Workday
Market Cap
US$31.6b
Last Updated
2020/03/30 02:48 UTC
Data Sources
Company Financials +
Executive Summary
Workday, Inc. provides enterprise cloud applications worldwide.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -5.5% 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 and overvalued.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
7.1%
WDAY
9.8%
US Software
12.5%
US Market
1 Year Return
-29.3%
WDAY
6.4%
US Software
-12.7%
US Market
Return vs Industry: WDAY underperformed the US Software industry which returned 6.4% over the past year.
Return vs Market: WDAY underperformed the US Market which returned -12.7% over the past year.
Shareholder returns
| WDAY | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.1% | 9.8% | 12.5% |
| 30 Day | -21.4% | -8.9% | -14.7% |
| 90 Day | -17.2% | -6.8% | -21.5% |
| 1 Year | -29.3%-29.3% | 7.5%6.4% | -10.9%-12.7% |
| 3 Year | 65.5%65.5% | 100.4%91.8% | 12.6%5.4% |
| 5 Year | 53.9%53.9% | 165.1%146.5% | 31.9%17.5% |
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
6 days ago | Simply Wall St
Should Workday (NASDAQ:WDAY) Be Disappointed With Their 52% Profit?3 weeks ago | Simply Wall St
Is Workday (NASDAQ:WDAY) Using Debt In A Risky Way?1 month ago | Simply Wall St
At US$198, Is It Time To Put Workday, Inc. (NASDAQ:WDAY) On Your Watch List?Valuation
Is Workday undervalued compared to its fair value and its price relative to the market?
4.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WDAY ($136.21) is trading below our estimate of fair value ($141.99)
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 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 (12.7x) compared to the US Software industry average (4.3x).
Next Steps
Future Growth
How is Workday forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?
-5.5%
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 (14.6% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: WDAY's revenue (14.6% 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 low in 3 years time (19.3%).
Next Steps
Past Performance
How has Workday performed over the past 5 years?
-12.4%
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 -12.4% 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 (18.7%).
Return on Equity
High ROE: WDAY has a negative Return on Equity (-19.33%), as it is currently unprofitable.
Next Steps
Financial Health
How is Workday's financial position?
Financial Position Analysis
Short Term Liabilities: WDAY's short term assets ($3.1B) exceed its short term liabilities ($3.0B).
Long Term Liabilities: WDAY's short term assets ($3.1B) exceed its long term liabilities ($1.4B).
Debt to Equity History and Analysis
Debt Level: WDAY's debt to equity ratio (50.8%) is considered high.
Reducing Debt: WDAY's debt to equity ratio has increased from 40.4% to 50.8% over the past 5 years.
Balance Sheet
Inventory Level: WDAY has a low level of unsold assets or inventory.
Debt Coverage by Assets: WDAY's debt is covered by short term assets (assets are 2.5x debt).
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 42.4% per year.
Next Steps
Dividend
What is Workday's 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 payouts.
High Dividend: Unable to evaluate WDAY's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
2.0yrs
Average management tenure
CEO
Aneel Bhusri (53yo)
10.5s
Tenure
US$9,827,005
Compensation
Mr. Aneel Bhusri Co-founded Workday, Inc. in March 2005 and has been its Chief Executive Officer since May 13, 2014. Mr. Bhusri is an Advisory Partner at Greylock Partners, where he was previously a Partne ...
CEO Compensation Analysis
Compensation vs Market: Aneel's total compensation ($USD9.83M) is about average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Aneel's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Chairman | 5.83yrs | US$370.24k | 22.18% $7.0b | |
| Co-Founder | 10.5yrs | US$9.83m | 3.61% $1.1b | |
| Co-President | 2yrs | US$10.38m | 0.0012% $388.7k | |
| Co-President & CFO | 2yrs | US$8.87m | 0.0058% $1.8m | |
| COO & Executive VP of Customer Operations | no data | US$6.83m | 0.10% $32.2m | |
| Executive Vice President of Emerging Technology | no data | US$8.78m | 0.036% $11.4m | |
| Chief Technology Officer | 1.17yrs | no data | no data | |
| Chief Information Officer | no data | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Executive VP | 1.17yrs | no data | no data |
2.0yrs
Average Tenure
53yo
Average Age
Experienced Management: WDAY's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Chairman | 5.83yrs | US$370.24k | 22.18% $7.0b | |
| Co-Founder | 10.5yrs | US$9.83m | 3.61% $1.1b | |
| Independent Director | 6.33yrs | US$374.67k | 0.036% $11.5m | |
| Independent Director | 8.25yrs | US$387.10k | 0.0017% $546.7k | |
| Vice Chairman & Lead Independent Director | 5.83yrs | US$449.53k | 0.070% $22.0m | |
| Independent Director | 3.58yrs | US$337.11k | 0.014% $4.3m | |
| Vice Chairman of the Board | 4.75yrs | US$8.61m | 0.067% $21.3m | |
| Independent Director | 2yrs | US$324.68k | 0.0026% $827.9k | |
| Independent Director | 7.58yrs | US$399.54k | 0.039% $12.4m | |
| Independent Director | 0.92yr | no data | no data |
5.8yrs
Average Tenure
55.5yo
Average Age
Experienced Board: WDAY's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 4.8%.
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$31.601b
- Shares outstanding: 232.00m
- Website: https://www.workday.com
Number of Employees
Location
- Workday, Inc.
- 6110 Stoneridge Mall Road
- Pleasanton
- California
- 94588
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WDAY | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Oct 2012 |
| W7D | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Oct 2012 |
| 0M18 | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Oct 2012 |
| W7D | BRSE (Berne Stock Exchange) | Yes | Class A Common Stock | CH | CHF | Oct 2012 |
| WDAY * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Oct 2012 |
| W7D | ETLX (Eurotlx) | Yes | Class A Common Stock | IT | EUR | Oct 2012 |
| W1DA34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
Workday, Inc. provides enterprise cloud applications worldwide. Its applications help its customers to manage critical business functions and optimize their financial and human capital resources. The company offers Workday Financial Management application that provides functions of general ledger, accounting, accounts payable and receivable, cash and asset management, revenue management, and grants management, as well as project and resource management, time and expense tracking, project billing, revenue recognition, financial reporting, and analytics. It also provides Workday Human Capital Management (HCM) application, which includes human resources management, such as workforce lifecycle and organization management, compensation, absence, and employee benefits administration; and global talent management comprising goal and performance management, succession planning, and career and development planning, as well as other HCM solutions, such as Workday Recruiting, Time Tracking, Payroll, and Learning. In addition, the company offers business planning, analytics, and other solutions, including Insights Business Planning Cloud, a solution with built-in intelligence for finance, human resource, and sales teams; Workday Prism Analytics that enables customers to bring together various data with analytics tools for financial and people analytics to make business decisions; Workday Student, a student and faculty lifecycle information system to help colleges and universities; and Workday Data-as-a-Service that provides data to customers to enable informed decision-making. The company serves technology, financial services, business and professional services, healthcare and life sciences, manufacturing, retail and hospitality, education, and government and non-profit industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was founded in 2005 and is headquartered in Pleasanton, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 02:48 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2020/01/31 |
| Annual Earnings | 2020/01/31 |
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.