CDK Global
CDK Global, Inc. provides software and technology solutions for automotive retailers in the United States and internationally. The last earnings update was 49 days ago. More info.
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CDK Share Price and Events
7 Day Returns
1 Year Returns
CDK Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| CDK Global (CDK) | -3.5% | -3.1% | 22.1% | -10.3% | 21.2% | - |
| US Software | 0.1% | 2.6% | 28.2% | 30.3% | 108.8% | 136.9% |
| US Market | -1.1% | -0.2% | 19.7% | 5.8% | 37.9% | 41.7% |
1 Year Return vs Industry and Market
- CDK underperformed the Software industry which returned 30.3% over the past year.
- CDK underperformed the Market in United States of America which returned 5.8% over the past year.
CDK Value
Is CDK Global undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
CDK Global
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for CDK Global.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 6 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.7% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.14 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.14 (1 + (1- 21%) (40.7%)) |
1.339 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.34 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.339 * 5.96%) |
10.71% |
Discounted Cash Flow Calculation for NasdaqGS:CDK using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for CDK Global is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 10.71%) |
|
|---|---|---|---|
| 2019 | 434.34 | Est @ 4.34% | 392.32 |
| 2020 | 451.10 | Est @ 3.86% | 368.04 |
| 2021 | 466.99 | Est @ 3.52% | 344.14 |
| 2022 | 482.32 | Est @ 3.28% | 321.05 |
| 2023 | 497.36 | Est @ 3.12% | 299.03 |
| 2024 | 512.28 | Est @ 3% | 278.21 |
| 2025 | 527.24 | Est @ 2.92% | 258.63 |
| 2026 | 542.34 | Est @ 2.86% | 240.30 |
| 2027 | 557.65 | Est @ 2.82% | 223.18 |
| 2028 | 573.23 | Est @ 2.8% | 207.22 |
| Present value of next 10 years cash flows | $2,932.13 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $573.23 × (1 + 2.73%) ÷ (10.71% – 2.73%) |
$7,378.84 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $7,378.84 ÷ (1 + 10.71%)10 |
$2,667.42 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $2,932.13 + $2,667.42 |
$5,599.55 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $5,599.55 / 124.71 |
$44.9 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $44.90 |
| Current discount | Discount to share price of
$56.35
= -1 x ($56.35 - $44.90) / $44.90 |
-25.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of CDK Global is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for CDK Global's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
CDK Global's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $2.87 |
| NasdaqGS:CDK Share Price ** | NasdaqGS (2019-03-25) in USD | $56.35 |
| United States of America Software Industry PE Ratio | Median Figure of 84 Publicly-Listed Software Companies | 52.08x |
| United States of America Market PE Ratio | Median Figure of 3,061 Publicly-Listed Companies | 17.17x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of CDK Global.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:CDK Share Price ÷ EPS (both in USD) = 56.35 ÷ 2.87 |
19.64x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- CDK Global is good value based on earnings compared to the US Software industry average.
- CDK Global is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
CDK Global's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 19.64x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts |
17.6%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 66 Publicly-Listed Software Companies | 3.32x |
| United States of America Market PEG Ratio | Median Figure of 2,104 Publicly-Listed Companies | 1.45x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 19.64x ÷ 17.6% |
1.12x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- CDK Global is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
CDK Global's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $-4.12 |
| NasdaqGS:CDK Share Price * | NasdaqGS (2019-03-25) in USD | $56.35 |
| United States of America Software Industry PB Ratio | Median Figure of 220 Publicly-Listed Software Companies | 5.68x |
| United States of America Market PB Ratio | Median Figure of 5,166 Publicly-Listed Companies | 1.85x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:CDK Share Price ÷ Book Value per Share (both in USD) = 56.35 ÷ -4.12 |
-13.69x |
* Primary Listing of CDK Global.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- CDK Global has negative assets, we can't compare the value of its assets to the US Software industry average.
Value checks
We assess CDK Global's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) CDK Global has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
CDK Future Performance
How is CDK Global expected to perform in the next 1 to 3 years based on estimates from 6 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- CDK Global's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- CDK Global's earnings growth is expected to exceed the United States of America market average.
