WORKDAY INC-CLASS A (WDAY) Fundamental Analysis & Valuation
NASDAQ:WDAY • US98138H1014
151.04 USD
+3.86 (+2.62%)
At close: Mar 6, 2026
151.1 USD
+0.06 (+0.04%)
After Hours: 3/6/2026, 8:00:02 PM
This WDAY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, WDAY scores 6 out of 10 in our fundamental rating. WDAY was compared to 276 industry peers in the Software industry. While WDAY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WDAY is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make WDAY suitable for growth investing!
1. WDAY Profitability Analysis
1.1 Basic Checks
- In the past year WDAY was profitable.
- In the past year WDAY had a positive cash flow from operations.
- WDAY had positive earnings in 4 of the past 5 years.
- WDAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WDAY's Return On Assets of 6.97% is fine compared to the rest of the industry. WDAY outperforms 78.26% of its industry peers.
- WDAY has a Return On Equity of 16.14%. This is amongst the best in the industry. WDAY outperforms 83.33% of its industry peers.
- The Return On Invested Capital of WDAY (10.27%) is better than 86.23% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WDAY is significantly below the industry average of 10.72%.
- The last Return On Invested Capital (10.27%) for WDAY is above the 3 year average (3.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 16.14% | ||
| ROIC | 10.27% |
ROA(3y)5.05%
ROA(5y)2.54%
ROE(3y)10.6%
ROE(5y)5.17%
ROIC(3y)3.62%
ROIC(5y)N/A
1.3 Margins
- WDAY's Profit Margin of 13.19% is fine compared to the rest of the industry. WDAY outperforms 78.26% of its industry peers.
- The Operating Margin of WDAY (16.64%) is better than 84.42% of its industry peers.
- With a decent Gross Margin value of 75.70%, WDAY is doing good in the industry, outperforming 68.48% of the companies in the same industry.
- In the last couple of years the Gross Margin of WDAY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.64% | ||
| PM (TTM) | 13.19% | ||
| GM | 75.7% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.49%
GM growth 5Y0.94%
2. WDAY Health Analysis
2.1 Basic Checks
- WDAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for WDAY has been reduced compared to 1 year ago.
- WDAY has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, WDAY has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.18 indicates that WDAY is not in any danger for bankruptcy at the moment.
- WDAY has a better Altman-Z score (3.18) than 64.86% of its industry peers.
- The Debt to FCF ratio of WDAY is 1.08, which is an excellent value as it means it would take WDAY, only 1.08 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of WDAY (1.08) is better than 73.55% of its industry peers.
- A Debt/Equity ratio of 0.38 indicates that WDAY is not too dependend on debt financing.
- WDAY's Debt to Equity ratio of 0.38 is on the low side compared to the rest of the industry. WDAY is outperformed by 62.32% of its industry peers.
- Although WDAY's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.93
WACC11%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that WDAY should not have too much problems paying its short term obligations.
- WDAY's Current ratio of 1.32 is in line compared to the rest of the industry. WDAY outperforms 40.94% of its industry peers.
- WDAY has a Quick Ratio of 1.32. This is a normal value and indicates that WDAY is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of WDAY (1.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. WDAY Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 26.44% over the past year.
- Measured over the past years, WDAY shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.32% on average per year.
- The Revenue has grown by 13.09% in the past year. This is quite good.
- The Revenue has been growing by 17.21% on average over the past years. This is quite good.
EPS 1Y (TTM)26.44%
EPS 3Y36.36%
EPS 5Y26.32%
EPS Q2Q%28.65%
Revenue 1Y (TTM)13.09%
Revenue growth 3Y15.4%
Revenue growth 5Y17.21%
Sales Q2Q%14.52%
3.2 Future
- The Earnings Per Share is expected to grow by 10.94% on average over the next years. This is quite good.
- WDAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.75% yearly.
EPS Next Y16.35%
EPS Next 2Y17.44%
EPS Next 3Y15.66%
EPS Next 5Y10.94%
Revenue Next Year11.93%
Revenue Next 2Y11.63%
Revenue Next 3Y11.18%
Revenue Next 5Y10.75%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- 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. WDAY Valuation Analysis
4.1 Price/Earnings Ratio
- WDAY is valuated correctly with a Price/Earnings ratio of 16.36.
- WDAY's Price/Earnings ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 79.71% of the companies in the same industry.
- WDAY is valuated rather cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 14.06 indicates a correct valuation of WDAY.
- Based on the Price/Forward Earnings ratio, WDAY is valued a bit cheaper than the industry average as 79.35% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.57. WDAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 14.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WDAY is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WDAY indicates a rather cheap valuation: WDAY is cheaper than 84.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.3 | ||
| EV/EBITDA | 16.69 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- WDAY has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as WDAY's earnings are expected to grow with 15.66% in the coming years.
