WORKDAY INC-CLASS A (WDAY) Stock Fundamental Analysis
NASDAQ:WDAY - Nasdaq - US98138H1014 - Common Stock - Currency: USD
Taking everything into account, WDAY scores 6 out of 10 in our fundamental rating. WDAY was compared to 282 industry peers in the Software industry. While WDAY has a great health rating, its profitability is only average at the moment. WDAY is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
In the past year WDAY had a positive cash flow from operations.
In multiple years WDAY reported negative net income over the last 5 years.
Each year in the past 5 years WDAY had a positive operating cash flow.
1.2 Ratios
WDAY's Return On Assets of 2.83% is fine compared to the rest of the industry. WDAY outperforms 71.99% of its industry peers.
The Return On Equity of WDAY (5.46%) is better than 73.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.21%, WDAY is in the better half of the industry, outperforming 73.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 5.46% | ||
| ROIC | 4.21% |
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 (5.60%) than 72.34% of its industry peers.
In the last couple of years the Profit Margin of WDAY has grown nicely.
Looking at the Operating Margin, with a value of 7.27%, WDAY is in the better half of the industry, outperforming 73.40% of the companies in the same industry.
Looking at the Gross Margin, with a value of 75.66%, WDAY is in the better half of the industry, outperforming 68.44% 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 | 7.27% | ||
| PM (TTM) | 5.6% | ||
| GM | 75.66% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
WDAY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.48 indicates that WDAY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.48, WDAY is doing good in the industry, outperforming 70.92% of the companies in the same industry.
The Debt to FCF ratio of WDAY is 1.29, which is an excellent value as it means it would take WDAY, only 1.29 years of fcf income to pay off all of its debts.
WDAY has a Debt to FCF ratio of 1.29. This is in the better half of the industry: WDAY outperforms 72.69% 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 Debt to Equity ratio of 0.33. This is in the lower half of the industry: WDAY underperforms 60.28% of its industry peers.
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 | 1.29 | ||
| Altman-Z | 5.48 |
ROIC/WACC0.49
WACC8.67%
2.3 Liquidity
WDAY has a Current Ratio of 2.07. This indicates that WDAY is financially healthy and has no problem in meeting its short term obligations.
WDAY has a better Current ratio (2.07) than 62.77% of its industry peers.
WDAY has a Quick Ratio of 2.07. This indicates that WDAY is financially healthy and has no problem in meeting its short term obligations.
WDAY has a Quick ratio of 2.07. This is in the better half of the industry: WDAY outperforms 63.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.24% 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 14.95% 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)24.24%
EPS 3Y22.41%
EPS 5Y30.89%
EPS Q2Q%28.16%
Revenue 1Y (TTM)14.95%
Revenue growth 3Y18.01%
Revenue growth 5Y18.42%
Sales Q2Q%12.56%
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 14.37% on average per year.
WDAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.73% yearly.
EPS Next Y22.59%
EPS Next 2Y19.09%
EPS Next 3Y17.84%
EPS Next 5Y14.37%
Revenue Next Year13%
Revenue Next 2Y13.01%
Revenue Next 3Y13.11%
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
A Price/Earnings ratio of 31.18 indicates a quite expensive valuation of WDAY.
Based on the Price/Earnings ratio, WDAY is valued a bit cheaper than the industry average as 70.92% of the companies are valued more expensively.
WDAY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.28.
With a Price/Forward Earnings ratio of 23.46, WDAY is valued on the expensive side.
71.99% of the companies in the same industry are more expensive than WDAY, based on the Price/Forward Earnings ratio.
WDAY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.18 | ||
| Fwd PE | 23.46 |
4.2 Price Multiples
63.83% 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 a bit cheaper when compared to the industry. WDAY is cheaper than 75.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.97 | ||
| EV/EBITDA | 53.25 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as WDAY's earnings are expected to grow with 17.84% in the coming years.
PEG (NY)1.38
PEG (5Y)1.01
EPS Next 2Y19.09%
EPS Next 3Y17.84%
5. Dividend
5.1 Amount
No dividends for WDAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:WDAY (7/3/2025, 10:42:09 AM)
242.925
+5.19 (+2.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.56%
Inst Owner Change-0.47%
Ins Owners0.77%
Ins Owner Change10.3%
Market Cap64.86B
Analysts78.75
Price Target302.48 (24.52%)
Short Float %2.81%
Short Ratio2.89
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)7.44%
Min EPS beat(2)5.9%
Max EPS beat(2)8.98%
EPS beat(4)4
Avg EPS beat(4)6.1%
Min EPS beat(4)4.1%
Max EPS beat(4)8.98%
EPS beat(8)8
Avg EPS beat(8)6.85%
EPS beat(12)12
Avg EPS beat(12)7.82%
EPS beat(16)15
Avg EPS beat(16)11.09%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)-0.72%
Revenue beat(4)0
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)-0.6%
Revenue beat(8)0
Avg Revenue beat(8)-1.08%
Revenue beat(12)0
Avg Revenue beat(12)-1.06%
Revenue beat(16)0
Avg Revenue beat(16)-0.98%
PT rev (1m)-1.34%
PT rev (3m)-5.29%
EPS NQ rev (1m)2.53%
EPS NQ rev (3m)2.51%
EPS NY rev (1m)3.33%
EPS NY rev (3m)4.29%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.18 | ||
| Fwd PE | 23.46 | ||
| P/S | 7.46 | ||
| P/FCF | 27.97 | ||
| P/OCF | 25.48 | ||
| P/B | 7.27 | ||
| P/tB | 12.78 | ||
| EV/EBITDA | 53.25 |
EPS(TTM)7.79
EY3.21%
EPS(NY)10.35
Fwd EY4.26%
FCF(TTM)8.69
FCFY3.58%
OCF(TTM)9.54
OCFY3.93%
SpS32.57
BVpS33.4
TBVpS19.02
PEG (NY)1.38
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 5.46% | ||
| ROCE | 5.1% | ||
| ROIC | 4.21% | ||
| ROICexc | 11.79% | ||
| ROICexgc | 89.99% | ||
| OM | 7.27% | ||
| PM (TTM) | 5.6% | ||
| GM | 75.66% | ||
| FCFM | 26.67% |
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-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.29 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 67.76% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | 5.75 | ||
| Cash Conversion | 263.29% | ||
| Profit Quality | 476.18% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.07 | ||
| Altman-Z | 5.48 |
F-Score8
WACC8.67%
ROIC/WACC0.49
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)24.24%
EPS 3Y22.41%
EPS 5Y30.89%
EPS Q2Q%28.16%
EPS Next Y22.59%
EPS Next 2Y19.09%
EPS Next 3Y17.84%
EPS Next 5Y14.37%
Revenue 1Y (TTM)14.95%
Revenue growth 3Y18.01%
Revenue growth 5Y18.42%
Sales Q2Q%12.56%
Revenue Next Year13%
Revenue Next 2Y13.01%
Revenue Next 3Y13.11%
Revenue Next 5Y12.73%
EBIT growth 1Y136.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.36%
EBIT Next 3Y25.16%
EBIT Next 5Y21.13%
FCF growth 1Y106.96%
FCF growth 3Y21.95%
FCF growth 5Y33.27%
OCF growth 1Y70.32%
OCF growth 3Y14.24%
OCF growth 5Y23.27%