WORKDAY INC-CLASS A (WDAY)
US98138H1014 - Common Stock
Taking everything into account, WDAY scores 5 out of 10 in our fundamental rating. WDAY was compared to 276 industry peers in the Software industry. WDAY has only an average score on both its financial health and profitability. WDAY is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, WDAY could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year WDAY was profitable.
WDAY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WDAY reported negative net income in multiple years.
WDAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WDAY's Return On Assets of 8.39% is amongst the best of the industry. WDAY outperforms 88.32% of its industry peers.
The Return On Equity of WDAY (17.08%) is better than 89.42% of its industry peers.
With a decent Return On Invested Capital value of 1.27%, WDAY is doing good in the industry, outperforming 71.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 17.08% | ||
| ROIC | 1.27% |
ROA(3y)1.99%
ROA(5y)-0.87%
ROE(3y)3.72%
ROE(5y)-3.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WDAY's Profit Margin of 19.02% is amongst the best of the industry. WDAY outperforms 89.05% of its industry peers.
Looking at the Operating Margin, with a value of 2.53%, WDAY is in the better half of the industry, outperforming 70.44% of the companies in the same industry.
WDAY has a Gross Margin of 75.59%. This is in the better half of the industry: WDAY outperforms 70.80% of its industry peers.
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 | 2.53% | ||
| PM (TTM) | 19.02% | ||
| GM | 75.59% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.52%
GM growth 5Y1.43%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WDAY is destroying value.
WDAY has more shares outstanding than it did 1 year ago.
WDAY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WDAY has been reduced compared to a year ago.
2.2 Solvency
WDAY has an Altman-Z score of 5.53. This indicates that WDAY is financially healthy and has little risk of bankruptcy at the moment.
WDAY has a Altman-Z score of 5.53. This is in the better half of the industry: WDAY outperforms 72.99% of its industry peers.
The Debt to FCF ratio of WDAY is 1.56, which is an excellent value as it means it would take WDAY, only 1.56 years of fcf income to pay off all of its debts.
WDAY's Debt to FCF ratio of 1.56 is fine compared to the rest of the industry. WDAY outperforms 72.26% of its industry peers.
WDAY has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
WDAY has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 5.53 |
ROIC/WACC0.13
WACC9.88%
2.3 Liquidity
A Current Ratio of 1.97 indicates that WDAY should not have too much problems paying its short term obligations.
WDAY has a Current ratio (1.97) which is in line with its industry peers.
WDAY has a Quick Ratio of 1.97. This is a normal value and indicates that WDAY is financially healthy and should not expect problems in meeting its short term obligations.
WDAY has a Quick ratio (1.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
WDAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.44%, which is quite impressive.
WDAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.84% yearly.
The Revenue has grown by 16.78% in the past year. This is quite good.
Measured over the past years, WDAY shows a very strong growth in Revenue. The Revenue has been growing by 20.80% on average per year.
EPS 1Y (TTM)60.44%
EPS 3Y26.72%
EPS 5Y33.84%
EPS growth Q2Q58.59%
Revenue 1Y (TTM)16.78%
Revenue growth 3Y18.9%
Revenue growth 5Y20.8%
Revenue growth Q2Q16.75%
3.2 Future
WDAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.36% yearly.
The Revenue is expected to grow by 17.38% on average over the next years. This is quite good.
EPS Next Y16.52%
EPS Next 2Y17.14%
EPS Next 3Y17.5%
EPS Next 5Y22.36%
Revenue Next Year15.87%
Revenue Next 2Y16.39%
Revenue Next 3Y16.83%
Revenue Next 5Y17.38%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WDAY is valuated quite expensively with a Price/Earnings ratio of 43.82.
66.42% of the companies in the same industry are more expensive than WDAY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.25, WDAY is valued quite expensively.
Based on the Price/Forward Earnings ratio of 37.61, the valuation of WDAY can be described as expensive.
Based on the Price/Forward Earnings ratio, WDAY is valued a bit cheaper than 63.87% of the companies in the same industry.
WDAY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.82 | ||
| Fwd PE | 37.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WDAY indicates a somewhat cheap valuation: WDAY is cheaper than 62.77% of the companies listed in the same industry.
WDAY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 72.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.43 | ||
| EV/EBITDA | 122.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WDAY does not grow enough to justify the current Price/Earnings ratio.
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 17.50% in the coming years.
PEG (NY)2.65
PEG (5Y)1.3
EPS Next 2Y17.14%
EPS Next 3Y17.5%
5. Dividend
5.1 Amount
No dividends for WDAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WORKDAY INC-CLASS A
NASDAQ:WDAY (4/25/2024, 12:20:40 PM)
255.92
+0.18 (+0.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap67.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.82 | ||
| Fwd PE | 37.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.65
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 17.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.53% | ||
| PM (TTM) | 19.02% | ||
| GM | 75.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)60.44%
EPS 3Y26.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.78%
Revenue growth 3Y18.9%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y