WORKDAY INC-CLASS A (1WDAY.MI) Stock Fundamental Analysis
BIT:1WDAY - Euronext Milan - US98138H1014 - Common Stock - Currency: EUR
1WDAY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 102 industry peers in the Software industry. While 1WDAY has a great health rating, its profitability is only average at the moment. 1WDAY shows excellent growth, but is valued quite expensive already. With these ratings, 1WDAY could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year 1WDAY was profitable.
1WDAY had a positive operating cash flow in the past year.
In multiple years 1WDAY reported negative net income over the last 5 years.
Each year in the past 5 years 1WDAY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1WDAY (9.87%) is better than 88.24% of its industry peers.
Looking at the Return On Equity, with a value of 18.79%, 1WDAY belongs to the top of the industry, outperforming 81.37% of the companies in the same industry.
1WDAY has a Return On Invested Capital (2.62%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 18.79% | ||
| ROIC | 2.62% |
ROA(3y)1.99%
ROA(5y)-0.87%
ROE(3y)3.72%
ROE(5y)-3.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of 1WDAY (19.87%) is better than 86.27% of its industry peers.
1WDAY's Operating Margin of 5.13% is in line compared to the rest of the industry. 1WDAY outperforms 55.88% of its industry peers.
1WDAY has a Gross Margin (75.60%) which is comparable to the rest of the industry.
1WDAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.13% | ||
| PM (TTM) | 19.87% | ||
| GM | 75.6% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.52%
GM growth 5Y1.43%
2. Health
2.1 Basic Checks
1WDAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 1WDAY has been increased compared to 1 year ago.
The number of shares outstanding for 1WDAY has been increased compared to 5 years ago.
Compared to 1 year ago, 1WDAY has an improved debt to assets ratio.
2.2 Solvency
1WDAY has an Altman-Z score of 6.00. This indicates that 1WDAY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1WDAY (6.00) is better than 69.61% of its industry peers.
1WDAY has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
The Debt to FCF ratio of 1WDAY (1.41) is better than 78.43% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that 1WDAY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.35, 1WDAY is in line with its industry, outperforming 45.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 6 |
ROIC/WACC0.3
WACC8.72%
2.3 Liquidity
A Current Ratio of 2.05 indicates that 1WDAY has no problem at all paying its short term obligations.
The Current ratio of 1WDAY (2.05) is better than 77.45% of its industry peers.
1WDAY has a Quick Ratio of 2.05. This indicates that 1WDAY is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.05, 1WDAY is doing good in the industry, outperforming 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.13% over the past year.
Measured over the past years, 1WDAY shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.84% on average per year.
The Revenue has grown by 16.81% in the past year. This is quite good.
1WDAY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.80% yearly.
EPS 1Y (TTM)32.13%
EPS 3Y26.72%
EPS 5Y33.84%
EPS Q2Q%23.53%
Revenue 1Y (TTM)16.81%
Revenue growth 3Y18.9%
Revenue growth 5Y20.8%
Sales Q2Q%15.78%
3.2 Future
1WDAY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.57% yearly.
1WDAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.41% yearly.
EPS Next Y24.96%
EPS Next 2Y20.97%
EPS Next 3Y20.87%
EPS Next 5Y16.57%
Revenue Next Year16.06%
Revenue Next 2Y14.59%
Revenue Next 3Y14.32%
Revenue Next 5Y14.41%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.47, 1WDAY can be considered very expensive at the moment.
1WDAY's Price/Earnings ratio is a bit cheaper when compared to the industry. 1WDAY is cheaper than 70.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, 1WDAY is valued a bit more expensive.
With a Price/Forward Earnings ratio of 29.67, 1WDAY can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, 1WDAY is valued a bit cheaper than 62.75% of the companies in the same industry.
1WDAY's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.47 | ||
| Fwd PE | 29.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1WDAY indicates a slightly more expensive valuation: 1WDAY is more expensive than 61.76% of the companies listed in the same industry.
