Ceridian HCM Holding
Market Cap
US$14.7b
Last Updated
2020/11/29 23:28 UTC
Data Sources
Company Financials +
Executive Summary
Ceridian HCM Holding Inc. operates as a human capital management (HCM) software company in the United States, Canada, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with imperfect 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 +/- 6% a week.
Volatility Over Time: CDAY's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
3.3%
CDAY
3.5%
US Software
2.8%
US Market
1 Year Return
64.7%
CDAY
48.0%
US Software
20.9%
US Market
Return vs Industry: CDAY exceeded the US Software industry which returned 48% over the past year.
Return vs Market: CDAY exceeded the US Market which returned 20.9% over the past year.
Shareholder returns
| CDAY | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | 3.5% | 2.8% |
| 30 Day | 15.3% | 10.4% | 12.8% |
| 90 Day | 25.0% | 1.3% | 6.6% |
| 1 Year | 64.7%64.7% | 48.9%48.0% | 23.6%20.9% |
| 3 Year | n/a | 141.4%133.6% | 47.3%37.6% |
| 5 Year | n/a | 222.8%205.6% | 94.3%72.9% |
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
15 hours ago | Simply Wall St
Will The ROCE Trend At Ceridian HCM Holding (NYSE:CDAY) Continue?3 weeks ago | Simply Wall St
Is Ceridian HCM Holding (NYSE:CDAY) Using Too Much Debt?1 month ago | Simply Wall St
Does Ceridian HCM Holding's (NYSE:CDAY) Statutory Profit Adequately Reflect Its Underlying Profit?Valuation
Is Ceridian HCM Holding undervalued compared to its fair value and its price relative to the market?
1224.45x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CDAY ($99.39) is trading above our estimate of fair value ($29.46)
Significantly Below Fair Value: CDAY is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CDAY is poor value based on its PE Ratio (1224.5x) compared to the US Software industry average (58.2x).
PE vs Market: CDAY is poor value based on its PE Ratio (1224.5x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: CDAY is poor value based on its PEG Ratio (19.3x)
Price to Book Ratio
PB vs Industry: CDAY is good value based on its PB Ratio (7.2x) compared to the US Software industry average (8.1x).
Next Steps
Future Growth
How is Ceridian HCM Holding forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
63.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDAY's forecast earnings growth (63.3% per year) is above the savings rate (2.2%).
Earnings vs Market: CDAY's earnings (63.3% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CDAY's revenue (14.3% per year) is forecast to grow faster than the US market (10.3% per year).
High Growth Revenue: CDAY's revenue (14.3% 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 CDAY's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Ceridian HCM Holding performed over the past 5 years?
79.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CDAY has a large one-off loss of $15.5M impacting its September 30 2020 financial results.
Growing Profit Margin: CDAY's current net profit margins (1.4%) are lower than last year (11.2%).
Past Earnings Growth Analysis
Earnings Trend: CDAY has become profitable over the past 5 years, growing earnings by 79% per year.
Accelerating Growth: CDAY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CDAY had negative earnings growth (-86.7%) over the past year, making it difficult to compare to the Software industry average (8.9%).
Return on Equity
High ROE: CDAY's Return on Equity (0.6%) is considered low.
Next Steps
Financial Health
How is Ceridian HCM Holding's financial position?
Financial Position Analysis
Short Term Liabilities: CDAY's short term assets ($3.4B) exceed its short term liabilities ($2.7B).
Long Term Liabilities: CDAY's short term assets ($3.4B) exceed its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: CDAY's debt to equity ratio (46.9%) is considered high.
Reducing Debt: Insufficient data to determine if CDAY's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: CDAY's debt is not well covered by operating cash flow (7.7%).
Interest Coverage: CDAY's interest payments on its debt are not well covered by EBIT (2.8x coverage).
Balance Sheet
Next Steps
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?
0.8yrs
Average management tenure
CEO
David Ossip (54 yo)
7.33yrs
Tenure
US$30,180,957
Compensation
Mr. David D. Ossip serves as Chief Executive Officer at Ceridian Canada Ltd. Mr. Ossip serves as an Independent Director at Dragoneer Growth Opportunities Corp., since August 13, 2020. Mr. Ossip serves as ...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD30.18M) is above average for companies of similar size in the US market ($USD10.83M).
Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 7.33yrs | US$30.18m | 0.17% $ 25.0m | |
| President & COO | 2.17yrs | US$5.02m | 0.082% $ 12.1m | |
| Senior Advisor to the President | 0.25yr | US$3.09m | 0.018% $ 2.6m | |
| Senior Advisor to Chief Executive Officer | 0.083yr | US$2.49m | 0.0079% $ 1.2m | |
| Executive VP and Head of Mergers & Acquisitions | 2.25yrs | US$4.45m | 0.0061% $ 891.7k | |
| Executive VP & Chief Customer Officer | 0.75yr | US$4.07m | 0.012% $ 1.8m | |
| Executive VP & CFO | 0.083yr | no data | no data | |
| Head of Accounting & Financial Reporting and Principal Accounting Officer | 0.50yr | no data | 0.00030% $ 44.1k | |
| Executive VP | 0.83yr | no data | no data | |
| Executive VP & Chief Information Officer | 6.08yrs | no data | no data | |
| VP of Finance & Investor Relations | no data | no data | no data | |
| Executive VP | 6.92yrs | no data | 0.0081% $ 1.2m |
0.8yrs
Average Tenure
49yo
Average Age
Experienced Management: CDAY's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 7.33yrs | US$30.18m | 0.17% $ 25.0m | |
| Director | 7.17yrs | no data | 0.17% $ 24.2m | |
| Independent Director | 13yrs | no data | 0.059% $ 8.7m | |
| Independent Director | 1.58yrs | US$188.42k | 0.0024% $ 354.0k | |
| Director | 13yrs | no data | 0.024% $ 3.5m | |
| Independent Director | 2.33yrs | US$183.38k | 0.0021% $ 307.0k | |
| Lead Independent Director | 1yr | US$233.31k | 0.0059% $ 868.2k | |
| Director | 0.42yr | no data | no data | |
| Independent Director | 2.33yrs | US$200.00k | no data |
2.3yrs
Average Tenure
60yo
Average Age
Experienced Board: CDAY's board of directors are not considered experienced ( 2.3 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: 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 been diluted in the past year, with total shares outstanding growing by 2.7%.
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$14.690b
- Shares outstanding: 147.80m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CQL | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Apr 2018 |
| CDAY | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Apr 2018 |
| CDAY | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Apr 2018 |
Biography
Ceridian HCM Holding Inc. operates as a human capital management (HCM) software company in the United States, Canada, and internationally. The company offers Dayforce, a cloud HCM platform that provides hu...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/29 23:28 |
| End of Day Share Price | 2020/11/27 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.