WALKME LTD (WKME) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:WKME • IL0011765851

13.95 USD
0 (0%)
At close: Sep 11, 2024
13.93 USD
-0.02 (-0.14%)
After Hours: 9/11/2024, 8:00:44 PM
Fundamental Rating

4

Overall WKME gets a fundamental rating of 4 out of 10. We evaluated WKME against 278 industry peers in the Software industry. WKME has a great financial health rating, but its profitability evaluates not so good. WKME has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • WKME had positive earnings in the past year.
  • WKME had a positive operating cash flow in the past year.
  • WKME had negative earnings in each of the past 5 years.
  • In the past 5 years WKME reported 4 times negative operating cash flow.
WKME Yearly Net Income VS EBIT VS OCF VS FCFWKME Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 -20M -40M -60M -80M -100M

1.2 Ratios

  • Looking at the Return On Assets, with a value of -9.47%, WKME is in line with its industry, outperforming 42.25% of the companies in the same industry.
  • WKME's Return On Equity of -17.23% is in line compared to the rest of the industry. WKME outperforms 45.77% of its industry peers.
Industry RankSector Rank
ROA -9.47%
ROE -17.23%
ROIC N/A
ROA(3y)-18.22%
ROA(5y)-23.44%
ROE(3y)-30.9%
ROE(5y)-46.52%
ROIC(3y)N/A
ROIC(5y)N/A
WKME Yearly ROA, ROE, ROICWKME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 -20 -40 -60

1.3 Margins

  • WKME's Gross Margin of 85.25% is amongst the best of the industry. WKME outperforms 92.25% of its industry peers.
  • In the last couple of years the Gross Margin of WKME has grown nicely.
  • The Profit Margin and Operating Margin are not available for WKME so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 85.25%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.26%
GM growth 5YN/A
WKME Yearly Profit, Operating, Gross MarginsWKME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 -20 40 -40 60 80

7

2. Health

2.1 Basic Checks

  • WKME does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • Compared to 1 year ago, WKME has more shares outstanding
  • WKME has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
WKME Yearly Shares OutstandingWKME Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M 80M
WKME Yearly Total Debt VS Total AssetsWKME Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 100M 200M 300M 400M

2.2 Solvency

  • WKME has an Altman-Z score of 2.93. This is not the best score and indicates that WKME is in the grey zone with still only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.93, WKME is in line with its industry, outperforming 53.87% of the companies in the same industry.
  • There is no outstanding debt for WKME. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.93
ROIC/WACCN/A
WACC9.55%
WKME Yearly LT Debt VS Equity VS FCFWKME Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 100M 200M

2.3 Liquidity

  • A Current Ratio of 2.04 indicates that WKME has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.04, WKME is doing good in the industry, outperforming 61.97% of the companies in the same industry.
  • A Quick Ratio of 2.04 indicates that WKME has no problem at all paying its short term obligations.
  • WKME has a better Quick ratio (2.04) than 61.97% of its industry peers.
Industry RankSector Rank
Current Ratio 2.04
Quick Ratio 2.04
WKME Yearly Current Assets VS Current LiabilitesWKME Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M 400M

6

3. Growth

3.1 Past

  • WKME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 181.25%, which is quite impressive.
  • The Revenue has been growing slightly by 4.89% in the past year.
  • Measured over the past years, WKME shows a very strong growth in Revenue. The Revenue has been growing by 21.65% on average per year.
EPS 1Y (TTM)181.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-41.11%
Revenue 1Y (TTM)4.89%
Revenue growth 3Y21.65%
Revenue growth 5YN/A
Sales Q2Q%5.07%

3.2 Future

  • WKME is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 71.00% yearly.
  • WKME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.86% yearly.
EPS Next Y643.24%
EPS Next 2Y204.11%
EPS Next 3Y147.19%
EPS Next 5Y71%
Revenue Next Year5.65%
Revenue Next 2Y7.5%
Revenue Next 3Y9.56%
Revenue Next 5Y8.86%

3.3 Evolution

  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
WKME Yearly Revenue VS EstimatesWKME Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100M 200M 300M 400M
WKME Yearly EPS VS EstimatesWKME Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 0 0.2 -0.2 0.4 -0.4 -0.6

4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 53.65 indicates a quite expensive valuation of WKME.
  • WKME's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 28.32. WKME is valued rather expensively when compared to this.
  • A Price/Forward Earnings ratio of 50.28 indicates a quite expensive valuation of WKME.
  • WKME's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. WKME is valued rather expensively when compared to this.
Industry RankSector Rank
PE 53.65
Fwd PE 50.28
WKME Price Earnings VS Forward Price EarningsWKME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, WKME is valued a bit cheaper than the industry average as 77.11% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 28.09
EV/EBITDA N/A
WKME Per share dataWKME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.5 1 1.5 2 2.5

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.
  • WKME's earnings are expected to grow with 147.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y204.11%
EPS Next 3Y147.19%

0

5. Dividend

5.1 Amount

  • No dividends for WKME!.
Industry RankSector Rank
Dividend Yield N/A

WALKME LTD / WKME FAQ

What is the fundamental rating for WKME stock?

ChartMill assigns a fundamental rating of 4 / 10 to WKME.


Can you provide the valuation status for WALKME LTD?

ChartMill assigns a valuation rating of 4 / 10 to WALKME LTD (WKME). This can be considered as Fairly Valued.


How profitable is WALKME LTD (WKME) stock?

WALKME LTD (WKME) has a profitability rating of 2 / 10.


How financially healthy is WALKME LTD?

The financial health rating of WALKME LTD (WKME) is 7 / 10.