NasdaqGS:WDAY

Stock Analysis Report

Executive Summary

Workday, Inc. provides enterprise cloud applications worldwide.

Rewards

Revenue is forecast to grow 19.21% per year

Risk Analysis

Earnings are forecast to decline by an average of -9.7% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

WDAY

-0.9%

US Software

0.3%

US Market


1 Year Return

4.1%

WDAY

32.9%

US Software

18.5%

US Market

Return vs Industry: WDAY underperformed the US Software industry which returned 32.9% over the past year.

Return vs Market: WDAY underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

WDAYIndustryMarket
7 Day-3.3%-0.9%0.3%
30 Day2.3%1.9%1.5%
90 Day-4.4%6.6%5.7%
1 Year4.1%4.1%34.9%32.9%21.1%18.5%
3 Year137.4%137.4%127.5%118.4%45.9%36.4%
5 Year105.5%105.5%182.5%162.4%71.4%52.5%

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?

16.37x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WDAY ($166.22) is trading above our estimate of fair value ($97.29)

Significantly Below Fair Value: WDAY is trading above our estimate of fair value.


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 (16.4x) compared to the US Software industry average (5.6x).


Next Steps

Future Growth

How is Workday forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?

-9.7%

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 (19.2% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: WDAY's revenue (19.2% 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 (22.5%)


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 (20.8%).


Return on Equity

High ROE: WDAY has a negative Return on Equity (-19.71%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Workday's financial position?


Financial Position Analysis

Short Term Liabilities: WDAY's short term assets ($3.0B) exceed its short term liabilities ($2.5B).

Long Term Liabilities: WDAY's short term assets ($3.0B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: WDAY's debt to equity ratio (53.8%) is considered high.

Reducing Debt: WDAY's debt to equity ratio has increased from 41.7% to 53.8% 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 2.4x 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 27.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry

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

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

1.8yrs

Average management tenure


CEO

Aneel Bhusri (53yo)

10.3yrs

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 ($USD9.83M) is about average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Aneel's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: WDAY's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.6yrs

Average Tenure

55.5yo

Average Age

Experienced Board: WDAY's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$216,29117 May 19
David Duffield
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares1,054
Max PriceUS$205.21
SellUS$216,89117 Apr 19
David Duffield
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares1,124
Max PriceUS$194.21
SellUS$420,60619 Mar 19
Petros Dermetzis
EntityIndividual
Role
Senior Key Executive
Chief Products Officer
Shares2,257
Max PriceUS$186.86
SellUS$1,556,90021 Dec 18
James Shaughnessy
EntityIndividual
Shares10,000
Max PriceUS$155.69

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Management Team

  • Aneel Bhusri (53yo)

    Co-Founder

    • Tenure: 10.3yrs
    • Compensation: US$9.83m
  • Dave Duffield (78yo)

    Co-Founder & Chairman

    • Tenure: 5.6yrs
    • Compensation: US$370.24k
  • David Clarke (48yo)

    Chief Technology Officer

    • Tenure: 0.9yrs
  • Jim Bozzini (53yo)

    COO & Executive VP of Customer Operations

    • Tenure: 0yrs
    • Compensation: US$6.83m
  • Robynne Sisco (54yo)

    Co-President & CFO

    • Tenure: 1.8yrs
    • Compensation: US$8.87m
  • Petros Dermetzis (57yo)

    Chief Products Officer

    • Tenure: 0yrs
    • Compensation: US$8.78m
  • Luciano Fernandez (49yo)

    Co-President

    • Tenure: 1.8yrs
    • Compensation: US$10.38m
  • Sheri Rhodes (50yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Michael Magaro

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Rich Sauer

    Executive VP

    • Tenure: 0.9yrs

Board Members

  • Aneel Bhusri (53yo)

    Co-Founder

    • Tenure: 10.3yrs
    • Compensation: US$9.83m
  • Jerry Yang (50yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$374.67k
  • Dave Duffield (78yo)

    Co-Founder & Chairman

    • Tenure: 5.6yrs
    • Compensation: US$370.24k
  • Mike McNamara (62yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$387.10k
  • George Still (61yo)

    Vice Chairman & Lead Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$449.53k
  • Lee Styslinger (58yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$337.11k
  • Mike Stankey (60yo)

    Vice Chairman of the Board

    • Tenure: 4.5yrs
    • Compensation: US$8.61m
  • Carl Eschenbach (52yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$324.68k
  • Christa Davies (47yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$399.54k
  • Ann-Marie Campbell (53yo)

    Independent Director

    • Tenure: 0.7yrs

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$39.558b
  • Shares outstanding: 228.00m
  • 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
WDAY *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNOct 2012
W7DETLX (Eurotlx)YesClass A Common StockITEUROct 2012

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 compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 00:37
End of Day Share Price2019/12/06 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


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.