WORKDAY INC-CLASS A (WDAY)
US98138H1014 - Common Stock
We assign a fundamental rating of 6 out of 10 to WDAY. 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 could make WDAY a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year WDAY was profitable.
WDAY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WDAY reported negative net income in multiple years.
Each year in the past 5 years WDAY had a positive operating cash flow.
1.2 Ratios
WDAY has a Return On Assets of 9.87%. This is amongst the best in the industry. WDAY outperforms 86.38% of its industry peers.
WDAY has a better Return On Equity (18.79%) than 87.10% of its industry peers.
With a decent Return On Invested Capital value of 2.76%, WDAY is doing good in the industry, outperforming 70.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 18.79% | ||
| ROIC | 2.76% |
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 better Profit Margin (19.87%) than 87.46% of its industry peers.
WDAY has a Operating Margin of 5.13%. This is in the better half of the industry: WDAY outperforms 71.68% of its industry peers.
WDAY's Gross Margin of 75.60% is fine compared to the rest of the industry. WDAY outperforms 68.10% of its industry peers.
WDAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.13% | ||
| PM (TTM) | 19.87% | ||
| GM | 75.6% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WDAY is destroying value.
The number of shares outstanding for WDAY has been increased compared to 1 year ago.
Compared to 5 years ago, WDAY has more shares outstanding
The debt/assets ratio for WDAY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.40 indicates that WDAY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.40, WDAY is doing good in the industry, outperforming 68.46% of the companies in the same industry.
WDAY has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
WDAY has a better Debt to FCF ratio (1.41) than 69.89% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that WDAY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.35, WDAY is doing worse than 63.80% 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 | 0.35 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 6.4 |
ROIC/WACC0.24
WACC11.66%
2.3 Liquidity
A Current Ratio of 2.05 indicates that WDAY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.05, WDAY is in the better half of the industry, outperforming 60.93% of the companies in the same industry.
A Quick Ratio of 2.05 indicates that WDAY has no problem at all paying its short term obligations.
The Quick ratio of WDAY (2.05) is better than 62.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.13% over the past year.
The Earnings Per Share has been growing by 33.84% on average over the past years. This is a very strong growth
WDAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.81%.
Measured over the past years, WDAY shows a very strong growth in Revenue. The Revenue has been growing by 20.80% on average per year.
EPS 1Y (TTM)32.13%
EPS 3Y26.72%
EPS 5Y33.84%
EPS Q2Q%23.53%
Revenue 1Y (TTM)16.81%
Revenue growth 3Y18.9%
Revenue growth 5Y20.8%
Sales Q2Q%15.78%
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 17.65% on average per year.
WDAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.41% yearly.
EPS Next Y24.93%
EPS Next 2Y20.98%
EPS Next 3Y20.86%
EPS Next 5Y17.65%
Revenue Next Year16.06%
Revenue Next 2Y14.59%
Revenue Next 3Y14.31%
Revenue Next 5Y14.41%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 39.29, WDAY can be considered very expensive at the moment.
Based on the Price/Earnings ratio, WDAY is valued a bit cheaper than the industry average as 65.95% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.73, WDAY is valued a bit more expensive.
A Price/Forward Earnings ratio of 31.94 indicates a quite expensive valuation of WDAY.
WDAY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 65.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. WDAY is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.29 | ||
| Fwd PE | 31.94 |
4.2 Price Multiples
WDAY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WDAY is cheaper than 60.93% of the companies in the same industry.
73.48% of the companies in the same industry are more expensive than WDAY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.4 | ||
| EV/EBITDA | 86.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WDAY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WDAY's earnings are expected to grow with 20.86% in the coming years.
PEG (NY)1.58
PEG (5Y)1.16
EPS Next 2Y20.98%
EPS Next 3Y20.86%
5. Dividend
5.1 Amount
No dividends for WDAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WORKDAY INC-CLASS A
NASDAQ:WDAY (12/20/2024, 8:00:01 PM)
After market: 272.4 -0.64 (-0.23%)273.04
+6.21 (+2.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.1%
Inst Owner Change1.82%
Ins Owners0.63%
Ins Owner Change-1.8%
Market Cap72.63B
Analysts77.78
Price Target295.51 (8.23%)
Short Float %2.44%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)4.76%
Min EPS beat(2)4.1%
Max EPS beat(2)5.42%
EPS beat(4)4
Avg EPS beat(4)5.52%
Min EPS beat(4)4.1%
Max EPS beat(4)7.83%
EPS beat(8)8
Avg EPS beat(8)7.69%
EPS beat(12)11
Avg EPS beat(12)6.84%
EPS beat(16)15
Avg EPS beat(16)13.01%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.6%
Revenue beat(4)0
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)-0.6%
Revenue beat(8)0
Avg Revenue beat(8)-1.14%
Revenue beat(12)0
Avg Revenue beat(12)-1.07%
Revenue beat(16)0
Avg Revenue beat(16)-0.95%
PT rev (1m)0.04%
PT rev (3m)1.01%
EPS NQ rev (1m)3.06%
EPS NQ rev (3m)3.06%
EPS NY rev (1m)1.7%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.29 | ||
| Fwd PE | 31.94 | ||
| P/S | 8.9 | ||
| P/FCF | 34.4 | ||
| P/OCF | 30.98 | ||
| P/B | 8.42 | ||
| P/tB | 15.34 | ||
| EV/EBITDA | 86.33 |
EPS(TTM)6.95
EY2.55%
EPS(NY)8.55
Fwd EY3.13%
FCF(TTM)7.94
FCFY2.91%
OCF(TTM)8.81
OCFY3.23%
SpS30.67
BVpS32.42
TBVpS17.8
PEG (NY)1.58
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 18.79% | ||
| ROCE | 3.49% | ||
| ROIC | 2.76% | ||
| ROICexc | 6.83% | ||
| ROICexgc | 34.56% | ||
| OM | 5.13% | ||
| PM (TTM) | 19.87% | ||
| GM | 75.6% | ||
| FCFM | 25.88% |
ROA(3y)1.99%
ROA(5y)-0.87%
ROE(3y)3.72%
ROE(5y)-3.35%
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 3Y1.52%
GM growth 5Y1.43%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 76.22% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 3.82 | ||
| Cash Conversion | 323.3% | ||
| Profit Quality | 130.27% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | 6.4 |
F-Score7
WACC11.66%
ROIC/WACC0.24
Cap/Depr(3y)104.99%
Cap/Depr(5y)105.76%
Cap/Sales(3y)5.94%
Cap/Sales(5y)6.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.13%
EPS 3Y26.72%
EPS 5Y33.84%
EPS Q2Q%23.53%
EPS Next Y24.93%
EPS Next 2Y20.98%
EPS Next 3Y20.86%
EPS Next 5Y17.65%
Revenue 1Y (TTM)16.81%
Revenue growth 3Y18.9%
Revenue growth 5Y20.8%
Sales Q2Q%15.78%
Revenue Next Year16.06%
Revenue Next 2Y14.59%
Revenue Next 3Y14.31%
Revenue Next 5Y14.41%
EBIT growth 1Y2626.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.05%
EBIT Next 3Y27.55%
EBIT Next 5Y23.03%
FCF growth 1Y74.58%
FCF growth 3Y23.76%
FCF growth 5Y55.08%
OCF growth 1Y48.6%
OCF growth 3Y19.21%
OCF growth 5Y28.78%