Why is Workday stock dropping today?
Workday stock drops after earnings miss, slightly higher outlook. Workday shares fell after hours Thursday after the human resources cloud-software company's raised forecast remained mostly below the Street consensus.
Is workday a good stock to buy?
A rating of 57 puts Workday Inc (WDAY) near the top of the Technology sector according to InvestorsObserver. Workday Inc's score of 57 means that it ranks higher than 57% of stocks in the sector. In addition, its overall score of 63 ranks it higher than 63% of all stocks. WDAY has an Overall Score of 63.
Is workday a profitable company?
Interestingly, Workday's profits grew in 2020. Workday's quarterly gross profit grew from $691.52 million on 31 January 2020 to $712.75 million on 30 April 2020 to $777.69 million on 31 July 2020.
Is workday stock overvalued?
Valuation metrics show that Workday, Inc. may be overvalued. Its Value Score of F indicates it would be a bad pick for value investors. The financial health and growth prospects of WDAY, demonstrate its potential to underperform the market.
Who is workdays competition?
Workday competitors include Adobe, IBM, Salesforce, Symantec and Oracle. Workday ranks 3rd in CEO Score on Comparably vs its competitors.
How much does workday software cost?
Workday is almost always the most expensive option in the marketplace. Workday annual subscriptions typically start around $300K and can cost as much as $40-60 PEPM, even for larger employers.
Is workday undervalued?
Are you a shareholder? Since WDAY is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price.
How much is workday debt?
How Much Debt Does Workday Carry? You can click the graphic below for the historical numbers, but it shows that as of April 2022 Workday had US$4.12b of debt, an increase on US$1.86b, over one year.
Whats a good PEG ratio?
What Is a Good PEG Ratio? As a general rule, a PEG ratio of 1.0 or lower suggests a stock is fairly priced or even undervalued. A PEG ratio above 1.0 suggests a stock is overvalued.
Should I buy or sell Workday stock right now?
29 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Workday in the last twelve months. There are currently...
What is Workday's stock price forecast for 2022?
29 Wall Street analysts have issued 12 month target prices for Workday's stock. Their forecasts range from $170.00 to $350.00. On average, they ant...
How has Workday's stock performed in 2022?
Workday's stock was trading at $273.18 at the start of the year. Since then, WDAY stock has decreased by 45.4% and is now trading at $149.28. View...
When is Workday's next earnings date?
Workday is scheduled to release its next quarterly earnings announcement on Thursday, August 25th 2022. View our earnings forecast for Workday .
How were Workday's earnings last quarter?
Workday, Inc. (NASDAQ:WDAY) issued its quarterly earnings data on Thursday, May, 26th. The software maker reported $0.83 earnings per share for the...
Who are Workday's key executives?
Workday's management team includes the following people: Mr. Aneel Bhusri , Co-Founder, Co-CEO & Chairman (Age 56, Pay $2.69M) Mr. Luciano Ferna...
What is Aneel Bhusri's approval rating as Workday's CEO?
994 employees have rated Workday CEO Aneel Bhusri on Glassdoor.com . Aneel Bhusri has an approval rating of 95% among Workday's employees. This pu...
Who are some of Workday's key competitors?
Some companies that are related to Workday include Adobe (ADBE) , Salesforce (CRM) , Intuit (INTU) , Synopsys (SNPS) , Cadence Design Systems...
What other stocks do shareholders of Workday own?
Based on aggregate information from My MarketBeat watchlists, some companies that other Workday investors own include CA (CA) , BlackRock (BLK) ,...
Overview to the Slowdown
More Growth, Less Profitable
Arguably the biggest reason to exit one's investment in Workday boils down to common sense considerations over its valuation. But even apart from that, it is noteworthy that the whole month prior to Workday updating the market of its Q2 2020 results, the stock had already started to lose steam.
Valuation - What Always Matters in the End
Workday's obsession with delivering growth at all costs is starting to weigh on its bottom line.
The Bottom Line
During a bull market, investors are only too happy to give valuations a pass and to play along with management's promises of revenue growth. But at some point, every so often, questions over a stock's valuation return to the foreground.
About Workday
Workday has been a tremendously rewarding stock to own the past few years, and after every correction, its stock has fully bounced back and gone to reach new highs. However, investors should also be mindful that trees don't grow to the sky, and that a little bit of common sense prudence when investing goes a long way.
Headlines
Workday, Inc. engages in the development of enterprise cloud applications for finance and human resources. It delivers financial management, human capital management and analytics applications designed for companies, educational institutions and government agencies. The company was founded by David A.
