FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis
USA - NASDAQ:FRSH - US3580541049 - Common Stock
11.43 USD
+0.04 (+0.35%)
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. FRSH scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
FRSH had negative earnings in each of the past 5 years.
FRSH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of FRSH (-3.71%) is comparable to the rest of the industry.
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 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
FRSH has a better Gross Margin (84.62%) than 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 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.
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.
2.2 Solvency
FRSH has an Altman-Z score of 1.42. 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 1.42, FRSH is doing worse than 60.35% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.42 |
ROIC/WACCN/A
WACC11%
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 better Current ratio (2.63) than 72.63% 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 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 79.41% over the past year.
FRSH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.77%.
The Revenue has been growing by 33.11% on average over the past years. This is a very strong growth!
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 22.84% on average over the next years. This is a very strong growth
FRSH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.73% yearly.
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
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
FRSH is valuated rather expensively with a Price/Earnings ratio of 18.74.
79.65% 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 27.57.
A Price/Forward Earnings ratio of 16.81 indicates a correct valuation of FRSH.
81.75% 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 23.09, FRSH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
82.46% of the companies in the same industry are more expensive than FRSH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.31 | ||
| 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 23.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y25.76%
EPS Next 3Y23.43%
5. Dividend
5.1 Amount
No dividends for FRSH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:FRSH (10/23/2025, 2:44:58 PM)
11.43
+0.04 (+0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.76%
Inst Owner Change-0.01%
Ins Owners1.11%
Ins Owner Change-1.79%
Market Cap3.33B
Revenue(TTM)782.10M
Net Income(TTM)-54902000
Analysts80
Price Target20.61 (80.31%)
Short Float %6.68%
Short Ratio3.14
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)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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 16.81 | ||
| P/S | 4.26 | ||
| P/FCF | 18.31 | ||
| P/OCF | 16.63 | ||
| P/B | 3.38 | ||
| P/tB | 4.42 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.61
EY5.34%
EPS(NY)0.68
Fwd EY5.95%
FCF(TTM)0.62
FCFY5.46%
OCF(TTM)0.69
OCFY6.01%
SpS2.68
BVpS3.38
TBVpS2.59
PEG (NY)0.48
PEG (5Y)N/A
Graham Number6.81
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
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 Turnover0.53
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 | 1.42 |
F-Score7
WACC11%
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