WORKDAY INC-CLASS A (WDAY) Stock Fundamental Analysis
NASDAQ:WDAY - US98138H1014 - Common Stock
233.43 USD
+4.54 (+1.98%)
233.43 USD
0 (0%)
WDAY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. WDAY has an excellent financial health rating, but there are some minor concerns on its profitability. WDAY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
In multiple years WDAY reported negative net income over the last 5 years.
In the past 5 years WDAY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.25%, WDAY is in the better half of the industry, outperforming 69.64% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.36%, WDAY is in the better half of the industry, outperforming 70.36% of the companies in the same industry.
WDAY has a better Return On Invested Capital (4.87%) than 73.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 6.36% | ||
| ROIC | 4.87% |
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
WDAY has a better Profit Margin (6.51%) than 70.00% of its industry peers.
In the last couple of years the Profit Margin of WDAY has grown nicely.
With a decent Operating Margin value of 8.58%, WDAY is doing good in the industry, outperforming 72.86% of the companies in the same industry.
Looking at the Gross Margin, with a value of 75.58%, WDAY is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
WDAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.58% | ||
| PM (TTM) | 6.51% | ||
| GM | 75.58% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.62%
PM growth 5YN/A
GM growth 3Y1.5%
GM growth 5Y1.34%
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.
The number of shares outstanding for WDAY has been increased compared to 5 years ago.
Compared to 1 year ago, WDAY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.19 indicates that WDAY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.19, WDAY is in the better half of the industry, outperforming 70.71% of the companies in the same industry.
The Debt to FCF ratio of WDAY is 1.25, which is an excellent value as it means it would take WDAY, only 1.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.25, WDAY is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
WDAY has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.33, WDAY is not doing good in the industry: 61.07% of the companies in the same industry are doing better.
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 | 0.33 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 5.19 |
ROIC/WACC0.44
WACC11.16%
2.3 Liquidity
A Current Ratio of 2.10 indicates that WDAY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.10, WDAY is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
WDAY has a Quick Ratio of 2.10. This indicates that WDAY is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of WDAY (2.10) is better than 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.19% 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.
Looking at the last year, WDAY shows a quite strong growth in Revenue. The Revenue has grown by 13.94% in the last year.
The Revenue has been growing by 18.42% on average over the past years. This is quite good.
EPS 1Y (TTM)25.19%
EPS 3Y22.41%
EPS 5Y30.89%
EPS Q2Q%26.29%
Revenue 1Y (TTM)13.94%
Revenue growth 3Y18.01%
Revenue growth 5Y18.42%
Sales Q2Q%12.61%
3.2 Future
The Earnings Per Share is expected to grow by 14.37% 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 12.73% on average per year.
EPS Next Y22.53%
EPS Next 2Y19.08%
EPS Next 3Y16.99%
EPS Next 5Y14.37%
Revenue Next Year12.97%
Revenue Next 2Y13.01%
Revenue Next 3Y13.06%
Revenue Next 5Y12.73%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
WDAY is valuated quite expensively with a Price/Earnings ratio of 28.29.
66.79% of the companies in the same industry are more expensive than WDAY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.84. WDAY is around the same levels.
With a Price/Forward Earnings ratio of 22.55, WDAY is valued on the expensive side.
WDAY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 71.43% of the companies in the same industry.
WDAY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 22.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDAY is valued a bit cheaper than 64.64% of the companies in the same industry.
75.71% of the companies in the same industry are more expensive than WDAY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.07 | ||
| EV/EBITDA | 45.39 |
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.
WDAY's earnings are expected to grow with 16.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)0.92
EPS Next 2Y19.08%
EPS Next 3Y16.99%
5. Dividend
5.1 Amount
WDAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
233.43
+4.54 (+1.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.16%
Inst Owner Change-0.12%
Ins Owners0.75%
Ins Owner Change6.85%
Market Cap62.33B
Analysts78.3
Price Target298.37 (27.82%)
Short Float %3.87%
Short Ratio2.73
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)5.71%
Min EPS beat(2)2.45%
Max EPS beat(2)8.98%
EPS beat(4)4
Avg EPS beat(4)5.69%
Min EPS beat(4)2.45%
Max EPS beat(4)8.98%
EPS beat(8)8
Avg EPS beat(8)5.71%
EPS beat(12)12
Avg EPS beat(12)7.91%
EPS beat(16)15
Avg EPS beat(16)7.79%
Revenue beat(2)0
Avg Revenue beat(2)-1.32%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)-0.6%
Revenue beat(8)0
Avg Revenue beat(8)-1.14%
Revenue beat(12)0
Avg Revenue beat(12)-1.13%
Revenue beat(16)0
Avg Revenue beat(16)-1.05%
PT rev (1m)-1.09%
PT rev (3m)-2.68%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 22.55 | ||
| P/S | 6.96 | ||
| P/FCF | 26.07 | ||
| P/OCF | 24.05 | ||
| P/B | 6.8 | ||
| P/tB | 11.6 | ||
| EV/EBITDA | 45.39 |
EPS(TTM)8.25
EY3.53%
EPS(NY)10.35
Fwd EY4.43%
FCF(TTM)8.96
FCFY3.84%
OCF(TTM)9.7
OCFY4.16%
SpS33.55
BVpS34.35
TBVpS20.13
PEG (NY)1.26
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 6.36% | ||
| ROCE | 5.91% | ||
| ROIC | 4.87% | ||
| ROICexc | 13.13% | ||
| ROICexgc | 61.43% | ||
| OM | 8.58% | ||
| PM (TTM) | 6.51% | ||
| GM | 75.58% | ||
| FCFM | 26.69% |
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
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 3Y121.62%
PM growth 5YN/A
GM growth 3Y1.5%
GM growth 5Y1.34%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 59.35% | ||
| Cap/Sales | 2.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 234.27% | ||
| Profit Quality | 410.12% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 5.19 |
F-Score7
WACC11.16%
ROIC/WACC0.44
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)25.19%
EPS 3Y22.41%
EPS 5Y30.89%
EPS Q2Q%26.29%
EPS Next Y22.53%
EPS Next 2Y19.08%
EPS Next 3Y16.99%
EPS Next 5Y14.37%
Revenue 1Y (TTM)13.94%
Revenue growth 3Y18.01%
Revenue growth 5Y18.42%
Sales Q2Q%12.61%
Revenue Next Year12.97%
Revenue Next 2Y13.01%
Revenue Next 3Y13.06%
Revenue Next 5Y12.73%
EBIT growth 1Y124.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year41.46%
EBIT Next 3Y25.05%
EBIT Next 5Y21.13%
FCF growth 1Y55.76%
FCF growth 3Y21.95%
FCF growth 5Y33.27%
OCF growth 1Y43.49%
OCF growth 3Y14.24%
OCF growth 5Y23.27%