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

NASDAQ:WDAY • US98138H1014

Current stock price

127.72 USD
-2.2 (-1.69%)
Last:

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.
  • In the past year WDAY had a positive cash flow from operations.
  • Of the past 5 years WDAY 4 years were profitable.
  • Each year in the past 5 years WDAY had a positive operating cash flow.
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

  • With a decent Return On Assets value of 6.97%, WDAY is doing good in the industry, outperforming 79.27% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 16.14%, WDAY belongs to the top of the industry, outperforming 84.36% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 10.27%, WDAY belongs to the best of the industry, outperforming 85.45% 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

  • WDAY's Profit Margin of 13.19% is fine compared to the rest of the industry. WDAY outperforms 78.55% of its industry peers.
  • WDAY's Operating Margin of 16.65% is amongst the best of the industry. WDAY outperforms 84.36% of its industry peers.
  • With a decent Gross Margin value of 75.70%, WDAY is doing good in the industry, outperforming 68.73% 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 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

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6

2. WDAY Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WDAY is destroying value.
  • The number of shares outstanding for WDAY has been reduced compared to 1 year ago.
  • The number of shares outstanding for WDAY has been increased compared to 5 years ago.
  • The debt/assets ratio for WDAY has been reduced compared to a year ago.
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 2.87. 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.
  • With a decent Altman-Z score value of 2.87, WDAY is doing good in the industry, outperforming 65.45% 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 72.36% of its industry peers.
  • WDAY has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.38, WDAY is doing worse than 61.82% of the companies in the same industry.
  • Although WDAY's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.38
Debt/FCF 1.08
Altman-Z 2.87
ROIC/WACC0.96
WACC10.73%
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

  • WDAY has a Current 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.
  • 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.
  • Looking at the Quick ratio, with a value of 1.32, WDAY is in line with its industry, outperforming 41.45% of the companies in the same industry.
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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. WDAY Growth Analysis

3.1 Past

  • WDAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.44%, which is quite impressive.
  • Measured over the past years, WDAY shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.32% on average per year.
  • The Revenue has grown by 13.09% in the past year. This is quite good.
  • Measured over the past years, WDAY shows a quite strong growth in Revenue. The Revenue has been growing by 17.21% on average per year.
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.
  • The Revenue is expected to grow by 10.75% on average over the next years. This is quite good.
EPS Next Y16.35%
EPS Next 2Y17.44%
EPS Next 3Y15.66%
EPS Next 5Y10.94%
Revenue Next Year11.73%
Revenue Next 2Y11.53%
Revenue Next 3Y11.1%
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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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

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8

4. WDAY Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.84, WDAY is valued correctly.
  • Based on the Price/Earnings ratio, WDAY is valued cheaper than 81.09% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.35, WDAY is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 11.89 indicates a reasonable valuation of WDAY.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WDAY indicates a rather cheap valuation: WDAY is cheaper than 80.73% of the companies listed in the same industry.
  • WDAY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.61.
Industry RankSector Rank
PE 13.84
Fwd PE 11.89
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

  • 81.45% of the companies in the same industry are more expensive than WDAY, based on the Enterprise Value to EBITDA ratio.
  • 85.45% of the companies in the same industry are more expensive than WDAY, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.82
EV/EBITDA 13.93
WDAY Per share dataWDAY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • WDAY has a very decent profitability rating, which may justify a higher PE ratio.
  • WDAY's earnings are expected to grow with 15.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)0.53
EPS Next 2Y17.44%
EPS Next 3Y15.66%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. WDAY Dividend Analysis

5.1 Amount

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

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WDAY Fundamentals: All Metrics, Ratios and Statistics

WORKDAY INC-CLASS A

NASDAQ:WDAY (4/1/2026, 10:09:02 AM)

127.72

-2.2 (-1.69%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-24
Earnings (Next)05-20
Inst Owners96.37%
Inst Owner Change1.68%
Ins Owners0.56%
Ins Owner Change11.82%
Market Cap32.82B
Revenue(TTM)9.55B
Net Income(TTM)1.26B
Analysts77.5
Price Target186.3 (45.87%)
Short Float %7.59%
Short Ratio2.77
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)-22.83%
PT rev (3m)-33.69%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.53%
Valuation
Industry RankSector Rank
PE 13.84
Fwd PE 11.89
P/S 3.44
P/FCF 11.82
P/OCF 11.17
P/B 4.21
P/tB 17.52
EV/EBITDA 13.93
EPS(TTM)9.23
EY7.23%
EPS(NY)10.74
Fwd EY8.41%
FCF(TTM)10.81
FCFY8.46%
OCF(TTM)11.44
OCFY8.95%
SpS37.17
BVpS30.37
TBVpS7.29
PEG (NY)0.85
PEG (5Y)0.53
Graham Number79.42
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 2.87
F-Score8
WACC10.73%
ROIC/WACC0.96
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 Y16.35%
EPS Next 2Y17.44%
EPS Next 3Y15.66%
EPS Next 5Y10.94%
Revenue 1Y (TTM)13.09%
Revenue growth 3Y15.4%
Revenue growth 5Y17.21%
Sales Q2Q%14.52%
Revenue Next Year11.73%
Revenue Next 2Y11.53%
Revenue Next 3Y11.1%
Revenue Next 5Y10.75%
EBIT growth 1Y218.64%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year33.65%
EBIT Next 3Y20.38%
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 7 / 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 13.84 and the Price/Book (PB) ratio is 4.21.


How financially healthy is WORKDAY INC-CLASS A?

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