(WDAY) Workday - Ratings and Ratios
Cloud Finance, Cloud Hcm, Cloud Spend, Cloud Planning, Cloud Analytics
WDAY EPS (Earnings per Share)
WDAY Revenue
Description: WDAY Workday
Workday, Inc. (NASDAQ: WDAY) delivers a broad portfolio of enterprise-cloud applications that span financial management, spend and expense management, human capital management (HCM), planning, analytics, supply-chain, education, and a low-code extension platform (Workday Extend). The core value proposition is to centralize and automate finance and HR processes, providing real-time insights, tighter internal controls, and faster close cycles for midsize to large organizations across a dozen verticals, including financial services, healthcare, and government.
Key financial metrics show the business scaling on a subscription-driven model: FY 2024 revenue reached approximately **$5.9 billion**, up about **10 % YoY**, while the subscription-based recurring revenue (ARR) topped **$13 billion**. The company reports a **net dollar retention** above **120 %**, indicating that existing customers are expanding usage faster than they churn, a critical driver of SaaS profitability. Gross margin remains in the high-70 % range, reflecting the low-cost nature of cloud delivery.
From a macro-economic perspective, Workday benefits from two converging trends: (1) the continued **digital-transformation spend** by enterprises, which the IDC estimates will grow at a **~12 % CAGR** through 2027, and (2) **tight labor markets** that push firms to invest in HCM solutions to attract, retain, and up-skill talent. Both trends support higher willingness to pay for integrated finance-HR platforms that can deliver operational efficiency and data-driven decision making.
Workday sells primarily through a direct sales organization, targeting high-value enterprise contracts that typically span multiple years. This model yields higher customer stickiness but also concentrates revenue in a relatively limited number of large accounts, introducing concentration risk that analysts should monitor, especially in cyclical sectors like financial services and hospitality.
For investors seeking a deeper quantitative assessment of Workday’s valuation dynamics-such as forward-looking ARR growth, churn sensitivity, and comparable SaaS multiples-exploring the analytics on **ValueRay** can provide a data-rich foundation for further research.
WDAY Stock Overview
| Market Cap in USD | 63,140m |
| Sub-Industry | Application Software |
| IPO / Inception | 2012-10-12 |
WDAY Stock Ratings
| Growth Rating | 10.5% |
| Fundamental | 70.7% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | -14.7% |
| Analyst Rating | 4.21 of 5 |
WDAY Dividends
Currently no dividends paidWDAY Growth Ratios
| Growth Correlation 3m | 30.1% |
| Growth Correlation 12m | -60.7% |
| Growth Correlation 5y | 14.1% |
| CAGR 5y | 15.99% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.49 |
| CAGR/Mean DD 3y (Pain Ratio) | 1.21 |
| Sharpe Ratio 12m | 0.48 |
| Alpha | -20.86 |
| Beta | 1.104 |
| Volatility | 31.21% |
| Current Volume | 1754.2k |
| Average Volume 20d | 3001.4k |
| Stop Loss | 229.3 (-3.3%) |
| Signal | 0.55 |
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (583.0m TTM) > 0 and > 6% of Revenue (6% = 536.2m TTM) |
| FCFTA 0.13 (>2.0%) and ΔFCFTA 0.09pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 58.01% (prev 56.92%; Δ 1.09pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.14 (>3.0%) and CFO 2.59b > Net Income 583.0m (YES >=105%, WARN >=100%) |
| Net Debt (2.51b) to EBITDA (1.21b) ratio: 2.08 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.05 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (270.2m) change vs 12m ago 0.83% (target <= -2.0% for YES) |
| Gross Margin 77.88% (prev 75.62%; Δ 2.26pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 52.27% (prev 48.16%; Δ 4.11pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 7.56 (EBITDA TTM 1.21b / Interest Expense TTM 115.0m) >= 6 (WARN >= 3) |
Altman Z'' 1.95
| (A) 0.29 = (Total Current Assets 10.13b - Total Current Liabilities 4.95b) / Total Assets 17.96b |
| (B) -0.05 = Retained Earnings (Balance) -909.0m / Total Assets 17.96b |
| (C) 0.05 = EBIT TTM 869.0m / Avg Total Assets 17.10b |
| (D) -0.11 = Book Value of Equity -983.0m / Total Liabilities 8.79b |
| Total Rating: 1.95 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 70.73
| 1. Piotroski 7.0pt = 2.0 |
| 2. FCF Yield 4.07% = 2.04 |
| 3. FCF Margin 26.77% = 6.69 |
| 4. Debt/Equity 0.41 = 2.42 |
| 5. Debt/Ebitda 2.08 = -0.15 |
| 6. ROIC - WACC (= -4.08)% = -5.10 |
| 7. RoE 6.52% = 0.54 |
| 8. Rev. Trend 99.56% = 7.47 |
| 9. EPS Trend 96.59% = 4.83 |
What is the price of WDAY shares?
