FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis
USA - NASDAQ:FRSH - US3580541049 - Common Stock
10.88 USD
-0.02 (-0.18%)
10.9096 USD
+0.03 (+0.27%)
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. While FRSH seems to be doing ok healthwise, there are quite some concerns on its profitability. FRSH is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year FRSH was profitable.
In the past year FRSH had a positive cash flow from operations.
FRSH had negative earnings in each of the past 5 years.
Of the past 5 years FRSH 4 years had a positive operating cash flow.
1.2 Ratios
FRSH's Return On Assets of -3.71% is in line compared to the rest of the industry. FRSH outperforms 48.07% of its industry peers.
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 Gross Margin of 84.62%. This is amongst the best in the industry. FRSH outperforms 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.
FRSH has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FRSH has more shares outstanding
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
FRSH has an Altman-Z score of 1.24. 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 1.24, FRSH is doing worse than 62.46% 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 | 1.24 |
ROIC/WACCN/A
WACC11.03%
2.3 Liquidity
A Current Ratio of 2.63 indicates that FRSH has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.63, FRSH is doing good in the industry, outperforming 72.63% of the companies in the same industry.
A Quick Ratio of 2.63 indicates that FRSH has no problem at all paying its short term obligations.
FRSH has a better Quick ratio (2.63) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
FRSH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 79.41%, which is quite impressive.
FRSH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.77%.
FRSH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.11% yearly.
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
Based on estimates for the next years, FRSH will show a very strong growth in Earnings Per Share. The EPS will grow by 22.84% 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 14.73% on average per year.
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
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
A Price/Earnings ratio of 17.84 indicates a rather expensive valuation of FRSH.
Compared to the rest of the industry, the Price/Earnings ratio of FRSH indicates a rather cheap valuation: FRSH is cheaper than 80.35% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.42. FRSH is valued slightly cheaper when compared to this.
FRSH is valuated correctly with a Price/Forward Earnings ratio of 16.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRSH indicates a rather cheap valuation: FRSH is cheaper than 82.46% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. FRSH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 16 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FRSH indicates a rather cheap valuation: FRSH is cheaper than 83.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.43 | ||
| 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)0.46
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 |
10.88
-0.02 (-0.18%)
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 Cap3.17B
Analysts80
Price Target20.61 (89.43%)
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 | 17.84 | ||
| Fwd PE | 16 | ||
| P/S | 4.05 | ||
| P/FCF | 17.43 | ||
| P/OCF | 15.83 | ||
| P/B | 3.22 | ||
| P/tB | 4.2 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.61
EY5.61%
EPS(NY)0.68
Fwd EY6.25%
FCF(TTM)0.62
FCFY5.74%
OCF(TTM)0.69
OCFY6.32%
SpS2.68
BVpS3.38
TBVpS2.59
PEG (NY)0.46
PEG (5Y)N/A
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
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 Turnover0.53
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 | 1.24 |
F-Score7
WACC11.03%
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