FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis
NASDAQ:FRSH - Nasdaq - US3580541049 - Common Stock - Currency: USD
FRSH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. FRSH has a great financial health rating, but its profitability evaluates not so good. FRSH is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year FRSH was profitable.
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
FRSH has a Return On Assets (-5.92%) which is in line with its industry peers.
FRSH has a Return On Equity of -8.38%. This is comparable to the rest of the industry: FRSH outperforms 52.65% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
FRSH's Gross Margin of 84.27% is amongst the best of the industry. FRSH outperforms 91.87% of its industry peers.
In the last couple of years the Gross Margin of FRSH has remained more or less at the same level.
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 | 84.27% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.19%
GM growth 5Y1.34%
2. Health
2.1 Basic Checks
FRSH does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for FRSH has been increased compared to 1 year ago.
FRSH has more shares outstanding than it did 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 3.04 indicates that FRSH is not in any danger for bankruptcy at the moment.
FRSH has a Altman-Z score of 3.04. This is comparable to the rest of the industry: FRSH outperforms 58.66% 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 | 3.04 |
ROIC/WACCN/A
WACC11%
2.3 Liquidity
A Current Ratio of 3.10 indicates that FRSH has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.10, FRSH is doing good in the industry, outperforming 77.03% of the companies in the same industry.
A Quick Ratio of 3.10 indicates that FRSH has no problem at all paying its short term obligations.
FRSH has a Quick ratio of 3.10. This is in the better half of the industry: FRSH outperforms 77.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
FRSH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.55%, which is quite impressive.
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 Y35.24%
EPS Next 2Y25.34%
EPS Next 3Y21.88%
EPS Next 5Y21.87%
Revenue Next Year14.52%
Revenue Next 2Y13.39%
Revenue Next 3Y12.83%
Revenue Next 5Y14.89%
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
The Price/Earnings ratio is 28.27, which means the current valuation is very expensive for FRSH.
Based on the Price/Earnings ratio, FRSH is valued a bit cheaper than the industry average as 69.96% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.91. FRSH is around the same levels.
A Price/Forward Earnings ratio of 21.35 indicates a rather expensive valuation of FRSH.
FRSH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FRSH is cheaper than 72.79% of the companies in the same industry.
FRSH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.27 | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
FRSH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FRSH is cheaper than 73.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.14 | ||
| 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.
A more expensive valuation may be justified as FRSH's earnings are expected to grow with 21.88% in the coming years.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y25.34%
EPS Next 3Y21.88%
5. Dividend
5.1 Amount
No dividends for FRSH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.42
-0.21 (-1.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.44%
Inst Owner Change0.94%
Ins Owners1.13%
Ins Owner Change5.59%
Market Cap4.25B
Analysts77.39
Price Target20.26 (40.5%)
Short Float %4.42%
Short Ratio3.01
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)37.1%
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)-6.51%
PT rev (3m)4.56%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)8.3%
EPS NY rev (3m)8.3%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.27 | ||
| Fwd PE | 21.35 | ||
| P/S | 5.9 | ||
| P/FCF | 29.14 | ||
| P/OCF | 26.48 | ||
| P/B | 3.74 | ||
| P/tB | 4.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.51
EY3.54%
EPS(NY)0.68
Fwd EY4.68%
FCF(TTM)0.49
FCFY3.43%
OCF(TTM)0.54
OCFY3.78%
SpS2.44
BVpS3.86
TBVpS3.05
PEG (NY)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.04 |
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)54.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%80%
EPS Next Y35.24%
EPS Next 2Y25.34%
EPS Next 3Y21.88%
EPS Next 5Y21.87%
Revenue 1Y (TTM)20.79%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%18.85%
Revenue Next Year14.52%
Revenue Next 2Y13.39%
Revenue Next 3Y12.83%
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