- CDK Global's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:CDK Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts | 17.6% |
| NasdaqGS:CDK Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts | 4.2% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 16% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 10.9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.2% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 6 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-06-30 | 2,542 | 670 | 516 | 3 |
| 2020-06-30 | 2,435 | 595 | 486 | 6 |
| 2019-06-30 | 2,334 | 508 | 357 | 6 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 2,291 | 510 | 375 |
| 2018-09-30 | 2,262 | 474 | 390 |
| 2018-06-30 | 2,273 | 462 | 381 |
| 2018-03-31 | 2,269 | 486 | 340 |
| 2017-12-31 | 2,249 | 409 | 321 |
| 2017-09-30 | 2,235 | 472 | 300 |
| 2017-06-30 | 2,220 | 431 | 296 |
| 2017-03-31 | 2,197 | 400 | 295 |
| 2016-12-31 | 2,178 | 468 | 272 |
| 2016-09-30 | 2,151 | 402 | 257 |
| 2016-06-30 | 2,115 | 320 | 239 |
| 2016-03-31 | 2,076 | 315 | 222 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 6 Analyst Estimates (S&P Global) | See Below |
All data from CDK Global Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-06-30 | 4.72 | 5.11 | 4.32 | 2.00 |
| 2020-06-30 | 4.10 | 4.32 | 3.79 | 4.00 |
| 2019-06-30 | 2.82 | 2.87 | 2.80 | 3.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 2.87 |
| 2018-09-30 | 2.93 |
| 2018-06-30 | 2.80 |
| 2018-03-31 | 2.46 |
| 2017-12-31 | 2.28 |
| 2017-09-30 | 2.08 |
| 2017-06-30 | 2.01 |
| 2017-03-31 | 1.97 |
| 2016-12-31 | 1.78 |
| 2016-09-30 | 1.66 |
| 2016-06-30 | 1.52 |
| 2016-03-31 | 1.40 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if CDK Global will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess CDK Global's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
CDK Global has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
CDK Past Performance
How has CDK Global performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- CDK Global's year on year earnings growth rate has been positive over the past 5 years.
- CDK Global's 1-year earnings growth exceeds its 5-year average (16.7% vs 15.4%)
- CDK Global's earnings growth has not exceeded the US Software industry average in the past year (16.7% vs 32.7%).
Earnings and Revenue History
All data from CDK Global Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 2,290.70 | 374.80 | 426.40 | |
| 2018-09-30 | 2,262.00 | 389.80 | 434.70 | |
| 2018-06-30 | 2,273.20 | 380.80 | 452.10 | |
| 2018-03-31 | 2,269.40 | 340.10 | 469.60 | |
| 2017-12-31 | 2,249.10 | 321.30 | 477.20 | |
| 2017-09-30 | 2,235.20 | 300.00 | 471.70 | |
| 2017-06-30 | 2,220.20 | 295.60 | 473.20 | |
| 2017-03-31 | 2,197.00 | 295.20 | 462.30 | |
| 2016-12-31 | 2,178.40 | 271.70 | 466.40 | |
| 2016-09-30 | 2,150.70 | 257.20 | 461.30 | |
| 2016-06-30 | 2,114.60 | 239.30 | 445.00 | |
| 2016-03-31 | 2,075.50 | 221.70 | 432.00 | |
| 2015-12-31 | 2,064.20 | 224.20 | 416.00 | |
| 2015-09-30 | 2,061.10 | 198.40 | 416.10 | |
| 2015-06-30 | 2,063.50 | 178.40 | 431.10 | |
| 2015-03-31 | 2,066.00 | 189.60 | 430.30 | |
| 2014-12-31 | 2,041.70 | 203.60 | 423.30 | |
| 2014-09-30 | 2,012.00 | 213.40 | 422.80 | |
| 2014-06-30 | 1,976.50 | 227.90 | 411.80 | |
| 2014-03-31 | 1,941.90 | 223.90 | 411.70 | |
| 2013-06-30 | 1,839.40 | 199.40 | 416.90 | |
| 2012-06-30 | 1,695.60 | 160.10 | 418.90 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- It is difficult to establish if CDK Global has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
- CDK Global used its assets more efficiently than the US Software industry average last year based on Return on Assets.
- CDK Global has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess CDK Global's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
CDK Global has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
CDK Health
How is CDK Global's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up CDK Global's finances.
The net worth of a company is the difference between its assets and liabilities.