PEG (NY)1
PEG (5Y)0.62
EPS Next 2Y17.44%
EPS Next 3Y15.66%
5. WDAY Dividend Analysis
5.1 Amount
- No dividends for WDAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
WDAY Fundamentals: All Metrics, Ratios and Statistics
151.04
+3.86 (+2.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-24 2026-02-24/amc
Earnings (Next)05-20 2026-05-20/amc
Inst Owners99.12%
Inst Owner Change-3.32%
Ins Owners0.73%
Ins Owner Change-3.83%
Market Cap39.72B
Revenue(TTM)9.55B
Net Income(TTM)1.26B
Analysts77.5
Price Target241.4 (59.83%)
Short Float %6.25%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)4.18%
Min EPS beat(2)4.13%
Max EPS beat(2)4.23%
EPS beat(4)4
Avg EPS beat(4)4.95%
Min EPS beat(4)2.45%
Max EPS beat(4)8.98%
EPS beat(8)8
Avg EPS beat(8)5.38%
EPS beat(12)12
Avg EPS beat(12)6.67%
EPS beat(16)15
Avg EPS beat(16)6.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)-0.97%
Revenue beat(8)0
Avg Revenue beat(8)-1.18%
Revenue beat(12)0
Avg Revenue beat(12)-1.19%
Revenue beat(16)0
Avg Revenue beat(16)-1.17%
PT rev (1m)-13.57%
PT rev (3m)-15.81%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)0.57%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 14.06 | ||
| P/S | 4.16 | ||
| P/FCF | 14.3 | ||
| P/OCF | 13.52 | ||
| P/B | 5.09 | ||
| P/tB | 20.96 | ||
| EV/EBITDA | 16.69 |
EPS(TTM)9.23
EY6.11%
EPS(NY)10.74
Fwd EY7.11%
FCF(TTM)10.56
FCFY6.99%
OCF(TTM)11.17
OCFY7.4%
SpS36.32
BVpS29.68
TBVpS7.21
PEG (NY)1
PEG (5Y)0.62
Graham Number78.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 16.14% | ||
| ROCE | 13.59% | ||
| ROIC | 10.27% | ||
| ROICexc | 19.2% | ||
| ROICexgc | 350.06% | ||
| OM | 16.64% | ||
| PM (TTM) | 13.19% | ||
| GM | 75.7% | ||
| FCFM | 29.07% |
ROA(3y)5.05%
ROA(5y)2.54%
ROE(3y)10.6%
ROE(5y)5.17%
ROIC(3y)3.62%
ROIC(5y)N/A
ROICexc(3y)8.26%
ROICexc(5y)N/A
ROICexgc(3y)107.76%
ROICexgc(5y)N/A
ROCE(3y)4.79%
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 3Y1.49%
GM growth 5Y0.94%
F-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 46.69% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 151.81% | ||
| Profit Quality | 220.4% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.18 |
F-Score8
WACC11%
ROIC/WACC0.93
Cap/Depr(3y)71.98%
Cap/Depr(5y)89.02%
Cap/Sales(3y)2.75%
Cap/Sales(5y)4.55%
Profit Quality(3y)318.32%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.44%
EPS 3Y36.36%
EPS 5Y26.32%
EPS Q2Q%28.65%
EPS Next Y16.35%
EPS Next 2Y17.44%
EPS Next 3Y15.66%
EPS Next 5Y10.94%
Revenue 1Y (TTM)13.09%
Revenue growth 3Y15.4%
Revenue growth 5Y17.21%
Sales Q2Q%14.52%
Revenue Next Year11.93%
Revenue Next 2Y11.63%
Revenue Next 3Y11.18%
Revenue Next 5Y10.75%
EBIT growth 1Y218.44%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year36.08%
EBIT Next 3Y21.11%
EBIT Next 5Y15.39%
FCF growth 1Y26.86%
FCF growth 3Y29.03%
FCF growth 5Y22.52%
OCF growth 1Y19.42%
OCF growth 3Y21.04%
OCF growth 5Y18.3%
WORKDAY INC-CLASS A / WDAY FAQ
Can you provide the ChartMill fundamental rating for WORKDAY INC-CLASS A?
ChartMill assigns a fundamental rating of 6 / 10 to WDAY.
Can you provide the valuation status for WORKDAY INC-CLASS A?
ChartMill assigns a valuation rating of 6 / 10 to WORKDAY INC-CLASS A (WDAY). This can be considered as Fairly Valued.
Can you provide the profitability details for WORKDAY INC-CLASS A?
WORKDAY INC-CLASS A (WDAY) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for WDAY stock?
The Earnings per Share (EPS) of WORKDAY INC-CLASS A (WDAY) is expected to grow by 16.35% in the next year.