NasdaqGS:WDAY

Stock Analysis Report

Executive Summary

Workday, Inc. provides enterprise cloud applications worldwide.


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

WDAYIndustryMarket
7 Day7.1%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 Year65.5%65.5%100.4%91.8%12.6%5.4%
5 Year53.9%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

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

NamePositionTenureCompensationOwnership
David Duffield
Co-Founder & Chairman5.83yrsUS$370.24k22.18% $7.0b
Aneel Bhusri
Co-Founder10.5yrsUS$9.83m3.61% $1.1b
Luciano Fernandez
Co-President2yrsUS$10.38m0.0012% $388.7k
Robynne Sisco
Co-President & CFO2yrsUS$8.87m0.0058% $1.8m
James Bozzini
COO & Executive VP of Customer Operationsno dataUS$6.83m0.10% $32.2m
Petros Dermetzis
Executive Vice President of Emerging Technologyno dataUS$8.78m0.036% $11.4m
David Clarke
Chief Technology Officer1.17yrsno datano data
Sheri Rhodes
Chief Information Officerno datano datano data
Michael Magaro
Vice President of Investor Relationsno datano datano data
Richard Sauer
Executive VP1.17yrsno datano data

2.0yrs

Average Tenure

53yo

Average Age

Experienced Management: WDAY's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Duffield
Co-Founder & Chairman5.83yrsUS$370.24k22.18% $7.0b
Aneel Bhusri
Co-Founder10.5yrsUS$9.83m3.61% $1.1b
Chih-Yuan Yang
Independent Director6.33yrsUS$374.67k0.036% $11.5m
Michael McNamara
Independent Director8.25yrsUS$387.10k0.0017% $546.7k
George Still
Vice Chairman & Lead Independent Director5.83yrsUS$449.53k0.070% $22.0m
Lee Styslinger
Independent Director3.58yrsUS$337.11k0.014% $4.3m
Michael Stankey
Vice Chairman of the Board4.75yrsUS$8.61m0.067% $21.3m
Carl Eschenbach
Independent Director2yrsUS$324.68k0.0026% $827.9k
Christa Davies
Independent Director7.58yrsUS$399.54k0.039% $12.4m
Ann-Marie Campbell
Independent Director0.92yrno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WDAYNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDOct 2012
W7DDB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 2012
0M18LSE (London Stock Exchange)YesClass A Common StockGBUSDOct 2012
W7DBRSE (Berne Stock Exchange)YesClass A Common StockCHCHFOct 2012
WDAY *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNOct 2012
W7DETLX (Eurotlx)YesClass A Common StockITEUROct 2012
W1DA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 SHS UNSPONBRBRLJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:48
End of Day Share Price2020/03/27 00:00
Earnings2020/01/31
Annual Earnings2020/01/31


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.