FRESHWORKS INC-CL A (FRSH)

US3580541049 - Common Stock

16.335  -0.2 (-1.24%)

Fundamental Rating

5

Taking everything into account, FRSH scores 5 out of 10 in our fundamental rating. FRSH was compared to 279 industry peers in the Software industry. No worries on liquidiy or solvency for FRSH as it has an excellent financial health rating, but there are worries on the profitability. FRSH is not priced too expensively while it is growing strongly. Keep and eye on this one!



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3

1. Profitability

1.1 Basic Checks

In the past year FRSH was profitable.
In the past year FRSH had a positive cash flow from operations.
In the past 5 years FRSH always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: FRSH reported negative operating cash flow in multiple years.

1.2 Ratios

The Return On Assets of FRSH (-6.45%) is comparable to the rest of the industry.
FRSH has a Return On Equity (-8.95%) which is in line with its industry peers.
Industry RankSector Rank
ROA -6.45%
ROE -8.95%
ROIC N/A
ROA(3y)-72.56%
ROA(5y)-170.42%
ROE(3y)-88.06%
ROE(5y)-274.86%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

Looking at the Gross Margin, with a value of 83.84%, FRSH belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
FRSH's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for FRSH so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 83.84%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.54%
GM growth 5YN/A

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7

2. Health

2.1 Basic Checks

FRSH does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, FRSH has more shares outstanding
FRSH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

FRSH has an Altman-Z score of 4.29. This indicates that FRSH is financially healthy and has little risk of bankruptcy at the moment.
FRSH's Altman-Z score of 4.29 is in line compared to the rest of the industry. FRSH outperforms 59.86% of its industry peers.
There is no outstanding debt for FRSH. 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 4.29
ROIC/WACCN/A
WACC11.9%

2.3 Liquidity

A Current Ratio of 3.26 indicates that FRSH has no problem at all paying its short term obligations.
The Current ratio of FRSH (3.26) is better than 77.06% of its industry peers.
A Quick Ratio of 3.26 indicates that FRSH has no problem at all paying its short term obligations.
FRSH has a Quick ratio of 3.26. This is in the better half of the industry: FRSH outperforms 77.06% of its industry peers.
Industry RankSector Rank
Current Ratio 3.26
Quick Ratio 3.26

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 94.74% over the past year.
FRSH shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.43%.
FRSH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.67% yearly.
EPS 1Y (TTM)94.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.5%
Revenue 1Y (TTM)20.43%
Revenue growth 3Y33.67%
Revenue growth 5YN/A
Sales Q2Q%21.51%

3.2 Future

The Earnings Per Share is expected to grow by 28.98% on average over the next years. This is a very strong growth
FRSH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.24% yearly.
EPS Next Y48.99%
EPS Next 2Y40.8%
EPS Next 3Y35.48%
EPS Next 5Y28.98%
Revenue Next Year20.18%
Revenue Next 2Y17.26%
Revenue Next 3Y16.18%
Revenue Next 5Y19.24%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 44.15, which means the current valuation is very expensive for FRSH.
Compared to the rest of the industry, the Price/Earnings ratio of FRSH indicates a somewhat cheap valuation: FRSH is cheaper than 64.52% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. FRSH is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 31.69 indicates a quite expensive valuation of FRSH.
FRSH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FRSH is cheaper than 65.59% of the companies in the same industry.
FRSH's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.82.
Industry RankSector Rank
PE 44.15
Fwd PE 31.69

4.2 Price Multiples

FRSH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FRSH is cheaper than 71.68% of the companies in the same industry.
Industry RankSector Rank
P/FCF 35.29
EV/EBITDA N/A

4.3 Compensation for Growth

FRSH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FRSH's earnings are expected to grow with 35.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y40.8%
EPS Next 3Y35.48%

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0

5. Dividend

5.1 Amount

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

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FRESHWORKS INC-CL A

NASDAQ:FRSH (11/22/2024, 10:55:10 AM)

16.335

-0.2 (-1.24%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.95B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 44.15
Fwd PE 31.69
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.9
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -6.45%
ROE -8.95%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 83.84%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 3.26
Quick Ratio 3.26
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)94.74%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y48.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.43%
Revenue growth 3Y33.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y