WORKDAY INC-CLASS A (WDAY) Stock Fundamental Analysis
USA - NASDAQ:WDAY - US98138H1014 - Common Stock
238.91 USD
+4.66 (+1.99%)
WDAY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 285 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
WDAY had positive earnings in the past year.
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 has a Return On Assets of 3.25%. This is in the better half of the industry: WDAY outperforms 68.77% of its industry peers.
WDAY has a Return On Equity of 6.36%. This is in the better half of the industry: WDAY outperforms 69.82% of its industry peers.
WDAY has a Return On Invested Capital of 4.87%. This is in the better half of the industry: WDAY outperforms 72.98% 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 69.12% of its industry peers.
In the last couple of years the Profit Margin of WDAY has grown nicely.
The Operating Margin of WDAY (8.58%) is better than 72.63% of its industry peers.
WDAY's Gross Margin of 75.58% is fine compared to the rest of the industry. WDAY outperforms 69.47% 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 | 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.
Compared to 1 year ago, WDAY has an improved debt to assets ratio.
2.2 Solvency
WDAY has an Altman-Z score of 5.20. This indicates that WDAY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WDAY (5.20) is better than 70.88% of its industry peers.
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.
The Debt to FCF ratio of WDAY (1.25) is better than 73.33% of its industry peers.
WDAY has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
WDAY has a worse Debt to Equity ratio (0.33) than 60.35% of its industry peers.
Even though the debt/equity ratio score it not favorable for WDAY, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 5.2 |
ROIC/WACC0.45
WACC10.93%
2.3 Liquidity
WDAY has a Current Ratio of 2.10. This indicates that WDAY is financially healthy and has no problem in meeting its short term obligations.
WDAY has a Current ratio of 2.10. This is in the better half of the industry: WDAY outperforms 63.86% of its industry peers.
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 64.21% 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.
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 13.94% 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)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 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 Y24.21%
EPS Next 2Y20.89%
EPS Next 3Y21.27%
EPS Next 5Y17.8%
Revenue Next Year13.08%
Revenue Next 2Y12.87%
Revenue Next 3Y12.75%
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
With a Price/Earnings ratio of 28.96, 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 68.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.42. WDAY is around the same levels.
With a Price/Forward Earnings ratio of 22.39, WDAY is valued on the expensive side.
Based on the Price/Forward Earnings ratio, WDAY is valued a bit cheaper than 71.93% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, WDAY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.96 | ||
| Fwd PE | 22.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDAY is valued a bit cheaper than the industry average as 65.61% 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 75.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.68 | ||
| EV/EBITDA | 45.59 |
4.3 Compensation for Growth
WDAY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WDAY may justify a higher PE ratio.
WDAY's earnings are expected to grow with 21.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)0.94
EPS Next 2Y20.89%
EPS Next 3Y21.27%
5. Dividend
5.1 Amount
WDAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:WDAY (10/20/2025, 12:24:09 PM)
238.91
+4.66 (+1.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.14%
Inst Owner Change0.1%
Ins Owners0.74%
Ins Owner Change3.76%
Market Cap63.79B
Analysts79.57
Price Target287.94 (20.52%)
Short Float %4.7%
Short Ratio2.83
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)1.43%
PT rev (3m)-4.81%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)0.67%
EPS NY rev (1m)0%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.96 | ||
| Fwd PE | 22.39 | ||
| P/S | 7.12 | ||
| P/FCF | 26.68 | ||
| P/OCF | 24.62 | ||
| P/B | 6.95 | ||
| P/tB | 11.87 | ||
| EV/EBITDA | 45.59 |
EPS(TTM)8.25
EY3.45%
EPS(NY)10.67
Fwd EY4.47%
FCF(TTM)8.96
FCFY3.75%
OCF(TTM)9.7
OCFY4.06%
SpS33.55
BVpS34.35
TBVpS20.13
PEG (NY)1.2
PEG (5Y)0.94
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 | 5.2 |
F-Score7
WACC10.93%
ROIC/WACC0.45
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 Y24.21%
EPS Next 2Y20.89%
EPS Next 3Y21.27%
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 2Y12.87%
Revenue Next 3Y12.75%
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%