Workday
Market Cap
US$60.8b
Last Updated
2021/04/16 23:26 UTC
Data Sources
Company Financials +
Executive Summary
Workday, Inc. provides enterprise cloud applications worldwide. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 5.3% per year for the next 3 years
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Adequate balance sheet with limited growth.
Similar Companies
Share Price & News
How has Workday's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WDAY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: WDAY's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-0.5%
WDAY
2.3%
US Software
1.3%
US Market
1 Year Return
71.7%
WDAY
56.0%
US Software
53.9%
US Market
Return vs Industry: WDAY exceeded the US Software industry which returned 58.7% over the past year.
Return vs Market: WDAY exceeded the US Market which returned 57.5% over the past year.
Shareholder returns
| WDAY | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | 2.3% | 1.3% |
| 30 Day | -1.7% | 8.1% | 3.3% |
| 90 Day | 15.2% | 12.0% | 8.9% |
| 1 Year | 71.7%71.7% | 57.1%56.0% | 56.6%53.9% |
| 3 Year | 96.4%96.4% | 146.1%138.6% | 64.4%53.6% |
| 5 Year | 233.1%233.1% | 329.4%305.3% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is Workday's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Is Workday (NASDAQ:WDAY) Weighed On By Its Debt Load?3 weeks ago | Simply Wall St
Luciano Gomez Is The Co-Chief Executive Officer of Workday, Inc. (NASDAQ:WDAY) And They Just Sold 38% Of Their Shares1 month ago | Simply Wall St
How Many Workday, Inc. (NASDAQ:WDAY) Shares Have Insiders Sold, In The Last Year?Valuation
Is Workday undervalued compared to its fair value and its price relative to the market?
12.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WDAY ($260.29) is trading below our estimate of fair value ($292.78)
Significantly Below Fair Value: WDAY is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: WDAY is unprofitable, so we can't compare its PE Ratio to the US Software industry average.
PE vs Market: WDAY is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate WDAY's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: WDAY is overvalued based on its PB Ratio (19.3x) compared to the US Software industry average (8.9x).
Future Growth
How is Workday forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
-5.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WDAY is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: WDAY is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: WDAY is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: WDAY's revenue (13.4% per year) is forecast to grow faster than the US market (9.4% per year).
High Growth Revenue: WDAY's revenue (13.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WDAY's Return on Equity is forecast to be high in 3 years time (24.2%)
Past Performance
How has Workday performed over the past 5 years?
-5.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WDAY is currently unprofitable.
Growing Profit Margin: WDAY is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: WDAY is unprofitable, and losses have increased over the past 5 years at a rate of 5.9% per year.
Accelerating Growth: Unable to compare WDAY's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: WDAY is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (16.3%).
Return on Equity
High ROE: WDAY has a negative Return on Equity (-8.62%), as it is currently unprofitable.
Financial Health
How is Workday's financial position?
Financial Position Analysis
Short Term Liabilities: WDAY's short term assets ($4.8B) exceed its short term liabilities ($4.3B).
Long Term Liabilities: WDAY's short term assets ($4.8B) exceed its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: WDAY's debt to equity ratio (54.8%) is considered high.
Reducing Debt: WDAY's debt to equity ratio has increased from 37.3% to 54.8% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable WDAY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: WDAY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 36.8% per year.
Dividend
What is Workday current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate WDAY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate WDAY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if WDAY's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if WDAY's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WDAY's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.7yrs
Average management tenure
CEO
Aneel Bhusri (54 yo)
0.67
Tenure
US$10,550,021
Compensation
Mr. Aneel Bhusri Co-founded Workday, Inc. in March 2005 and serves as its Chairman of the Board since April 1, 2021 and serves as its Co-Chief Executive Officer of Workday, Inc. since August 27, 2020 and h...
CEO Compensation Analysis
Compensation vs Market: Aneel's total compensation ($USD10.55M) is about average for companies of similar size in the US market ($USD11.02M).
Compensation vs Earnings: Aneel's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: WDAY's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.
Board Members
Experienced Board: WDAY's board of directors are considered experienced (4.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WDAY insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.
Top Shareholders
Company Information
Workday, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Workday, Inc.
- Ticker: WDAY
- Exchange: NasdaqGS
- Founded: 2005
- Industry: Application Software
- Sector: Software
- Market Cap: US$60.760b
- Shares outstanding: 243.00m
- Website: https://www.workday.com
Number of Employees
Location
- Workday, Inc.
- 6110 Stoneridge Mall Road
- Pleasanton
- California
- 94588
- United States
Listings
Biography
Workday, Inc. provides enterprise cloud applications worldwide. Its applications help its customers to manage critical business functions and optimize their financial and human resources. The company offer...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/16 23:26 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2021/01/31 |
| Annual Earnings | 2021/01/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.