NasdaqGS:CDK

Stock Analysis Report

Executive Summary

CDK Global, Inc. provides software and technology solutions for automotive retailers in the United States, Europe, Canada, and internationally.

Snowflake

Fundamentals

Acceptable track record with moderate growth potential.


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


Market Performance


7 Day Return

-1.7%

NasdaqGS:CDK

-1.5%

US Software

-0.02%

US Market


1 Year Return

-26.3%

NasdaqGS:CDK

14.7%

US Software

1.6%

US Market

CDK underperformed the Software industry which returned 13.7% over the past year.

CDK underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

CDKIndustryMarket
7 Day-1.7%-1.5%-0.02%
30 Day6.4%-1.7%2.7%
90 Day-5.8%-2.5%1.4%
1 Year-25.4%-26.3%16.3%14.7%3.8%1.6%
3 Year-17.9%-20.4%116.8%108.3%45.2%35.8%
5 Year53.6%46.0%164.6%145.1%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

24.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

CDK Global's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

CDK Global's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

CDK Global is poor value based on expected growth next year.


Price Based on Value of Assets

CDK Global has negative assets, we can't compare the value of its assets to the US Software industry average.


Next Steps

Future Growth

How is CDK Global expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CDK Global's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

CDK Global's earnings are expected to grow significantly at over 20% yearly.

CDK Global's revenue growth is positive but not above the United States of America market average.

CDK Global's earnings growth is expected to exceed the United States of America market average.

CDK Global's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if CDK Global will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has CDK Global performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

CDK Global's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

CDK Global's 1-year earnings growth is negative, it can't be compared to the 5-year average.

CDK Global's 1-year earnings growth is negative, it can't be compared to the US Software industry average.


Return on Equity

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.


Return on Assets

CDK Global used its assets more efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

CDK Global has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CDK Global's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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 (16.6%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).


Balance Sheet

Low level of unsold assets.

CDK Global has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

1.32%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CDK Global's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

CDK Global's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

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 5 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.8x coverage).


Next Steps

Management

What is the CEO of CDK Global's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Brian Krzanich (59yo)

0.8yrs

Tenure

0

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 & Compa ...


Management Age and Tenure

2.0yrs

Average Tenure

48.5yo

Average Age

The tenure for the CDK Global management team is about average.


Board Age and Tenure

5.0yrs

Average Tenure

59yo

Average Age

The tenure for the CDK Global board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$28,08319 Dec 18
Neil Packham
EntityIndividual
Shares588
Max PriceUS$47.76
BuyUS$127,40813 Nov 18
Lee Brunz
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,500
Max PriceUS$50.96
BuyUS$400,35513 Nov 18
Joseph Tautges
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares7,900
Max PriceUS$50.68

Ownership Breakdown


Management Team

  • Lee Brunz (49yo)

    Executive VP

    • Tenure: 5yrs
    • Compensation: US$1.15m
  • Brian Krzanich (59yo)

    President

    • Tenure: 0.8yrs
  • Joe Tautges (43yo)

    Executive VP & CFO

    • Tenure: 2.1yrs
    • Compensation: US$3.61m
  • Dan Flynn (49yo)

    Executive VP & Business Leader of Core DMS

    • Tenure: 3.6yrs
    • Compensation: US$1.74m
  • Dean Crutchfield (58yo)

    Executive VP & Chief Information Officer

    • Tenure: 3.3yrs
    • Compensation: US$717.50k
  • Mahesh Shah (42yo)

    Executive VP and Chief Product & Technology Officer

    • Tenure: 0.4yrs
  • Amy Byrne (48yo)

    Executive VP and Chief Human Resources & Communications Officer

    • Tenure: 0.7yrs
    • Compensation: US$761.01k
  • Katie Coleman

    Senior Director of Investor Relation

    • Tenure: 0yrs
  • Jennifer Williams (45yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 1.9yrs
  • Kathy Gilbert

    Director of Sales and Business Development

    • Tenure: 0yrs

Board Members

  • Robert Radway (59yo)

    Director

    • Tenure: 5yrs
    • Compensation: US$330.00k
  • Frank Sowinski (62yo)

    Director

    • Tenure: 5yrs
    • Compensation: US$286.25k
  • Eileen Voynick (64yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$273.00k
  • Les Brun (67yo)

    Chairman of the Board

    • Tenure: 5yrs
    • Compensation: US$421.25k
  • Steve Schuckenbrock (58yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$275.63k
  • Willie Deese (64yo)

    Director

    • Tenure: 5yrs
    • Compensation: US$286.25k
  • Brian Krzanich (59yo)

    President

    • Tenure: 0.8yrs
  • Stephen Miles (51yo)

    Director

    • Tenure: 5yrs
    • Compensation: US$271.25k
  • Amy Hillman (54yo)

    Director

    • Tenure: 5yrs
    • Compensation: US$345.00k

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$5.616b
  • Shares outstanding: 121.20m
  • 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

Biography

CDK Global, Inc. provides software and technology solutions for automotive retailers in the United States, Europe, Canada, and internationally. The company offers Dealer Management System (DMS), a portfoli ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 00:40
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.