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Workday

Nasdaq:WDAY
Snowflake Description

Adequate balance sheet with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WDAY
Nasdaq
$49B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Workday, Inc. provides enterprise cloud applications worldwide. The last earnings update was 50 days ago. More info.


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WDAY Share Price and Events
7 Day Returns
-1.9%
NasdaqGS:WDAY
-0.7%
US Software
-0.3%
US Market
1 Year Returns
64.6%
NasdaqGS:WDAY
24.4%
US Software
3.4%
US Market
WDAY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Workday (WDAY) -1.9% 1% 16% 64.6% 172.5% 167.6%
US Software -0.7% 4.6% 9.1% 24.4% 120.3% 159%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • WDAY outperformed the Software industry which returned 24.4% over the past year.
  • WDAY outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
WDAY
Industry
5yr Volatility vs Market
Related Companies

WDAY Value

 Is Workday undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Workday to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Workday.

NasdaqGS:WDAY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 31 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:WDAY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.119 (1 + (1- 21%) (3.1%))
1.098
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.098 * 5.96%)
9.28%

Discounted Cash Flow Calculation for NasdaqGS:WDAY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Workday is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:WDAY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.28%)
2020 474.04 Analyst x13 433.81
2021 698.83 Analyst x14 585.24
2022 1,085.34 Analyst x4 831.77
2023 1,361.51 Analyst x2 954.85
2024 1,545.41 Analyst x3 991.83
2025 1,695.04 Est @ 9.68% 995.52
2026 1,823.79 Est @ 7.6% 980.23
2027 1,935.71 Est @ 6.14% 952.07
2028 2,034.71 Est @ 5.11% 915.82
2029 2,124.22 Est @ 4.4% 874.96
Present value of next 10 years cash flows $8,516.11
NasdaqGS:WDAY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,124.22 × (1 + 2.73%) ÷ (9.28% – 2.73%)
$33,341.21
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $33,341.21 ÷ (1 + 9.28%)10
$13,733.15
NasdaqGS:WDAY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8,516.11 + $13,733.15
$22,249.26
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $22,249.26 / 226.39
$98.28
NasdaqGS:WDAY Discount to Share Price
Calculation Result
Value per share (USD) From above. $98.28
Current discount Discount to share price of $217.88
= -1 x ($217.88 - $98.28) / $98.28
-121.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Workday is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Workday's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Workday's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:WDAY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in USD $-2.10
NasdaqGS:WDAY Share Price ** NasdaqGS (2019-07-18) in USD $217.88
United States of America Software Industry PE Ratio Median Figure of 81 Publicly-Listed Software Companies 51.96x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Workday.

NasdaqGS:WDAY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:WDAY Share Price ÷ EPS (both in USD)

= 217.88 ÷ -2.10

-103.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Workday is loss making, we can't compare its value to the US Software industry average.
  • Workday is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Workday's expected growth come at a high price?
Raw Data
NasdaqGS:WDAY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -103.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts
-2.7%per year
United States of America Software Industry PEG Ratio Median Figure of 68 Publicly-Listed Software Companies 3.07x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Workday, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Workday's assets?
Raw Data
NasdaqGS:WDAY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in USD $9.09
NasdaqGS:WDAY Share Price * NasdaqGS (2019-07-18) in USD $217.88
United States of America Software Industry PB Ratio Median Figure of 223 Publicly-Listed Software Companies 5.9x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NasdaqGS:WDAY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:WDAY Share Price ÷ Book Value per Share (both in USD)

= 217.88 ÷ 9.09

23.98x

* Primary Listing of Workday.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Workday is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess Workday's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Workday has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WDAY Future Performance

 How is Workday expected to perform in the next 1 to 3 years based on estimates from 31 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Workday expected to grow at an attractive rate?
  • Unable to compare Workday's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Workday's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Workday's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:WDAY Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:WDAY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts -2.7%
NasdaqGS:WDAY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 31 Analysts 19.5%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 18.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:WDAY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:WDAY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-01-31 8,021 3
2023-01-31 6,637 3
2022-01-31 5,329 1,330 -527 13
2021-01-31 4,400 1,026 -503 31
2020-01-31 3,569 801 -499 31
NasdaqGS:WDAY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-30 3,029 632 -460
2019-01-31 2,822 607 -418
2018-10-31 2,616 483 -403
2018-07-31 2,428 512 -335
2018-04-30 2,282 470 -332
2018-01-31 2,143 466 -321
2017-10-31 2,000 449 -320
2017-07-31 1,858 376 -345
2017-04-30 1,707 368 -370
2017-01-31 1,574 351 -385
2016-10-31 1,458 339 -378
2016-07-31 1,350 321 -345

