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 283 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
WDAY has a Return On Assets of 2.83%. This is in the better half of the industry: WDAY outperforms 70.32% of its industry peers.
WDAY's Return On Equity of 5.46% is fine compared to the rest of the industry. WDAY outperforms 71.73% of its industry peers.
The Return On Invested Capital of WDAY (4.21%) is better than 72.44% 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
WDAY's Profit Margin of 5.60% is fine compared to the rest of the industry. WDAY outperforms 71.02% of its industry peers.
In the last couple of years the Profit Margin of WDAY has grown nicely.
WDAY's Operating Margin of 7.27% is fine compared to the rest of the industry. WDAY outperforms 72.08% of its industry peers.
WDAY has a Gross Margin of 75.66%. This is in the better half of the industry: WDAY outperforms 69.61% 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 | 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.
Compared to 1 year ago, WDAY has more shares outstanding
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
An Altman-Z score of 5.20 indicates that WDAY is not in any danger for bankruptcy at the moment.
The Altman-Z score of WDAY (5.20) is better than 70.67% of its industry peers.
WDAY has a debt to FCF ratio of 1.29. This is a very positive value and a sign of high solvency as it would only need 1.29 years to pay back of all of its debts.
WDAY has a better Debt to FCF ratio (1.29) than 72.08% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that WDAY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, WDAY is doing worse than 61.48% of the companies in the same industry.
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 | 5.2 |
ROIC/WACC0.37
WACC11.36%
2.3 Liquidity
A Current Ratio of 2.07 indicates that WDAY has no problem at all paying its short term obligations.
WDAY has a better Current ratio (2.07) than 61.84% 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.
Looking at the Quick ratio, with a value of 2.07, WDAY is in the better half of the industry, outperforming 62.90% of the companies in the same industry.
| 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.
WDAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.89% yearly.
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
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 Y22.55%
EPS Next 2Y19.08%
EPS Next 3Y17.39%
EPS Next 5Y14.37%
Revenue Next Year13%
Revenue Next 2Y13.02%
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.
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
With a Price/Earnings ratio of 28.42, WDAY can be considered very expensive at the moment.
68.20% of the companies in the same industry are more expensive than WDAY, based on the Price/Earnings ratio.
WDAY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.11.
With a Price/Forward Earnings ratio of 21.39, WDAY is valued on the expensive side.
74.56% 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 35.78. WDAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.42 | ||
| Fwd PE | 21.39 |
4.2 Price Multiples
WDAY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 63.25% of the companies in the same industry.
74.91% of the companies in the same industry are more expensive than WDAY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.49 | ||
| EV/EBITDA | 49.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 17.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)0.92
EPS Next 2Y19.08%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
WDAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:WDAY (8/14/2025, 3:29:09 PM)
221.375
-1.69 (-0.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.16%
Inst Owner Change-1.88%
Ins Owners0.75%
Ins Owner Change6.7%
Market Cap59.11B
Analysts78.3
Price Target301.65 (36.26%)
Short Float %3.63%
Short Ratio3.25
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)-0.27%
PT rev (3m)-2.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)0%
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)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.42 | ||
| Fwd PE | 21.39 | ||
| P/S | 6.8 | ||
| P/FCF | 25.49 | ||
| P/OCF | 23.22 | ||
| P/B | 6.63 | ||
| P/tB | 11.64 | ||
| EV/EBITDA | 49.2 |
EPS(TTM)7.79
EY3.52%
EPS(NY)10.35
Fwd EY4.68%
FCF(TTM)8.69
FCFY3.92%
OCF(TTM)9.54
OCFY4.31%
SpS32.57
BVpS33.4
TBVpS19.02
PEG (NY)1.26
PEG (5Y)0.92
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 | 5.2 |
F-Score8
WACC11.36%
ROIC/WACC0.37
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 2Y13.02%
Revenue Next 3Y13.16%
Revenue Next 5Y12.73%
EBIT growth 1Y136.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year41.46%
EBIT Next 3Y21.86%
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%