WORKDAY INC-CLASS A (WDAY) Stock Fundamental Analysis
NASDAQ:WDAY - Nasdaq - US98138H1014 - Common Stock - Currency: USD
Overall WDAY gets a fundamental rating of 6 out of 10. We evaluated WDAY against 282 industry peers in the Software industry. WDAY is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WDAY is growing strongly while it is still valued neutral. This is a good combination! This makes WDAY very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year WDAY was profitable.
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.
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 2.83%, WDAY is in the better half of the industry, outperforming 71.99% of the companies in the same industry.
WDAY has a Return On Equity of 5.46%. This is in the better half of the industry: WDAY outperforms 73.05% of its industry peers.
WDAY has a Return On Invested Capital of 4.21%. This is in the better half of the industry: WDAY outperforms 73.76% of its industry peers.
| 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
With a decent Profit Margin value of 5.60%, WDAY is doing good in the industry, outperforming 72.34% of the companies in the same industry.
WDAY's Profit Margin has improved in the last couple of years.
The Operating Margin of WDAY (7.27%) is better than 73.40% of its industry peers.
WDAY's Gross Margin of 75.66% is fine compared to the rest of the industry. WDAY outperforms 68.44% of its industry peers.
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.
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 5.51. This indicates that WDAY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.51, WDAY is in the better half of the industry, outperforming 70.21% 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.
The Debt to FCF ratio of WDAY (1.29) is better than 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 worse Debt to Equity ratio (0.33) than 60.28% 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 | 1.29 | ||
| Altman-Z | 5.51 |
ROIC/WACC0.38
WACC10.93%
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's Current ratio of 2.07 is fine compared to the rest of the industry. WDAY outperforms 63.12% of its industry peers.
A Quick Ratio of 2.07 indicates that WDAY has no problem at all paying its short term obligations.
WDAY has a Quick ratio of 2.07. This is in the better half of the industry: WDAY outperforms 63.83% 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.
The Earnings Per Share has been growing by 30.89% on average over the past years. This is a very strong growth
The Revenue has grown by 14.95% in the past year. This is quite good.
WDAY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.42% yearly.
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
WDAY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.37% yearly.
The Revenue is expected to grow by 12.73% on average over the next years. This is quite good.
EPS Next Y22.55%
EPS Next 2Y19.08%
EPS Next 3Y17.39%
EPS Next 5Y14.37%
Revenue Next Year13%
Revenue Next 2Y13.03%
Revenue Next 3Y13.16%
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.
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
Based on the Price/Earnings ratio of 31.09, the valuation of WDAY can be described as expensive.
70.57% of the companies in the same industry are more expensive than WDAY, based on the Price/Earnings ratio.
WDAY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.40, the valuation of WDAY can be described as rather expensive.
Based on the Price/Forward Earnings ratio, WDAY is valued a bit cheaper than 73.05% of the companies in the same industry.
WDAY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.09 | ||
| Fwd PE | 23.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDAY is valued a bit cheaper than 64.54% of the companies in the same industry.
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 | 27.88 | ||
| EV/EBITDA | 53.63 |
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.
A more expensive valuation may be justified as WDAY's earnings are expected to grow with 17.39% in the coming years.
PEG (NY)1.38
PEG (5Y)1.01
EPS Next 2Y19.08%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
No dividends for WDAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:WDAY (7/23/2025, 3:24:07 PM)
242.17
+3.06 (+1.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.56%
Inst Owner Change-0.07%
Ins Owners0.77%
Ins Owner Change6.61%
Market Cap64.66B
Analysts78.72
Price Target301.65 (24.56%)
Short Float %3.28%
Short Ratio3.12
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)-0.26%
PT rev (3m)-5.42%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)3.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.09 | ||
| Fwd PE | 23.4 | ||
| P/S | 7.44 | ||
| P/FCF | 27.88 | ||
| P/OCF | 25.4 | ||
| P/B | 7.25 | ||
| P/tB | 12.74 | ||
| EV/EBITDA | 53.63 |
EPS(TTM)7.79
EY3.22%
EPS(NY)10.35
Fwd EY4.27%
FCF(TTM)8.69
FCFY3.59%
OCF(TTM)9.54
OCFY3.94%
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 | 5.51 |
F-Score8
WACC10.93%
ROIC/WACC0.38
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 Y22.55%
EPS Next 2Y19.08%
EPS Next 3Y17.39%
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 2Y13.03%
Revenue Next 3Y13.16%
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%