FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis
USA - NASDAQ:FRSH - US3580541049 - Common Stock
11.39 USD
-0.03 (-0.26%)
11.5 USD
+0.11 (+0.97%)
We assign a fundamental rating of 5 out of 10 to FRSH. FRSH was compared to 285 industry peers in the Software industry. The financial health of FRSH is average, but there are quite some concerns on its profitability. FRSH is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year FRSH was profitable.
In the past year FRSH had a positive cash flow from operations.
In the past 5 years FRSH always reported negative net income.
Of the past 5 years FRSH 4 years had a positive operating cash flow.
1.2 Ratios
FRSH's Return On Assets of -3.71% is in line compared to the rest of the industry. FRSH outperforms 47.90% of its industry peers.
FRSH has a Return On Equity (-5.58%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.71% | ||
| ROE | -5.58% | ||
| ROIC | N/A |
ROA(3y)-10.72%
ROA(5y)-132.79%
ROE(3y)-14.42%
ROE(5y)-217.6%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
FRSH has a Gross Margin of 84.62%. This is amongst the best in the industry. FRSH outperforms 93.01% of its industry peers.
FRSH's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for FRSH so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 84.62% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.19%
GM growth 5Y1.34%
2. Health
2.1 Basic Checks
FRSH does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for FRSH has been increased compared to 1 year ago.
Compared to 5 years ago, FRSH has more shares outstanding
FRSH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that FRSH is in the distress zone and has some risk of bankruptcy.
FRSH's Altman-Z score of 1.42 is on the low side compared to the rest of the industry. FRSH is outperformed by 60.14% of its industry peers.
There is no outstanding debt for FRSH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.42 |
ROIC/WACCN/A
WACC11.03%
2.3 Liquidity
A Current Ratio of 2.63 indicates that FRSH has no problem at all paying its short term obligations.
The Current ratio of FRSH (2.63) is better than 72.73% of its industry peers.
A Quick Ratio of 2.63 indicates that FRSH has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.63, FRSH is in the better half of the industry, outperforming 73.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 79.41% over the past year.
FRSH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.77%.
Measured over the past years, FRSH shows a very strong growth in Revenue. The Revenue has been growing by 33.11% on average per year.
EPS 1Y (TTM)79.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%125%
Revenue 1Y (TTM)19.77%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%17.54%
3.2 Future
Based on estimates for the next years, FRSH will show a very strong growth in Earnings Per Share. The EPS will grow by 22.84% on average per year.
The Revenue is expected to grow by 14.73% on average over the next years. This is quite good.
EPS Next Y38.61%
EPS Next 2Y25.95%
EPS Next 3Y23.35%
EPS Next 5Y22.84%
Revenue Next Year15.53%
Revenue Next 2Y14.27%
Revenue Next 3Y14.11%
Revenue Next 5Y14.73%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.67, which indicates a rather expensive current valuation of FRSH.
79.72% of the companies in the same industry are more expensive than FRSH, based on the Price/Earnings ratio.
FRSH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.70 indicates a correct valuation of FRSH.
81.82% of the companies in the same industry are more expensive than FRSH, based on the Price/Forward Earnings ratio.
FRSH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 16.7 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, FRSH is valued cheaper than 82.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.25 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
FRSH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FRSH's earnings are expected to grow with 23.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y25.95%
EPS Next 3Y23.35%
5. Dividend
5.1 Amount
No dividends for FRSH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.39
-0.03 (-0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.76%
Inst Owner Change-0.01%
Ins Owners1.11%
Ins Owner Change-1.79%
Market Cap3.32B
Revenue(TTM)782.10M
Net Income(TTM)-54902000
Analysts80
Price Target20.61 (80.95%)
Short Float %5.71%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.16%
Min EPS beat(2)38.47%
Max EPS beat(2)53.84%
EPS beat(4)4
Avg EPS beat(4)41.63%
Min EPS beat(4)35.11%
Max EPS beat(4)53.84%
EPS beat(8)8
Avg EPS beat(8)40.8%
EPS beat(12)12
Avg EPS beat(12)94.8%
EPS beat(16)15
Avg EPS beat(16)80.44%
Revenue beat(2)2
Avg Revenue beat(2)0.6%
Min Revenue beat(2)0.28%
Max Revenue beat(2)0.92%
Revenue beat(4)4
Avg Revenue beat(4)0.65%
Min Revenue beat(4)0.28%
Max Revenue beat(4)0.92%
Revenue beat(8)5
Avg Revenue beat(8)0.18%
Revenue beat(12)9
Avg Revenue beat(12)0.29%
Revenue beat(16)13
Avg Revenue beat(16)0.97%
PT rev (1m)0%
PT rev (3m)1.75%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)2.61%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 16.7 | ||
| P/S | 4.24 | ||
| P/FCF | 18.25 | ||
| P/OCF | 16.58 | ||
| P/B | 3.37 | ||
| P/tB | 4.4 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.61
EY5.36%
EPS(NY)0.68
Fwd EY5.99%
FCF(TTM)0.62
FCFY5.48%
OCF(TTM)0.69
OCFY6.03%
SpS2.68
BVpS3.38
TBVpS2.59
PEG (NY)0.48
PEG (5Y)N/A
Graham Number6.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.71% | ||
| ROE | -5.58% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 84.62% | ||
| FCFM | 23.26% |
ROA(3y)-10.72%
ROA(5y)-132.79%
ROE(3y)-14.42%
ROE(5y)-217.6%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y2.19%
GM growth 5Y1.34%
F-Score7
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 72.31% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 | ||
| Altman-Z | 1.42 |
F-Score7
WACC11.03%
ROIC/WACCN/A
Cap/Depr(3y)83.57%
Cap/Depr(5y)83.13%
Cap/Sales(3y)1.96%
Cap/Sales(5y)2.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)79.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%125%
EPS Next Y38.61%
EPS Next 2Y25.95%
EPS Next 3Y23.35%
EPS Next 5Y22.84%
Revenue 1Y (TTM)19.77%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%17.54%
Revenue Next Year15.53%
Revenue Next 2Y14.27%
Revenue Next 3Y14.11%
Revenue Next 5Y14.73%
EBIT growth 1Y53.68%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year114.56%
EBIT Next 3Y43.48%
EBIT Next 5YN/A
FCF growth 1Y658.99%
FCF growth 3Y296.61%
FCF growth 5YN/A
OCF growth 1Y483.15%
OCF growth 3Y141.12%
OCF growth 5YN/A
FRESHWORKS INC-CL A / FRSH FAQ
What is the ChartMill fundamental rating of FRESHWORKS INC-CL A (FRSH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to FRSH.
What is the valuation status of FRESHWORKS INC-CL A (FRSH) stock?
ChartMill assigns a valuation rating of 6 / 10 to FRESHWORKS INC-CL A (FRSH). This can be considered as Fairly Valued.
What is the profitability of FRSH stock?
FRESHWORKS INC-CL A (FRSH) has a profitability rating of 3 / 10.
What are the PE and PB ratios of FRESHWORKS INC-CL A (FRSH) stock?
The Price/Earnings (PE) ratio for FRESHWORKS INC-CL A (FRSH) is 18.67 and the Price/Book (PB) ratio is 3.37.