CDK:NSD-CDK Global, Inc (USD)

COMMON STOCK | Software-Application | NSD

Last Closing Price

USD 51.69

Change

+0.13 (+0.25)%

Market Cap

USD 6.28B

Volume

0.77M

Average Target Price

USD 72.00 (+39.29%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

CDK Global, Inc., together with its subsidiaries, provides software and technology solutions for automotive retailers in the United States, Europe, Canada, and internationally. The company offers Dealer Management System (DMS), a portfolio of layered software applications and services for automotive retailers, original equipment manufacturers (OEMs), consumers, and other industry participants manage the acquisition, sale, financing, insuring, parts supply, and repair and maintenance of vehicles. It also provides solutions to retailers and manufacturers of heavy trucks, construction equipment, agricultural equipment, motorcycles, boats, and other marine and recreational vehicles. In addition, the company offers professional services, custom programming, consulting, implementation, and training solutions, as well as customer support solutions. It serves approximately 30,000 retail locations and OEMs. CDK Global, Inc. has a partnership with Integrated Rental. The company was founded in 2014 and is headquartered in Hoffman Estates, Illinois.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-06-17 )

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ETFs Containing CDK

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Software-Application)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -0.27% 46% F 32% F
Dividend Return 0.29% 26% F 15% F
Total Return 0.02% 46% F 32% F
Trailing 12 Months  
Capital Gain 25.40% 46% F 40% F
Dividend Return 1.09% 39% F 19% F
Total Return 26.49% 46% F 39% F
Trailing 5 Years  
Capital Gain -5.88% 19% F 24% F
Dividend Return 4.82% 24% F 11% F
Total Return -1.07% 19% F 22% F
Average Annual (5 Year Horizon)  
Capital Gain -2.99% 19% F 19% F
Dividend Return 1.00% 45% F 27% F
Total Return -1.98% 20% F 17% F
Risk Return Profile  
Volatility (Standard Deviation) 20.94% 90% A- 76% C
Risk Adjusted Return -9.47% 18% F 17% F
Market Capitalization 6.28B 79% C+ 87% B+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Software-Application)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 6.12 86% B 82% B-
Price/Book Ratio 14.11 25% F 10% F
Price / Cash Flow Ratio 16.74 57% F 27% F
EV/EBITDA 12.31 85% B 63% D
Management Effectiveness  
Return on Equity N/A N/A N/A N/A N/A
Return on Invested Capital 20.71% 85% B 90% A-
Return on Assets 9.74% 91% A- 94% A
Debt to Equity Ratio -445.41% 100% A+ 98% A+
Technical Ratios  
Short Ratio 4.35 36% F 37% F
Short Percent 1.78% 76% C 69% D+
Beta 1.39 35% F 33% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.