Is Freshworks Stock a Good Investment?
Freshworks Investment Advice | FRSH |
- Examine Freshworks' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Freshworks' leadership team and their track record. Good management can help Freshworks navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Freshworks' business and its evolving consumer preferences.
- Compare Freshworks' performance and market position to its competitors. Analyze how Freshworks is positioned in terms of product offerings, innovation, and market share.
- Check if Freshworks pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Freshworks' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Freshworks stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Freshworks is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Freshworks Stock
Researching Freshworks' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 85.0% of the company shares are owned by institutional investors. The book value of Freshworks was currently reported as 3.75. The company has Price/Earnings To Growth (PEG) ratio of 0.96. Freshworks recorded a loss per share of 0.32. The entity had not issued any dividends in recent years.
To determine if Freshworks is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Freshworks' research are outlined below:
| The company reported the previous year's revenue of 720.42 M. Net Loss for the year was (95.37 M) with profit before overhead, payroll, taxes, and interest of 607.09 M. | |
| Over 85.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Is Freshworks Inc. the Best Nasdaq Stock Under 20 to Buy Now |
Freshworks Quarterly Good Will |
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Freshworks uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Freshworks. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Freshworks' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Freshworks' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Freshworks' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2022-08-02 | 2022-06-30 | -0.07 | -0.06 | 0.01 | 14 | ||
2024-07-30 | 2024-06-30 | 0.06 | 0.08 | 0.02 | 33 | ||
2024-05-01 | 2024-03-31 | 0.08 | 0.1 | 0.02 | 25 | ||
2024-11-06 | 2024-09-30 | 0.08 | 0.11 | 0.03 | 37 | ||
2024-02-06 | 2023-12-31 | 0.05 | 0.08 | 0.03 | 60 | ||
2023-10-31 | 2023-09-30 | 0.05 | 0.08 | 0.03 | 60 | ||
2025-02-04 | 2024-12-31 | 0.1018 | 0.14 | 0.0382 | 37 | ||
2022-11-01 | 2022-09-30 | -0.05 | -0.01 | 0.04 | 80 |
Know Freshworks' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Freshworks is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Freshworks backward and forwards among themselves. Freshworks' institutional investor refers to the entity that pools money to purchase Freshworks' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Arrowstreet Capital Limited Partnership | 2024-12-31 | 3.8 M | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 3.8 M | Franklin Resources Inc | 2024-12-31 | 3.7 M | Norges Bank | 2024-12-31 | 3.6 M | Renaissance Technologies Corp | 2024-12-31 | 3.4 M | Millennium Management Llc | 2024-12-31 | 3.2 M | Fuller & Thaler Asset Management Inc | 2024-12-31 | 3.1 M | Sc Us (ttgp), Ltd. | 2024-12-31 | 2.9 M | Holocene Advisors, Lp | 2024-12-31 | 2.4 M | Vanguard Group Inc | 2024-12-31 | 25.1 M | Blackrock Inc | 2024-12-31 | 17.6 M |
Freshworks' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 4.66 B.Market Cap |
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Freshworks' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.07) | (0.07) | |
| Return On Capital Employed | (0.12) | (0.12) | |
| Return On Assets | (0.06) | (0.06) | |
| Return On Equity | (0.08) | (0.08) |
Determining Freshworks' profitability involves analyzing its financial statements and using various financial metrics to determine if Freshworks is a good buy. For example, gross profit margin measures Freshworks' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Freshworks' profitability and make more informed investment decisions.
