WORKDAY INC-CLASS A (WDAY) Stock Fundamental Analysis
USA - NASDAQ:WDAY - US98138H1014 - Common Stock
225.26 USD
+0.31 (+0.14%)
Taking everything into account, WDAY scores 6 out of 10 in our fundamental rating. WDAY was compared to 281 industry peers in the Software industry. While WDAY has a great health rating, its profitability is only average at the moment. WDAY is growing strongly while it is still valued neutral. This is a good combination! These ratings could make WDAY a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year WDAY was profitable.
In the past year WDAY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WDAY reported negative net income in multiple 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 67.97% of the companies in the same industry.
WDAY's Return On Equity of 6.36% is fine compared to the rest of the industry. WDAY outperforms 70.11% of its industry peers.
The Return On Invested Capital of WDAY (4.87%) is better than 73.31% 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 67.62% of its industry peers.
WDAY's Profit Margin has improved in the last couple of years.
WDAY has a better Operating Margin (8.58%) than 73.31% of its industry peers.
Looking at the Gross Margin, with a value of 75.58%, WDAY is in the better half of the industry, outperforming 68.68% 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.
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 5.03. This indicates that WDAY is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.03, WDAY is doing good in the industry, outperforming 73.31% of the companies in the same industry.
WDAY has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of 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 74.38% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that WDAY is not too dependend on debt financing.
WDAY's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. WDAY outperforms 40.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 5.03 |
ROIC/WACC0.44
WACC10.98%
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 62.63% of the companies in the same industry.
A Quick Ratio of 2.10 indicates that WDAY has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.10, WDAY is doing good in the industry, outperforming 62.99% of the companies in the same industry.
| 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.
Measured over the past years, WDAY shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.89% on average per year.
Looking at the last year, WDAY shows a quite strong growth in Revenue. The Revenue has grown by 13.94% in the last year.
Measured over the past years, WDAY shows a quite strong growth in Revenue. The Revenue has been growing by 18.42% on average per year.
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
Based on estimates for the next years, WDAY will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.80% on average per year.
The Revenue is expected to grow by 12.58% on average over the next years. This is quite good.
EPS Next Y24.11%
EPS Next 2Y21.41%
EPS Next 3Y21.87%
EPS Next 5Y17.8%
Revenue Next Year13.08%
Revenue Next 2Y12.85%
Revenue Next 3Y12.73%
Revenue Next 5Y12.58%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.30, WDAY can be considered very expensive at the moment.
WDAY's Price/Earnings ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 65.84% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.56, WDAY is valued at the same level.
A Price/Forward Earnings ratio of 20.93 indicates a rather expensive valuation of WDAY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WDAY indicates a somewhat cheap valuation: WDAY is cheaper than 70.46% of the companies listed in the same industry.
WDAY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.3 | ||
| Fwd PE | 20.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDAY is valued a bit cheaper than the industry average as 65.84% of the companies are valued more expensively.
WDAY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 74.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.15 | ||
| EV/EBITDA | 43.34 |
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 21.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)0.88
EPS Next 2Y21.41%
EPS Next 3Y21.87%
5. Dividend
5.1 Amount
WDAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:WDAY (11/18/2025, 11:58:58 AM)
225.26
+0.31 (+0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.14%
Inst Owner Change3.22%
Ins Owners0.74%
Ins Owner Change-2.9%
Market Cap60.14B
Revenue(TTM)8.96B
Net Income(TTM)583.00M
Analysts79.57
Price Target287.44 (27.6%)
Short Float %5.25%
Short Ratio4.2
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)-0.17%
PT rev (3m)-4.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.3 | ||
| Fwd PE | 20.93 | ||
| P/S | 6.71 | ||
| P/FCF | 25.15 | ||
| P/OCF | 23.21 | ||
| P/B | 6.56 | ||
| P/tB | 11.24 | ||
| EV/EBITDA | 43.34 |
EPS(TTM)8.25
EY3.66%
EPS(NY)10.76
Fwd EY4.78%
FCF(TTM)8.96
FCFY3.98%
OCF(TTM)9.7
OCFY4.31%
SpS33.55
BVpS34.35
TBVpS20.04
PEG (NY)1.13
PEG (5Y)0.88
Graham Number79.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 6.36% | ||
| ROCE | 5.91% | ||
| ROIC | 4.87% | ||
| ROICexc | 13.13% | ||
| ROICexgc | 62.83% | ||
| 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
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 3Y121.62%
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 | 6.99 | ||
| Cash Conversion | 234.27% | ||
| Profit Quality | 410.12% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 5.03 |
F-Score7
WACC10.98%
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 Y24.11%
EPS Next 2Y21.41%
EPS Next 3Y21.87%
EPS Next 5Y17.8%
Revenue 1Y (TTM)13.94%
Revenue growth 3Y18.01%
Revenue growth 5Y18.42%
Sales Q2Q%12.61%
Revenue Next Year13.08%
Revenue Next 2Y12.85%
Revenue Next 3Y12.73%
Revenue Next 5Y12.58%
EBIT growth 1Y124.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year43.28%
EBIT Next 3Y27.8%
EBIT Next 5Y20.98%
FCF growth 1Y55.76%
FCF growth 3Y21.95%
FCF growth 5Y33.27%
OCF growth 1Y43.49%
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 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 24.11% in the next year.