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ZYBERNO

Stock Report

Updated May 31, 2026

Dayforce, Inc. (DAY)

Technology • NYSE

$69.86

Dayforce Inc. (formerly Ceridian HCM Holding Inc.) is an American human capital management technology company headquartered in Minneapolis, Minnesota, that provides HCM software as a service. The company's Dayforce platform integrates payroll, workforce management, talent management, and HR administration in a single database, serving large and medium-sized enterprises in the United States, Canada, and internationally.

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

30.0/100

WEAK BUSINESS

Dayforce, Inc. (DAY) scores 30/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full DAY quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

-32.2%

Market Overestimates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full DAY valuation analysis · → View full DAY Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-5.7%)

Debt-to-Equity (Solvency Risk):GOOD (0.46x)

Operating Margin (Operational Efficiency):POOR (7.0%)

Return on Capital (Capital Efficiency):CRITICAL (3.0%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Dayforce, Inc. (DAY) stock report — Zyberno Score 30/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, Dayforce, Inc. (DAY) shows a Brina Gap of -32.2%, which weakens the case: based on the company's ROIC (3.0%) and reinvestment rate (-12.8%), the business can fundamentally grow at -0.4% — but the current enterprise value implies the market expects 31.9%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:69.86

Market Cap:$11.16B

Valuation Multiples (3)

P/B Ratio:4.14x

P/S Ratio:5.90x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$11.75B

Ev Ebitda Ratio:32.07x

B. Profitability Assessment

Return Metrics (7)

ROE:

-5.7%

📊 Click to view full DAY ROE analysis →

ROA:-1.7%

Roic:

3.0%

📊 Click to view full DAY ROIC analysis →

Reinvestment Rate:-12.8%

Fundamental Growth Rate (g):-0.4%

Market-Implied Growth Rate:31.9%

Brina Gap:

-32.2%

☷ Click to view full DAY Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:7.0%

Net Margin Ttm:-7.9%

Ebitda Margin:19.3%

TTM Performance (3)

Gross Margin Ttm:42.9%

Operating Margin Ttm:7.0%

Net Margin Ttm:-7.9%

Yield Metrics (2)

Earnings Yield:-$1.35

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-4.00

📊 Click to view full DAY Earnings Surprise analysis →

EPS Surprise vs Expected:-2,311.2%

Latest Earnings Filed:2025-10-29

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):16.4%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):28.3%

Cash Flow Growth (Linear) (1)

Operating Cash Flow Growth Rate (Linear):43.0%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-1.9%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.04x

Quick Ratio:1.04x

Cash Ratio:0.12x

Leverage Analysis (3)

Debt To Equity Ttm:0.46x

Debt-to-Equity Ratio:0.46x

Debt To Ebitda:3.31x

Coverage Ratios (2)

Interest Coverage Ratio:3.58x

Times Interest Earned:3.58

Capital Structure (4)

Working Capital:229,500,000.00

Cash And Cash Equivalents:627,600,000.00

Long Term Debt:$631.10M

Net Debt:$585.00M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $1.89B

Linear Growth: 16.4%

📊 Click to view full DAY Revenue analysis & methodology →

Cost Of Revenue Ttm:$947.90M

Profitability Breakdown (2)

Gross profit TTM: $812.10M

Linear Growth: 28.7%

📊 Click to view full DAY Gross Profit analysis & methodology →

Operating income TTM: $132.30M

Linear Growth: -1.9%

📊 Click to view full DAY Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: -$149.80M

Linear Growth: 28.3%

📊 Click to view full DAY Net Income analysis & methodology →

Income Before Tax:-$76.20M

Ebitda Ttm:366,300,000.00

Operating Expenses (5)

Operating Expenses:451,100,000.00

R And D Expense:123,000,000.00

Sga Expense:307,800,000.00

Income Tax Expense:$68.30M

Interest Expense:29,100,000.00

Expense Ratios (3)

R And D To Revenue Percentage:25.5%

Sga To Revenue Percentage:63.9%

Ebitda Margin:19.3%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$8.68B

Current Assets:$5.53B

Ppe Net:232,600,000.00

Goodwill:2,384,900,000.00

Intangible Assets:$129.60M

Liability Structure (4)

Total Liabilities:5,981,500,000.00

Current Liabilities:5,302,000,000.00

Long Term Debt:$631.10M

Short Term Debt:$581.50M

Equity & Capital (3)

Equity:$2.69B

Retained Earnings:-$556.30M

Common Stock:500,000,000.00

Working Capital Items (3)

Accounts Receivable:0.00

Inventory:0.00

Accounts Payable:88,900,000.00

Special Items (2)

Contract Liabilities:39,100,000.00

Stock Based Compensation:44,800,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $321.60M

Linear Growth: 43.0%

$0.00

Investment Activities (1)

Investing Cash Flow:-$120.10M

Financing Activities (3)

Financing Cash Flow:$288.60M

Dividends Paid Ttm:0.00

Stock Repurchase:30,100,000.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$1.80M

Non-Cash Items (1)

Depreciation Amortization Ttm:234,000,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.95

Eps diluted TTM: -$0.94

Linear Growth: 26.1%

📊 Click to view full DAY EPS analysis & methodology →

Earnings Per Share Ttm:-$0.94

Revenue & Cash Per Share (2)

Sales Per Share Ttm:11.85

Operating Cash Flow Per Share:$1.76

Book Value & Capital (2)

Book Value Per Share:$16.86

Cash Per Share:3.93

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.21x

Working Capital Turnover Ttm:8.25x

Receivables Management (2)

Receivables Turnover Ttm:-999.00x

Days Sales Outstanding Ttm:-999.00

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:34.23

Cash Conversion Cycle:-2,032.23

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:80.00

Quality Score:90.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:-12.8%

Fundamental Growth Rate (g):-0.4%

Market-Implied Growth Rate:31.9%

Brina Gap:

-32.2%

☷ Click to view full DAY Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):16.4%

Net Income Growth Rate (Linear):28.3%

Operating Income Growth Rate (Linear):-1.9%

Cash Flow Growth Rates (1)

Operating Cash Flow Growth Rate (Linear):43.0%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):28.7%

Book Value Growth Rate (Linear):6.3%

C. Company Profile & Context

Corporate Information (6)

Symbol:DAY

Company Name:Dayforce, Inc.

Sector:Technology

Industry:Software

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:high

Volume Category:N/A

Share Structure (3)

Shares Outstanding:159.80M

Shares Outstanding Basic:159.80M

Shares Outstanding Diluted:159.80M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-05-31 07:47:05 UTC

Data Timestamp:2026-05-31T07:47:05.281517