NasdaqGS:CDK

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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


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

-1.9%

CDK

3.1%

US Software

2.8%

US Market


1 Year Return

-13.3%

CDK

45.2%

US Software

19.7%

US Market

Return vs Industry: CDK underperformed the US Software industry which returned 44% over the past year.

Return vs Market: CDK underperformed the US Market which returned 19% over the past year.


Shareholder returns

CDKIndustryMarket
7 Day-1.9%3.1%2.8%
30 Day4.6%4.0%8.0%
90 Day1.4%0.4%6.8%
1 Year-12.2%-13.3%46.2%45.2%22.4%19.7%
3 Year-29.1%-31.5%140.9%133.0%47.3%37.5%
5 Year3.1%-2.0%216.7%200.0%93.6%72.3%

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

Valuation

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

20.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CDK ($48.65) is trading above our estimate of fair value ($32.15)

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 (21.4x) compared to the US Software industry average (56.9x).

PE vs Market: CDK is poor value based on its PE Ratio (21.4x) compared to the US market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: CDK is poor value based on its PEG Ratio (1.3x)


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?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDK's forecast earnings growth (16.8% per year) is above the savings rate (2.2%).

Earnings vs Market: CDK's earnings (16.8% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: CDK's earnings are forecast to grow, but not significantly.

Revenue vs Market: CDK's revenue (5.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: CDK's revenue (5.7% 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


Next Steps

Past Performance

How has CDK Global performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDK has high quality earnings.

Growing Profit Margin: CDK's current net profit margins (14.1%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: CDK's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: CDK's earnings growth over the past year (17.2%) exceeds its 5-year average (2.2% per year).

Earnings vs Industry: CDK earnings growth over the past year (17.2%) exceeded the Software industry 8.9%.


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 (15.2%).

Interest Coverage: CDK's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.27%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CDK's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: CDK's dividend (1.23%) is low compared to the top 25% of dividend payers in the US market (4.15%).


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 (26.5%), 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 (16.8% 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)

2yrs

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 ($USD7.72M) is about average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Krzanich
President2yrsUS$7.72m0.13%
$ 7.6m
Joseph Tautges
COO & Interim CFO3.25yrsUS$2.95m0.018%
$ 1.1m
Mahesh Shah
Executive VP and Chief Product & Technology Officer1.58yrsUS$1.79m0.0045%
$ 259.4k
Lee Brunz
Executive VP6.17yrsUS$1.18m0.027%
$ 1.6m
Amy Byrne
Executive VP and Chief Human Resources & Communications Officer1.83yrsUS$1.23m0.0030%
$ 170.3k
Jennifer Williams
VP, Corporate Controller & Chief Accounting Officer3.08yrsno data0.00039%
$ 22.4k
Kirsten Garen
Chief Information Officerno datano datano data
Katie Coleman
Senior Director of Investor Relationno datano datano data
Kathy Gilbert
Director of Sales and Business Developmentno datano datano data
John Holt
Senior Vice President of Digitalno dataUS$1.26mno data
Neil Packham
President of CDK Global International3.83yrsno data0.0010%
$ 59.8k
Julie Schlueter
Director of Investor Relationsno datano datano data

3.1yrs

Average Tenure

49yo

Average Age

Experienced Management: CDK's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Krzanich
President2yrsUS$7.72m0.13%
$ 7.6m
Robert Radway
Independent Director6.17yrsUS$300.00k0.022%
$ 1.3m
Frank Sowinski
Independent Director6.17yrsUS$320.00k0.019%
$ 1.1m
Eileen Voynick
Independent Director4.17yrsUS$300.00k0.011%
$ 647.1k
Leslie Brun
Independent Chairman of the Board6.17yrsUS$450.00k0.039%
$ 2.3m
Stephen Schuckenbrock
Independent Director4.17yrsUS$242.50k0.013%
$ 747.8k
William Deese
Independent Director6.17yrsUS$315.00k0.019%
$ 1.1m
Stephen Miles
Independent Director6.17yrsUS$300.00k0.025%
$ 1.5m
Amy Hillman
Independent Director6.17yrsUS$310.00k0.025%
$ 1.4m

6.2yrs

Average Tenure

60yo

Average Age

Experienced Board: CDK's board of directors are considered experienced (6.2 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$5.752b
  • Shares outstanding: 121.69m
  • Website: https://www.cdkglobal.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CDKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2014
C2GDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2014
0HQRLSE (London Stock Exchange)YesCommon StockGBUSDSep 2014
CDK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 00:20
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


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.