Workday Stock Analysis, Valuation (NASDAQ:WDAY)

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$127.33 $2.97 (2.39%) WDAY stock closing price Feb 23, 2018 (Closing)
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Workday
Updated on : Feb 23, 2018
previous close
WDAY 127.3 (0%)
NASDAQ 7337.4 (0%)
Closing Price On: Feb 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
53.4%
Operating Profit
Operating Margin:
-16.4%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
1.47B
Debt/Equity Ratio:
 0.96
Compared to the industry
Cash Flow
Operating cash flow:
$144M
Net Income:
-$85.6M
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 :
13.3
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Equity:
-25.8%
Free Cash Flow Margin:
19.4%
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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 2.3/5

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 Q3 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?

  • The Year Over Year (YoY) revenue growth for Workday was 35.6% in 2018 Q3.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 53.4%.
  • Workday has a healthy FCF (Free Cash Flow) margin of 19.4%.

Should you sell WDAY stock?

  • Workday reported an average operating margin of -16.4% over the Last Twelve Months (LTM).
  • Over the last 12 months, Workday had an average Net loss of -16.9%.
  • Workday has a debt/equity ratio of  0.96, which is worse than the average in the Computer and Technology sector.
  • PE ratio is meaningless for WDAY stock as the company has losses.
  • WDAY stock is trading at a PS multiple of 13.3, which is a negative when compared to the Internet Software industry average multiple of 2.8.
  • Workday has a negative ROE (Return On Equity) of -25.8%, 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.