CDK Global
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
Rewards
PE ratio (23.8x) is below the Software industry average (54.5x)
Risk Analysis
Earnings are forecast to decline by an average of 46.3% per year for the next 3 years
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
| CDK | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | 2.3% | 1.3% |
| 30 Day | 2.9% | 11.7% | 5.3% |
| 90 Day | 5.3% | 12.0% | 8.9% |
| 1 Year | 56.7%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 Year | 20.7%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
1 week ago | Simply Wall St
Should You Review Recent Insider Transactions At CDK Global, Inc. (NASDAQ:CDK)?1 month ago | Simply Wall St
Does CDK Global's (NASDAQ:CDK) Share Price Gain of 73% Match Its Business Performance?1 month ago | Simply Wall St
Here's What We Like About CDK Global's (NASDAQ:CDK) Upcoming DividendValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/17 22:49 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| 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.