- CDK Global is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- CDK Global's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- CDK Global has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from CDK Global Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | -500.10 | 2,860.00 | 228.70 |
| 2018-09-30 | -299.60 | 2,691.50 | 312.80 |
| 2018-06-30 | -347.30 | 2,620.70 | 804.40 |
| 2018-03-31 | -217.00 | 2,138.90 | 461.40 |
| 2017-12-31 | -188.00 | 2,149.80 | 443.60 |
| 2017-09-30 | 7.10 | 2,160.60 | 788.60 |
| 2017-06-30 | -56.80 | 2,171.70 | 726.10 |
| 2017-03-31 | 208.00 | 1,591.30 | 385.20 |
| 2016-12-31 | 126.40 | 1,602.50 | 327.60 |
| 2016-09-30 | 427.10 | 1,210.90 | 245.60 |
| 2016-06-30 | 376.20 | 1,217.10 | 219.10 |
| 2016-03-31 | 650.90 | 1,222.50 | 464.10 |
| 2015-12-31 | 595.80 | 1,228.60 | 347.50 |
| 2015-09-30 | 804.30 | 981.90 | 359.60 |
| 2015-06-30 | 784.10 | 984.10 | 414.00 |
| 2015-03-31 | 764.00 | 993.80 | 368.50 |
| 2014-12-31 | 750.80 | 996.90 | 402.20 |
| 2014-09-30 | 735.10 | 1,000.00 | 355.30 |
| 2014-06-30 | 1,809.30 | 21.90 | 402.80 |
| 2014-03-31 | 1,761.50 | 21.80 | 360.00 |
| 2013-06-30 | 1,554.70 | 22.00 | 276.30 |
| 2012-06-30 | 1,461.80 | 23.50 | 223.10 |
- CDK Global has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
- Irrelevant to check if CDK Global's debt level has increased considering it has negative shareholder equity.
- Debt is not well covered by operating cash flow (17.8%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).
Financial health checks
We assess CDK Global's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) CDK Global has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
CDK Dividends
What is CDK Global's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
CDK Global
shares you are expected to receive
$21
in your first year as a dividend.
Dividend Amount
- CDK Global's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
- CDK Global's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 6 Analyst Estimates (S&P Global) | See Below |
| United States of America Software Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2003 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.9% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-06-30 | 0.75 | 2.00 |
| 2020-06-30 | 0.66 | 2.00 |
| 2019-06-30 | 0.61 | 2.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-22 | 0.600 | 1.080 |
| 2018-11-13 | 0.600 | 1.230 |
| 2018-08-07 | 0.600 | 1.006 |
| 2018-06-07 | 0.600 | 0.921 |
| 2018-01-16 | 0.600 | 0.896 |
| 2017-11-15 | 0.600 | 0.853 |
| 2017-08-08 | 0.560 | 0.882 |
| 2017-08-01 | 0.560 | 0.898 |
| 2017-06-07 | 0.560 | 0.889 |
| 2017-01-18 | 0.560 | 0.876 |
| 2016-11-15 | 0.560 | 0.946 |
| 2016-08-10 | 0.540 | 0.954 |
| 2016-06-08 | 0.540 | 0.953 |
| 2016-01-19 | 0.540 | 1.148 |
| 2015-11-06 | 0.540 | 1.150 |
| 2015-08-13 | 0.480 | 0.967 |
| 2015-06-10 | 0.480 | 0.913 |
| 2015-01-21 | 0.480 | 0.992 |
| 2014-11-19 | 0.480 | 1.192 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, CDK Global has been paying a dividend for less than 10 years.
- Dividend payments have increased, but CDK Global only paid a dividend in the past 4 years.
