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FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis

USA - NASDAQ:FRSH - US3580541049 - Common Stock

12.89 USD
-0.28 (-2.13%)
Last: 9/19/2025, 8:10:45 PM
12.88 USD
-0.01 (-0.08%)
After Hours: 9/19/2025, 8:10:45 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to FRSH. FRSH was compared to 281 industry peers in the Software industry. FRSH has a great financial health rating, but its profitability evaluates not so good. FRSH is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

FRSH had positive earnings in the past year.
In the past year FRSH had a positive cash flow from operations.
FRSH had negative earnings in each of the past 5 years.
Of the past 5 years FRSH 4 years had a positive operating cash flow.
FRSH Yearly Net Income VS EBIT VS OCF VS FCFFRSH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 -500M -1B -1.5B -2B -2.5B

1.2 Ratios

FRSH has a Return On Assets (-3.71%) which is comparable to the rest of the industry.
FRSH has a Return On Equity of -5.58%. This is comparable to the rest of the industry: FRSH outperforms 53.02% of its industry peers.
Industry RankSector 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
FRSH Yearly ROA, ROE, ROICFRSH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 -200 -400 -600 -800

1.3 Margins

FRSH's Gross Margin of 84.62% is amongst the best of the industry. FRSH outperforms 92.53% 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 RankSector 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%
FRSH Yearly Profit, Operating, Gross MarginsFRSH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 -200 -400 -600

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7

2. Health

2.1 Basic Checks

FRSH does not have a ROIC to compare to the WACC, probably because it is not profitable.
FRSH has more shares outstanding than it did 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.
FRSH Yearly Shares OutstandingFRSH Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 100M 200M 300M
FRSH Yearly Total Debt VS Total AssetsFRSH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 1.95 indicates that FRSH is not a great score, but indicates only limited risk for bankruptcy at the moment.
FRSH has a Altman-Z score (1.95) which is comparable to the rest of the industry.
FRSH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 1.95
ROIC/WACCN/A
WACC11.13%
FRSH Yearly LT Debt VS Equity VS FCFFRSH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

2.3 Liquidity

FRSH has a Current Ratio of 2.63. This indicates that FRSH is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.63, FRSH is doing good in the industry, outperforming 73.31% of the companies in the same industry.
FRSH has a Quick Ratio of 2.63. This indicates that FRSH is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of FRSH (2.63) is better than 74.02% of its industry peers.
Industry RankSector Rank
Current Ratio 2.63
Quick Ratio 2.63
FRSH Yearly Current Assets VS Current LiabilitesFRSH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 500M 1B

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 79.41% over the past year.
Looking at the last year, FRSH shows a quite strong growth in Revenue. The Revenue has grown by 19.77% in the last year.
FRSH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.11% yearly.
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 21.87% on average per year.
FRSH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.89% yearly.
EPS Next Y38.7%
EPS Next 2Y25.76%
EPS Next 3Y23.43%
EPS Next 5Y21.87%
Revenue Next Year15.56%
Revenue Next 2Y14.26%
Revenue Next 3Y14.07%
Revenue Next 5Y14.89%

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.
FRSH Yearly Revenue VS EstimatesFRSH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
FRSH Yearly EPS VS EstimatesFRSH Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 0 0.2 -0.2 0.4 0.6 0.8

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 21.13, which indicates a rather expensive current valuation of FRSH.
FRSH's Price/Earnings ratio is a bit cheaper when compared to the industry. FRSH is cheaper than 75.80% of the companies in the same industry.
FRSH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
FRSH is valuated rather expensively with a Price/Forward Earnings ratio of 18.95.
77.58% of the companies in the same industry are more expensive than FRSH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.86. FRSH is around the same levels.
Industry RankSector Rank
PE 21.13
Fwd PE 18.95
FRSH Price Earnings VS Forward Price EarningsFRSH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

80.07% of the companies in the same industry are more expensive than FRSH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 20.65
EV/EBITDA N/A
FRSH Per share dataFRSH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

4.3 Compensation for Growth

The 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 23.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y25.76%
EPS Next 3Y23.43%

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0

5. Dividend

5.1 Amount

No dividends for FRSH!.
Industry RankSector Rank
Dividend Yield N/A

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FRESHWORKS INC-CL A

NASDAQ:FRSH (9/19/2025, 8:10:45 PM)

After market: 12.88 -0.01 (-0.08%)

12.89

-0.28 (-2.13%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)07-29 2025-07-29/amc
Earnings (Next)11-04 2025-11-04/amc
Inst Owners86.76%
Inst Owner Change1.74%
Ins Owners1.11%
Ins Owner Change-1.83%
Market Cap3.76B
Analysts80
Price Target20.61 (59.89%)
Short Float %5.63%
Short Ratio2.52
Dividend
Industry RankSector 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)-2.08%
PT rev (3m)1.7%
EPS NQ rev (1m)0.97%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)0%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.91%
Valuation
Industry RankSector Rank
PE 21.13
Fwd PE 18.95
P/S 4.8
P/FCF 20.65
P/OCF 18.76
P/B 3.82
P/tB 4.98
EV/EBITDA N/A
EPS(TTM)0.61
EY4.73%
EPS(NY)0.68
Fwd EY5.28%
FCF(TTM)0.62
FCFY4.84%
OCF(TTM)0.69
OCFY5.33%
SpS2.68
BVpS3.38
TBVpS2.59
PEG (NY)0.55
PEG (5Y)N/A
Profitability
Industry RankSector 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
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 3Y2.19%
GM growth 5Y1.34%
F-Score7
Asset Turnover0.53
Health
Industry RankSector 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 1.95
F-Score7
WACC11.13%
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 Y38.7%
EPS Next 2Y25.76%
EPS Next 3Y23.43%
EPS Next 5Y21.87%
Revenue 1Y (TTM)19.77%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%17.54%
Revenue Next Year15.56%
Revenue Next 2Y14.26%
Revenue Next 3Y14.07%
Revenue Next 5Y14.89%
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