Workday Stock Analysis, Valuation (NASDAQ:WDAY)

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$142.65 $2.6 (1.86%) WDAY stock closing price Aug 17, 2018 (Closing)

Watch the robo advisor video of Workday stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for WDAY stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Workday Inc Stock Rating 2.1/5

Amigobulls WDAY stock analysis takes into account various financial ratios like relative valuation, Workday revenue, growth and return on equity based on latest quarter 2019 Q1 financial statements. We also check Workday dividend performance. We compare Workday valuation with its sector peers to gauge relative attractiveness of WDAY stock. Based on a company's historical fundamentals we arrive at Workday stock rating which is indicative of the company's financial performance.

Should you buy WDAY stock?

  • Workday sales grew by 28.9% year on year in 2018-04.
  • Revenue growth has been tremendous with a compounded annual growth of 49.2 over the last 5 years.
  • Workday has a healthy FCF (Free Cash Flow) margin of 21.9.

Should you sell WDAY stock?

  • Workday reported an average operating margin of -13.77 over the Last Twelve Months (LTM).
  • Workday posted an average Net loss of -14.5% in the last twelve months.
  • Workday is debt laden and has a high debt/equity ratio of 0.91.
  • The company does not have profits. Hence the PE ratio is meaningless for WDAY stock.
  • WDAY stock is trading at a PS multiple of 13.1, which is a negative when compared to the Computer and Technology sector average multiple of 2.9.
  • Workday has a negative ROE (Return On Equity) of -22.2, indicating the company is not profitable.

Comments on this video and Workday stock

Investors can use Amigobulls Workday stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

Workday revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.