FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis
NASDAQ:FRSH - US3580541049 - Common Stock
13.97 USD
+0.77 (+5.83%)
14 USD
+0.03 (+0.21%)
We assign a fundamental rating of 5 out of 10 to FRSH. FRSH was compared to 282 industry peers in the Software industry. While FRSH has a great health rating, there are worries on its profitability. FRSH is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
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
The Return On Assets of FRSH (-3.71%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -5.58%, FRSH is in line with its industry, outperforming 54.06% of the companies in the same 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
With an excellent Gross Margin value of 84.62%, FRSH belongs to the best of the industry, outperforming 92.93% 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 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.
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.
2.2 Solvency
An Altman-Z score of 2.33 indicates that FRSH is not a great score, but indicates only limited risk for bankruptcy at the moment.
FRSH has a Altman-Z score of 2.33. This is comparable to the rest of the industry: FRSH outperforms 53.71% 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 | 2.33 |
ROIC/WACCN/A
WACC11.28%
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.
FRSH has a Current ratio of 2.63. This is in the better half of the industry: FRSH outperforms 72.08% of its industry peers.
A Quick Ratio of 2.63 indicates that FRSH has no problem at all paying its short term obligations.
The Quick ratio of FRSH (2.63) is better than 72.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
FRSH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 79.41%, which is quite impressive.
Looking at the last year, FRSH shows a quite strong growth in Revenue. The Revenue has grown by 19.77% in the last year.
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
The Earnings Per Share is expected to grow by 21.87% on average over the next years. This is a very strong growth
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 Y38.7%
EPS Next 2Y25.28%
EPS Next 3Y23.53%
EPS Next 5Y21.87%
Revenue Next Year15.56%
Revenue Next 2Y14.16%
Revenue Next 3Y13.86%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.90, FRSH is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of FRSH indicates a somewhat cheap valuation: FRSH is cheaper than 73.50% of the companies listed in the same industry.
FRSH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
A Price/Forward Earnings ratio of 20.70 indicates a rather expensive valuation of FRSH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRSH indicates a somewhat cheap valuation: FRSH is cheaper than 74.91% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FRSH to the average of the S&P500 Index (22.81), we can say FRSH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 20.7 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, FRSH is valued a bit cheaper than the industry average as 78.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.38 | ||
| 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.
A more expensive valuation may be justified as FRSH's earnings are expected to grow with 23.53% in the coming years.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y25.28%
EPS Next 3Y23.53%
5. Dividend
5.1 Amount
FRSH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.97
+0.77 (+5.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.36%
Inst Owner Change1.74%
Ins Owners1.23%
Ins Owner Change2.51%
Market Cap4.07B
Analysts80
Price Target21.05 (50.68%)
Short Float %4.1%
Short Ratio2.06
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)3.91%
PT rev (3m)3.86%
EPS NQ rev (1m)1.87%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)2.68%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 20.7 | ||
| P/S | 5.21 | ||
| P/FCF | 22.38 | ||
| P/OCF | 20.33 | ||
| P/B | 4.13 | ||
| P/tB | 5.4 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.61
EY4.37%
EPS(NY)0.67
Fwd EY4.83%
FCF(TTM)0.62
FCFY4.47%
OCF(TTM)0.69
OCFY4.92%
SpS2.68
BVpS3.38
TBVpS2.59
PEG (NY)0.59
PEG (5Y)N/A
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
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 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 | 2.33 |
F-Score7
WACC11.28%
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 2Y25.28%
EPS Next 3Y23.53%
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 2Y14.16%
Revenue Next 3Y13.86%
Revenue Next 5Y14.89%
EBIT growth 1Y53.68%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year110.27%
EBIT Next 3Y44.82%
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