215.7 USD
-1.23 (-0.57%)
We assign a fundamental rating of 6 out of 10 to WDAY. 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes WDAY very considerable for growth investing!
1. Profitability
1.1 Basic Checks
WDAY had positive earnings in the past year.
WDAY had a positive operating cash flow in the past year.
In multiple years WDAY reported negative net income over the last 5 years.
Each year in the past 5 years WDAY had a positive operating cash flow.
1.2 Ratios
WDAY has a Return On Assets of 6.81%. This is in the better half of the industry: WDAY outperforms 76.09% of its industry peers.
WDAY's Return On Equity of 13.62% is fine compared to the rest of the industry. WDAY outperforms 79.71% of its industry peers.
The Return On Invested Capital of WDAY (9.29%) is better than 82.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.81% | ||
| ROE | 13.62% | ||
| ROIC | 9.29% |
ROA(3y)2.87%
ROA(5y)1.13%
ROE(3y)5.45%
ROE(5y)1.68%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 13.10%, WDAY is doing good in the industry, outperforming 74.64% of the companies in the same industry.
In the last couple of years the Profit Margin of WDAY has grown nicely.
With an excellent Operating Margin value of 15.55%, WDAY belongs to the best of the industry, outperforming 82.25% of the companies in the same industry.
Looking at the Gross Margin, with a value of 75.64%, WDAY is in the better half of the industry, outperforming 68.12% 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 | 15.55% | ||
| PM (TTM) | 13.1% | ||
| GM | 75.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.69%
PM growth 5YN/A
GM growth 3Y1.5%
GM growth 5Y1.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, WDAY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.87 indicates that WDAY is not in any danger for bankruptcy at the moment.
WDAY has a Altman-Z score of 4.87. This is in the better half of the industry: WDAY outperforms 70.29% of its industry peers.
The Debt to FCF ratio of WDAY is 1.16, which is an excellent value as it means it would take WDAY, only 1.16 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WDAY (1.16) is better than 73.91% of its industry peers.
WDAY has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WDAY has a worse Debt to Equity ratio (0.34) than 61.59% of its industry peers.
Although WDAY does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 4.87 |
ROIC/WACC0.86
WACC10.85%
2.3 Liquidity
WDAY has a Current Ratio of 1.83. This is a normal value and indicates that WDAY is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.83, WDAY perfoms like the industry average, outperforming 55.07% of the companies in the same industry.
A Quick Ratio of 1.83 indicates that WDAY should not have too much problems paying its short term obligations.
WDAY has a Quick ratio (1.83) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.89% over the past year.
WDAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.89% yearly.
The Revenue has grown by 13.16% in the past year. This is quite good.
The Revenue has been growing by 18.42% on average over the past years. This is quite good.
EPS 1Y (TTM)24.89%
EPS 3Y22.41%
EPS 5Y30.89%
EPS Q2Q%22.75%
Revenue 1Y (TTM)13.16%
Revenue growth 3Y18.01%
Revenue growth 5Y18.42%
Sales Q2Q%12.59%
3.2 Future
The Earnings Per Share is expected to grow by 17.80% on average over the next years. This is quite good.
Based on estimates for the next years, WDAY will show a quite strong growth in Revenue. The Revenue will grow by 12.58% on average per year.
EPS Next Y27.22%
EPS Next 2Y22.27%
EPS Next 3Y22.16%
EPS Next 5Y17.8%
Revenue Next Year13.36%
Revenue Next 2Y12.84%
Revenue Next 3Y12.55%
Revenue Next 5Y12.58%
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.85, the valuation of WDAY can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WDAY indicates a somewhat cheap valuation: WDAY is cheaper than 68.48% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WDAY to the average of the S&P500 Index (26.77), we can say WDAY is valued inline with the index average.
The Price/Forward Earnings ratio is 19.77, which indicates a rather expensive current valuation of WDAY.
WDAY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 74.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, WDAY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 19.77 |
4.2 Price Multiples
WDAY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 70.65% of the companies in the same industry.
WDAY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 77.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.95 | ||
| EV/EBITDA | 27.57 |
4.3 Compensation for Growth
WDAY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of WDAY may justify a higher PE ratio.
A more expensive valuation may be justified as WDAY's earnings are expected to grow with 22.16% in the coming years.
