WORKDAY INC-CLASS A (WDAY) Fundamental Analysis & Valuation

NASDAQ:WDAY • US98138H1014

Current stock price

119.76 USD
+5.09 (+4.44%)
At close:
119 USD
-0.76 (-0.63%)
After Hours:

This WDAY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. WDAY Profitability Analysis

1.1 Basic Checks

  • In the past year WDAY was profitable.
  • WDAY had a positive operating cash flow in the past year.
  • Of the past 5 years WDAY 4 years were profitable.
  • WDAY had a positive operating cash flow in each of the past 5 years.
WDAY Yearly Net Income VS EBIT VS OCF VS FCFWDAY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1B 2B

1.2 Ratios

  • The Return On Assets of WDAY (6.97%) is better than 78.68% of its industry peers.
  • Looking at the Return On Equity, with a value of 16.14%, WDAY belongs to the top of the industry, outperforming 83.46% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 10.27%, WDAY belongs to the top of the industry, outperforming 84.93% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for WDAY is significantly below the industry average of 10.92%.
  • The last Return On Invested Capital (10.27%) for WDAY is above the 3 year average (3.62%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.97%
ROE 16.14%
ROIC 10.27%
ROA(3y)5.05%
ROA(5y)2.54%
ROE(3y)10.6%
ROE(5y)5.17%
ROIC(3y)3.62%
ROIC(5y)N/A
WDAY Yearly ROA, ROE, ROICWDAY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 -10 -20 -30

1.3 Margins

  • The Profit Margin of WDAY (13.19%) is better than 78.68% of its industry peers.
  • WDAY's Operating Margin of 16.65% is amongst the best of the industry. WDAY outperforms 84.19% of its industry peers.
  • With a decent Gross Margin value of 75.70%, WDAY is doing good in the industry, outperforming 67.65% of the companies in the same industry.
  • WDAY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.65%
PM (TTM) 13.19%
GM 75.7%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.49%
GM growth 5Y0.94%
WDAY Yearly Profit, Operating, Gross MarginsWDAY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 -20 40 60

6

2. WDAY Health Analysis

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 reduced compared to 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.
WDAY Yearly Shares OutstandingWDAY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M
WDAY Yearly Total Debt VS Total AssetsWDAY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B

2.2 Solvency

  • WDAY has an Altman-Z score of 2.64. This is not the best score and indicates that WDAY is in the grey zone with still only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.64, WDAY is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
  • The Debt to FCF ratio of WDAY is 1.08, which is an excellent value as it means it would take WDAY, only 1.08 years of fcf income to pay off all of its debts.
  • WDAY's Debt to FCF ratio of 1.08 is fine compared to the rest of the industry. WDAY outperforms 73.16% of its industry peers.
  • A Debt/Equity ratio of 0.38 indicates that WDAY is not too dependend on debt financing.
  • WDAY has a Debt to Equity ratio of 0.38. This is in the lower half of the industry: WDAY underperforms 61.40% 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 RankSector Rank
Debt/Equity 0.38
Debt/FCF 1.08
Altman-Z 2.64
ROIC/WACC0.99
WACC10.38%
WDAY Yearly LT Debt VS Equity VS FCFWDAY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 1.32 indicates that WDAY should not have too much problems paying its short term obligations.
  • The Current ratio of WDAY (1.32) is comparable to the rest of the industry.
  • WDAY has a Quick Ratio of 1.32. This is a normal value and indicates that WDAY is financially healthy and should not expect problems in meeting its short term obligations.
  • WDAY has a Quick ratio of 1.32. This is comparable to the rest of the industry: WDAY outperforms 41.18% of its industry peers.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 1.32
WDAY Yearly Current Assets VS Current LiabilitesWDAY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B 10B

7

3. WDAY Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 26.44% over the past year.
  • WDAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.32% yearly.
  • The Revenue has grown by 13.09% in the past year. This is quite good.
  • The Revenue has been growing by 17.21% on average over the past years. This is quite good.
EPS 1Y (TTM)26.44%
EPS 3Y36.36%
EPS 5Y26.32%
EPS Q2Q%28.65%
Revenue 1Y (TTM)13.09%
Revenue growth 3Y15.4%
Revenue growth 5Y17.21%
Sales Q2Q%14.52%

3.2 Future

  • WDAY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.94% yearly.
  • Based on estimates for the next years, WDAY will show a quite strong growth in Revenue. The Revenue will grow by 10.75% on average per year.
EPS Next Y15.68%
EPS Next 2Y17.01%
EPS Next 3Y15.6%
EPS Next 5Y10.94%
Revenue Next Year11.69%
Revenue Next 2Y11.5%
Revenue Next 3Y11.11%
Revenue Next 5Y10.75%

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.
WDAY Yearly Revenue VS EstimatesWDAY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B
WDAY Yearly EPS VS EstimatesWDAY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 5 10 15

8

4. WDAY Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.98, the valuation of WDAY can be described as correct.
  • Based on the Price/Earnings ratio, WDAY is valued cheaply inside the industry as 84.93% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.42. WDAY is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 11.22, the valuation of WDAY can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WDAY indicates a rather cheap valuation: WDAY is cheaper than 84.19% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, WDAY is valued a bit cheaper.
Industry RankSector Rank
PE 12.98
Fwd PE 11.22
WDAY Price Earnings VS Forward Price EarningsWDAY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 83.82% of the companies in the same industry are more expensive than WDAY, based on the Enterprise Value to EBITDA ratio.
  • WDAY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WDAY is cheaper than 87.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.08
EV/EBITDA 11.91
WDAY Per share dataWDAY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • WDAY's earnings are expected to grow with 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)0.49
EPS Next 2Y17.01%
EPS Next 3Y15.6%