Workday (NASDAQ:WDAY) Frequently Asked Questions
KPMG severed ties with Phil Mickelson. Will others such as Callaway, Workday and Rolex soon follow? - usatoday.com
Who is the CEO of Workday?
28 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Workday in the last year. There are currently 1 hold rating and 27 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should "buy" Workday stock. View analyst ratings for Workday or view top-rated stocks.
What is Workday's revenue in 2022?
In his first "Executive Decision" segment of Mad Money Wednesday evening, Jim Cramer spoke with Aneel Bhusri, co-founder and co-CEO of Workday , the HR software provider. As a result, that side of Workday's business has been remarkably strong. Bhusri also commented on their own hiring practices at Workday.
Summary
Workday (WDAY) beat earnings and revenue estimates in the fiscal first quarter 2022. The company provides enterprise cloud applications for finance and human resources. Shares of the software company declined 1.1% in Wednesday’s extended trading session. The company’s revenues of $1.18 million surpassed the Street’s estimates of $1.16 million and jumped 15.4% from the year-ago period. Subscription revenue increased 17.0% year over year to $1.03 billion. Earnings came in at $0.87 per share, beating the consensus estimates of $0.73 per share and soared 97.7% year-over-year. Workday CFO Robynne Sisco said, “We delivered solid first-quarter results driven by strong execution against an improving market backdrop.” He further said, “As a result, we are raising our fiscal 2022 guidance for subscription revenue to a range of $4.425 to $4.440 billion, growth of 17%. We expect second-quarter subscription revenue of $1.095 billion to $1.097 billion, growth of 18%. We are also raising our fiscal 2022 non-GAAP operating margin guidance to a range of 18% to 19%.” (See Workday stock analysis on TipRanks) On May 18, Monness analyst Brian White maintained a Buy rating and a price target of $280 (18.1% upside potential). White commented, “Held hostage by this pandemic, we expect Workday to benefit from the great U.S. reopening and accelerated digital transformation trends, emerging from this crisis a stronger company.” The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 12 Buys versus 5 Holds. The average analyst price target of $274.29 implies 15.7% upside potential to current levels. Shares have increased 39.1% over the past year. Related News : Garmin Expands Digital & Aviation Offerings with AeroData Buyout Keysight Expands Quantum Solutions With Quantum Benchmark Buyout AutoZone Beats Analysts’ Expectations in Q3 More recent articles from Smarter Analyst: Mondelez to Acquire Chipita for $2B, Expand Bakery Portfolio Allscripts to Buy Back $350M in Stock; Shares Jump 5% PayPal Invests $50M in Overlooked Entrepreneurs Amazon Tables $8.45B Acquisition Bid for MGM
Q1 download
Workday has traded in a choppy fashion this year as investors have weighed both slowing organic growth against a rising valuation.
Key takeaways
Let's now dive through Workday's most recent quarterly results in greater detail.
What happened
In my view, Workday's rally is nearing an end. The company has hit a fairly rich valuation at ~11x forward revenue, despite the fact that revenue growth is slowing to the mid-teens and margins are expected to deteriorate following a hiring spree. With a saturated market, I don't see much opportunity for Workday going forward.
So what
Shares of Workday ( NASDAQ:WDAY) slipped 24.8% in March, according to data from S&P Global Market Intelligence. The enterprise software company's stock was hit hard as the coronavirus pandemic dimmed the business' growth prospects.
Now what
Workday's strong track record of customer satisfaction and its heavily subscription-based software model suggest that the company should hold on to most of its current subscribers even if economic conditions worsen.
Overview to The Slowdown
More Growth, Less Profitable
- Workday's obsession with delivering growth at all costs is starting to weigh on its bottom line. Specifically, even though its revenues continue to reach new milestones, its GAAP net income continues to become increasingly negative. In other words, even though Workday asserts that its scale lends itself towards improved margins, in absolute terms the company continues to delive…
valuation - What Always Matters in The End
- During a bull market, investors are only too happy to give valuations a pass and to play along with management's promises of revenue growth. But at some point, every so often, questions over a stock's valuation return to the foreground. There is no question that the whole sector is being richly valued. We can see that on a cash flow from operations basis, the whole peer group is tra…
The Bottom Line
- Workday has been a tremendously rewarding stock to own the past few years, and after every correction, its stock has fully bounced back and gone to reach new highs. However, investors should also be mindful that trees don't grow to the sky, and that a little bit of common sense prudence when investing goes a long way. The author has no positions in any securities mentio…