NYSE:CDAY

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Executive Summary

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


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 47.7% over the past year.

Return vs Market: CDAY exceeded the US Market which returned 20.7% over the past year.


Shareholder returns

CDAYIndustryMarket
7 Day3.3%3.5%2.8%
30 Day12.6%7.9%11.1%
90 Day26.0%0.7%6.5%
1 Year64.7%64.7%48.9%48.0%23.6%20.9%
3 Yearn/a141.4%133.6%47.3%37.6%
5 Yearn/a222.8%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

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 ($29.49)

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 (57.6x).

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 (10.2% 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

NamePositionTenureCompensationOwnership
David Ossip
Chairman & CEO7.33yrsUS$30.18m0.17%
$ 25.0m
Leagh Turner
President & COO2.17yrsUS$5.02m0.082%
$ 12.1m
Ozzie Goldschmied
Senior Advisor to the President0.25yrUS$3.09m0.018%
$ 2.6m
Arthur Gitajn
Senior Advisor to Chief Executive Officer0.083yrUS$2.49m0.0079%
$ 1.2m
Erik Zimmer
Executive VP and Head of Mergers & Acquisitions2.25yrsUS$4.45m0.0061%
$ 891.7k
Christopher Armstrong
Executive VP & Chief Customer Officer0.75yrUS$4.07m0.012%
$ 1.8m
Noemie Heuland
Executive VP & CFO0.083yrno datano data
Jeffrey Jacobs
Head of Accounting & Financial Reporting and Principal Accounting Officer0.50yrno data0.00030%
$ 44.1k
Joe Korngiebel
Executive VP0.83yrno datano data
Warren Perlman
Executive VP & Chief Information Officer6.08yrsno datano data
Jeremy Johnson
VP of Finance & Investor Relationsno datano datano data
Scott Kitching
Executive VP6.92yrsno data0.0081%
$ 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

NamePositionTenureCompensationOwnership
David Ossip
Chairman & CEO7.33yrsUS$30.18m0.17%
$ 25.0m
Thomas Hagerty
Director7.17yrsno data0.17%
$ 24.2m
Brent Bickett
Independent Director13yrsno data0.059%
$ 8.7m
Deborah Farrington
Independent Director1.58yrsUS$188.42k0.0024%
$ 354.0k
Ganesh Rao
Director13yrsno data0.024%
$ 3.5m
Andrea Rosen
Independent Director2.33yrsUS$183.38k0.0021%
$ 307.0k
Gerald Throop
Lead Independent Director1yrUS$233.31k0.0059%
$ 868.2k
Linda Mantia
Director0.42yrno datano data
Ronald Clarke
Independent Director2.33yrsUS$200.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CQLDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2018
CDAYTSX (The Toronto Stock Exchange)YesCommon SharesCACADApr 2018
CDAYNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 23:37
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.