NASDAQ:WDAY, a strong growth stock, setting up for a breakout.

Last update: Jul 31, 2024

Exploring Growth Potential: WORKDAY INC-CLASS A (NASDAQ:WDAY) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and WORKDAY INC-CLASS A has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected WORKDAY INC-CLASS A on our screen for growth with base formation, suggesting it merits a closer look.

Assessing Growth for NASDAQ:WDAY

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:WDAY boasts a 8 out of 10:

The Earnings Per Share has grown by an impressive 52.18% over the past year.
The Earnings Per Share has been growing by 33.84% on average over the past years. This is a very strong growth
WDAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.00%.
WDAY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.80% yearly.
Based on estimates for the next years, WDAY will show a very strong growth in Earnings Per Share. The EPS will grow by 21.06% on average per year.
The Revenue is expected to grow by 15.34% on average over the next years. This is quite good.

Health Analysis for NASDAQ:WDAY

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:WDAY, the assigned 7 for health provides valuable insights:

An Altman-Z score of 5.36 indicates that WDAY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.36, WDAY is doing good in the industry, outperforming 69.61% of the companies in the same industry.
WDAY has a debt to FCF ratio of 1.50. This is a very positive value and a sign of high solvency as it would only need 1.50 years to pay back of all of its debts.
WDAY's Debt to FCF ratio of 1.50 is fine compared to the rest of the industry. WDAY outperforms 71.02% of its industry peers.
WDAY has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
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.
A Current Ratio of 2.00 indicates that WDAY has no problem at all paying its short term obligations.
WDAY's Current ratio of 2.00 is fine compared to the rest of the industry. WDAY outperforms 60.42% of its industry peers.
WDAY has a Quick Ratio of 2.00. This indicates that WDAY is financially healthy and has no problem in meeting its short term obligations.
WDAY has a better Quick ratio (2.00) than 61.13% of its industry peers.

How do we evaluate the Profitability for NASDAQ:WDAY?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:WDAY, the assigned 6 is a significant indicator of profitability:

WDAY has a better Return On Assets (9.33%) than 87.99% of its industry peers.
The Return On Equity of WDAY (18.23%) is better than 89.05% of its industry peers.
WDAY has a better Return On Invested Capital (1.83%) than 70.67% of its industry peers.
WDAY has a Profit Margin of 19.67%. This is amongst the best in the industry. WDAY outperforms 87.63% of its industry peers.
The Operating Margin of WDAY (3.53%) is better than 71.02% of its industry peers.
WDAY has a better Gross Margin (75.64%) than 69.96% of its industry peers.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:WDAY is 7:

WDAY has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of WDAY contains the most current fundamental analsysis.

Our latest full technical report of WDAY contains the most current technical analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.