Dayforce Inc
$69.86
+0.0000%Dayforce Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud HR and payroll solution for the small business market. The company also provides Bureau solutions for payroll and payroll-related services. It sells its solutions through direct sales force and third-party channels. The company was formerly known as Ceridian HCM Holding Inc. and changed its name to Dayforce Inc. in February 2024. Dayforce Inc. was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 635.1).
Valuation inputs: P/E 635.1, earnings yield +0.2%, momentum 0.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +0.7%, ROIC +1.3%).
Profitability stack: net margin +1.0%, ROE +0.7%, ROIC +1.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +72.1%, momentum 0.0%, net margin +1.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Dayforce Inc Market vs Earnings Trajectory
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Dayforce Inc Fair Value Envelope
Dayforce Inc Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Dayforce Inc Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Dayforce Inc Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Dayforce Inc Street Expectations Map
Wall Street analysts project that DAY stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 70.00, with estimates ranging from a low of 70.00 to a high of 70.00.
The consensus 1-year price target stands at 70.00, with estimates ranging from a low of 70.00 to a high of 70.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.
Dayforce Inc Insider Positioning
During the last 12 months, insiders have purchased $1.72M and sold $6.85M worth of DAY shares, resulting in $5.13M of net selling activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
0
0.00
500
34.68K
-35K
-$35K
6-9 Months
25.0K
1.72M
81.4K
5.58M
-3.9M
-$3.86M
9-12 Months
0
0.00
20.3K
1.23M
-1.2M
-$1.23M
Top Buyers
Price T Rowe Associates Inc /Md/
10 Percent Owner
$1.72M
Top Sellers
Price T Rowe Associates Inc /Md/
10 Percent Owner
$4.21M
Alkharrat Samer
Officer: Evp, Chief Revenue Officer
$1.21M
Holdridge Stephen H.
Officer: President, Coo
$883K
Mcdonald William Everett
Officer: Evp, Clo, & Secretary
$446K
Jacobs Jeffrey Scott
Officer: Head Of Acct & Fin Reporting
$105K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $5.13M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
No Dividend Yield Data
DAY has not reported any dividend yield values in the available annual periods.
day Dividend History
Learning Layer
Related Guides
Build conviction on DAY by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.