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WDAY

WorkdayNasdaqGS:WDAY Stock Report

Market Cap

US$67.1b

7D

-0.4%

1Y

29.4%

Updated

23 Sep, 2021

Data

Company Financials +
WDAY fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance0/6
Financial Health4/6
Dividends0/6

WDAY Overview

Workday, Inc. provides enterprise cloud applications worldwide.

Workday Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Workday
Historical stock prices
Current Share PriceUS$270.07
52 Week HighUS$201.62
52 Week LowUS$282.77
Beta1.28
1 Month Change9.87%
3 Month Change11.14%
1 Year Change29.41%
3 Year Change85.02%
5 Year Change198.88%
Change since IPO454.67%

Recent News & Updates

Sep 02
At US$273, Is It Time To Put Workday, Inc. (NASDAQ:WDAY) On Your Watch List?

At US$273, Is It Time To Put Workday, Inc. (NASDAQ:WDAY) On Your Watch List?

Let's talk about the popular Workday, Inc. ( NASDAQ:WDAY ). The company's shares saw a significant share price rise of...

Shareholder Returns

WDAYUS SoftwareUS Market
7D-0.4%-0.7%-0.5%
1Y29.4%42.4%37.5%

Return vs Industry: WDAY underperformed the US Software industry which returned 40.9% over the past year.

Return vs Market: WDAY underperformed the US Market which returned 36.2% over the past year.

Price Volatility

Is WDAY's price volatile compared to industry and market?
WDAY volatility
WDAY Beta1.28
Industry Beta0.95
Market Beta1

Stable Share Price: WDAY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WDAY's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200512,500Aneel Bhusrihttps://www.workday.com

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 offers a suite of financial management applications, which enable chief financial officers to maintain accounting information in the general ledger; manage financial processes; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.

Workday Fundamentals Summary

How do Workday's earnings and revenue compare to its market cap?
WDAY fundamental statistics
Market CapUS$67.14b
Earnings (TTM)-US$36.83m
Revenue (TTM)US$4.67b

14.3x

P/S Ratio

-1.8kx

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WDAY income statement (TTM)
RevenueUS$4.67b
Cost of RevenueUS$1.29b
Gross ProfitUS$3.39b
ExpensesUS$3.42b
Earnings-US$36.83m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.15
Gross Margin72.46%
Net Profit Margin-0.79%
Debt/Equity Ratio48.0%

How did WDAY perform over the long term?

See historical performance and comparison

Valuation

Is Workday undervalued compared to its fair value and its price relative to the market?

16.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WDAY ($270.07) is trading below our estimate of fair value ($324.56)

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 (17.3x) compared to the US Software industry average (7.7x).


Future Growth

How is Workday forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

26.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WDAY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: WDAY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WDAY's is expected to become profitable in the next 3 years.

Revenue vs Market: WDAY's revenue (17.1% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: WDAY's revenue (17.1% 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 (21.5%)


Past Performance

How has Workday performed over the past 5 years?

4.4%

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, but has reduced losses over the past 5 years at a rate of 4.4% 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 (22.1%).


Return on Equity

High ROE: WDAY has a negative Return on Equity (-0.95%), as it is currently unprofitable.


Financial Health

How is Workday's financial position?


Financial Position Analysis

Short Term Liabilities: WDAY's short term assets ($4.5B) exceed its short term liabilities ($4.3B).

Long Term Liabilities: WDAY's short term assets ($4.5B) exceed its long term liabilities ($971.8M).


Debt to Equity History and Analysis

Debt Level: WDAY's debt to equity ratio (48%) is considered high.

Reducing Debt: WDAY's debt to equity ratio has increased from 44.4% to 48% 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 36.5% 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?

1.2yrs

Average management tenure


CEO

Aneel Bhusri (55 yo)

1.08yrs

Tenure

US$2,693,925

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 ($USD2.69M) is below average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Aneel's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WDAY's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: WDAY's board of directors are considered experienced (3.6 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 4.6%.


Top Shareholders

Company Information

Workday, Inc.'s 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$67.136b
  • Shares outstanding: 248.00m
  • Website: https://www.workday.com

Number of Employees


Location

  • Workday, Inc.
  • 6110 Stoneridge Mall Road
  • Pleasanton
  • California
  • 94588
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 23:03
End of Day Share Price2021/09/23 00:00
Earnings2021/07/31
Annual Earnings2021/01/31


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.