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FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis

NASDAQ:FRSH - Nasdaq - US3580541049 - Common Stock - Currency: USD

14.94  -0.72 (-4.6%)

After market: 14.98 +0.04 (+0.27%)

Fundamental Rating

5

FRSH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. While FRSH has a great health rating, there are worries on its profitability. FRSH is not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

FRSH had positive earnings in the past year.
FRSH had a positive operating cash flow in the past year.
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's Return On Assets of -4.76% is in line compared to the rest of the industry. FRSH outperforms 50.35% of its industry peers.
The Return On Equity of FRSH (-6.91%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA -4.76%
ROE -6.91%
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

Looking at the Gross Margin, with a value of 84.39%, FRSH belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
FRSH's Gross Margin has been stable in the last couple of years.
FRSH does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 84.39%
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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8

2. Health

2.1 Basic Checks

FRSH does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, FRSH has more shares outstanding
The number of shares outstanding for FRSH has been increased compared to 5 years ago.
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

FRSH has an Altman-Z score of 3.26. This indicates that FRSH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FRSH (3.26) is better than 60.21% of its industry peers.
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 3.26
ROIC/WACCN/A
WACC9.05%
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

A Current Ratio of 2.89 indicates that FRSH has no problem at all paying its short term obligations.
FRSH's Current ratio of 2.89 is fine compared to the rest of the industry. FRSH outperforms 75.70% of its industry peers.
A Quick Ratio of 2.89 indicates that FRSH has no problem at all paying its short term obligations.
FRSH's Quick ratio of 2.89 is fine compared to the rest of the industry. FRSH outperforms 76.41% of its industry peers.
Industry RankSector Rank
Current Ratio 2.89
Quick Ratio 2.89
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

FRSH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.55%, which is quite impressive.
The Revenue has grown by 20.45% in the past year. This is a very strong growth!
The Revenue has been growing by 33.11% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)54.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%80%
Revenue 1Y (TTM)20.45%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%18.85%

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.
Based on estimates for the next years, FRSH will show a quite strong growth in Revenue. The Revenue will grow by 14.89% on average per year.
EPS Next Y35.24%
EPS Next 2Y25.34%
EPS Next 3Y21.88%
EPS Next 5Y21.87%
Revenue Next Year14.52%
Revenue Next 2Y13.39%
Revenue Next 3Y12.83%
Revenue Next 5Y14.89%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 29.29, which means the current valuation is very expensive for FRSH.
70.07% of the companies in the same industry are more expensive than FRSH, based on the Price/Earnings ratio.
FRSH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 22.12 indicates a rather expensive valuation of FRSH.
70.42% of the companies in the same industry are more expensive than FRSH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, FRSH is valued at the same level.
Industry RankSector Rank
PE 29.29
Fwd PE 22.12
FRSH Price Earnings VS Forward Price EarningsFRSH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

FRSH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FRSH is cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.34
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.
A more expensive valuation may be justified as FRSH's earnings are expected to grow with 21.88% in the coming years.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y25.34%
EPS Next 3Y21.88%

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0

5. Dividend

5.1 Amount

FRSH does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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FRESHWORKS INC-CL A

NASDAQ:FRSH (6/13/2025, 8:02:17 PM)

After market: 14.98 +0.04 (+0.27%)

14.94

-0.72 (-4.6%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)04-29 2025-04-29/amc
Earnings (Next)07-28 2025-07-28/amc
Inst Owners86.44%
Inst Owner Change1.06%
Ins Owners1.13%
Ins Owner Change4.84%
Market Cap4.41B
Analysts77.39
Price Target20.26 (35.61%)
Short Float %4.72%
Short Ratio3.31
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)36.79%
Min EPS beat(2)35.11%
Max EPS beat(2)38.47%
EPS beat(4)4
Avg EPS beat(4)35.99%
Min EPS beat(4)31.27%
Max EPS beat(4)39.1%
EPS beat(8)8
Avg EPS beat(8)75.55%
EPS beat(12)12
Avg EPS beat(12)91.19%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.49%
Min Revenue beat(2)0.28%
Max Revenue beat(2)0.69%
Revenue beat(4)4
Avg Revenue beat(4)0.67%
Min Revenue beat(4)0.28%
Max Revenue beat(4)1.01%
Revenue beat(8)5
Avg Revenue beat(8)0.13%
Revenue beat(12)9
Avg Revenue beat(12)0.28%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-8.13%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)4.55%
EPS NY rev (1m)8.3%
EPS NY rev (3m)8.3%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
Industry RankSector Rank
PE 29.29
Fwd PE 22.12
P/S 5.86
P/FCF 27.34
P/OCF 24.76
P/B 4.15
P/tB 5.33
EV/EBITDA N/A
EPS(TTM)0.51
EY3.41%
EPS(NY)0.68
Fwd EY4.52%
FCF(TTM)0.55
FCFY3.66%
OCF(TTM)0.6
OCFY4.04%
SpS2.55
BVpS3.6
TBVpS2.8
PEG (NY)0.83
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.76%
ROE -6.91%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 84.39%
FCFM 21.45%
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 Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 73.59%
Cap/Sales 2.23%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.89
Quick Ratio 2.89
Altman-Z 3.26
F-Score7
WACC9.05%
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)54.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%80%
EPS Next Y35.24%
EPS Next 2Y25.34%
EPS Next 3Y21.88%
EPS Next 5Y21.87%
Revenue 1Y (TTM)20.45%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%18.85%
Revenue Next Year14.52%
Revenue Next 2Y13.39%
Revenue Next 3Y12.83%
Revenue Next 5Y14.89%
EBIT growth 1Y30.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year98.92%
EBIT Next 3Y39.98%
EBIT Next 5YN/A
FCF growth 1Y3840.51%
FCF growth 3Y296.61%
FCF growth 5YN/A
OCF growth 1Y2239.03%
OCF growth 3Y141.12%
OCF growth 5YN/A