Workday Stock Analysis, Valuation (NASDAQ:WDAY)

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$129.52 $0.83 (0.64%) WDAY stock closing price May 23, 2018 (Closing)
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Workday
Updated on : May 23, 2018
previous close
WDAY 129.5 (0%)
NASDAQ 7426 (0%)
Closing Price On: May 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
50.9%
Operating Profit
Operating Margin:
-14.2%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
1.49B
Debt/Equity Ratio:
 0.94
Compared to the industry
Cash Flow
Operating cash flow:
$126.6M
Net Income:
-$89.1M
PROS      CONS
Recent Growth
Long Term Growth
FCF Margin
Operating Margins
Net Margins
High Debt Burden
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
WDAY PS :
12.7
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Equity:
-23%
Free Cash Flow Margin:
15.5%
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Workday Stock Analysis

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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 2/5

Amigobulls WDAY stock analysis takes into account various financial ratios like relative valuation, Workday revenue, growth and return on equity based on latest quarter 2018 Q4 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 33.4% year on year in 2018 Q4.
  • The company saw a significant growth in revenue with a 5 year CAGR of 50.9%.
  • The company has a healthy free cash flow margin of 15.5%.

Should you sell WDAY stock?

  • Workday registered a negative operating margin of -14.2% (average) over the Trailing Twelve Months (TTM).
  • Workday registered an average TTM Net loss of -15%.
  • With a debt/equity ratio of  0.94, Workday is highly leveraged in comparison to Computer and Technology peers.
  • PE ratio is meaningless for WDAY stock as the company has losses.
  • The company is trading at a price to sales multiple of 12.7, which is higher in comparison to the Internet Software industry average of 2.9, making WDAY stock expensive.
  • Workday has a negative return on equity of -23%. This indicates that the firm is inefficient at generating profits.

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.