Logo image of FRSH

FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis

USA - NASDAQ:FRSH - US3580541049 - Common Stock

10.88 USD
-0.02 (-0.18%)
Last: 10/17/2025, 8:15:06 PM
10.9096 USD
+0.03 (+0.27%)
After Hours: 10/17/2025, 8:15:06 PM
Fundamental Rating

5

Taking everything into account, FRSH scores 5 out of 10 in our fundamental rating. FRSH was compared to 285 industry peers in the Software industry. While FRSH seems to be doing ok healthwise, there are quite some concerns on its profitability. FRSH is not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

3

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.
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 -3.71% is in line compared to the rest of the industry. FRSH outperforms 48.07% of its industry peers.
FRSH's Return On Equity of -5.58% is in line compared to the rest of the industry. FRSH outperforms 52.98% 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 has a Gross Margin of 84.62%. This is amongst the best in the industry. FRSH outperforms 92.98% of its industry peers.
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 84.62%
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

6

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
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.
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 1.24. This is a bad value and indicates that FRSH is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.24, FRSH is doing worse than 62.46% of the companies in the same industry.
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 1.24
ROIC/WACCN/A
WACC11.03%
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 2.63 indicates that FRSH has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.63, FRSH is doing good in the industry, outperforming 72.63% of the companies in the same industry.
A Quick Ratio of 2.63 indicates that FRSH has no problem at all paying its short term obligations.
FRSH has a better Quick ratio (2.63) than 73.33% 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

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 79.41%, which is quite impressive.
FRSH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.77%.
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 22.84% 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 14.73% on average per year.
EPS Next Y38.7%
EPS Next 2Y25.76%
EPS Next 3Y23.43%
EPS Next 5Y22.84%
Revenue Next Year15.55%
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.
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

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 17.84 indicates a rather expensive valuation of FRSH.
Compared to the rest of the industry, the Price/Earnings ratio of FRSH indicates a rather cheap valuation: FRSH is cheaper than 80.35% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.42. FRSH is valued slightly cheaper when compared to this.
FRSH is valuated correctly with a Price/Forward Earnings ratio of 16.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRSH indicates a rather cheap valuation: FRSH is cheaper than 82.46% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. FRSH is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.84
Fwd PE 16
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

Compared to the rest of the industry, the Price/Free Cash Flow ratio of FRSH indicates a rather cheap valuation: FRSH is cheaper than 83.51% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 17.43
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)0.46
PEG (5Y)N/A
EPS Next 2Y25.76%
EPS Next 3Y23.43%

0

5. Dividend

5.1 Amount

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

FRESHWORKS INC-CL A

NASDAQ:FRSH (10/17/2025, 8:15:06 PM)

After market: 10.9096 +0.03 (+0.27%)

10.88

-0.02 (-0.18%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)07-29 2025-07-29/amc
Earnings (Next)11-05 2025-11-05/amc
Inst Owners86.76%
Inst Owner Change-0.01%
Ins Owners1.11%
Ins Owner Change-1.79%
Market Cap3.17B
Analysts80
Price Target20.61 (89.43%)
Short Float %6.68%
Short Ratio3.14
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)0%
PT rev (3m)2.39%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)0%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.89%
Valuation
Industry RankSector Rank
PE 17.84
Fwd PE 16
P/S 4.05
P/FCF 17.43
P/OCF 15.83
P/B 3.22
P/tB 4.2
EV/EBITDA N/A
EPS(TTM)0.61
EY5.61%
EPS(NY)0.68
Fwd EY6.25%
FCF(TTM)0.62
FCFY5.74%
OCF(TTM)0.69
OCFY6.32%
SpS2.68
BVpS3.38
TBVpS2.59
PEG (NY)0.46
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 1.24
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 Y38.7%
EPS Next 2Y25.76%
EPS Next 3Y23.43%
EPS Next 5Y22.84%
Revenue 1Y (TTM)19.77%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%17.54%
Revenue Next Year15.55%
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