FRESHWORKS INC-CL A (FRSH)
US3580541049 - Common Stock
Overall FRSH gets a fundamental rating of 5 out of 10. We evaluated FRSH against 279 industry peers in the Software industry. FRSH has a great financial health rating, but its profitability evaluates not so good. FRSH is growing strongly while it is still valued neutral. This is a good combination!
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.
FRSH had negative earnings in each of the past 5 years.
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
Looking at the Return On Assets, with a value of -6.45%, FRSH is in line with its industry, outperforming 45.88% of the companies in the same industry.
The Return On Equity of FRSH (-8.95%) is comparable to the rest of the industry.
| Industry Rank | Sector 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 89.96% of the companies in the same industry.
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 Rank | Sector 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
2. Health
2.1 Basic Checks
FRSH does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for FRSH has been increased compared to 1 year ago.
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
An Altman-Z score of 4.25 indicates that FRSH is not in any danger for bankruptcy at the moment.
The Altman-Z score of FRSH (4.25) is comparable to the rest of the industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.25 |
ROIC/WACCN/A
WACC10.61%
2.3 Liquidity
FRSH has a Current Ratio of 3.26. This indicates that FRSH is financially healthy and has no problem in meeting its short term obligations.
FRSH's Current ratio of 3.26 is fine compared to the rest of the industry. FRSH outperforms 77.06% of its industry peers.
FRSH has a Quick Ratio of 3.26. This indicates that FRSH is financially healthy and has no problem in meeting its short term obligations.
FRSH has a better Quick ratio (3.26) than 77.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.26 | ||
| Quick Ratio | 3.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 94.74% over the past year.
The Revenue has grown by 20.43% in the past year. This is a very strong growth!
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
Based on estimates for the next years, FRSH will show a very strong growth in Earnings Per Share. The EPS will grow by 28.98% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 44.62, the valuation of FRSH can be described as expensive.
Based on the Price/Earnings ratio, FRSH is valued a bit cheaper than 64.87% of the companies in the same industry.
FRSH is valuated expensively when we compare the Price/Earnings ratio to 29.30, which is the current average of the S&P500 Index.
FRSH is valuated quite expensively with a Price/Forward Earnings ratio of 32.03.
Based on the Price/Forward Earnings ratio, FRSH is valued a bit cheaper than 65.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.90. FRSH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.62 | ||
| Fwd PE | 32.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FRSH indicates a somewhat cheap valuation: FRSH is cheaper than 71.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.66 | ||
| 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.
A more expensive valuation may be justified as FRSH's earnings are expected to grow with 35.48% in the coming years.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y40.8%
EPS Next 3Y35.48%
5. Dividend
5.1 Amount
FRSH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRESHWORKS INC-CL A
NASDAQ:FRSH (11/11/2024, 5:32:48 PM)
After market: 16.51 0 (0%)16.51
+0.07 (+0.43%)
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 Cap5.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.62 | ||
| Fwd PE | 32.03 | ||
| 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)0.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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