FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis
NASDAQ:FRSH • US3580541049
7.96 USD
+0.68 (+9.34%)
At close: Feb 26, 2026
7.79 USD
-0.17 (-2.14%)
Pre-Market: 2/27/2026, 8:22:07 AM
FRSH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 274 industry peers in the Software industry. FRSH has an excellent financial health rating, but there are some minor concerns on its profitability. FRSH may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, FRSH could be worth investigating further for value investing!.
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 reported 4 times negative net income.
- Of the past 5 years FRSH 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.46%, FRSH belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
- FRSH has a better Return On Equity (17.79%) than 85.77% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 0.97%, FRSH is in the better half of the industry, outperforming 60.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.46% | ||
| ROE | 17.79% | ||
| ROIC | 0.97% |
ROA(3y)-1.3%
ROA(5y)-42.43%
ROE(3y)-1.14%
ROE(5y)-50.95%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With an excellent Profit Margin value of 21.90%, FRSH belongs to the best of the industry, outperforming 86.13% of the companies in the same industry.
- FRSH has a Operating Margin of 1.62%. This is in the better half of the industry: FRSH outperforms 61.68% of its industry peers.
- FRSH has a Gross Margin of 84.96%. This is amongst the best in the industry. FRSH outperforms 91.24% of its industry peers.
- In the last couple of years the Gross Margin of FRSH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.62% | ||
| PM (TTM) | 21.9% | ||
| GM | 84.96% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.7%
GM growth 5Y1.47%
2. Health
2.1 Basic Checks
- FRSH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- FRSH has less shares outstanding than it did 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
- FRSH has an Altman-Z score of 0.26. This is a bad value and indicates that FRSH is not financially healthy and even has some risk of bankruptcy.
- FRSH has a worse Altman-Z score (0.26) than 69.71% 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 | 0.26 |
ROIC/WACC0.09
WACC10.97%
2.3 Liquidity
- FRSH has a Current Ratio of 2.20. This indicates that FRSH is financially healthy and has no problem in meeting its short term obligations.
- FRSH's Current ratio of 2.20 is fine compared to the rest of the industry. FRSH outperforms 63.87% of its industry peers.
- FRSH has a Quick Ratio of 2.20. This indicates that FRSH is financially healthy and has no problem in meeting its short term obligations.
- FRSH's Quick ratio of 2.20 is fine compared to the rest of the industry. FRSH outperforms 64.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
- FRSH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.49%, which is quite impressive.
- FRSH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.43%.
- Measured over the past years, FRSH shows a very strong growth in Revenue. The Revenue has been growing by 27.42% on average per year.
EPS 1Y (TTM)53.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)16.43%
Revenue growth 3Y18.98%
Revenue growth 5Y27.42%
Sales Q2Q%14.48%
3.2 Future
- Based on estimates for the next years, FRSH will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.23% 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 14.67% on average per year.
EPS Next Y6.51%
EPS Next 2Y13.09%
EPS Next 3Y15.23%
EPS Next 5YN/A
Revenue Next Year14.43%
Revenue Next 2Y14.38%
Revenue Next 3Y14.67%
Revenue Next 5YN/A
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 12.06, which indicates a correct valuation of FRSH.
- FRSH's Price/Earnings ratio is rather cheap when compared to the industry. FRSH is cheaper than 86.50% of the companies in the same industry.
- FRSH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.11.
- Based on the Price/Forward Earnings ratio of 11.32, the valuation of FRSH can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FRSH indicates a rather cheap valuation: FRSH is cheaper than 82.85% 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 (28.13), we can say FRSH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
- 64.23% of the companies in the same industry are more expensive than FRSH, based on the Enterprise Value to EBITDA ratio.
- FRSH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FRSH is cheaper than 90.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.16 | ||
| EV/EBITDA | 31.71 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- FRSH has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as FRSH's earnings are expected to grow with 15.23% in the coming years.
