CDAY

Ceridian HCM Holding Inc

TMT


Presented:05/15/2019
Price:$50.16
Cap:$7.06B
Current Price:$63.96
Cap:$10.11B

Presented

Date05/15/2019
Price$50.16
Market Cap$7.06B
Ent Value$8.01B
P/E RatioN/A
Book Value$11.99
Div Yield0%
Shares O/S140.84M
Ave Daily Vol698,897
Short Int12.22%

Current

Price$63.96
Market Cap$10.11B
Ceridian HCM Holding, Inc. engages in the development of human capital management software. It offers Dayforce, Powerpay, and Bureau products and services. The Dayforce provides human resources (HR), payroll, benefits, workforce management, and talent management functionality. The Powerpay is a cloud HR and payroll solution for the Canadian small business market, through both direct sales and established partner channels. The Bureau solutions offer payroll and payroll-related services using legacy technology. The company was founded on July 3, 2013 and is headquartered in Minneapolis, MN.

Publicly traded companies mentioned herein: Automatic Data Processing Inc (ADP), Ceridian HCM Holding Inc (CDAY)

Highlights

The presenter is long shares of the HR software company, Ceridian HCM Holding Inc (CDAY), seeing an opportunity from the growth of Dayforce. The current CEO, David Ossip, founded a company called Dayforce, which the presenter describes as a modern payroll software company. In 2012, Ossip sold the company to CDAY, which at that point was a legacy service bureau, and took over as CDAY CEO. Over the coming years, the presenter expects the stock to appreciate significantly due to improved investor relations, accelerating top-line and margin growth, and a technological competitive advantage. Since he expects the P&L to look extremely different a few years out, he finds it more appropriate to view the investment on an IRR basis than a price target basis, and estimates an IRR in the high-20% range, over the next 3-4 years.

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Idea Discussion

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