CDK Global, Inc. (CDK) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
CDK Global, Inc. (CDK) trades at $54.76. CDK Global provides integrated data and technology solutions to the automotive, heavy truck, recreation, and heavy equipment industries. Sector: Technology.
Price as of Aug 21, 2026 · Last analyzed: Mar 18, 2026Analyst Coverage for CDK: CDK does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates CDK against Technology peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
CDK: 1/3 scored disciplines lean bearish. Dominant signal: Seth Klarman bearish.
How is this calculated? →CDK Global, Inc. (CDK) Technology Profile & Competitive Position
CDK Global delivers integrated data and technology solutions to the automotive and related industries, offering a comprehensive Dealer Management System and layered software applications. With a focus on subscription-based models and data intelligence, CDK serves approximately 15,000 retail locations internationally, positioning itself as a key player in automotive retail technology.
What Is the Investment Thesis for CDK?
CDK Global presents a compelling investment case due to its established position in providing essential software solutions to the automotive retail industry. The company's high profit margin of 61.8% indicates efficient operations and strong pricing power. A P/E ratio of 6.5 suggests that the company may be undervalued relative to its earnings. Growth catalysts include expanding its Neuron data platform and increasing adoption of its subscription-based services. Potential risks include competition from other software providers and the cyclical nature of the automotive industry. Investors should monitor CDK's ability to maintain its market share and adapt to changing technology trends in the automotive sector.
Based on FMP financials and quantitative analysis
CDK Key Highlights
CDK Global serves approximately 15,000 retail locations, demonstrating a significant market presence.
- The company's Profit Margin is 61.8%, indicating strong profitability and efficient operations.
- CDK's Gross Margin is 47.7%, reflecting its ability to manage production costs effectively.
- The P/E ratio of 6.5 suggests the company may be undervalued compared to its earnings.
- CDK's Dealer Management System (DMS) is a flagship product, providing a comprehensive solution for automotive retailers.
Who Are CDK's Competitors?
CDK is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| COUP Coupa Software Incorporated | $80.97 | +0.00% | $6.12B | 52 |
| CVT Cvent Holding Corp. | $8.52 | +0.00% | $4.19B | 61 |
| ENV Envestnet, Inc. | $63.14 | +0.00% | $3.49B | 46 |
| HCP HashiCorp, Inc. | $34.78 | +0.00% | $7.11B | 63 |
| NATI National Instruments Corporation | $59.99 | +0.02% | $7.97B | 57 |
| UBER Uber Technologies, Inc. | $78.55 | +0.65% | $160B | 73 |
| APP AppLovin Corporation | $308.77 | -0.65% | $104B | 95 |
| INTU Intuit Inc. | $363.10 | +0.17% | $100B | 79 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are CDK's Key Strengths?
Comprehensive suite of software and technology solutions.
- Established customer base in the automotive retail industry.
- High profit margin of 61.8%.
- Subscription-based revenue model provides recurring income.
What Are CDK's Weaknesses?
Reliance on the automotive industry, which is cyclical.
- Potential for disruption from emerging technology providers.
- Competition from established players in the DMS market.
- AI analysis pending, indicating potential areas for improvement.
What Could Drive CDK Stock Higher?
Expansion of the Neuron data platform to offer advanced analytics and business intelligence solutions.
- Increased adoption of subscription-based services among existing and new customers.
- Penetration of heavy truck and recreation vehicle markets with adapted solutions.
- Development of integrated solutions for electric vehicle retailers.
What Are the Key Risks for CDK?
Insider selling — insiders were net sellers of roughly $25.5M recently.
- Economic downturns impacting the automotive industry and reducing demand for CDK's solutions.
- Increasing competition from new entrants and established players in the DMS market.
- Changes in technology trends and customer preferences requiring significant investments in R&D.
- Cybersecurity risks and data breaches compromising customer data and disrupting operations.
What Are the Growth Opportunities for CDK?
- Expansion of Neuron Data Platform: CDK can leverage its Neuron intelligent data platform to offer advanced analytics and business intelligence solutions to automotive retailers and OEMs. The market for data analytics in the automotive industry is growing rapidly, with a projected market size of $5 billion by 2028. By enhancing the capabilities of Neuron and expanding its user base, CDK can generate significant revenue growth and strengthen its competitive position. This expansion can be achieved through strategic partnerships, product development, and targeted marketing efforts.
