NYSE:CDAY

Stock Analysis Report

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Market Cap

US$14.3b

Last Updated

2021/06/24 00:29 UTC

Data Sources

Company Financials +

Executive Summary

Ceridian HCM Holding Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Ceridian HCM Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CDAY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CDAY's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

12.0%

CDAY

3.7%

US Software

0.5%

US Market


1 Year Return

22.5%

CDAY

37.3%

US Software

42.6%

US Market

Return vs Industry: CDAY underperformed the US Software industry which returned 33.6% over the past year.

Return vs Market: CDAY underperformed the US Market which returned 39% over the past year.


Shareholder returns

CDAYIndustryMarket
7 Day12.0%3.7%0.5%
30 Day7.5%8.6%1.9%
90 Day18.6%15.3%7.9%
1 Year22.5%22.5%38.0%37.3%44.9%42.6%
3 Year179.7%179.7%151.1%144.2%64.4%54.1%
5 Yearn/a371.9%348.5%128.3%102.7%

Long-Term Price Volatility Vs. Market

How volatile is Ceridian HCM Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ceridian HCM Holding undervalued compared to its fair value and its price relative to the market?

6.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CDAY ($94) is trading above our estimate of fair value ($31.97)

Significantly Below Fair Value: CDAY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CDAY is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: CDAY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CDAY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CDAY is good value based on its PB Ratio (6.5x) compared to the US Software industry average (7.7x).


Future Growth

How is Ceridian HCM Holding forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

123.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDAY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CDAY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CDAY's is expected to become profitable in the next 3 years.

Revenue vs Market: CDAY's revenue (18% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: CDAY's revenue (18% 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 CDAY's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Ceridian HCM Holding performed over the past 5 years?

63.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDAY is currently unprofitable.

Growing Profit Margin: CDAY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CDAY is unprofitable, but has reduced losses over the past 5 years at a rate of 63.2% per year.

Accelerating Growth: Unable to compare CDAY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CDAY is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (31%).


Return on Equity

High ROE: CDAY has a negative Return on Equity (-1.47%), as it is currently unprofitable.


Financial Health

How is Ceridian HCM Holding's financial position?


Financial Position Analysis

Short Term Liabilities: CDAY's short term assets ($4.8B) exceed its short term liabilities ($4.4B).

Long Term Liabilities: CDAY's short term assets ($4.8B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: CDAY's debt to equity ratio (51.6%) is considered high.

Reducing Debt: CDAY's debt to equity ratio has reduced from 118.7% to 51.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if CDAY has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CDAY has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Ceridian HCM Holding current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CDAY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CDAY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CDAY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CDAY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CDAY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

David Ossip (53 yo)

7.92yrs

Tenure

US$32,998,933

Compensation

Mr. David D. Ossip serves as an Independent Director at Dragoneer Growth Opportunities Corp. II. He has been an Independent Director of Dragoneer Growth Opportunities Corp. III since March 22, 2021. He ser...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD33.00M) is above average for companies of similar size in the US market ($USD11.28M).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: CDAY's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: CDAY's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CDAY insiders have only sold shares 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

Ceridian HCM Holding Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ceridian HCM Holding Inc.
  • Ticker: CDAY
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$14.331b
  • Shares outstanding: 149.24m
  • Website: https://www.ceridian.com

Number of Employees


Location

  • Ceridian HCM Holding Inc.
  • 3311 East Old Shakopee Road
  • Minneapolis
  • Minnesota
  • 55425-1640
  • United States

Listings


Biography

Ceridian HCM Holding Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. The company offers Dayforce, a cl...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 00:29
End of Day Share Price2021/06/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.