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Workday is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Workday's revenue is expected to grow by 19.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:WDAY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below

All data from Workday Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WDAY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-01-31
2023-01-31
2022-01-31 -1.72 -0.90 -2.73 5.00
2021-01-31 -1.89 -0.85 -2.45 18.00
2020-01-31 -2.11 -1.70 -2.42 18.00
NasdaqGS:WDAY Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-30 -2.10
2019-01-31 -1.93
2018-10-31 -1.88
2018-07-31 -1.58
2018-04-30 -1.58
2018-01-31 -1.55
2017-10-31 -1.56
2017-07-31 -1.70
2017-04-30 -1.85
2017-01-31 -1.94
2016-10-31 -1.93
2016-07-31 -1.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Workday is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Workday's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Workday has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WDAY Past Performance

  How has Workday performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Workday's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Workday does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Workday's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Workday's 1-year growth to the US Software industry average as it is not currently profitable.
Earnings and Revenue History
Workday's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Workday Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WDAY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 3,028.59 -460.12 1,322.72 1,296.08
2019-01-31 2,822.18 -418.26 1,213.68 1,211.83
2018-10-31 2,616.03 -403.00 1,115.33 1,127.88
2018-07-31 2,428.23 -335.21 987.70 1,049.47
2018-04-30 2,281.83 -331.59 947.72 977.73
2018-01-31 2,143.05 -321.22 906.28 910.58
2017-10-31 2,000.15 -320.39 879.65 848.69
2017-07-31 1,858.29 -344.96 848.61 794.41
2017-04-30 1,706.62 -370.24 801.56 735.19
2017-01-31 1,574.44 -384.70 763.45 680.53
2016-10-31 1,458.28 -377.56 713.61 620.22
2016-07-31 1,350.03 -345.26 662.02 558.93
2016-04-30 1,259.07 -306.86 624.32 512.39
2016-01-31 1,156.69 -275.05 562.11 469.94
2015-10-31 1,065.19 -268.26 537.43 427.66
2015-07-31 975.00 -250.36 497.24 388.91
2015-04-30 879.08 -250.15 459.77 351.03
2015-01-31 787.86 -247.98 421.89 316.87
2014-10-31 703.45 -244.50 387.91 283.22
2014-07-31 616.26 -232.12 349.37 247.85
2014-04-30 537.03 -198.88 301.24 211.01
2014-01-31 468.94 -172.51 263.29 182.12
2013-10-31 408.59 -147.47 228.49 157.05
2013-07-31 353.34 -141.41 201.47 135.23
2013-04-30 308.48 -132.52 181.41 118.16
2013-01-31 273.66 -119.76 161.32 102.67
2012-10-31 235.30 -112.66 139.69 90.70
2012-07-31 199.13 -90.99 117.59 79.03

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Workday has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Workday has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Workday improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Workday's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Workday has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WDAY Health

 How is Workday's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Workday's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Workday is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Workday's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Workday's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Workday Company Filings, last reported 2 months ago.

