Exploring Workday – A Brief Stock Analysis

One of the losers of today's trading session was Workday. Shares of the Data processing services company plunged -13.4%, and some investors may be wondering if its price of $226.05 would make a good entry point. Here's what you should know if you are considering this investment:

  • Workday has moved 20.7% over the last year, and the S&P 500 logged a change of 25.3%

  • WDAY has an average analyst rating of buy and is -27.74% away from its mean target price of $312.82 per share

  • Its trailing earnings per share (EPS) is $5.61

  • Workday has a trailing 12 month Price to Earnings (P/E) ratio of 40.3 while the S&P 500 average is 15.97

  • Its forward earnings per share (EPS) is $7.86 and its forward P/E ratio is 28.8

  • The company has a Price to Book (P/B) ratio of 7.32 in contrast to the S&P 500's average ratio of 2.95

  • Workday is part of the Technology sector, which has an average P/E ratio of 35.0 and an average P/B of 7.92

  • WDAY has reported YOY quarterly earnings growth of 76026.7% and gross profit margins of 0.8%

  • The company has a free cash flow of $2.01 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter

  • Workday, Inc. provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contracts, manage indirect spend, and build and execute sourcing events, such as requests for proposals; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications; and applications for analytics and reporting comprising augmented analytics to surface insights to the line of business in simple-to-understand stories, machine learning to drive efficiency and automation, and benchmarks to compare performance against other companies. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; and Workday Extend for customers and their developers to build custom applications. It serves professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS