11.85 USD
+0.2 (+1.72%)
11.9999 USD
+0.15 (+1.26%)
We assign a fundamental rating of 5 out of 10 to FRSH. FRSH was compared to 281 industry peers in the Software industry. The financial health of FRSH is average, but there are quite some concerns on its profitability. FRSH is not priced too expensively while it is growing strongly. 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
FRSH has a Return On Assets (-2.16%) which is in line with its industry peers.
With a Return On Equity value of -3.48%, FRSH perfoms like the industry average, outperforming 55.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -3.48% | ||
| 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
The Gross Margin of FRSH (84.77%) is better than 92.88% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 84.77% |
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.
Compared to 1 year ago, FRSH has more shares outstanding
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.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that FRSH is in the distress zone and has some risk of bankruptcy.
FRSH has a Altman-Z score of 1.09. This is in the lower half of the industry: FRSH underperforms 60.14% 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 | 1.09 |
ROIC/WACCN/A
WACC10.98%
2.3 Liquidity
A Current Ratio of 2.27 indicates that FRSH has no problem at all paying its short term obligations.
FRSH has a better Current ratio (2.27) than 66.55% of its industry peers.
FRSH has a Quick Ratio of 2.27. This indicates that FRSH is financially healthy and has no problem in meeting its short term obligations.
FRSH's Quick ratio of 2.27 is fine compared to the rest of the industry. FRSH outperforms 66.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 78.38% over the past year.
Looking at the last year, FRSH shows a quite strong growth in Revenue. The Revenue has grown by 18.18% 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)78.38%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%45.45%
Revenue 1Y (TTM)18.18%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%15.3%
3.2 Future
FRSH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.84% yearly.
The Revenue is expected to grow by 14.73% on average over the next years. This is quite good.
EPS Next Y38.61%
EPS Next 2Y25.95%
EPS Next 3Y23.35%
EPS Next 5Y22.84%
Revenue Next Year15.53%
Revenue Next 2Y14.27%
Revenue Next 3Y14.11%
Revenue Next 5Y14.73%
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
A Price/Earnings ratio of 17.95 indicates a rather expensive valuation of FRSH.
76.16% 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 valuation a bit cheaper than the S&P500 average which is at 25.45.
A Price/Forward Earnings ratio of 17.37 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 75.80% 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 (34.46), we can say FRSH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, FRSH is valued cheaper than 81.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.35 | ||
| EV/EBITDA | N/A |
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 23.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y25.95%
EPS Next 3Y23.35%
5. Dividend
5.1 Amount
FRSH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.85
+0.2 (+1.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.76%
Inst Owner Change-0.44%
Ins Owners1.11%
Ins Owner Change-0.31%
Market Cap3.45B
Revenue(TTM)810.64M
Net Income(TTM)-29.62M
Analysts78.18
Price Target19.91 (68.02%)
Short Float %6.8%
Short Ratio3.81
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)37.43%
Min EPS beat(2)21.02%
Max EPS beat(2)53.84%
EPS beat(4)4
Avg EPS beat(4)37.11%
Min EPS beat(4)21.02%
Max EPS beat(4)53.84%
EPS beat(8)8
Avg EPS beat(8)37.05%
EPS beat(12)12
Avg EPS beat(12)89.71%
EPS beat(16)15
Avg EPS beat(16)77.85%
Revenue beat(2)2
Avg Revenue beat(2)0.95%
Min Revenue beat(2)0.92%
Max Revenue beat(2)0.98%
Revenue beat(4)4
Avg Revenue beat(4)0.72%
Min Revenue beat(4)0.28%
Max Revenue beat(4)0.98%
Revenue beat(8)6
Avg Revenue beat(8)0.32%
Revenue beat(12)9
Avg Revenue beat(12)0.31%
Revenue beat(16)13
Avg Revenue beat(16)0.76%
PT rev (1m)-3.37%
PT rev (3m)-5.37%
EPS NQ rev (1m)10.1%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)2.61%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 17.37 | ||
| P/S | 4.26 | ||
| P/FCF | 17.35 | ||
| P/OCF | 15.6 | ||
| P/B | 4.06 | ||
| P/tB | 5.53 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.66
EY5.57%
EPS(NY)0.68
Fwd EY5.76%
FCF(TTM)0.68
FCFY5.76%
OCF(TTM)0.76
OCFY6.41%
SpS2.78
BVpS2.92
TBVpS2.14
PEG (NY)0.47
PEG (5Y)N/A
Graham Number6.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -3.48% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 84.77% | ||
| FCFM | 24.55% |
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
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 3Y2.19%
GM growth 5Y1.34%
F-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 87.34% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 1.09 |
F-Score7
WACC10.98%
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)78.38%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%45.45%
EPS Next Y38.61%
EPS Next 2Y25.95%
EPS Next 3Y23.35%
EPS Next 5Y22.84%
Revenue 1Y (TTM)18.18%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%15.3%
Revenue Next Year15.53%
Revenue Next 2Y14.27%
Revenue Next 3Y14.11%
Revenue Next 5Y14.73%
EBIT growth 1Y74.01%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year114.56%
EBIT Next 3Y43.48%
EBIT Next 5YN/A
FCF growth 1Y273.63%
FCF growth 3Y296.61%
FCF growth 5YN/A
OCF growth 1Y254.41%
OCF growth 3Y141.12%
OCF growth 5YN/A
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 5 / 10 to FRSH.
What is the valuation status of FRESHWORKS INC-CL A (FRSH) stock?
ChartMill assigns a valuation rating of 5 / 10 to FRESHWORKS INC-CL A (FRSH). This can be considered as Fairly Valued.
What is the profitability of FRSH stock?
FRESHWORKS INC-CL A (FRSH) has a profitability rating of 3 / 10.
What are the PE and PB ratios of FRESHWORKS INC-CL A (FRSH) stock?
The Price/Earnings (PE) ratio for FRESHWORKS INC-CL A (FRSH) is 17.95 and the Price/Book (PB) ratio is 4.06.