NasdaqGS:WDAY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 2,044.75 1,218.92 1,891.91
2019-01-31 1,958.44 1,204.78 1,778.42
2018-10-31 1,833.15 1,190.82 1,582.14
2018-07-31 1,775.22 1,177.01 2,985.10
2018-04-30 1,657.30 1,509.49 3,365.67
2018-01-31 1,580.37 1,491.35 3,267.85
2017-10-31 1,540.27 1,473.43 3,211.12
2017-07-31 1,370.40 548.46 2,097.79
2017-04-30 1,320.86 541.39 2,115.70
2017-01-31 1,276.61 534.42 1,996.75
2016-10-31 1,137.46 527.55 1,913.80
2016-07-31 1,140.85 520.77 2,067.91
2016-04-30 1,128.16 514.08 2,080.09
2016-01-31 1,136.16 507.48 1,969.46
2015-10-31 1,125.53 507.95 1,896.35
2015-07-31 1,131.98 502.05 1,906.93
2015-04-30 1,116.03 496.23 1,921.54
2015-01-31 1,125.98 481.96 1,857.71
2014-10-31 1,129.22 484.86 1,834.66
2014-07-31 1,138.84 479.29 1,822.38
2014-04-30 1,155.44 473.81 1,865.95
2014-01-31 1,187.22 468.41 1,886.58
2013-10-31 613.40 463.09 1,282.70
2013-07-31 638.74 457.85 1,294.60
2013-04-30 571.79 0.00 805.77
2013-01-31 592.28 0.00 790.34
2012-10-31 615.50 0.00 797.38
2012-07-31 -46.38 0.00 122.65
  • Workday's level of debt (59.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (41.9% vs 59.6% today).
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.

  • Whilst loss making Workday has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Workday has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -24.2% per year.
X
Financial health checks
We assess Workday's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Workday has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WDAY Dividends

 What is Workday's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Workday dividends. Estimated to be 0% next year.
If you bought $2,000 of Workday shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Workday's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Workday's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:WDAY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:WDAY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-01-31
2023-01-31
2022-01-31 0.00 6.00
2021-01-31 0.00 8.00
2020-01-31 0.00 8.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Workday has not reported any payouts.
  • Unable to verify if Workday's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Workday's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Workday has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Workday's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Workday's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Workday afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Workday has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WDAY Management

 What is the CEO of Workday's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Aneel Bhusri
COMPENSATION $9,827,005
AGE 53
TENURE AS CEO 9.8 years
CEO Bio

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 Partner. He joined Greylock in April 1999. As an Advisory Partner at the Greylock, he has been an active investor in cloud technologies, with an emphasis on applications, data center infrastructure and middleware. He served as a Co-Chief Executive Officer of Workday, Inc. from September 2009 to May 13, 2014 and its Chairman from January 2012 to May 13, 2014. He served as the President at Workday, Inc. until September 9, 2009 and also served as its Chief Vision Officer. He started his technology career in the early 1990s at PeopleSoft. Mr. Bhusri served as Vice Chairman of PeopleSoft Inc. from 1999 to 2004 and a Consultant since September 2004. He served as Senior Vice President of Product Strategy, Business Development and Marketing, from June 1998 to January 1999. Mr. Bhusri was responsible for developing and guiding all product strategy, corporate and product marketing at the company. He led the PeopleSoft's business development efforts in key areas such as new product development, vertical market initiatives and corporate expansion. Prior to PeopleSoft, he held positions in both venture capital and corporate finance. Mr. Bhusri served as an Associate at Norwest Venture Partners and spent several years in Morgan Stanley's corporate finance organization working with the Morgan Stanley's high-tech clients. From April 1995 to November 1995, he served as the Vice President of Product Strategy and from August 1993 to April 1995, as the Director of Product Strategy. Mr. Bhusri serves as Chairman of Drobo, Inc and has been its Director since October 25, 2005. He served as the Chairman of OutlookSoft Corporation since May 11, 2005. He served as the Chairman of Cape Clear Software Inc. and PolyServe, Inc. He served as Chairman of Data Domain, Inc., since March 2007 and also as its Director, since February 2002 and as a Lead Investor. Mr. Bhusri has been a Director of Workday, Inc. since 2005. He served as a Director of Pure Storage, Inc. from July 2010 to march 2018. He serves as a Director of The Tech Museum of Innovation, Illuminator Inc., Cape Clear, Symhoniq, Simply Continuous, Inc., Data Robotics, Cameraworld.com, Software Development Forum, and served as Cloudera, Inc. until December 14, 2016. He has been an Independent Director of Intel Corporation since June 20, 2014 and has been its Independent Lead Director since May 18, 2017. Mr. Bhusri has been a Director of Okta, Inc. from August 8, 2011 to December 2016. He served as Director of Tidemark Systems, Inc. Mr. Bhusri serves as a Member of the Advisory Board of Northern Light Venture Capital. He served on the Board of Directors of PeopleSoft since March 1999. He served as a Member of Advisory Board of Elementum SCM, Inc. since April 8, 2014. Mr. Bhusri served as a Director of Sumo Logic, Inc. and Above All Software, Inc. He also served on the Board of Pertigo. He served as a Director of PolyServe, Inc. and Symphoniq Corporation. He served as a Director of Marimba Inc. since February 1999. He served as a Director of Syniverse Brience LLC, since September 2000. He served as a Director of Corio Inc., from April 1999 to May 12, 2004 and OutlookSoft Corporation since May 2005. Mr. Bhusri served on the Boards of SeeBeyond Technology Corp., HelloAsia, Inc., Perfigo, Inc., Vantive and Guru Worldwide, Inc. He has been a leader, product visionary and innovator in the enterprise software industry for more than 20 years. He was named to the Forbes Midas List in 2014 (#14), 2013 (#17), 2012 (#25), 2011 (#15), 2009 (#8) and 2008 (#16) and to the AlwaysOn Top 100 List of VCs in 2009. Mr. Bhusri is ranked 15th on the 2011 Forbes Midas List, the Top Tech Investors. He holds an M.B.A. Degree from the Graduate School of Business at Stanford University and a B.S. in Electrical Engineering and BA in Economics from Brown University.

