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FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis

NASDAQ:FRSH - Nasdaq - US3580541049 - Common Stock - Currency: USD

14.7  +0.22 (+1.52%)

After market: 14.7 0 (0%)

Fundamental Rating

5

Overall FRSH gets a fundamental rating of 5 out of 10. We evaluated FRSH against 281 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!


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

FRSH had positive earnings in the past year.
In the past year FRSH had a positive cash flow from operations.
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.
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 -5.92% is in line compared to the rest of the industry. FRSH outperforms 45.91% of its industry peers.
FRSH has a Return On Equity (-8.38%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA -5.92%
ROE -8.38%
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 84.27%. This is amongst the best in the industry. FRSH outperforms 91.81% 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 84.27%
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

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7

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.
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.
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

An Altman-Z score of 2.98 indicates that FRSH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.98, FRSH is in line with its industry, outperforming 59.43% 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 2.98
ROIC/WACCN/A
WACC10.51%
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 3.10 indicates that FRSH has no problem at all paying its short term obligations.
FRSH's Current ratio of 3.10 is fine compared to the rest of the industry. FRSH outperforms 75.09% of its industry peers.
FRSH has a Quick Ratio of 3.10. This indicates that FRSH is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of FRSH (3.10) is better than 75.44% of its industry peers.
Industry RankSector Rank
Current Ratio 3.1
Quick Ratio 3.1
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

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 54.55% over the past year.
The Revenue has grown by 20.79% in the past year. This is a very strong growth!
The Revenue has been growing by 33.11% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)54.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%80%
Revenue 1Y (TTM)20.79%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%18.85%

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 21.87% on average per year.
FRSH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.89% yearly.
EPS Next Y24.88%
EPS Next 2Y23.57%
EPS Next 3Y20.08%
EPS Next 5Y21.87%
Revenue Next Year13.7%
Revenue Next 2Y13.21%
Revenue Next 3Y13.05%
Revenue Next 5Y14.89%

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

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 28.82, the valuation of FRSH can be described as expensive.
Based on the Price/Earnings ratio, FRSH is valued a bit cheaper than 68.33% of the companies in the same industry.
FRSH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.22.
With a Price/Forward Earnings ratio of 22.39, FRSH is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRSH indicates a somewhat cheap valuation: FRSH is cheaper than 75.09% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, FRSH is valued at the same level.
Industry RankSector Rank
PE 28.82
Fwd PE 22.39
FRSH Price Earnings VS Forward Price EarningsFRSH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, FRSH is valued a bit cheaper than the industry average as 74.38% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 29.71
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as FRSH's earnings are expected to grow with 20.08% in the coming years.
PEG (NY)1.16
PEG (5Y)N/A
EPS Next 2Y23.57%
EPS Next 3Y20.08%

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0

5. Dividend

5.1 Amount

FRSH does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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FRESHWORKS INC-CL A

NASDAQ:FRSH (5/2/2025, 4:10:29 PM)

After market: 14.7 0 (0%)

14.7

+0.22 (+1.52%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)04-29 2025-04-29/amc
Earnings (Next)07-28 2025-07-28/amc
Inst Owners86.44%
Inst Owner Change0.06%
Ins Owners1.13%
Ins Owner Change5.62%
Market Cap4.34B
Analysts77.39
Price Target20.08 (36.6%)
Short Float %3.8%
Short Ratio2.58
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)37.1%
Min EPS beat(2)35.11%
Max EPS beat(2)39.1%
EPS beat(4)4
Avg EPS beat(4)33.25%
Min EPS beat(4)27.52%
Max EPS beat(4)39.1%
EPS beat(8)8
Avg EPS beat(8)104.63%
EPS beat(12)12
Avg EPS beat(12)94.75%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.7%
Min Revenue beat(2)0.69%
Max Revenue beat(2)0.7%
Revenue beat(4)3
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-1.11%
Max Revenue beat(4)1.01%
Revenue beat(8)5
Avg Revenue beat(8)0.17%
Revenue beat(12)9
Avg Revenue beat(12)0.57%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-8.96%
PT rev (3m)7.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.09%
EPS NY rev (1m)0%
EPS NY rev (3m)2.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.12%
Valuation
Industry RankSector Rank
PE 28.82
Fwd PE 22.39
P/S 6.02
P/FCF 29.71
P/OCF 27
P/B 3.81
P/tB 4.82
EV/EBITDA N/A
EPS(TTM)0.51
EY3.47%
EPS(NY)0.66
Fwd EY4.47%
FCF(TTM)0.49
FCFY3.37%
OCF(TTM)0.54
OCFY3.7%
SpS2.44
BVpS3.86
TBVpS3.05
PEG (NY)1.16
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.92%
ROE -8.38%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 84.27%
FCFM 20.26%
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 Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 75.52%
Cap/Sales 2.04%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.1
Quick Ratio 3.1
Altman-Z 2.98
F-Score7
WACC10.51%
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)54.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%80%
EPS Next Y24.88%
EPS Next 2Y23.57%
EPS Next 3Y20.08%
EPS Next 5Y21.87%
Revenue 1Y (TTM)20.79%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%18.85%
Revenue Next Year13.7%
Revenue Next 2Y13.21%
Revenue Next 3Y13.05%
Revenue Next 5Y14.89%
EBIT growth 1Y24.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year84.53%
EBIT Next 3Y40.6%
EBIT Next 5YN/A
FCF growth 1Y87.55%
FCF growth 3Y296.61%
FCF growth 5YN/A
OCF growth 1Y86.41%
OCF growth 3Y141.12%
OCF growth 5YN/A