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Why NASDAQ:WDAY Is a Promising High-Growth Stock in the Midst of Consolidation.

By Mill Chart

Last update: Apr 9, 2024

Exploring Growth Potential: WORKDAY INC-CLASS A (NASDAQ:WDAY) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and WORKDAY INC-CLASS A has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected WORKDAY INC-CLASS A on our screen for growth with base formation, suggesting it merits a closer look.

Growth Assessment of NASDAQ:WDAY

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:WDAY scores a 8 out of 10:

  • WDAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.44%, which is quite impressive.
  • WDAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.84% yearly.
  • WDAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.78%.
  • WDAY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.80% yearly.
  • WDAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.36% yearly.
  • Based on estimates for the next years, WDAY will show a quite strong growth in Revenue. The Revenue will grow by 17.38% on average per year.

Health Assessment of NASDAQ:WDAY

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:WDAY scores a 6 out of 10:

  • WDAY has an Altman-Z score of 5.77. This indicates that WDAY is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.77, WDAY is in the better half of the industry, outperforming 71.84% of the companies in the same industry.
  • WDAY has a debt to FCF ratio of 1.56. This is a very positive value and a sign of high solvency as it would only need 1.56 years to pay back of all of its debts.
  • WDAY has a better Debt to FCF ratio (1.56) than 73.65% of its industry peers.
  • WDAY has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
  • Although WDAY does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:WDAY was assigned a score of 6 for profitability:

  • WDAY has a better Return On Assets (8.39%) than 88.45% of its industry peers.
  • Looking at the Return On Equity, with a value of 17.08%, WDAY belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.
  • WDAY has a better Return On Invested Capital (1.27%) than 70.76% of its industry peers.
  • The Profit Margin of WDAY (19.02%) is better than 89.17% of its industry peers.
  • WDAY's Operating Margin of 2.53% is fine compared to the rest of the industry. WDAY outperforms 70.76% of its industry peers.
  • With a decent Gross Margin value of 75.59%, WDAY is doing good in the industry, outperforming 71.12% of the companies in the same industry.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:WDAY scores a 8 out of 10:

WDAY has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 265.80, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of WDAY contains the most current fundamental analsysis.

For an up to date full technical analysis you can check the technical report of WDAY

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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WORKDAY INC-CLASS A

NASDAQ:WDAY (5/29/2024, 7:00:02 PM)

Premarket: 259.55 +47.97 (+22.67%)

211.58

-3.86 (-1.79%)

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