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

Time Horizon

Risk Tolerance

Symbol
Execute Advice
CDK Global Inc -- USA Stock  

USD 73.41  0.21  0.29%

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 0.0659, jensen alpha of 0.1158, total risk alpha of (0.6), sortino ratio of (0.17) and treynor ratio of 1.21
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, Current Ratio and the relationship between Price to Book and Cash and Equivalents . Given that CDK Global Inc has Number of Shares Shorted of 4.64 M, 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 Return0.16Value At Risk1.01
Potential Upside2.38Standard Deviation1.16
 Return Density 
      Distribution 

CDK Global Greeks

α
Alpha over DOW
=0.12
β
Beta against DOW=0.12
σ
Overall volatility
=1.2
Ir
Information ratio =0.11

CDK Global Volatility Alert

CDK Global Inc exhibits relatively low volatility with skewness of 1.25 and kurtosis of 1.82. However, we advice investors to further investigate CDK Global Inc to make sure all market statistics is disseminated and is consistent with investors' estimations about CDK Global upside potential.
    
 Better Than Average     
    
 Worse Than Average Compare CDK Global to competition
FundamentalsCDK GlobalPeer Average
Return On Equity141.13 % (15.17) %
Return On Asset12.58 % (15.64) %
Profit Margin13.42 % (5.5) %
Operating Margin23.94 % (10.91) %
Current Valuation11.53 B152.14 B
Shares Outstanding137.54 M1.43 B
Shares Owned by Insiders0.34 % 6.91 %
Shares Owned by Institutions89.71 % 18.37 %
Number of Shares Shorted4.64 M3.24 M
Price to Earning35.76 times40.69 times
Price to Book46.44 times14.44 times
Price to Sales4.5 times17.81 times
Revenue2.24 B9.85 B
Gross Profit985.3 M21.75 B
EBITDA608.5 M1.41 B
Net Income300 M517.71 M
Cash and Equivalents788.6 M3.89 B
Cash per Share5.73 times5.17 times
Total Debt2.16 B7.36 B
Current Ratio2.37 times3.3 times
Book Value Per Share(0.08) times13.64 times
Cash Flow from Operations472 M1.25 B
Short Ratio5.51 times2.09 times
Earnings Per Share2.05 times2.3 times
Price to Earnings To Growth2.48 times1.22 times
Number of Employees8.7 K10.67 K
Beta0.710.34
Market Capitalization10.07 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
Current Liabilities523.4 M33.34 B
SellBuy
Hold

Volatility

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

Inapplicable
   Payment of 5490 shares by Robert Karp of CDK Global subject to Rule 16b-3 [view details]
Risk Adjusted Performance0.0659
Market Risk Adjusted Performance1.22
Mean Deviation0.8434
Semi Deviation0.5164
Downside Deviation0.7718
Coefficient Of Variation722.63
Standard Deviation1.16
Variance1.35
Information Ratio(0.11)
Jensen Alpha0.1158
Total Risk Alpha(0.6)
Sortino Ratio(0.17)
Treynor Ratio1.21
Maximum Drawdown4.96
Value At Risk(1.01)
Potential Upside2.38
Downside Variance0.5957
Semi Variance0.2667
Expected Short fall(1.16)
Skewness1.25
Kurtosis1.82

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 93.65 Billion. CDK Global retains roughly 11.53 Billion in current valuation claiming about 12% of stocks in Application Software industry.