs Market: CDK is good value based on its PE Ratio (17.4x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: CDK is poor value based on its PEG Ratio (1.8x)
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 6 analysts?
9.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDK's forecast earnings growth (9.5% per year) is above the savings rate (2.2%).
Earnings vs Market: CDK's earnings (9.5% per year) are forecast to grow slower than the US market (22% per year).
High Growth Earnings: CDK's earnings are forecast to grow, but not significantly.
Revenue vs Market: CDK's revenue (2.9% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: CDK's revenue (2.9% 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?
3.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CDK has high quality earnings.
Growing Profit Margin: CDK's current net profit margins (15.1%) are higher than last year (12.2%).
Past Earnings Growth Analysis
Earnings Trend: CDK's earnings have grown by 3.7% per year over the past 5 years.
Accelerating Growth: CDK's earnings growth over the past year (26.9%) exceeds its 5-year average (3.7% per year).
Earnings vs Industry: CDK earnings growth over the past year (26.9%) exceeded the Software industry 15.9%.
Return on Equity
High ROE: CDK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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 (14.1%).
Interest Coverage: CDK's interest payments on its debt are well covered by EBIT (4x coverage).
Balance Sheet
Next Steps
Dividend
What is CDK Global current dividend yield, its reliability and sustainability?
1.42%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CDK's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.71%).
High Dividend: CDK's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (4.86%).
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 low payout ratio (24.6%), 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 (18.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Brian Krzanich (60 yo)
1.92yrs
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 ($USD7.34M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.92yrs | US$7.72m | 0.13% $ 6.8m | |
| COO & Interim CFO | 3.17yrs | US$2.95m | 0.019% $ 952.8k | |
| Executive VP and Chief Product & Technology Officer | 1.5yrs | US$1.79m | 0.0045% $ 232.7k | |
| Executive VP | 6.08yrs | US$1.18m | 0.027% $ 1.4m | |
| Executive VP and Chief Human Resources & Communications Officer | 1.75yrs | US$1.23m | 0.0030% $ 152.4k | |
| VP, Corporate Controller & Chief Accounting Officer | 3yrs | no data | 0.00039% $ 20.1k | |
| Executive VP & Chief Information Officer | 4.33yrs | US$717.50k | 0.0072% $ 372.7k | |
| Senior Director of Investor Relation | no data | no data | no data | |
| Director of Sales and Business Development | no data | no data | no data | |
| Senior Vice President of Digital | no data | US$1.26m | no data | |
| President of CDK Global International | 3.75yrs | no data | 0.0010% $ 53.5k | |
| Director of Investor Relations | no data | no data | no data |
3.1yrs
Average Tenure
49yo
Average Age
Experienced Management: CDK's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.92yrs | US$7.72m | 0.13% $ 6.8m | |
| Independent Director | 6.08yrs | US$300.00k | 0.019% $ 1.0m | |
| Independent Director | 6.08yrs | US$320.00k | 0.016% $ 835.9k | |
| Independent Director | 4.08yrs | US$300.00k | 0.0084% $ 430.8k | |
| Independent Chairman of the Board | 6.08yrs | US$450.00k | 0.037% $ 1.9m | |
| Independent Director | 4.08yrs | US$242.50k | 0.010% $ 521.4k | |
| Independent Director | 6.08yrs | US$315.00k | 0.016% $ 822.0k | |
| Independent Director | 6.08yrs | US$300.00k | 0.022% $ 1.2m | |
| Independent Director | 6.08yrs | US$310.00k | 0.022% $ 1.1m |
6.1yrs
Average Tenure
60yo
Average Age
Experienced Board: CDK's board of directors are considered experienced (6.1 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$5.147b
- Shares outstanding: 121.54m
- 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 |
| CDK * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Sep 2014 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/28 23:50 |
| End of Day Share Price | 2020/10/28 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.