- Increased Adoption of Subscription-Based Services: CDK's subscription-based software model provides a recurring revenue stream and fosters long-term customer relationships. The company can drive growth by increasing the adoption of its subscription services among existing and new customers. This can be achieved through bundling offerings, providing flexible pricing options, and demonstrating the value proposition of its solutions. The shift towards subscription-based models is a major trend in the software industry, and CDK is well-positioned to benefit from this trend.
- Penetration of Heavy Truck and Recreation Vehicle Markets: CDK has the opportunity to expand its presence in the heavy truck, recreation vehicle, and heavy equipment markets. These markets have similar technology needs to the automotive retail market, and CDK's existing solutions can be adapted to serve these industries. By targeting these adjacent markets, CDK can diversify its revenue streams and reduce its reliance on the automotive industry. This expansion can be achieved through targeted sales and marketing efforts and strategic partnerships with industry players.
- Development of Integrated Solutions for Electric Vehicles: The rise of electric vehicles (EVs) is creating new opportunities for technology providers in the automotive industry. CDK can develop integrated solutions that address the specific needs of EV retailers, such as battery management, charging infrastructure, and EV-specific service and maintenance. By becoming a leader in EV retail technology, CDK can attract new customers and strengthen its position in the automotive market. This development requires investment in research and development and collaboration with EV manufacturers.
- Strategic Acquisitions and Partnerships: CDK can pursue strategic acquisitions and partnerships to expand its product offerings, enter new markets, and enhance its competitive position. Potential acquisition targets include companies with complementary technologies, specialized software solutions, or strong customer relationships in adjacent markets. Strategic partnerships can provide access to new technologies, distribution channels, or customer segments. By actively pursuing M&A opportunities, CDK can accelerate its growth and strengthen its market leadership.
What Are CDK's Competitive Advantages?
- Established customer base of approximately 15,000 retail locations.
- Comprehensive Dealer Management System (DMS) offering.
- Integrated suite of software applications and services.
- Neuron intelligent data platform provides a competitive advantage in data analytics.
What Does CDK Do?
CDK Global, Inc. was incorporated in 2014 and is headquartered in Hoffman Estates, Illinois. The company provides integrated data and technology solutions to the automotive, heavy truck, recreation, and heavy equipment industries both in the United States and internationally. Its core offering is a suite of subscription-based software and technology solutions tailored for automotive retailers, as well as retailers and manufacturers in related sectors like heavy trucks, construction equipment, and recreational vehicles. CDK's flagship product is its Dealer Management System (DMS), a comprehensive software solution that facilitates various aspects of vehicle retail, including the sale of new and used vehicles, consumer financing, repair and maintenance services, and vehicle and parts inventory management. Beyond the DMS, CDK offers a portfolio of layered software applications and services designed to streamline automotive retail workflows. These include data management and business intelligence solutions powered by the Neuron intelligent data platform, which provides insights to both automotive retailers and original equipment manufacturers. CDK also offers professional services such as custom programming, consulting, implementation, training, and customer support solutions. The company serves approximately 15,000 retail locations, making it a significant player in the automotive retail technology landscape.
What Products and Services Does CDK Offer?
- Provides integrated data and technology solutions to the automotive industry.
- Offers subscription-based software to automotive retailers.
- Develops Dealer Management Systems (DMS) for vehicle sales and service.
- Provides solutions for consumer financing and inventory management.
- Offers data management and business intelligence solutions.
- Provides professional services, consulting, and training.
How Does CDK Make Money?
- Subscription-based revenue from software and technology solutions.
- Revenue from professional services, consulting, and training.
- Data management and business intelligence solutions generate revenue through subscriptions and licensing.
- Custom programming and implementation services contribute to project-based revenue.
What Industry Does CDK Operate In?
CDK Global operates within the automotive retail software market, which is experiencing growth due to the increasing complexity of vehicle sales and service. The industry is characterized by a mix of established players and emerging technology providers. CDK competes with companies offering similar DMS solutions and specialized software for specific aspects of automotive retail. The market is influenced by trends such as the rise of electric vehicles, the increasing importance of data analytics, and the growing demand for integrated customer experiences. CDK's focus on providing comprehensive solutions and leveraging data analytics positions it to capitalize on these trends.
Who Are CDK's Key Customers?
- Automotive retailers (dealerships).
- Heavy truck retailers and manufacturers.
- Recreation vehicle retailers and manufacturers.
- Heavy equipment retailers and manufacturers.
Company Profile
CDK Global, Inc. operates in the Software - Application industry within the Technology sector. It is headquartered in Hoffman Estates, US. The company is led by CEO Brian Krzanich. CDK has traded publicly since 2014.