Freshworks' Earnings Breakdown by Geography
Evaluate Freshworks' management efficiency
Freshworks has return on total asset (ROA) of (0.0517) % which means that it has lost $0.0517 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0863) %, meaning that it created substantial loss on money invested by shareholders. Freshworks' management efficiency ratios could be used to measure how well Freshworks manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to -0.07. The current Return On Capital Employed is estimated to decrease to -0.12. As of now, Freshworks' Intangible Assets are increasing as compared to previous years. The Freshworks' current Non Current Assets Total is estimated to increase to about 363.8 M, while Total Assets are projected to decrease to under 1.4 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 3.78 | 3.69 | |
| Tangible Book Value Per Share | 2.99 | 3.14 | |
| Enterprise Value Over EBITDA | (39.03) | (40.98) | |
| Price Book Value Ratio | 4.28 | 4.06 | |
| Enterprise Value Multiple | (39.03) | (40.98) | |
| Price Fair Value | 4.28 | 4.06 | |
| Enterprise Value | 3.8 B | 4 B |
Leadership at Freshworks emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Beta 0.92 |
Basic technical analysis of Freshworks Stock
As of the 20th of March, Freshworks shows the Mean Deviation of 1.89, standard deviation of 2.64, and Variance of 6.99. Freshworks technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Freshworks' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Freshworks insiders, such as employees or executives, is commonly permitted as long as it does not rely on Freshworks' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Freshworks insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Freshworks' Outstanding Corporate Bonds
Freshworks issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Freshworks uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Freshworks bonds can be classified according to their maturity, which is the date when Freshworks has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| FRESLN 425 02 OCT 50 Corp BondUS358070AB61 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| FMEGR 375 15 JUN 29 Corp BondUS35805BAA61 | View | |
| FMEGR 2375 16 FEB 31 Corp BondUS35805BAB45 | View | |
| FMEGR 1875 01 DEC 26 Corp BondUS35805BAC28 | View | |
| FMEGR 3 01 DEC 31 Corp BondUS35805BAE83 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View |
Understand Freshworks' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Freshworks' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.08) | |||
| Mean Deviation | 1.89 | |||
| Coefficient Of Variation | (2,517) | |||
| Standard Deviation | 2.64 | |||
| Variance | 6.99 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | 0.1081 | |||
| Treynor Ratio | (0.09) | |||
| Maximum Drawdown | 15.73 | |||
| Value At Risk | (4.28) | |||
| Potential Upside | 3.97 | |||
| Skewness | 0.4814 | |||
| Kurtosis | 2.35 |
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.08) | |||
| Mean Deviation | 1.89 | |||
| Coefficient Of Variation | (2,517) | |||
| Standard Deviation | 2.64 | |||
| Variance | 6.99 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | 0.1081 | |||
| Treynor Ratio | (0.09) | |||
| Maximum Drawdown | 15.73 | |||
| Value At Risk | (4.28) | |||
| Potential Upside | 3.97 | |||
| Skewness | 0.4814 | |||
| Kurtosis | 2.35 |
Consider Freshworks' intraday indicators
Freshworks intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Freshworks stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Freshworks Corporate Filings
F4 | 12th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 24th of February 2025 Other Reports | ViewVerify | |
10K | 20th of February 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
| 18th of February 2025 Other Reports | ViewVerify |
Freshworks Stock media impact
Far too much social signal, news, headlines, and media speculation about Freshworks that are available to investors today. That information is available publicly through Freshworks media outlets and privately through word of mouth or via Freshworks internal channels. However, regardless of the origin, that massive amount of Freshworks data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Freshworks news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Freshworks relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Freshworks' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Freshworks alpha.
Freshworks Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Freshworks can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Freshworks Historical Investor Sentiment
Investor biases related to Freshworks' public news can be used to forecast risks associated with an investment in Freshworks. The trend in average sentiment can be used to explain how an investor holding Freshworks can time the market purely based on public headlines and social activities around Freshworks. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Freshworks' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Freshworks and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Freshworks news discussions. The higher the estimate score, the more favorable the investor's outlook on Freshworks.
Freshworks Maximum Pain Price Across May 16th 2025 Option Contracts
Freshworks' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Freshworks close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Freshworks' options.
Freshworks Corporate Management
| Tyler Sloat | Chief Officer | Profile | |
| Philippa Lawrence | Chief Officer | Profile | |
| Stacey Epstein | Chief Officer | Profile | |
| Jason Loomis | Chief Officer | Profile | |
| Doug Farber | Senior Alliances | Profile | |
| Murali Swaminathan | Chief Officer | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Freshworks. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. For more detail on how to invest in Freshworks Stock please use our How to Invest in Freshworks guide.You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Freshworks. If investors know Freshworks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Freshworks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.32) | Revenue Per Share | Quarterly Revenue Growth 0.215 | Return On Assets | Return On Equity |
The market value of Freshworks is measured differently than its book value, which is the value of Freshworks that is recorded on the company's balance sheet. Investors also form their own opinion of Freshworks' value that differs from its market value or its book value, called intrinsic value, which is Freshworks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Freshworks' market value can be influenced by many factors that don't directly affect Freshworks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Freshworks' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Freshworks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Freshworks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.