WORKDAY INC-CLASS A (WDAY) Fundamental Analysis & Valuation

NASDAQ:WDAY • US98138H1014

Current stock price

117.88 USD
-2.04 (-1.7%)
Last:

This WDAY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. WDAY Profitability Analysis

1.1 Basic Checks

  • WDAY had positive earnings in the past year.
  • WDAY had a positive operating cash flow in the past year.
  • Of the past 5 years WDAY 4 years were profitable.
  • Each year in the past 5 years WDAY had a positive operating cash flow.
WDAY Yearly Net Income VS EBIT VS OCF VS FCFWDAY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1B 2B

1.2 Ratios

  • With a decent Return On Assets value of 6.97%, WDAY is doing good in the industry, outperforming 79.34% of the companies in the same industry.
  • The Return On Equity of WDAY (16.14%) is better than 83.39% of its industry peers.
  • With an excellent Return On Invested Capital value of 10.27%, WDAY belongs to the best of the industry, outperforming 85.24% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for WDAY is significantly below the industry average of 10.91%.
  • The last Return On Invested Capital (10.27%) for WDAY is above the 3 year average (3.62%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.97%
ROE 16.14%
ROIC 10.27%
ROA(3y)5.05%
ROA(5y)2.54%
ROE(3y)10.6%
ROE(5y)5.17%
ROIC(3y)3.62%
ROIC(5y)N/A
WDAY Yearly ROA, ROE, ROICWDAY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 -10 -20 -30

1.3 Margins

  • WDAY's Profit Margin of 13.19% is fine compared to the rest of the industry. WDAY outperforms 78.97% of its industry peers.
  • The Operating Margin of WDAY (16.65%) is better than 84.13% of its industry peers.
  • WDAY has a Gross Margin of 75.70%. This is in the better half of the industry: WDAY outperforms 67.53% of its industry peers.
  • In the last couple of years the Gross Margin of WDAY has remained more or less at the same level.
Industry RankSector Rank
OM 16.65%
PM (TTM) 13.19%
GM 75.7%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.49%
GM growth 5Y0.94%
WDAY Yearly Profit, Operating, Gross MarginsWDAY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. WDAY Health Analysis

2.1 Basic Checks

  • WDAY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • WDAY has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for WDAY has been increased compared to 5 years ago.
  • Compared to 1 year ago, WDAY has an improved debt to assets ratio.
WDAY Yearly Shares OutstandingWDAY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M
WDAY Yearly Total Debt VS Total AssetsWDAY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 2.72 indicates that WDAY is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • WDAY has a Altman-Z score of 2.72. This is in the better half of the industry: WDAY outperforms 62.36% of its industry peers.
  • WDAY has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
  • WDAY has a better Debt to FCF ratio (1.08) than 72.69% of its industry peers.
  • A Debt/Equity ratio of 0.38 indicates that WDAY is not too dependend on debt financing.
  • WDAY has a Debt to Equity ratio of 0.38. This is in the lower half of the industry: WDAY underperforms 61.25% of its industry peers.
  • Although WDAY's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 1.08
Altman-Z 2.72
ROIC/WACC1.01
WACC10.21%
WDAY Yearly LT Debt VS Equity VS FCFWDAY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B

2.3 Liquidity

  • WDAY has a Current Ratio of 1.32. This is a normal value and indicates that WDAY is financially healthy and should not expect problems in meeting its short term obligations.
  • WDAY's Current ratio of 1.32 is in line compared to the rest of the industry. WDAY outperforms 40.59% of its industry peers.
  • WDAY has a Quick Ratio of 1.32. This is a normal value and indicates that WDAY is financially healthy and should not expect problems in meeting its short term obligations.
  • WDAY's Quick ratio of 1.32 is in line compared to the rest of the industry. WDAY outperforms 41.33% of its industry peers.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 1.32
WDAY Yearly Current Assets VS Current LiabilitesWDAY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. WDAY Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 26.44% over the past year.
  • The Earnings Per Share has been growing by 26.32% on average over the past years. This is a very strong growth
  • Looking at the last year, WDAY shows a quite strong growth in Revenue. The Revenue has grown by 13.09% in the last year.
  • The Revenue has been growing by 17.21% on average over the past years. This is quite good.
EPS 1Y (TTM)26.44%
EPS 3Y36.36%
EPS 5Y26.32%
EPS Q2Q%28.65%
Revenue 1Y (TTM)13.09%
Revenue growth 3Y15.4%
Revenue growth 5Y17.21%
Sales Q2Q%14.52%

3.2 Future

  • Based on estimates for the next years, WDAY will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.94% on average per year.
  • WDAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.75% yearly.
EPS Next Y15.68%
EPS Next 2Y17.01%
EPS Next 3Y15.6%
EPS Next 5Y10.94%
Revenue Next Year11.69%
Revenue Next 2Y11.5%
Revenue Next 3Y11.11%
Revenue Next 5Y10.75%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
WDAY Yearly Revenue VS EstimatesWDAY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B
WDAY Yearly EPS VS EstimatesWDAY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 5 10 15

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Find the best growth stocksShow best growing peers

