Workday Stock Analysis, Valuation (NYSE:WDAY)

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$106.28 $0.28 (0.26%) WDAY stock closing price Sep 19, 2017 (Closing)
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Workday
Updated on : Sep 19, 2017
previous close
WDAY 106.3 (0%)
NASDAQ 6461.3 (0%)
Closing Price On: Sep 19, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q2
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
56.2%
Operating Profit
Operating Margin:
-19.3%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Debt/Equity Ratio
Debt:
548.5M
Debt/Equity Ratio:
 0.4
Compared to the industry
Cash Flow
Operating cash flow:
$15.1M
Net Income:
-$82.5M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROE
FCF Margin
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
WDAY PS :
11.9
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Equity:
-29.9%
Free Cash Flow Margin:
-4.5%
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Workday Analysis Video

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View Workday stock analysis video. This is our WDAY analyst opinion covering the buy and sell arguments for WDAY stock.

Workday Inc Stock Rating (1.6/5)

Our Workday stock opinion is based on fundamentals of the company. This Workday stock analysis is based on latest 2018 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy WDAY stock?

  • The Year Over Year (YoY) revenue growth for Workday was 39.1% in 2018 Q2.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 56.2%.

Should you sell WDAY stock?

  • Over the last twelve months, Workday posted an average operating loss margin of -19.3%.
  • Over the last 12 months, Workday had an average Net loss of -19.8%.
  • Workday is debt laden and has a high debt/equity ratio of  0.4.
  • The lack of profits renders the PE ratio useless for WDAY stock.
  • The company is trading at a price to sales multiple of 11.9, which is higher in comparison to the Internet Software industry average of 2.7, making WDAY stock expensive.
  • A negative ROE of -29.9% indicates that the company is not able to generate profits with the money shareholders have invested.
  • The company has a negative free cash flow margin of -4.5%.

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