CEO Compensation
  • Aneel's compensation has increased whilst company is loss making.
  • Aneel's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Workday management team in years:

4.7
Average Tenure
53
Average Age
  • The tenure for the Workday management team is about average.
Management Team

Dave Duffield

TITLE
Co-Founder & Chairman
COMPENSATION
$370K
AGE
78
TENURE
14.3 yrs

Aneel Bhusri

TITLE
Co-Founder
COMPENSATION
$10M
AGE
53
TENURE
9.8 yrs

Luciano Fernandez

TITLE
Co-President
COMPENSATION
$10M
AGE
49
TENURE
1.4 yrs

Robynne Sisco

TITLE
Co-President & CFO
COMPENSATION
$9M
AGE
54
TENURE
1.4 yrs

Jim Bozzini

TITLE
COO & Executive VP of Customer Operations
COMPENSATION
$7M
AGE
53

Petros Dermetzis

TITLE
Chief Products Officer
COMPENSATION
$9M
AGE
57

David Clarke

TITLE
Chief Technology Officer
AGE
48
TENURE
0.5 yrs

Sheri Rhodes

TITLE
Senior VP & Chief Information Officer
AGE
50

Michael Magaro

TITLE
Vice President of Investor Relations

Jim Shaughnessy

TITLE
Senior VP
COMPENSATION
$2M
AGE
64
TENURE
7.9 yrs
Board of Directors Tenure

Average tenure and age of the Workday board of directors in years:

5.2
Average Tenure
55.5
Average Age
  • The tenure for the Workday board of directors is about average.
Board of Directors

Aneel Bhusri

TITLE
Co-Founder
COMPENSATION
$10M
AGE
53
TENURE
14.5 yrs

Mike Stankey

TITLE
Vice Chairman of the Board
COMPENSATION
$9M
AGE
60
TENURE
4.1 yrs

Dave Duffield

TITLE
Co-Founder & Chairman
COMPENSATION
$370K
AGE
78
TENURE
5.2 yrs

George Still

TITLE
Vice Chairman & Lead Independent Director
COMPENSATION
$450K
AGE
61
TENURE
5.2 yrs

Christa Davies

TITLE
Independent Director
COMPENSATION
$400K
AGE
47
TENURE
6.9 yrs

Mike McNamara

TITLE
Independent Director
COMPENSATION
$387K
AGE
62
TENURE
7.6 yrs

Jerry Yang

TITLE
Independent Director
COMPENSATION
$375K
AGE
50
TENURE
5.7 yrs

Lee Styslinger

TITLE
Independent Director
COMPENSATION
$337K
AGE
58
TENURE
2.9 yrs

Carl Eschenbach

TITLE
Independent Director
COMPENSATION
$325K
AGE
52
TENURE
1.4 yrs

Ann-Marie Campbell

TITLE
Independent Director
AGE
53
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Workday individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. May 19 Sell David Duffield Individual 15. May 19 15. May 19 -1,054 $205.21 $-216,291
17. Apr 19 Sell David Duffield Individual 15. Apr 19 15. Apr 19 -1,124 $194.21 $-216,891
19. Mar 19 Sell Petros Dermetzis Individual 15. Mar 19 15. Mar 19 -2,257 $186.86 $-420,606
14. Jan 19 Sell James Shaughnessy Individual 10. Jan 19 10. Jan 19 -4,800 $167.92 $-799,643
21. Dec 18 Sell James Shaughnessy Individual 20. Dec 18 20. Dec 18 -10,000 $155.69 $-1,556,900
X
Management checks
We assess Workday's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Workday has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WDAY News

