| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 4/6 |
| Past Performance | 1/6 |
| Financial Health | 2/6 |
| Dividends | 3/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$43.58 |
| 52 Week High | US$55.51 |
| 52 Week Low | US$38.54 |
| Beta | 1.3 |
| 1 Month Change | 7.50% |
| 3 Month Change | 1.21% |
| 1 Year Change | -15.71% |
| 3 Year Change | -13.26% |
| 5 Year Change | -27.94% |
| Change since IPO | 40.58% |
Recent News & Updates
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...
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...
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...
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
| CDK | US Software | US Market | |
|---|---|---|---|
| 7D | 2.8% | -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
| CDK volatility | |
|---|---|
| CDK Average Weekly Movement | 3.5% |
| Software Industry Average Movement | 8.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2014 | 6,500 | Brian Krzanich | https://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
| CDK fundamental statistics | |
|---|---|
| Market Cap | US$5.16b |
| Earnings (TTM) | US$207.00m |
| Revenue (TTM) | US$1.70b |
24.9x
P/E Ratio3.0x
P/S RatioIs CDK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CDK income statement (TTM) | |
|---|---|
| Revenue | US$1.70b |
| Cost of Revenue | US$877.00m |
| Gross Profit | US$822.50m |
| Expenses | US$615.50m |
| Earnings | US$207.00m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.75 |
| Gross Margin | 48.40% |
| Net Profit Margin | 12.18% |
| Debt/Equity Ratio | 343.3% |
How did CDK perform over the long term?
See historical performance and comparisonDividends
1.4%
Current Dividend Yield35%
Payout RatioDoes CDK pay a reliable dividends?
See CDK dividend history and benchmarks| CDK Global dividend dates | |
|---|---|
| Ex Dividend Date | Feb 28 2022 |
| Dividend Pay Date | Mar 30 2022 |
| Days until Ex dividend | 42 days |
| Days until Dividend pay date | 72 days |
Does CDK pay a reliable dividends?
See CDK dividend history and benchmarksValuation
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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:05 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/06/30 |
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.