WORKDAY INC-CLASS A (WDAY)
US98138H1014 - Common Stock
Taking everything into account, WDAY scores 6 out of 10 in our fundamental rating. WDAY was compared to 279 industry peers in the Software industry. While WDAY has a great health rating, its profitability is only average at the moment. WDAY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make WDAY suitable for growth investing!
1. Profitability
1.1 Basic Checks
WDAY had positive earnings in the past year.
In the past year WDAY had a positive cash flow from operations.
In multiple years WDAY reported negative net income over the last 5 years.
Each year in the past 5 years WDAY had a positive operating cash flow.
1.2 Ratios
WDAY has a better Return On Assets (9.49%) than 86.38% of its industry peers.
The Return On Equity of WDAY (18.47%) is better than 87.46% of its industry peers.
With a decent Return On Invested Capital value of 2.30%, WDAY is doing good in the industry, outperforming 70.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.49% | ||
| ROE | 18.47% | ||
| ROIC | 2.3% |
ROA(3y)1.99%
ROA(5y)-0.87%
ROE(3y)3.72%
ROE(5y)-3.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WDAY has a Profit Margin of 19.60%. This is amongst the best in the industry. WDAY outperforms 87.46% of its industry peers.
Looking at the Operating Margin, with a value of 4.34%, WDAY is in the better half of the industry, outperforming 69.53% of the companies in the same industry.
Looking at the Gross Margin, with a value of 75.77%, WDAY is in the better half of the industry, outperforming 69.53% of the companies in the same industry.
In the last couple of years the Gross Margin of WDAY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.34% | ||
| PM (TTM) | 19.6% | ||
| GM | 75.77% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.52%
GM growth 5Y1.43%
2. Health
2.1 Basic Checks
WDAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WDAY has more shares outstanding
The number of shares outstanding for WDAY has been increased compared to 5 years ago.
The debt/assets ratio for WDAY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.00 indicates that WDAY is not in any danger for bankruptcy at the moment.
WDAY has a Altman-Z score of 6.00. This is in the better half of the industry: WDAY outperforms 67.38% of its industry peers.
The Debt to FCF ratio of WDAY is 1.39, which is an excellent value as it means it would take WDAY, only 1.39 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.39, WDAY is doing good in the industry, outperforming 69.89% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that WDAY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.36, WDAY is doing worse than 64.16% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for WDAY, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.39 | ||
| Altman-Z | 6 |
ROIC/WACC0.2
WACC11.77%
2.3 Liquidity
A Current Ratio of 2.04 indicates that WDAY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.04, WDAY is in the better half of the industry, outperforming 61.65% of the companies in the same industry.
A Quick Ratio of 2.04 indicates that WDAY has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.04, WDAY is doing good in the industry, outperforming 61.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.62% over the past year.
WDAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.84% yearly.
WDAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.07%.
WDAY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.80% yearly.
EPS 1Y (TTM)39.62%
EPS 3Y26.72%
EPS 5Y33.84%
EPS Q2Q%22.38%
Revenue 1Y (TTM)17.07%
Revenue growth 3Y18.9%
Revenue growth 5Y20.8%
Sales Q2Q%16.69%
3.2 Future
The Earnings Per Share is expected to grow by 21.06% on average over the next years. This is a very strong growth
Based on estimates for the next years, WDAY will show a quite strong growth in Revenue. The Revenue will grow by 15.34% on average per year.
EPS Next Y22.84%
EPS Next 2Y20.38%
EPS Next 3Y20.69%
EPS Next 5Y21.06%
Revenue Next Year15.82%
Revenue Next 2Y14.95%
Revenue Next 3Y14.65%
Revenue Next 5Y15.34%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
Based on the Price/Earnings ratio of 40.68, the valuation of WDAY can be described as expensive.
WDAY's Price/Earnings ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 66.67% of the companies in the same industry.
WDAY's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.96.
With a Price/Forward Earnings ratio of 31.67, WDAY can be considered very expensive at the moment.
WDAY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 67.03% of the companies in the same industry.
WDAY's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.68 | ||
| Fwd PE | 31.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WDAY.
Based on the Price/Free Cash Flow ratio, WDAY is valued a bit cheaper than the industry average as 74.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.12 | ||
| EV/EBITDA | 92.23 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WDAY may justify a higher PE ratio.
A more expensive valuation may be justified as WDAY's earnings are expected to grow with 20.69% in the coming years.
PEG (NY)1.78
PEG (5Y)1.2
EPS Next 2Y20.38%
EPS Next 3Y20.69%
5. Dividend
5.1 Amount
No dividends for WDAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WORKDAY INC-CLASS A
NASDAQ:WDAY (11/21/2024, 5:51:52 PM)
After market: 267.5 -0.57 (-0.21%)268.07
+8.63 (+3.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
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Inst Owners
Inst Owner Change
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Market Cap71.04B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.68 | ||
| Fwd PE | 31.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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SpS
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PEG (NY)1.78
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.49% | ||
| ROE | 18.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.34% | ||
| PM (TTM) | 19.6% | ||
| GM | 75.77% | ||
| 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 | ||
| 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)39.62%
EPS 3Y26.72%
EPS 5Y
EPS Q2Q%
EPS Next Y22.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.07%
Revenue growth 3Y18.9%
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
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