Ceridian HCM Holding Inc.
Ceridian HCM Holding Inc. Fundamental Analysis
Ceridian HCM Holding Inc. (CDAY.TO) shows weak financial fundamentals with a PE ratio of 192.99, profit margin of 3.62%, and ROE of 2.43%. The company generates $1.5B in annual revenue with strong year-over-year growth of 16.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CDAY.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakCDAY.TO struggles to generate sufficient returns from assets.
Valuation Score
WeakCDAY.TO trades at a premium to fair value.
Growth Score
ModerateCDAY.TO shows steady but slowing expansion.
Financial Health Score
ExcellentCDAY.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateCDAY.TO maintains healthy but balanced margins.
Key Financial Metrics
Is CDAY.TO Expensive or Cheap?
P/E Ratio
CDAY.TO trades at 192.99 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CDAY.TO's PEG of 2.66 indicates potential overvaluation.
Price to Book
The market values Ceridian HCM Holding Inc. at 4.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 32.97 times EBITDA. This signals the market has high growth expectations.
How Well Does CDAY.TO Make Money?
Net Profit Margin
For every $100 in sales, Ceridian HCM Holding Inc. keeps $3.62 as profit after all expenses.
Operating Margin
Core operations generate 8.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.43 in profit for every $100 of shareholder equity.
ROA
Ceridian HCM Holding Inc. generates $0.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ceridian HCM Holding Inc. produces operating cash flow of $219.75M, showing steady but balanced cash generation.
Free Cash Flow
Ceridian HCM Holding Inc. produces free cash flow of $105.22M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.67 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
192.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How CDAY.TO Stacks Against Its Sector Peers
| Metric | CDAY.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 192.99 | 34.22 | Worse (Expensive) |
| ROE | 2.43% | 1033.00% | Weak |
| Net Margin | 3.62% | -48116.00% (disorted) | Weak |
| Debt/Equity | 0.52 | 0.44 | Neutral |
| Current Ratio | 1.12 | 5.66 | Neutral |
| ROA | 0.61% | -288969.00% (disorted) | Weak |
CDAY.TO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ceridian HCM Holding Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.25%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-79.30%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
400.08%
Industry Style: Growth, Innovation, High Beta
High Growth