Income/ dividend checks
We assess CDK Global's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can CDK Global afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) CDK Global has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
CDK Management
CEO
| AGE | 58 |
| TENURE AS CEO | 0.3 years |
CEO Bio
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 & Company since January 6, 2016 until July 6, 2018. He served as the Chief Executive Officer of Intel Corporation from May 16, 2013 to June 21, 2018. Mr. Krzanich served as the Chief Operating Officer of Intel Corporation from January 20, 2012 to May 16, 2013 and its Executive Vice President from November 2012 to May 16, 2013. He served as Senior Vice President of Intel Corporation from January 2010 to November 2012 and its General Manager of Manufacturing & Supply Chain until January 20, 2012 and also served as its Head of Worldwide Manufacturing. He was responsible for all aspects of Intel's factories and operations worldwide. He served as Vice President of Intel Corporation from December 2005 to January 2010. Mr. Krzanich served as General Manager of Manufacturing and Supply Chain of Intel Corporation. Mr. Krzanich was responsible for all aspects of Intel's assembly and test operations worldwide. Mr. Krzanich served as General Manager of Assembly/Test of Intel Corporation until 2010. He joined Intel in 1982. Since 2001, Mr. Krzanich has been responsible for the implementation of the 0.13-micron logic process technology across Intel's global factory network. From 1997 to 2001, Mr. Krzanich served as the Fab 17 plant manager, where he oversaw integrating Digital Equipment Corporation's semiconductor manufacturing operations into Intel's manufacturing network. The assignment included building updated facilities as well as initiating and ramping 0.18-micron and 0.13-micron process technologies. From 1996 to 1997, Mr. Krzanich was the Fab 6 plant manager in Arizona. From 1994 to 1996, he served as a Manufacturing Manager of Fab 12 in Arizona. He was a Process Engineer at various Intel locations. He served as a Director of Intel Corporation from May 16, 2013 to June 21, 2018. Mr. Krzanich was presented an Intel Achievement Award in 1999. He holds one patent for semiconductor processing. Mr. Krzanich studied bachelor's degree in Chemistry from San Jose State University in 1982.
CEO Compensation
- Insufficient data for Brian to compare compensation growth.
- Insufficient data for Brian to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the CDK Global management team in years:
- The average tenure for the CDK Global management team is less than 2 years, this suggests a new team.
Management Team
Joe Tautges
Executive VP & CFO
$4M
42
1.6 yrs
Dean Crutchfield
Executive VP & Chief Information Officer
$717K
57
2.8 yrs
Lee Brunz
Executive VP
$1M
48
4.5 yrs
Amy Byrne
Executive VP & Chief Human Resources Officer
$761K
47
1.8 yrs
Dan Flynn
President of CDK Global North America
$2M
48
1.3 yrs
Brian Krzanich
President
58
0.3 yrs
Jennifer Williams
VP, Corporate Controller & Chief Accounting Officer
44
1.4 yrs
Rajiv Amar
Executive VP & CTO
51
2.7 yrs
Kathy Gilbert
Director of Sales and Business Development
Scott Mathews
Executive Vice President of North America Sales
$2M
60
2.7 yrs
Board of Directors Tenure
Average tenure and age of the CDK Global board of directors in years:
- The tenure for the CDK Global board of directors is about average.
Board of Directors
Les Brun
Chairman of the Board
$421K
66
4.5 yrs
Brian Krzanich
President
58
0.3 yrs
Willie Deese
Director
$286K
63
4.5 yrs
Amy Hillman
Director
$345K
53
4.5 yrs
Frank Sowinski
Director
$286K
61
4.5 yrs
Stephen Miles
Director
$271K
50
4.5 yrs
Robert Radway
Director
$330K
58
4.5 yrs
Eileen Martinson
Director
$273K
63
2.5 yrs
Steve Schuckenbrock
Director
$276K
57
2.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 19. Dec 18 | Buy | Neil Packham | Individual | 14. Dec 18 | 14. Dec 18 | 588 | $47.76 | $28,083 | ||
| 13. Nov 18 | Buy | Lee Brunz | Individual | 09. Nov 18 | 09. Nov 18 | 2,500 | $50.96 | $127,408 | ||
| 13. Nov 18 | Buy | Joseph Tautges | Individual | 09. Nov 18 | 09. Nov 18 | 7,900 | $50.68 | $400,355 | ||
| 28. Aug 18 | Sell | Jennifer Williams | Individual | 27. Aug 18 | 27. Aug 18 | -4,114 | $61.65 | $-253,608 | ||
| 15. Jun 18 | Sell | Elliott Management Corporation | Company | 04. Jun 18 | 15. Jun 18 | -1,504,078 | $66.11 | $-98,021,455 | ||
| 01. Jun 18 | Sell | Elliott Management Corporation | Company | 30. May 18 | 01. Jun 18 | -383,654 | $65.62 | $-24,836,928 | ||
Management checks
We assess CDK Global's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) CDK Global has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
CDK News
Simply Wall St News
Did CDK Global's (NASDAQ:CDK) Share Price Deserve to Gain 27%?
(NASDAQ:CDK) share price return of 27% over three years lags the market return in the same period. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During three years of share price growth, CDK Global achieved compound earnings per share growth of 27% per year.
