Taking everything into account, WK scores 4 out of 10 in our fundamental rating. WK was compared to 278 industry peers in the Software industry. Both the profitability and financial health of WK have multiple concerns. WK shows excellent growth, but is valued quite expensive already.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

WK had positive earnings in the past year.
WK had a positive operating cash flow in the past year.
In the past 5 years WK always reported negative net income.
In the past 5 years WK always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of -3.32%, WK is in line with its industry, outperforming 45.68% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-3.32%
ROE	N/A
ROIC	N/A

ROA(3y)-8.53%

ROA(5y)-7.44%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

WK has a better Gross Margin (77.53%) than 73.74% of its industry peers.
In the last couple of years the Gross Margin of WK has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for WK so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	77.53%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.05%

GM growth 5Y1.43%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

WK does not have a ROIC to compare to the WACC, probably because it is not profitable.
WK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WK has more shares outstanding
The debt/assets ratio for WK has been reduced compared to a year ago.

2.2 Solvency

WK has an Altman-Z score of 1.95. This is not the best score and indicates that WK is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of WK (1.95) is comparable to the rest of the industry.
The Debt to FCF ratio of WK is 5.99, which is a neutral value as it means it would take WK, 5.99 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WK (5.99) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	5.99
Altman-Z	1.95

ROIC/WACCN/A

WACC10.42%

2.3 Liquidity

A Current Ratio of 1.58 indicates that WK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.58, WK perfoms like the industry average, outperforming 47.48% of the companies in the same industry.
WK has a Quick Ratio of 1.58. This is a normal value and indicates that WK is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WK (1.58) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.58
Quick Ratio	1.58

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 35.96% over the past year.
WK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.48% yearly.
Looking at the last year, WK shows a quite strong growth in Revenue. The Revenue has grown by 19.86% in the last year.
The Revenue has been growing by 19.92% on average over the past years. This is quite good.

EPS 1Y (TTM)35.96%

EPS 3Y35.48%

EPS 5YN/A

EPS Q2Q%161.9%

Revenue 1Y (TTM)19.86%

Revenue growth 3Y18.55%

Revenue growth 5Y19.92%

Sales Q2Q%20.77%

3.2 Future

The Earnings Per Share is expected to grow by 44.97% on average over the next years. This is a very strong growth
Based on estimates for the next years, WK will show a quite strong growth in Revenue. The Revenue will grow by 17.77% on average per year.

EPS Next Y83.43%

EPS Next 2Y55.6%

EPS Next 3Y51.7%

EPS Next 5Y44.97%

Revenue Next Year19.99%

Revenue Next 2Y17.89%

Revenue Next 3Y17.13%

Revenue Next 5Y17.77%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

WK is valuated quite expensively with a Price/Earnings ratio of 67.31.
WK's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.21, WK is valued quite expensively.
The Price/Forward Earnings ratio is 36.56, which means the current valuation is very expensive for WK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WK is on the same level as its industry peers.
WK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	67.31
Fwd PE	36.56

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, WK is valued a bit cheaper than 65.47% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	35.1
EV/EBITDA	N/A

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.
WK's earnings are expected to grow with 51.70% in the coming years. This may justify a more expensive valuation.