NASDAQ:WDAY—A High-Growth Stock Gearing Up for Its Next Upward Move.

Last update: Dec 3, 2024

In this article, we'll take a closer look at WORKDAY INC-CLASS A (NASDAQ:WDAY) as a potential candidate for growth investing. While it's important for investors to conduct their own research, WORKDAY INC-CLASS A has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Deciphering NASDAQ:WDAY's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:WDAY has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 32.13% 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
The Revenue has grown by 16.81% in the past year. This is quite good.
The Revenue has been growing by 20.80% on average over the past years. This is a very strong growth!
WDAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.06% yearly.
WDAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.34% yearly.

How We Gauge Health for NASDAQ:WDAY

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:WDAY has earned a 7 out of 10:

An Altman-Z score of 5.94 indicates that WDAY is not in any danger for bankruptcy at the moment.
WDAY has a better Altman-Z score (5.94) than 66.55% of its industry peers.
WDAY has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
WDAY's Debt to FCF ratio of 1.41 is fine compared to the rest of the industry. WDAY outperforms 69.42% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that WDAY is not too dependend on debt financing.
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.
WDAY has a Current Ratio of 2.05. This indicates that WDAY is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WDAY (2.05) is better than 61.87% of its industry peers.
A Quick Ratio of 2.05 indicates that WDAY has no problem at all paying its short term obligations.
The Quick ratio of WDAY (2.05) is better than 62.95% of its industry peers.

What does the Profitability looks like for NASDAQ:WDAY

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:WDAY has earned a 6 out of 10:

WDAY has a Return On Assets of 9.87%. This is amongst the best in the industry. WDAY outperforms 85.97% of its industry peers.
WDAY's Return On Equity of 18.79% is amongst the best of the industry. WDAY outperforms 87.41% of its industry peers.
WDAY has a Return On Invested Capital of 2.76%. This is in the better half of the industry: WDAY outperforms 70.86% of its industry peers.
WDAY has a better Profit Margin (19.87%) than 87.41% of its industry peers.
WDAY has a better Operating Margin (5.13%) than 71.94% of its industry peers.
Looking at the Gross Margin, with a value of 75.60%, WDAY is in the better half of the industry, outperforming 67.99% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:WDAY?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:WDAY this score is currently 7:

WDAY has an average technical rating and also the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

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

Check the latest full fundamental report of WDAY for a complete fundamental analysis.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.