PEG (NY)0.91
PEG (5Y)0.8
EPS Next 2Y22.27%
EPS Next 3Y22.16%
5. Dividend
5.1 Amount
No dividends for WDAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:WDAY (12/31/2025, 11:44:03 AM)
215.7
-1.23 (-0.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.85%
Inst Owner Change3.6%
Ins Owners0.74%
Ins Owner Change-2.65%
Market Cap56.73B
Revenue(TTM)9.23B
Net Income(TTM)1.21B
Analysts79.57
Price Target280.93 (30.24%)
Short Float %3.84%
Short Ratio2.95
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)3.29%
Min EPS beat(2)2.45%
Max EPS beat(2)4.13%
EPS beat(4)4
Avg EPS beat(4)5.37%
Min EPS beat(4)2.45%
Max EPS beat(4)8.98%
EPS beat(8)8
Avg EPS beat(8)5.44%
EPS beat(12)12
Avg EPS beat(12)6.91%
EPS beat(16)15
Avg EPS beat(16)6.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)-0.72%
Revenue beat(8)0
Avg Revenue beat(8)-1.19%
Revenue beat(12)0
Avg Revenue beat(12)-1.15%
Revenue beat(16)0
Avg Revenue beat(16)-1.1%
PT rev (1m)-2.02%
PT rev (3m)-1.05%
EPS NQ rev (1m)0.9%
EPS NQ rev (3m)1.88%
EPS NY rev (1m)2.51%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 19.77 | ||
| P/S | 6.15 | ||
| P/FCF | 21.95 | ||
| P/OCF | 20.46 | ||
| P/B | 6.39 | ||
| P/tB | 14.03 | ||
| EV/EBITDA | 27.57 |
EPS(TTM)8.68
EY4.02%
EPS(NY)10.91
Fwd EY5.06%
FCF(TTM)9.83
FCFY4.56%
OCF(TTM)10.54
OCFY4.89%
SpS35.1
BVpS33.76
TBVpS15.37
PEG (NY)0.91
PEG (5Y)0.8
Graham Number81.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.81% | ||
| ROE | 13.62% | ||
| ROCE | 11.27% | ||
| ROIC | 9.29% | ||
| ROICexc | 20.08% | ||
| ROICexgc | 112.14% | ||
| OM | 15.55% | ||
| PM (TTM) | 13.1% | ||
| GM | 75.64% | ||
| FCFM | 28% |
ROA(3y)2.87%
ROA(5y)1.13%
ROE(3y)5.45%
ROE(5y)1.68%
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
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 3Y121.69%
PM growth 5YN/A
GM growth 3Y1.5%
GM growth 5Y1.34%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 55.13% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 13.05 | ||
| Cash Conversion | 156.14% | ||
| Profit Quality | 213.81% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 4.87 |
F-Score7
WACC10.85%
ROIC/WACC0.86
Cap/Depr(3y)89.76%
Cap/Depr(5y)97.55%
Cap/Sales(3y)4.14%
Cap/Sales(5y)5.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.89%
EPS 3Y22.41%
EPS 5Y30.89%
EPS Q2Q%22.75%
EPS Next Y27.22%
EPS Next 2Y22.27%
EPS Next 3Y22.16%
EPS Next 5Y17.8%
Revenue 1Y (TTM)13.16%
Revenue growth 3Y18.01%
Revenue growth 5Y18.42%
Sales Q2Q%12.59%
Revenue Next Year13.36%
Revenue Next 2Y12.84%
Revenue Next 3Y12.55%
Revenue Next 5Y12.58%
EBIT growth 1Y235.53%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year43.83%
EBIT Next 3Y27.22%
EBIT Next 5Y20.98%
FCF growth 1Y64.01%
FCF growth 3Y21.95%
FCF growth 5Y33.27%
OCF growth 1Y50.07%
OCF growth 3Y14.24%
OCF growth 5Y23.27%
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.
What is the valuation status for WDAY stock?
ChartMill assigns a valuation rating of 5 / 10 to WORKDAY INC-CLASS A (WDAY). This can be considered as Fairly Valued.
What is the profitability of WDAY stock?
WORKDAY INC-CLASS A (WDAY) has a profitability rating of 6 / 10.
What is the financial health of WORKDAY INC-CLASS A (WDAY) stock?
The financial health rating of WORKDAY INC-CLASS A (WDAY) is 6 / 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 27.22% in the next year.