8

4. WDAY Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.77, WDAY is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of WDAY indicates a rather cheap valuation: WDAY is cheaper than 83.03% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.18. WDAY is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 11.04, the valuation of WDAY can be described as very reasonable.
  • WDAY's Price/Forward Earnings ratio is rather cheap when compared to the industry. WDAY is cheaper than 80.44% of the companies in the same industry.
  • WDAY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.96.
Industry RankSector Rank
PE 12.77
Fwd PE 11.04
WDAY Price Earnings VS Forward Price EarningsWDAY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, WDAY is valued cheaply inside the industry as 82.66% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, WDAY is valued cheaper than 86.35% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.91
EV/EBITDA 12.61
WDAY Per share dataWDAY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • 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 15.60% in the coming years.
PEG (NY)0.81
PEG (5Y)0.49
EPS Next 2Y17.01%
EPS Next 3Y15.6%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. WDAY Dividend Analysis

5.1 Amount

  • WDAY does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

WDAY Fundamentals: All Metrics, Ratios and Statistics

WORKDAY INC-CLASS A

NASDAQ:WDAY (4/14/2026, 3:59:00 PM)

117.88

-2.04 (-1.7%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-24
Earnings (Next)05-20
Inst Owners97.6%
Inst Owner Change-4.83%
Ins Owners0.89%
Ins Owner Change11.37%
Market Cap30.30B
Revenue(TTM)9.55B
Net Income(TTM)1.26B
Analysts77.08
Price Target186.3 (58.04%)
Short Float %8.04%
Short Ratio2.82
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)4.18%
Min EPS beat(2)4.13%
Max EPS beat(2)4.23%
EPS beat(4)4
Avg EPS beat(4)4.95%
Min EPS beat(4)2.45%
Max EPS beat(4)8.98%
EPS beat(8)8
Avg EPS beat(8)5.38%
EPS beat(12)12
Avg EPS beat(12)6.67%
EPS beat(16)15
Avg EPS beat(16)6.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)-0.97%
Revenue beat(8)0
Avg Revenue beat(8)-1.18%
Revenue beat(12)0
Avg Revenue beat(12)-1.19%
Revenue beat(16)0
Avg Revenue beat(16)-1.17%
PT rev (1m)-22.83%
PT rev (3m)-33.69%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-2.16%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.57%
Valuation
Industry RankSector Rank
PE 12.77
Fwd PE 11.04
P/S 3.17
P/FCF 10.91
P/OCF 10.31
P/B 3.88
P/tB 16.17
EV/EBITDA 12.61
EPS(TTM)9.23
EY7.83%
EPS(NY)10.68
Fwd EY9.06%
FCF(TTM)10.81
FCFY9.17%
OCF(TTM)11.44
OCFY9.7%
SpS37.17
BVpS30.37
TBVpS7.29
PEG (NY)0.81
PEG (5Y)0.49
Graham Number79.42
Profitability
Industry RankSector Rank
ROA 6.97%
ROE 16.14%
ROCE 13.59%
ROIC 10.27%
ROICexc 19.21%
ROICexgc 373.12%
OM 16.65%
PM (TTM) 13.19%
GM 75.7%
FCFM 29.07%
ROA(3y)5.05%
ROA(5y)2.54%
ROE(3y)10.6%
ROE(5y)5.17%
ROIC(3y)3.62%
ROIC(5y)N/A
ROICexc(3y)8.26%
ROICexc(5y)N/A
ROICexgc(3y)112.66%
ROICexgc(5y)N/A
ROCE(3y)4.79%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc 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 3Y1.49%
GM growth 5Y0.94%
F-Score8
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 1.08
Debt/EBITDA 1.54
Cap/Depr 46.69%
Cap/Sales 1.7%
Interest Coverage 14.45
Cash Conversion 151.73%
Profit Quality 220.4%
Current Ratio 1.32
Quick Ratio 1.32
Altman-Z 2.72
F-Score8
WACC10.21%
ROIC/WACC1.01
Cap/Depr(3y)71.98%
Cap/Depr(5y)89.02%
Cap/Sales(3y)2.75%
Cap/Sales(5y)4.55%
Profit Quality(3y)318.32%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.44%
EPS 3Y36.36%
EPS 5Y26.32%
EPS Q2Q%28.65%
EPS Next Y15.68%
EPS Next 2Y17.01%
EPS Next 3Y15.6%
EPS Next 5Y10.94%
Revenue 1Y (TTM)13.09%
Revenue growth 3Y15.4%
Revenue growth 5Y17.21%
Sales Q2Q%14.52%
Revenue Next Year11.69%
Revenue Next 2Y11.5%
Revenue Next 3Y11.11%
Revenue Next 5Y10.75%
EBIT growth 1Y218.64%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.15%
EBIT Next 3Y20.2%
EBIT Next 5Y14.97%
FCF growth 1Y26.86%
FCF growth 3Y29.03%
FCF growth 5Y22.52%
OCF growth 1Y19.42%
OCF growth 3Y21.04%
OCF growth 5Y18.3%

WORKDAY INC-CLASS A / WDAY Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for WORKDAY INC-CLASS A?

ChartMill assigns a fundamental rating of 6 / 10 to WDAY.


Can you provide the valuation status for WORKDAY INC-CLASS A?

ChartMill assigns a valuation rating of 8 / 10 to WORKDAY INC-CLASS A (WDAY). This can be considered as Undervalued.


How profitable is WORKDAY INC-CLASS A (WDAY) stock?

WORKDAY INC-CLASS A (WDAY) has a profitability rating of 7 / 10.


What is the valuation of WORKDAY INC-CLASS A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for WORKDAY INC-CLASS A (WDAY) is 12.77 and the Price/Book (PB) ratio is 3.88.


How financially healthy is WORKDAY INC-CLASS A?

The financial health rating of WORKDAY INC-CLASS A (WDAY) is 6 / 10.