215.34 USD
-18.35 (-7.85%)
215.12 USD
-0.22 (-0.1%)
Taking everything into account, WDAY scores 6 out of 10 in our fundamental rating. WDAY was compared to 280 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make WDAY suitable 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.
Each year in the past 5 years WDAY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.25%, WDAY is in the better half of the industry, outperforming 68.21% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.36%, WDAY is in the better half of the industry, outperforming 70.71% of the companies in the same industry.
WDAY has a Return On Invested Capital of 4.87%. This is in the better half of the industry: WDAY outperforms 73.57% 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
WDAY's Profit Margin of 6.51% is fine compared to the rest of the industry. WDAY outperforms 67.86% of its industry peers.
In the last couple of years the Profit Margin of WDAY has grown nicely.
WDAY's Operating Margin of 8.58% is fine compared to the rest of the industry. WDAY outperforms 73.57% of its industry peers.
WDAY has a better Gross Margin (75.58%) than 68.21% of its industry peers.
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
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 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
An Altman-Z score of 4.86 indicates that WDAY is not in any danger for bankruptcy at the moment.
WDAY's Altman-Z score of 4.86 is fine compared to the rest of the industry. WDAY outperforms 71.79% 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 has a Debt to FCF ratio of 1.25. This is in the better half of the industry: WDAY outperforms 73.93% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that WDAY is not too dependend on debt financing.
WDAY has a worse Debt to Equity ratio (0.33) than 60.36% 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 | 1.25 | ||
| Altman-Z | 4.86 |
ROIC/WACC0.45
WACC10.87%
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's Current ratio of 2.10 is fine compared to the rest of the industry. WDAY outperforms 62.86% of its industry peers.
WDAY has a Quick Ratio of 2.10. This indicates that WDAY is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of WDAY (2.10) is better than 63.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.89% 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 16.35% 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)24.89%
EPS 3Y22.41%
EPS 5Y30.89%
EPS Q2Q%22.75%
Revenue 1Y (TTM)16.35%
Revenue growth 3Y18.01%
Revenue growth 5Y18.42%
Sales Q2Q%12.59%
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 17.80% on average per year.
WDAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.58% yearly.
EPS Next Y24.11%
EPS Next 2Y21.41%
EPS Next 3Y21.97%
EPS Next 5Y17.8%
Revenue Next Year13.08%
Revenue Next 2Y12.85%
Revenue Next 3Y12.71%
Revenue Next 5Y12.58%
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 24.81 indicates a rather expensive valuation of WDAY.
Based on the Price/Earnings ratio, WDAY is valued a bit cheaper than 67.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of WDAY to the average of the S&P500 Index (26.15), we can say WDAY is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.01, WDAY is valued on the expensive side.
72.14% of the companies in the same industry are more expensive than WDAY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.12. WDAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.81 | ||
| Fwd PE | 20.01 |
4.2 Price Multiples
65.71% of the companies in the same industry are more expensive than WDAY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WDAY is valued a bit cheaper than the industry average as 74.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.05 | ||
| EV/EBITDA | 41.02 |
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 21.97% in the coming years.
PEG (NY)1.03
PEG (5Y)0.8
EPS Next 2Y21.41%
EPS Next 3Y21.97%
5. Dividend
5.1 Amount
WDAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
215.34
-18.35 (-7.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.14%
Inst Owner Change3.61%
Ins Owners0.74%
Ins Owner Change-2.32%
Market Cap57.50B
Revenue(TTM)8.45B
Net Income(TTM)583.00M
Analysts79.57
Price Target286.72 (33.15%)
Short Float %5.25%
Short Ratio4.2
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)-0.43%
PT rev (3m)-3.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)0%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.81 | ||
| Fwd PE | 20.01 | ||
| P/S | 6.42 | ||
| P/FCF | 24.05 | ||
| P/OCF | 22.19 | ||
| P/B | 6.27 | ||
| P/tB | 10.74 | ||
| EV/EBITDA | 41.02 |
EPS(TTM)8.68
EY4.03%
EPS(NY)10.76
Fwd EY5%
FCF(TTM)8.96
FCFY4.16%
OCF(TTM)9.7
OCFY4.51%
SpS33.55
BVpS34.35
TBVpS20.04
PEG (NY)1.03
PEG (5Y)0.8
Graham Number81.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 6.36% | ||
| ROCE | 5.91% | ||
| ROIC | 4.87% | ||
| ROICexc | 13.13% | ||
| ROICexgc | 62.83% | ||
| 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
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 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 | 6.99 | ||
| Cash Conversion | 234.27% | ||
| Profit Quality | 410.12% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 4.86 |
F-Score7
WACC10.87%
ROIC/WACC0.45
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)24.89%
EPS 3Y22.41%
EPS 5Y30.89%
EPS Q2Q%22.75%
EPS Next Y24.11%
EPS Next 2Y21.41%
EPS Next 3Y21.97%
EPS Next 5Y17.8%
Revenue 1Y (TTM)16.35%
Revenue growth 3Y18.01%
Revenue growth 5Y18.42%
Sales Q2Q%12.59%
Revenue Next Year13.08%
Revenue Next 2Y12.85%
Revenue Next 3Y12.71%
Revenue Next 5Y12.58%
EBIT growth 1Y124.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year43.28%
EBIT Next 3Y27.64%
EBIT Next 5Y20.98%
FCF growth 1Y55.76%
FCF growth 3Y21.95%
FCF growth 5Y33.27%
OCF growth 1Y43.49%
OCF growth 3Y14.24%
OCF growth 5Y23.27%
WORKDAY INC-CLASS A / WDAY FAQ
Can you provide the ChartMill fundamental rating for WORKDAY INC-CLASS A?
ChartMill assigns a fundamental rating of 6 / 10 to WDAY.
What is the valuation status for WDAY stock?
ChartMill assigns a valuation rating of 5 / 10 to WORKDAY INC-CLASS A (WDAY). This can be considered as Fairly Valued.
What is the profitability of WDAY stock?
WORKDAY INC-CLASS A (WDAY) has a profitability rating of 6 / 10.
What is the financial health of WORKDAY INC-CLASS A (WDAY) stock?
The financial health rating of WORKDAY INC-CLASS A (WDAY) is 7 / 10.
Can you provide the expected EPS growth for WDAY stock?
The Earnings per Share (EPS) of WORKDAY INC-CLASS A (WDAY) is expected to grow by 24.11% in the next year.