Simply Wall St News

Workday (NASDAQ:WDAY) Seems To Be Really Weighed Down By Its Debt

You can click the graphic below for the historical numbers, but it shows that Workday had US$1.22b of debt in April 2019, down from US$1.51b, one year before But it also has US$1.89b in cash to offset that, meaning it has US$673.0m net cash. … The latest balance sheet data shows that Workday had liabilities of US$2.44b due within a year, and liabilities of US$1.34b falling due after that. … If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.

Simply Wall St -

What You Must Know About Workday, Inc.'s (NASDAQ:WDAY) Financial Strength

WDAY has shrunk its total debt levels in the last twelve months, from US$1.5b to US$1.2b , which also accounts for long term debt. … On top of this, WDAY has generated US$607m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 50%, indicating that WDAY’s current level of operating cash is high enough to cover debt. … Next Steps: Although WDAY’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

The Workday (NASDAQ:WDAY) Share Price Is Up 165% And Shareholders Are Boasting About It

Workday isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … Shareholders of unprofitable companies usually expect strong revenue growth. … Along the way, the share price gained 38% per year, a solid pop by our standards.

Simply Wall St -

How Should Investors Feel About Workday, Inc.'s (NASDAQ:WDAY) CEO Pay?

First, this article will compare CEO compensation with compensation at other large companies. … How Does Aneel Bhusri's Compensation Compare With Similar Sized Companies. … has a market capitalization of US$43b, and pays its CEO total annual compensation worth US$9.1m.

Simply Wall St -

Workday, Inc. (NASDAQ:WDAY): What Can We Expect In The Future?

The latest earnings update Workday, Inc. … (NASDAQ:WDAY) released in January 2019 … that losses became smaller relative to the prior year's level

Simply Wall St -

What Investors Should Know About Workday, Inc.'s (NASDAQ:WDAY) Financial Strength

(NASDAQ:WDAY), a large-cap worth US$41b, comes to mind for investors seeking a strong and reliable stock investment. … This article will examine Workday’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Read This Before Buying Workday, Inc. (NASDAQ:WDAY) Shares

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … Over the last year we saw more insider selling of Workday shares, than buying … It's not particularly great to see insiders were selling shares around current prices

Simply Wall St -

Do You Know Workday Inc’s (NASDAQ:WDAY) Cash Situation?

Workday Inc (NASDAQ:WDAY) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … Today we will examine Workday’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Workday generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating.

Simply Wall St -

Is Workday Inc's (NASDAQ:WDAY) CEO Paid Enough To Stay Motivated?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Aneel Bhusri's Compensation Compare With Similar Sized Companies. … When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m.

Simply Wall St -

How Confident Are Insiders About Workday Inc (NASDAQ:WDAY)?

some insider selling over the past three months, with insiders divesting from. … A well-known argument is that insiders divesting from their own companies’ shares sends a pessimistic signal. … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market

Simply Wall St -

WDAY Company Info

Description

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.

Details
Name: Workday, Inc.
WDAY
Exchange: NasdaqGS
Founded: 2005
$49,326,341,469
226,392,241
Website: http://www.workday.com
Address: Workday, Inc.
6110 Stoneridge Mall Road,
Pleasanton,
California, 94588,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS WDAY Class A Common Stock Nasdaq Global Select US USD 12. Oct 2012
DB W7D Class A Common Stock Deutsche Boerse AG DE EUR 12. Oct 2012
LSE 0M18 Class A Common Stock London Stock Exchange GB USD 12. Oct 2012
BMV WDAY * Class A Common Stock Bolsa Mexicana de Valores MX MXN 12. Oct 2012
Number of employees
Current staff
Staff numbers
11,000
Workday employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 00:36
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/05/30
Last earnings reported: 2019/04/30
Last annual earnings reported: 2019/01/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.