Key Financial Metrics
Return on assets is 38.1%, showing how much profit it generates from its asset base. CDK trades at a trailing price-to-earnings ratio of 6.49, below the Technology sector average of ~34x. A current ratio of 1.53 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 15.4%, the inverse of the P/E and a quick read on earnings relative to price.
Earnings Track Record
CDK Global, Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 9.0% above estimates on average.
Insider Activity
The most recent 12 insider filings for CDK Global, Inc. break down as 10 sales and 2 purchases. On net that is roughly 764K shares disposed (about $25.5M), a signal worth weighing alongside the fundamentals.
CDK Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- CDK's recent acquisition by Brookfield Capital Partners suggests strong belief in its long-term value.
- Insider activity, particularly if showing confidence before the acquisition, might indicate positive expectations for CDK's future performance.
- Community sentiment seems optimistic about CDK's stability under new ownership, viewing it as a safe harbor.
- Market perception sees CDK as a reliable player in automotive retail tech, which could attract more strategic partnerships.
Bear Case
- Acquisition transitions can be disruptive; CDK might face integration challenges under Brookfield.
- Community chatter highlights concerns about potential restructuring or cost-cutting measures impacting CDK's workforce.
- Market perception of CDK might be shifting as competitors innovate faster, potentially eroding its market share.
- Recent bearish sentiment suggests some investors believe the acquisition price didn't fully reflect CDK's intrinsic value.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
CDK Latest News
No recent news available for CDK.
CDK Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CDK.
Price Targets
Wall Street price target analysis for CDK.
CDK MoonshotScore
What does this score mean?
The MoonshotScore rates CDK 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: Brian Krzanich
CEO
Brian Krzanich is the CEO of CDK Global. He has extensive experience in the technology industry, previously serving as the CEO of Intel Corporation. During his tenure at Intel, Krzanich focused on driving innovation and expanding the company's presence in new markets. He has a strong background in engineering and manufacturing, holding several technical positions before moving into executive leadership. Krzanich's experience in managing large organizations and driving technological advancements makes him well-suited to lead CDK Global.
Track Record: Since becoming CEO of CDK Global, Brian Krzanich has focused on strengthening the company's position in the automotive retail technology market. Key initiatives include enhancing the company's product offerings, expanding its customer base, and driving operational efficiencies. Krzanich has also emphasized the importance of data analytics and the development of integrated solutions for the automotive industry. His leadership has contributed to CDK's continued growth and profitability.
CDK Technology Stock FAQ
What does CDK Global, Inc. do?
CDK Global provides integrated data and technology solutions to the automotive, heavy truck, recreation, and heavy equipment industries. Its core offering is the Dealer Management System (DMS), a comprehensive software solution that facilitates vehicle sales, financing, service, and inventory management. The company also offers data management and business intelligence solutions through its Neuron platform, serving approximately 15,000 retail locations worldwide.
What are the main risks for CDK?
The main risks for CDK Global include economic downturns impacting the automotive industry, increasing competition from both established players and new entrants, and the need to adapt to evolving technology trends and customer preferences. Cybersecurity risks and data breaches also pose a significant threat. Investors should carefully consider these risks and monitor CDK's ability to mitigate them effectively.
How does CDK Global, Inc. generate revenue from its technology products?
CDK Global primarily generates revenue through subscription-based fees for its software and technology solutions, including the Dealer Management System (DMS) and Neuron data platform. These subscriptions provide recurring revenue streams and foster long-term customer relationships. The company also generates revenue from professional services, consulting, and training related to its technology products. This diversified revenue model helps to ensure financial stability and growth.
How does CDK Global, Inc. invest in research and development?
CDK Global invests in research and development (R&D) to enhance its existing products, develop new solutions, and maintain a competitive edge in the automotive retail technology market. While specific R&D spending as a percentage of revenue is not available, key innovation areas include data analytics, cloud-based solutions, and integrated platforms for electric vehicle retailers. The company also focuses on developing and protecting its intellectual property through patents and other means.
What are the key factors to evaluate for CDK?
Evaluate CDK on fundamentals, analyst consensus, and risk factors. P/E: 6.5x vs the S&P 500's ~20-25x. CDK Global presents a compelling investment case due to its established position in providing essential software solutions to the automotive retail industry. Not financial advice.
How frequently does CDK data refresh on this page?
CDK's price was last updated on Aug 21, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven CDK's recent stock price performance?
CDK Global, Inc. (CDK) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Comprehensive suite of software and technology solutions. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider CDK overvalued or undervalued right now?
CDK Global, Inc. (CDK) trades at 6.5x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending may provide further insights.