WORKDAY INC-CLASS A (WDAY) Stock Fundamental Analysis
USA - NASDAQ:WDAY - US98138H1014 - Common Stock
241.51 USD
+1.19 (+0.5%)
241.51 USD
0 (0%)
Taking everything into account, WDAY scores 6 out of 10 in our fundamental rating. WDAY was compared to 279 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! These ratings would make WDAY suitable for growth investing!
1. Profitability
1.1 Basic Checks
WDAY had positive earnings in the past year.
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.
WDAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WDAY has a better Return On Assets (3.25%) than 68.82% of its industry peers.
With a decent Return On Equity value of 6.36%, WDAY is doing good in the industry, outperforming 69.89% of the companies in the same industry.
WDAY has a better Return On Invested Capital (4.87%) than 73.12% 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
Looking at the Profit Margin, with a value of 6.51%, WDAY is in the better half of the industry, outperforming 69.18% of the companies in the same industry.
WDAY's Profit Margin has improved in the last couple of years.
WDAY has a Operating Margin of 8.58%. This is in the better half of the industry: WDAY outperforms 72.76% 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 69.53% 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 | 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
WDAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WDAY has been increased compared to 1 year ago.
WDAY has more shares outstanding than it did 5 years ago.
WDAY has a better debt/assets ratio than last year.
2.2 Solvency
WDAY has an Altman-Z score of 5.31. This indicates that WDAY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WDAY (5.31) is better than 69.53% of its industry peers.
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.
WDAY's Debt to FCF ratio of 1.25 is fine compared to the rest of the industry. WDAY outperforms 72.76% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that WDAY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.33, WDAY is not doing good in the industry: 60.57% 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 | 5.31 |
ROIC/WACC0.43
WACC11.24%
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 better Current ratio (2.10) than 65.23% of its industry peers.
A Quick Ratio of 2.10 indicates that WDAY has no problem at all paying its short term obligations.
WDAY's Quick ratio of 2.10 is fine compared to the rest of the industry. WDAY outperforms 65.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
WDAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.19%, which is quite impressive.
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.
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
The Earnings Per Share is expected to grow by 14.60% 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 12.66% on average per year.
EPS Next Y24.21%
EPS Next 2Y20.89%
EPS Next 3Y20.34%
EPS Next 5Y14.6%
Revenue Next Year13.09%
Revenue Next 2Y13.18%
Revenue Next 3Y13.11%
Revenue Next 5Y12.66%
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
The Price/Earnings ratio is 29.27, which means the current valuation is very expensive for WDAY.
WDAY's Price/Earnings ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 67.74% of the companies in the same industry.
WDAY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.29.
WDAY is valuated rather expensively with a Price/Forward Earnings ratio of 22.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WDAY indicates a somewhat cheap valuation: WDAY is cheaper than 71.68% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, WDAY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 22.64 |
4.2 Price Multiples
64.87% of the companies in the same industry are more expensive than WDAY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WDAY indicates a somewhat cheap valuation: WDAY is cheaper than 75.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.97 | ||
| EV/EBITDA | 47.05 |
4.3 Compensation for Growth
WDAY's 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.
A more expensive valuation may be justified as WDAY's earnings are expected to grow with 20.34% in the coming years.
PEG (NY)1.21
PEG (5Y)0.95
EPS Next 2Y20.89%
EPS Next 3Y20.34%
5. Dividend
5.1 Amount
WDAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
241.51
+1.19 (+0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.14%
Inst Owner Change-0.12%
Ins Owners0.74%
Ins Owner Change6.58%
Market Cap64.48B
Analysts78.33
Price Target283.89 (17.55%)
Short Float %4.86%
Short Ratio3.31
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)-5.89%
PT rev (3m)-6.13%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)1.37%
EPS NY rev (3m)4.69%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 22.64 | ||
| P/S | 7.2 | ||
| P/FCF | 26.97 | ||
| P/OCF | 24.89 | ||
| P/B | 7.03 | ||
| P/tB | 12 | ||
| EV/EBITDA | 47.05 |
EPS(TTM)8.25
EY3.42%
EPS(NY)10.67
Fwd EY4.42%
FCF(TTM)8.96
FCFY3.71%
OCF(TTM)9.7
OCFY4.02%
SpS33.55
BVpS34.35
TBVpS20.13
PEG (NY)1.21
PEG (5Y)0.95
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 | 5.31 |
F-Score7
WACC11.24%
ROIC/WACC0.43
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 3Y20.34%
EPS Next 5Y14.6%
Revenue 1Y (TTM)13.94%
Revenue growth 3Y18.01%
Revenue growth 5Y18.42%
Sales Q2Q%12.61%
Revenue Next Year13.09%
Revenue Next 2Y13.18%
Revenue Next 3Y13.11%
Revenue Next 5Y12.66%
EBIT growth 1Y124.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year43.28%
EBIT Next 3Y25.76%
EBIT Next 5Y21.86%
FCF growth 1Y55.76%
FCF growth 3Y21.95%
FCF growth 5Y33.27%
OCF growth 1Y43.49%
OCF growth 3Y14.24%
OCF growth 5Y23.27%