CDK Global, Inc. [NASDAQ:CDK]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For CDK Global, Inc. [CDK], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in June. On average, stock market experts give CDK an Outperform rating. This is compared to its latest closing price of $55.25.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for CDK Global, Inc. [CDK] is sitting at 2.33. This is compared to 1 month ago, when its average rating was 2.33.
For the quarter ending in Dec-18 CDK Global, Inc. [CDK] generated $0.59 billion in sales. That’s 1.99% higher than the average estimate of $0.58 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 25 Apr (In 72 Days).
Fundamental Analysis of CDK Global, Inc. [CDK]
Now let’s turn to look at profitability: with a current Operating Margin for CDK Global, Inc. [CDK] sitting at +27.76 and its Gross Margin at +53.78, this company’s Net Margin is now 16.40%. These measurements indicate that CDK Global, Inc. [CDK] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 28.76, and its Return on Invested Capital has reached 20.10%. Its Return on Assets is 12.93.
Similarly, its Total Debt to Total Capital is 116.17, while its Total Debt to Total Assets stands at 87.11.
What about valuation? This company’s Enterprise Value to EBITDA is 12.28 and its Total Debt to EBITDA Value is 3.69. The Enterprise Value to Sales for this firm is now 3.81, and its Total Debt to Enterprise Value stands at 0.24.
Shifting the focus to workforce efficiency, CDK Global, Inc. [CDK] earns $267,435 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.83 and its Total Asset Turnover is 0.77. This publicly-traded organization’s liquidity data is also interesting: its Current Ratio is 2.33.
Let’s now turn our attention to trading performance: CDK Global, Inc. [CDK] has 126.80M shares outstanding, amounting to a total market cap of $7.01B. Its stock price has been found in the range of 44.01 to 71.71. At its current price, it has moved by -21.06% from its 52-week high, and it has moved 28.64% from its 52-week low.
This stock’s Beta value is currently 0.66, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 73.09. This RSI suggests that CDK Global, Inc. is currently Overbought.
Conclusion: Is CDK Global, Inc. [CDK] a Reliable Buy?
Shares of CDK Global, Inc. [CDK], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.