Simply Wall St - – Full articleIs CDK Global, Inc. (NASDAQ:CDK) A Strong Dividend Stock?
Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … In the last few years CDK Global, Inc. … Let's take a look at CDK Global in more detail.
Simply Wall St - – Full articleHow Much Are CDK Global, Inc. (NASDAQ:CDK) Insiders Spending On Buying Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in CDK Global, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … We generally consider it a positive if insiders have been buying on market, even above the current price.
Simply Wall St - – Full articleCan We See Significant Institutional Ownership On The CDK Global, Inc. (NASDAQ:CDK) Share Register?
Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership. … Companies of this size are usually well known to retail investors, too.
Simply Wall St - – Full articleRead This Before You Buy CDK Global Inc (NASDAQ:CDK) Because Of Its P/E Ratio
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … To keep it practical, we'll show how CDK Global Inc's (NASDAQ:CDK) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleIs CDK Global Inc (NASDAQ:CDK) A Top Dividend Stock?
In the last few years CDK Global Inc (NASDAQ:CDK) has paid a dividend to shareholders. … Let's take a look at CDK Global in more detail. … 5 questions to ask before buying a dividend stock
Simply Wall St - – Full articleDoes CDK Global Inc's (NASDAQ:CDK) October Stock Price Reflect Its Future Growth?
CDK Global Inc (NASDAQ:CDK) is considered a high-growth stock, but its last closing price of $58.18 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … CDK Global's extremely high growth potential in the near future is attracting investors
Simply Wall St - – Full articleWho Owns CDK Global Inc (NASDAQ:CDK)?
In this article, I'm going to take a look at CDK Global Inc’s (NASDAQ:CDK) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Ownership structure of a company has been found to affect share performance over time. … NasdaqGS:CDK Ownership Summary August 16th 18
Simply Wall St - – Full articleWhat Should You Know About CDK Global Inc's (NASDAQ:CDK) Capital Returns?
and want to better understand how you can grow your money by investing in CDK Global Inc (NASDAQ:CDK). … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Thus, to understand how your money can grow by investing in CDK Global, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
Simply Wall St - – Full articleHave You Accounted For These Three Things In CDK Global Inc's (NASDAQ:CDK) Relative Value?
CDK is currently trading at a muted trailing PE of 26.62x, which is less than the US Software industry average of 38.01x. … This is because there are many company-specific factors like future prospects and capital structure, which are unaccounted for.
Simply Wall St - – Full articleCDK Company Info
Description
CDK Global, Inc. provides software and technology solutions for automotive retailers in the United States and internationally. The company operates through Retail Solutions North America, Advertising North America, and CDK International segments. The company offers Dealer Management System (DMS), a portfolio of layered software applications and services for automotive retailers, original equipment manufacturers (OEMs), consumers, and other industry participants manage the acquisition, sale, financing, insuring, parts supply, and repair and maintenance of vehicles. It also provides solutions to retailers and manufacturers of heavy trucks, construction equipment, agricultural equipment, motorcycles, boats, and other marine and recreational vehicles. In addition, the company offers advertising solutions, such as the management of digital advertising spend for automotive retailers, automotive retailer associations, and OEMs; and professional services, custom programming, consulting, implementation, and training solutions, as well as customer support solutions. It serves approximately 28,000 retail locations and OEMs. CDK Global, Inc. is headquartered in Hoffman Estates, Illinois.
Details
| Name: | CDK Global, Inc. |
| CDK | |
| Exchange: | NasdaqGS |
| Founded: | |
| $7,027,540,640 | |
| 124,712,345 | |
| Website: | http://www.cdkglobal.com |
| Address: |
CDK Global, Inc. 1950 Hassell Road, Hoffman Estates, Illinois, 60169, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | CDK | Common Stock | Nasdaq Global Select | US | USD | 22. Sep 2014 | |
| DB | C2G | Common Stock | Deutsche Boerse AG | DE | EUR | 22. Sep 2014 | |
| LSE | 0HQR | Common Stock | London Stock Exchange | GB | USD | 22. Sep 2014 |
Number of employees
Current staff
Industry
| Application Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/26 00:42 |
| End of day share price update: | 2019/03/25 00:00 |
| Last estimates confirmation: | 2019/03/06 |
| Last earnings filing: | 2019/02/05 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
