FRESHWORKS INC-CL A (FRSH) Stock Fundamental Analysis
NASDAQ:FRSH - Nasdaq - US3580541049 - Common Stock - Currency: USD
FRSH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. FRSH has a great financial health rating, but its profitability evaluates not so good. FRSH is valued quite expensive, but it does show an excellent growth.
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.
Of the past 5 years FRSH 4 years had a positive operating cash flow.
1.2 Ratios
FRSH has a Return On Assets (-5.92%) which is comparable to the rest of the industry.
FRSH has a Return On Equity (-8.38%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.92% | ||
| ROE | -8.38% | ||
| ROIC | N/A |
ROA(3y)-10.72%
ROA(5y)-132.79%
ROE(3y)-14.42%
ROE(5y)-217.6%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
FRSH has a better Gross Margin (84.27%) than 90.75% of its industry peers.
In the last couple of years the Gross Margin of FRSH has remained more or less at the same level.
FRSH does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 84.27% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.19%
GM growth 5Y1.34%
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 more shares outstanding than it did 5 years ago.
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.
2.2 Solvency
FRSH has an Altman-Z score of 3.61. This indicates that FRSH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FRSH (3.61) is better than 60.14% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.61 |
ROIC/WACCN/A
WACC12.77%
2.3 Liquidity
FRSH has a Current Ratio of 3.10. This indicates that FRSH is financially healthy and has no problem in meeting its short term obligations.
FRSH has a Current ratio of 3.10. This is in the better half of the industry: FRSH outperforms 77.58% of its industry peers.
A Quick Ratio of 3.10 indicates that FRSH has no problem at all paying its short term obligations.
FRSH has a better Quick ratio (3.10) than 77.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
FRSH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.38%, which is quite impressive.
FRSH shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.77%.
Measured over the past years, FRSH shows a very strong growth in Revenue. The Revenue has been growing by 33.11% on average per year.
EPS 1Y (TTM)65.38%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
Revenue 1Y (TTM)20.77%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%21.52%
3.2 Future
FRSH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.87% yearly.
The Revenue is expected to grow by 14.89% on average over the next years. This is quite good.
EPS Next Y24.88%
EPS Next 2Y23.85%
EPS Next 3Y20.9%
EPS Next 5Y21.87%
Revenue Next Year14%
Revenue Next 2Y13.63%
Revenue Next 3Y13.3%
Revenue Next 5Y14.89%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.74, which means the current valuation is very expensive for FRSH.
Based on the Price/Earnings ratio, FRSH is valued a bit cheaper than 65.12% of the companies in the same industry.
FRSH is valuated rather expensively when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
FRSH is valuated quite expensively with a Price/Forward Earnings ratio of 29.42.
66.55% of the companies in the same industry are more expensive than FRSH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. FRSH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.74 | ||
| Fwd PE | 29.42 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, FRSH is valued a bit cheaper than the industry average as 72.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.63 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FRSH's earnings are expected to grow with 20.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)N/A
EPS Next 2Y23.85%
EPS Next 3Y20.9%
5. Dividend
5.1 Amount
No dividends for FRSH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.8
-0.15 (-0.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.44%
Inst Owner Change7.8%
Ins Owners1.13%
Ins Owner Change5.67%
Market Cap4.76B
Analysts76.67
Price Target22.06 (39.62%)
Short Float %3.29%
Short Ratio1.83
Dividend
| Industry Rank | Sector 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)37.1%
Min EPS beat(2)35.11%
Max EPS beat(2)39.1%
EPS beat(4)4
Avg EPS beat(4)33.25%
Min EPS beat(4)27.52%
Max EPS beat(4)39.1%
EPS beat(8)8
Avg EPS beat(8)104.63%
EPS beat(12)12
Avg EPS beat(12)94.75%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.7%
Min Revenue beat(2)0.69%
Max Revenue beat(2)0.7%
Revenue beat(4)3
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-1.11%
Max Revenue beat(4)1.01%
Revenue beat(8)5
Avg Revenue beat(8)0.17%
Revenue beat(12)9
Avg Revenue beat(12)0.57%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)13.82%
PT rev (3m)18.09%
EPS NQ rev (1m)6.09%
EPS NQ rev (3m)6.09%
EPS NY rev (1m)1.91%
EPS NY rev (3m)2.09%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.74 | ||
| Fwd PE | 29.42 | ||
| P/S | 6.61 | ||
| P/FCF | 32.63 | ||
| P/OCF | 29.66 | ||
| P/B | 4.19 | ||
| P/tB | 5.29 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.43
EY2.72%
EPS(NY)0.54
Fwd EY3.4%
FCF(TTM)0.48
FCFY3.06%
OCF(TTM)0.53
OCFY3.37%
SpS2.39
BVpS3.77
TBVpS2.99
PEG (NY)1.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.92% | ||
| ROE | -8.38% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 84.27% | ||
| FCFM | 20.26% |
ROA(3y)-10.72%
ROA(5y)-132.79%
ROE(3y)-14.42%
ROE(5y)-217.6%
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 3Y2.19%
GM growth 5Y1.34%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 75.52% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.1 | ||
| Quick Ratio | 3.1 | ||
| Altman-Z | 3.61 |
F-Score7
WACC12.77%
ROIC/WACCN/A
Cap/Depr(3y)83.57%
Cap/Depr(5y)83.13%
Cap/Sales(3y)1.96%
Cap/Sales(5y)2.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)65.38%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
EPS Next Y24.88%
EPS Next 2Y23.85%
EPS Next 3Y20.9%
EPS Next 5Y21.87%
Revenue 1Y (TTM)20.77%
Revenue growth 3Y24.76%
Revenue growth 5Y33.11%
Sales Q2Q%21.52%
Revenue Next Year14%
Revenue Next 2Y13.63%
Revenue Next 3Y13.3%
Revenue Next 5Y14.89%
EBIT growth 1Y24.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year82.61%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y87.55%
FCF growth 3Y296.61%
FCF growth 5YN/A
OCF growth 1Y86.41%
OCF growth 3Y141.12%
OCF growth 5YN/A