CDK

CDK Global Inc.

TMT


Presented:11/10/2014
Price:$38.79
Cap:$6.23B
Current Price:$54.76
Cap:$6.65B

Presented

Date11/10/2014
Price$38.79
Market Cap$6.23B
Ent Value$5.84B
P/E Ratio29.67x
Book Value$4.58
Div Yield1.2%
Shares O/S160.50M
Ave Daily Vol5,040,000
Short Int1.00%

Current

Price$54.76
Market Cap$6.65B
CDK Global, Inc. provides integrated information technology and digital marketing/advertising solutions to the automotive retail industry. Its solutions automate and integrate critical workflow processes from pre-sale targeted advertising and marketing campaigns to the sale, financing, insurance, parts supply, and repair and maintenance of vehicles. The company serves approximately 26,000 retail locations and automotive manufacturers in approximately 100 countries. CDK Global, Inc. is headquartered in Hoffman Estates, Illinois.

Publicly traded companies mentioned herein: CDK Global Inc. (CDK).

Highlights

Recently spun out of ADP, CDK Global specializes in enterprise software for auto dealerships. The company operates in an oligopoly market, with CDK at 40% market share, private competitor Reynolds & Reynolds at 30% share, and the balance of the market made up of a handful of smaller competitors. However, larger auto dealerships - where most of the growth is coming from as a result of ongoing industry consolidation - tend to view this niche software space as a two player market.

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Idea Discussion

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