CDK Global, Inc. provides software and technology solutions for automotive retailers in the United States, Europe, Canada, and internationally.
Moderate growth potential and slightly overvalued.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: CDK underperformed the US Software industry which returned 41.9% over the past year.
Return vs Market: CDK underperformed the US Market which returned 14.9% over the past year.
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
2 days ago | Simply Wall StCDK Global, Inc. (NASDAQ:CDK) Looks Just Right
2 weeks ago | Simply Wall StCDK Global (NASDAQ:CDK) Share Prices Have Dropped 34% In The Last Three Years
3 weeks ago | Simply Wall StAre CDK Global's (NASDAQ:CDK) Statutory Earnings A Good Reflection Of Its Earnings Potential?
Is CDK Global undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CDK ($46.19) is trading above our estimate of fair value ($37.37)
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 (23.6x) compared to the US Software industry average (58x).
PE vs Market: CDK is poor value based on its PE Ratio (23.6x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: CDK is good value based on its PEG Ratio (0.7x)
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.
How is CDK Global forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDK's forecast earnings growth (33.3% per year) is above the savings rate (2.2%).
Earnings vs Market: CDK's earnings (33.3% per year) are forecast to grow faster than the US market (22.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CDK's revenue (3% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: CDK's revenue (3% 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
How has CDK Global performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CDK has a large one-off loss of $116.6M impacting its March 31 2020 financial results.
Growing Profit Margin: CDK's current net profit margins (11.9%) are lower than last year (16.7%).
Past Earnings Growth Analysis
Earnings Trend: CDK's earnings have grown by 4.3% 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 (-6.4%) over the past year, making it difficult to compare to the Software industry average (9.6%).
Return on Equity
High ROE: CDK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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 (16.6%).
Interest Coverage: CDK's interest payments on its debt are well covered by EBIT (4.1x coverage).
What is CDK Global current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CDK's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).
High Dividend: CDK's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (4.51%).
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 (30.6%), 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 (18.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Brian Krzanich (60 yo)
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 ($USD14.46M) is above average for companies of similar size in the US market ($USD7.31M).
Compensation vs Earnings: Insufficient data to compare Brian's compensation with company performance.
|Executive VP & CFO||3yrs||US$2.89m||0.015% |
|Executive VP and Chief Product & Technology Officer||1.33yrs||US$2.10m||0.014% |
|Executive VP||5.92yrs||US$1.19m||0.026% |
|VP, Corporate Controller & Chief Accounting Officer||2.83yrs||no data||0.00086% |
|Executive VP & Chief Information Officer||4.17yrs||US$717.50k||0.0051% |
|Senior Director of Investor Relation||no data||no data||no data|
|Executive VP and Chief Human Resources & Communications Officer||1.58yrs||US$761.01k||0.00041% |
|Director of Sales and Business Development||no data||no data||no data|
|Senior Vice President of Digital||no data||US$1.26m||no data|
|Executive Vice President of North America Sales & Marketing||1.33yrs||no data||0.0013% |
|Executive Vice President of North America Customer Experience||1.58yrs||no data||no data|
Experienced Management: CDK's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
|Independent Director||5.92yrs||US$279.98k||0.019% |
|Independent Director||5.92yrs||US$303.75k||0.016% |
|Independent Director||3.92yrs||US$280.99k||0.0084% |
|Independent Chairman of the Board||5.92yrs||US$431.25k||0.037% |
|Independent Director||3.92yrs||US$279.96k||0.0074% |
|Independent Director||5.92yrs||US$296.25k||0.016% |
|Independent Director||5.92yrs||US$281.25k||0.022% |
|Independent Director||5.92yrs||US$227.50k||0.022% |
Experienced Board: CDK's board of directors are considered experienced (5.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CDK insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
CDK Global, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: CDK Global, Inc.
- Ticker: CDK
- Exchange: NasdaqGS
- Founded: 2014
- Industry: Application Software
- Sector: Software
- Market Cap: US$5.525b
- Shares outstanding: 121.53m
- Website: https://www.cdkglobal.com
Number of Employees
- CDK Global, Inc.
- 1950 Hassell Road
- Hoffman Estates
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CDK||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Sep 2014|
|C2G||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Sep 2014|
|0HQR||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Sep 2014|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/08/04 00:42|
|End of Day Share Price||2020/08/03 00:00|
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.