PEG (NY)1.85
PEG (5Y)N/A
EPS Next 2Y13.09%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
- No dividends for FRSH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
7.96
+0.68 (+9.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-10 2026-02-10/amc
Earnings (Next)04-27 2026-04-27/amc
Inst Owners82.56%
Inst Owner Change0.43%
Ins Owners1.1%
Ins Owner Change7.92%
Market Cap2.24B
Revenue(TTM)838.81M
Net Income(TTM)183.72M
Analysts77.39
Price Target18.08 (127.14%)
Short Float %8.97%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)21.11%
Min EPS beat(2)21.02%
Max EPS beat(2)21.2%
EPS beat(4)4
Avg EPS beat(4)33.63%
Min EPS beat(4)21.02%
Max EPS beat(4)53.84%
EPS beat(8)8
Avg EPS beat(8)33.44%
EPS beat(12)12
Avg EPS beat(12)80.96%
EPS beat(16)16
Avg EPS beat(16)79.47%
Revenue beat(2)1
Avg Revenue beat(2)0.41%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)0.98%
Revenue beat(4)3
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-0.17%
Max Revenue beat(4)0.98%
Revenue beat(8)6
Avg Revenue beat(8)0.41%
Revenue beat(12)8
Avg Revenue beat(12)0.28%
Revenue beat(16)12
Avg Revenue beat(16)0.56%
PT rev (1m)-3.27%
PT rev (3m)-9.22%
EPS NQ rev (1m)-14.81%
EPS NQ rev (3m)-19.72%
EPS NY rev (1m)0%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 11.32 | ||
| P/S | 2.68 | ||
| P/FCF | 10.16 | ||
| P/OCF | 9.26 | ||
| P/B | 2.17 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 31.71 |
EPS(TTM)0.66
EY8.29%
EPS(NY)0.7
Fwd EY8.83%
FCF(TTM)0.78
FCFY9.84%
OCF(TTM)0.86
OCFY10.8%
SpS2.97
BVpS3.66
TBVpS2.87
PEG (NY)1.85
PEG (5Y)N/A
Graham Number7.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.46% | ||
| ROE | 17.79% | ||
| ROCE | 1.23% | ||
| ROIC | 0.97% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 10.79% | ||
| OM | 1.62% | ||
| PM (TTM) | 21.9% | ||
| GM | 84.96% | ||
| FCFM | 26.33% |
ROA(3y)-1.3%
ROA(5y)-42.43%
ROE(3y)-1.14%
ROE(5y)-50.95%
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 3Y1.7%
GM growth 5Y1.47%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 83.11% | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 614.11% | ||
| Profit Quality | 120.22% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 | ||
| Altman-Z | 0.26 |
F-Score8
WACC10.97%
ROIC/WACC0.09
Cap/Depr(3y)75.77%
Cap/Depr(5y)80.49%
Cap/Sales(3y)2%
Cap/Sales(5y)2.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)53.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y6.51%
EPS Next 2Y13.09%
EPS Next 3Y15.23%
EPS Next 5YN/A
Revenue 1Y (TTM)16.43%
Revenue growth 3Y18.98%
Revenue growth 5Y27.42%
Sales Q2Q%14.48%
Revenue Next Year14.43%
Revenue Next 2Y14.38%
Revenue Next 3Y14.67%
Revenue Next 5YN/A
EBIT growth 1Y110.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year23.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y51.3%
FCF growth 3YN/A
FCF growth 5Y58.95%
OCF growth 1Y50.87%
OCF growth 3YN/A
OCF growth 5Y49.43%
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 6 / 10 to FRSH.
What is the valuation status for FRSH stock?
ChartMill assigns a valuation rating of 7 / 10 to FRESHWORKS INC-CL A (FRSH). This can be considered as Undervalued.
What is the profitability of FRSH stock?
FRESHWORKS INC-CL A (FRSH) has a profitability rating of 6 / 10.
Can you provide the financial health for FRSH stock?
The financial health rating of FRESHWORKS INC-CL A (FRSH) is 7 / 10.
What is the earnings growth outlook for FRESHWORKS INC-CL A?
The Earnings per Share (EPS) of FRESHWORKS INC-CL A (FRSH) is expected to grow by 6.51% in the next year.