CDK Global Buy or Sell Recommendation

Macroaxis provides CDK Global Inc buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CDK Global positions. The advice algorithm takes into account all of CDK Global Inc available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from CDK Global buy-and-hold prospective. Check also CDK Global Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with current analyst consensus

Investment Horizon

  

Risk Tolerance

  
Symbol
Execute Advice
CDK Global Inc -- USA Stock  

USD 65.58  0.14  0.21%

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding CDK Global Inc is 'Hold'.
For the selected time horizon CDK Global Inc has a risk adjusted performance of 0.1352, jensen alpha of 0.1671, total risk alpha of (0.1), sortino ratio of 0.1067 and treynor ratio of 0.817
Macroaxis provides unbiased buy, hold, or sell recommendation on CDK Global Inc that should be used to complement current analysts and expert consensus on CDK Global Inc. Our buy or sell advice engine determines the organization potential to grow exclusively from the prospective of investors current risk tolerance and investing horizon. To make sure CDK Global is not overpriced, please confirm all CDK Global Inc fundamentals including its Gross Profit, Debt to Equity and the relationship between Price to Book and Cash and Equivalents . Given that CDK Global Inc has Price to Earning of 32.88 times, we suggest you validate CDK Global Inc market performance and probability of bankruptcy to make sure the company can sustain itself in the future given your prevailing risk tolerance and investing horizon.

Returns Distribution Density

Mean Return0.23Value At Risk-0.3485
Potential Upside0.8651Standard Deviation0.4669
 Return Density 
      Distribution 

CDK Global Greeks

α
Alpha over DOW
=0.17
βBeta against DOW=0.26
σ
Overall volatility
=0.39
 IrInformation ratio =0.0687

CDK Global Volatility Alert

CDK Global Inc exhibits very low volatility with skewness of 0.35 and kurtosis of 0.17. However, we advise investors to further study CDK Global Inc technical indicators to make sure all market info is available and is reliable.
    
 Better Than Average     
    
 Worse Than Average Compare CDK Global to competition
FundamentalsCDK GlobalPeer Average
Return On Equity189.42 % (15.17) %
Return On Asset12.2 % (15.64) %
Profit Margin13.31 % (5.5) %
Operating Margin23.07 % (10.91) %
Current Valuation10.59 B152.14 B
Shares Outstanding139.73 M1.43 B
Shares Owned by Insiders0.32 % 6.91 %
Shares Owned by Institutions87.27 % 18.37 %
Number of Shares Shorted4.01 M3.24 M
Price to Earning32.88 times40.69 times
Price to Book46.44 times14.44 times
Price to Sales4.12 times17.81 times
Revenue2.22 B9.85 B
Gross Profit985.3 M21.75 B
EBITDA582.4 M1.41 B
Net Income295.6 M517.71 M
Cash and Equivalents726.1 M3.89 B
Cash per Share5.18 times5.17 times
Total Debt2.17 B7.36 B
Debt to Equity765 % 0.72 %
Current Ratio2.31 times3.3 times
Book Value Per Share(0.53) times13.64 times
Cash Flow from Operations431 M1.25 B
Short Ratio3.96 times2.09 times
Earnings Per Share1.99 times2.3 times
Price to Earnings To Growth2.2 times1.22 times
Number of Employees8.7 K10.67 K
Beta0.760.34
Market Capitalization9.14 B29.78 B
Total Asset2.37 B126.86 B
Retained Earnings238.3 M38.24 B
Working Capital215.3 M3.58 B
Current Asset738.7 M36.8 B
SellBuy
Hold

Volatility

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

Inapplicable
   Acquisition by Brian MacDonald of 107913 shares of CDK Global subject to Rule 16b-3 [view details]
Risk Adjusted Performance0.1352
Market Risk Adjusted Performance0.827
Mean Deviation0.384
Downside Deviation0.3007
Coefficient Of Variation207.04
Standard Deviation0.4669
Variance0.218
Information Ratio0.0687
Jensen Alpha0.1671
Total Risk Alpha(0.1)
Sortino Ratio0.1067
Treynor Ratio0.817
Maximum Drawdown2.03
Value At Risk(0.35)
Potential Upside0.8651
Downside Variance0.0904
Semi Variance(0.18)
Expected Short fall(0.56)
Skewness0.3464
Kurtosis0.1741

Current Valuation

CDK Global Current Valuation Analysis
CDK Global Inc is rated second in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Application Software industry is currently estimated at about 86.73 Billion. CDK Global retains roughly 10.59 Billion in current valuation claiming about 12% of stocks in Application Software industry.