Logo image of FRSH

FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis

NASDAQ:FRSH - Nasdaq - US3580541049 - Common Stock - Currency: USD

19.3  -0.45 (-2.28%)

After market: 19.29 -0.01 (-0.05%)

Fundamental Rating

5

Taking everything into account, FRSH scores 5 out of 10 in our fundamental rating. FRSH was compared to 286 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!


Dividend Valuation Growth Profitability Health

Quickly go to:

3

1. Profitability

1.1 Basic Checks

In the past year FRSH was profitable.
FRSH had a positive operating cash flow in the past year.
FRSH had negative earnings in each of the past 5 years.
In multiple years FRSH reported negative operating cash flow during the last 5 years.
FRSH Yearly Net Income VS EBIT VS OCF VS FCFFRSH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 -500M -1B -1.5B -2B -2.5B

1.2 Ratios

FRSH has a Return On Assets (-6.45%) which is in line with its industry peers.
FRSH has a Return On Equity (-8.95%) which is comparable to the rest of the industry.
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
FRSH Yearly ROA, ROE, ROICFRSH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 -200 -400 -600 -800

1.3 Margins

FRSH has a Gross Margin of 83.84%. This is amongst the best in the industry. FRSH outperforms 90.32% of its industry peers.
In the last couple of years the Gross Margin of FRSH has grown nicely.
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
FRSH Yearly Profit, Operating, Gross MarginsFRSH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 -200 -400 -600

More info and screens

8

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.
FRSH Yearly Shares OutstandingFRSH Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
FRSH Yearly Total Debt VS Total AssetsFRSH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 500M 1B

2.2 Solvency

FRSH has an Altman-Z score of 5.61. This indicates that FRSH is financially healthy and has little risk of bankruptcy at the moment.
FRSH has a Altman-Z score of 5.61. This is in the better half of the industry: FRSH outperforms 64.87% of its industry peers.
FRSH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.61
ROIC/WACCN/A
WACC11.02%
FRSH Yearly LT Debt VS Equity VS FCFFRSH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

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 78.49% of its industry peers.
A Quick Ratio of 3.26 indicates that FRSH has no problem at all paying its short term obligations.
The Quick ratio of FRSH (3.26) is better than 78.49% of its industry peers.
Industry RankSector Rank
Current Ratio 3.26
Quick Ratio 3.26
FRSH Yearly Current Assets VS Current LiabilitesFRSH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 500M 1B

More info and screens

7

3. Growth

3.1 Past

FRSH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 94.74%, which is quite impressive.
Looking at the last year, FRSH shows a very strong growth in Revenue. The Revenue has grown by 20.43%.
Measured over the past years, FRSH shows a very strong growth in Revenue. The Revenue has been growing by 33.67% on average per year.
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

FRSH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.55% yearly.
FRSH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.94% yearly.
EPS Next Y52.68%
EPS Next 2Y42.23%
EPS Next 3Y36.1%
EPS Next 5Y29.55%
Revenue Next Year20.29%
Revenue Next 2Y17.01%
Revenue Next 3Y15.76%
Revenue Next 5Y15.94%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
FRSH Yearly Revenue VS EstimatesFRSH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
FRSH Yearly EPS VS EstimatesFRSH Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.2 -0.2 0.4 0.6 0.8

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 52.16, which means the current valuation is very expensive for FRSH.
FRSH's Price/Earnings ratio is a bit cheaper when compared to the industry. FRSH is cheaper than 60.93% of the companies in the same industry.
When comparing the Price/Earnings ratio of FRSH to the average of the S&P500 Index (28.28), we can say FRSH is valued expensively.
A Price/Forward Earnings ratio of 36.69 indicates a quite expensive valuation of FRSH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRSH indicates a somewhat cheap valuation: FRSH is cheaper than 64.87% of the companies listed in the same industry.
FRSH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
Industry RankSector Rank
PE 52.16
Fwd PE 36.69
FRSH Price Earnings VS Forward Price EarningsFRSH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

70.25% of the companies in the same industry are more expensive than FRSH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 41.69
EV/EBITDA N/A
FRSH Per share dataFRSH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

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.
A more expensive valuation may be justified as FRSH's earnings are expected to grow with 36.10% in the coming years.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y42.23%
EPS Next 3Y36.1%

More info and screens

0

5. Dividend

5.1 Amount

FRSH does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

FRESHWORKS INC-CL A

NASDAQ:FRSH (1/29/2025, 8:27:17 PM)

After market: 19.29 -0.01 (-0.05%)

19.3

-0.45 (-2.28%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-11 2025-02-11/amc
Inst Owners84.32%
Inst Owner Change-0.17%
Ins Owners1.18%
Ins Owner Change0.78%
Market Cap5.85B
Analysts75.83
Price Target18.68 (-3.21%)
Short Float %3.79%
Short Ratio1.9
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.18%
Min EPS beat(2)31.27%
Max EPS beat(2)39.1%
EPS beat(4)4
Avg EPS beat(4)36.98%
Min EPS beat(4)27.52%
Max EPS beat(4)50.05%
EPS beat(8)8
Avg EPS beat(8)116.01%
EPS beat(12)11
Avg EPS beat(12)91.43%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.86%
Min Revenue beat(2)0.7%
Max Revenue beat(2)1.01%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.11%
Max Revenue beat(4)1.01%
Revenue beat(8)5
Avg Revenue beat(8)0.1%
Revenue beat(12)9
Avg Revenue beat(12)0.77%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)4.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.64%
EPS NY rev (1m)0%
EPS NY rev (3m)16.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.73%
Valuation
Industry RankSector Rank
PE 52.16
Fwd PE 36.69
P/S 8.52
P/FCF 41.69
P/OCF 38.93
P/B 5.15
P/tB 6.54
EV/EBITDA N/A
EPS(TTM)0.37
EY1.92%
EPS(NY)0.53
Fwd EY2.73%
FCF(TTM)0.46
FCFY2.4%
OCF(TTM)0.5
OCFY2.57%
SpS2.27
BVpS3.75
TBVpS2.95
PEG (NY)0.99
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -6.45%
ROE -8.95%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 83.84%
FCFM 20.44%
ROA(3y)-72.56%
ROA(5y)-170.42%
ROE(3y)-88.06%
ROE(5y)-274.86%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.54%
GM growth 5YN/A
F-Score6
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 61.84%
Cap/Sales 1.45%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.26
Quick Ratio 3.26
Altman-Z 5.61
F-Score6
WACC11.02%
ROIC/WACCN/A
Cap/Depr(3y)81.27%
Cap/Depr(5y)115.41%
Cap/Sales(3y)2.11%
Cap/Sales(5y)3.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)94.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.5%
EPS Next Y52.68%
EPS Next 2Y42.23%
EPS Next 3Y36.1%
EPS Next 5Y29.55%
Revenue 1Y (TTM)20.43%
Revenue growth 3Y33.67%
Revenue growth 5YN/A
Sales Q2Q%21.51%
Revenue Next Year20.29%
Revenue Next 2Y17.01%
Revenue Next 3Y15.76%
Revenue Next 5Y15.94%
EBIT growth 1Y18.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year144.11%
EBIT Next 3Y68.97%
EBIT Next 5YN/A
FCF growth 1Y977.33%
FCF growth 3Y52.91%
FCF growth 5YN/A
OCF growth 1Y3195.92%
OCF growth 3Y38.37%
OCF growth 5YN/A