Over the past week, the price has changed by +1.72%, over one month by +6.48%, over three months by +5.53% and over the past year by -2.18%.
Is Workday a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of WDAY is around 213.98 USD . This means that WDAY is currently overvalued and has a potential downside of -9.78%.
Is WDAY a buy, sell or hold?
- Strong Buy: 20
- Buy: 12
- Hold: 11
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the WDAY price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 282.1 | 19% |
| Analysts Target Price | 282.1 | 19% |
| ValueRay Target Price | 240.8 | 1.5% |
Last update: 2025-10-04 04:01
WDAY Fundamental Data Overview
P/E Trailing = 109.4815
P/E Forward = 21.692
P/S = 7.0477
P/B = 6.7565
P/EG = 0.7382
Beta = 1.104
Revenue TTM = 8.94b USD
EBIT TTM = 869.0m USD
EBITDA TTM = 1.21b USD
Long Term Debt = 2.98b USD (from longTermDebt, last quarter)
Short Term Debt = 110.0m USD (from shortTermDebt, last quarter)
Debt = 3.78b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.51b USD (from netDebt column, last quarter)
Enterprise Value = 58.73b USD (63.14b + Debt 3.78b - CCE 8.19b)
Interest Coverage Ratio = 7.56 (Ebit TTM 869.0m / Interest Expense TTM 115.0m)
FCF Yield = 4.07% (FCF TTM 2.39b / Enterprise Value 58.73b)
FCF Margin = 26.77% (FCF TTM 2.39b / Revenue TTM 8.94b)
Net Margin = 6.52% (Net Income TTM 583.0m / Revenue TTM 8.94b)
Gross Margin = 77.88% ((Revenue TTM 8.94b - Cost of Revenue TTM 1.98b) / Revenue TTM)
Gross Margin QoQ = 84.24% (prev 75.94%)
Tobins Q-Ratio = 3.27 (Enterprise Value 58.73b / Total Assets 17.96b)
Interest Expense / Debt = 0.77% (Interest Expense 29.0m / Debt 3.78b)
Taxrate = 25.0% (76.0m / 304.0m)
NOPAT = 651.8m (EBIT 869.0m * (1 - 25.00%))
Current Ratio = 2.05 (Total Current Assets 10.13b / Total Current Liabilities 4.95b)
Debt / Equity = 0.41 (Debt 3.78b / totalStockholderEquity, last quarter 9.17b)
Debt / EBITDA = 2.08 (Net Debt 2.51b / EBITDA 1.21b)
Debt / FCF = 1.05 (Net Debt 2.51b / FCF TTM 2.39b)
Total Stockholder Equity = 8.94b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.25% (Net Income 583.0m / Total Assets 17.96b)
RoE = 6.52% (Net Income TTM 583.0m / Total Stockholder Equity 8.94b)
RoCE = 7.29% (EBIT 869.0m / Capital Employed (Equity 8.94b + L.T.Debt 2.98b))
RoIC = 5.47% (NOPAT 651.8m / Invested Capital 11.92b)
WACC = 9.54% (E(63.14b)/V(66.92b) * Re(10.08%) + D(3.78b)/V(66.92b) * Rd(0.77%) * (1-Tc(0.25)))
Discount Rate = 10.08% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.71%
[DCF Debug] Terminal Value 74.69% ; FCFE base≈2.29b ; Y1≈2.76b ; Y5≈4.46b
Fair Price DCF = 247.4 (DCF Value 53.69b / Shares Outstanding 217.0m; 5y FCF grow 21.78% → 3.0% )
EPS Correlation: 96.59 | EPS CAGR: 33.91% | SUE: 2.24 | # QB: 10
Revenue Correlation: 99.56 | Revenue CAGR: 15.14% | SUE: 0.27 | # QB: 0
Additional Sources for WDAY Stock
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