71.57% of the companies in the same industry are more expensive than 1WDAY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.95 | ||
| EV/EBITDA | 79.17 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as 1WDAY's earnings are expected to grow with 20.87% in the coming years.
PEG (NY)1.46
PEG (5Y)1.08
EPS Next 2Y20.97%
EPS Next 3Y20.87%
5. Dividend
5.1 Amount
1WDAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1WDAY (6/9/2025, 7:00:00 PM)
220.3
-26.55 (-10.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.1%
Inst Owner ChangeN/A
Ins Owners0.63%
Ins Owner ChangeN/A
Market Cap58.60B
Analysts77.78
Price Target292.74 (32.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.76%
Min EPS beat(2)4.1%
Max EPS beat(2)5.42%
EPS beat(4)4
Avg EPS beat(4)5.52%
Min EPS beat(4)4.1%
Max EPS beat(4)7.83%
EPS beat(8)8
Avg EPS beat(8)7.69%
EPS beat(12)11
Avg EPS beat(12)6.84%
EPS beat(16)15
Avg EPS beat(16)13.01%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.6%
Revenue beat(4)0
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-1.73%
Max Revenue beat(4)-0.6%
Revenue beat(8)0
Avg Revenue beat(8)-1.14%
Revenue beat(12)0
Avg Revenue beat(12)-1.07%
Revenue beat(16)0
Avg Revenue beat(16)-0.95%
PT rev (1m)4.26%
PT rev (3m)13.59%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)2.61%
EPS NY rev (1m)0.02%
EPS NY rev (3m)2.03%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.47 | ||
| Fwd PE | 29.67 | ||
| P/S | 8.27 | ||
| P/FCF | 31.95 | ||
| P/OCF | 28.76 | ||
| P/B | 7.82 | ||
| P/tB | 14.24 | ||
| EV/EBITDA | 79.17 |
EPS(TTM)6.04
EY2.74%
EPS(NY)7.43
Fwd EY3.37%
FCF(TTM)6.9
FCFY3.13%
OCF(TTM)7.66
OCFY3.48%
SpS26.65
BVpS28.17
TBVpS15.47
PEG (NY)1.46
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 18.79% | ||
| ROCE | 3.49% | ||
| ROIC | 2.62% | ||
| ROICexc | 6.48% | ||
| ROICexgc | 32.81% | ||
| OM | 5.13% | ||
| PM (TTM) | 19.87% | ||
| GM | 75.6% | ||
| FCFM | 25.88% |
ROA(3y)1.99%
ROA(5y)-0.87%
ROE(3y)3.72%
ROE(5y)-3.35%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.52%
GM growth 5Y1.43%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 76.22% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 3.82 | ||
| Cash Conversion | 323.3% | ||
| Profit Quality | 130.27% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | 6 |
F-Score7
WACC8.72%
ROIC/WACC0.3
Cap/Depr(3y)104.99%
Cap/Depr(5y)105.76%
Cap/Sales(3y)5.94%
Cap/Sales(5y)6.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.13%
EPS 3Y26.72%
EPS 5Y33.84%
EPS Q2Q%23.53%
EPS Next Y24.96%
EPS Next 2Y20.97%
EPS Next 3Y20.87%
EPS Next 5Y16.57%
Revenue 1Y (TTM)16.81%
Revenue growth 3Y18.9%
Revenue growth 5Y20.8%
Sales Q2Q%15.78%
Revenue Next Year16.06%
Revenue Next 2Y14.59%
Revenue Next 3Y14.32%
Revenue Next 5Y14.41%
EBIT growth 1Y2626.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.12%
EBIT Next 3Y27.25%
EBIT Next 5Y23.03%
FCF growth 1Y74.58%
FCF growth 3Y23.76%
FCF growth 5Y55.08%
OCF growth 1Y48.6%
OCF growth 3Y19.21%
OCF growth 5Y28.78%