0

5. WDAY Dividend Analysis

5.1 Amount

  • WDAY does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

WDAY Fundamentals: All Metrics, Ratios and Statistics

WORKDAY INC-CLASS A

NASDAQ:WDAY (4/24/2026, 8:14:11 PM)

After market: 119 -0.76 (-0.63%)

119.76

+5.09 (+4.44%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-24
Earnings (Next)05-20
Inst Owners97.6%
Inst Owner Change-4.78%
Ins Owners0.89%
Ins Owner Change11.34%
Market Cap30.78B
Revenue(TTM)9.55B
Net Income(TTM)1.26B
Analysts77.08
Price Target184.66 (54.19%)
Short Float %8.04%
Short Ratio2.82
Dividend
Industry RankSector 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)4.18%
Min EPS beat(2)4.13%
Max EPS beat(2)4.23%
EPS beat(4)4
Avg EPS beat(4)4.95%
Min EPS beat(4)2.45%
Max EPS beat(4)8.98%
EPS beat(8)8
Avg EPS beat(8)5.38%
EPS beat(12)12
Avg EPS beat(12)6.67%
EPS beat(16)15
Avg EPS beat(16)6.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)-0.97%
Revenue beat(8)0
Avg Revenue beat(8)-1.18%
Revenue beat(12)0
Avg Revenue beat(12)-1.19%
Revenue beat(16)0
Avg Revenue beat(16)-1.17%
PT rev (1m)-23.51%
PT rev (3m)-33.89%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.59%
Valuation
Industry RankSector Rank
PE 12.98
Fwd PE 11.22
P/S 3.22
P/FCF 11.08
P/OCF 10.47
P/B 3.94
P/tB 16.42
EV/EBITDA 11.91
EPS(TTM)9.23
EY7.71%
EPS(NY)10.68
Fwd EY8.92%
FCF(TTM)10.81
FCFY9.02%
OCF(TTM)11.44
OCFY9.55%
SpS37.17
BVpS30.37
TBVpS7.29
PEG (NY)0.83
PEG (5Y)0.49
Graham Number79.4167 (-33.69%)
Profitability
Industry RankSector Rank
ROA 6.97%
ROE 16.14%
ROCE 13.59%
ROIC 10.27%
ROICexc 19.21%
ROICexgc 373.12%
OM 16.65%
PM (TTM) 13.19%
GM 75.7%
FCFM 29.07%
ROA(3y)5.05%
ROA(5y)2.54%
ROE(3y)10.6%
ROE(5y)5.17%
ROIC(3y)3.62%
ROIC(5y)N/A
ROICexc(3y)8.26%
ROICexc(5y)N/A
ROICexgc(3y)112.66%
ROICexgc(5y)N/A
ROCE(3y)4.79%
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 3YN/A
PM growth 5YN/A
GM growth 3Y1.49%
GM growth 5Y0.94%
F-Score8
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 1.08
Debt/EBITDA 1.54
Cap/Depr 46.69%
Cap/Sales 1.7%
Interest Coverage 14.45
Cash Conversion 151.73%
Profit Quality 220.4%
Current Ratio 1.32
Quick Ratio 1.32
Altman-Z 2.64
F-Score8
WACC10.38%
ROIC/WACC0.99
Cap/Depr(3y)71.98%
Cap/Depr(5y)89.02%
Cap/Sales(3y)2.75%
Cap/Sales(5y)4.55%
Profit Quality(3y)318.32%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.44%
EPS 3Y36.36%
EPS 5Y26.32%
EPS Q2Q%28.65%
EPS Next Y15.68%
EPS Next 2Y17.01%
EPS Next 3Y15.6%
EPS Next 5Y10.94%
Revenue 1Y (TTM)13.09%
Revenue growth 3Y15.4%
Revenue growth 5Y17.21%
Sales Q2Q%14.52%
Revenue Next Year11.69%
Revenue Next 2Y11.5%
Revenue Next 3Y11.11%
Revenue Next 5Y10.75%
EBIT growth 1Y218.64%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.15%
EBIT Next 3Y20.2%
EBIT Next 5Y14.97%
FCF growth 1Y26.86%
FCF growth 3Y29.03%
FCF growth 5Y22.52%
OCF growth 1Y19.42%
OCF growth 3Y21.04%
OCF growth 5Y18.3%

WORKDAY INC-CLASS A / WDAY Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for WORKDAY INC-CLASS A?

ChartMill assigns a fundamental rating of 6 / 10 to WDAY.


Can you provide the valuation status for WORKDAY INC-CLASS A?

ChartMill assigns a valuation rating of 8 / 10 to WORKDAY INC-CLASS A (WDAY). This can be considered as Undervalued.


How profitable is WORKDAY INC-CLASS A (WDAY) stock?

WORKDAY INC-CLASS A (WDAY) has a profitability rating of 7 / 10.


What is the valuation of WORKDAY INC-CLASS A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for WORKDAY INC-CLASS A (WDAY) is 12.98 and the Price/Book (PB) ratio is 3.94.


How financially healthy is WORKDAY INC-CLASS A?

The financial health rating of WORKDAY INC-CLASS A (WDAY) is 6 / 10.