Is Workday Stock a Good Investment?
Workday Investment Advice | WDAY |
- Examine Workday's 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 Workday's leadership team and their track record. Good management can help Workday 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 Workday's business and its evolving consumer preferences.
- Compare Workday's performance and market position to its competitors. Analyze how Workday is positioned in terms of product offerings, innovation, and market share.
- Check if Workday pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Workday's 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 Workday 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 Workday is a good investment.
Sell | Buy |
Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Workday Stock
Researching Workday's 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 96.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.19. Workday recorded earning per share (EPS) of 6.1. The entity had not issued any dividends in recent years.
To determine if Workday 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 Workday's research are outlined below:
| Over 96.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from fool.com: Workday Tops EPS Expectations |
Workday Quarterly Liabilities And Stockholders Equity |
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Workday 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 Workday. 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 Workday's 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.
| 26th of February 2024 Upcoming Quarterly Report | View | |
| 23rd of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 26th of February 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Workday's 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 Workday's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2016-08-24 | 2016-07-31 | -0.02 | -0.04 | -0.02 | 100 | ||
2014-05-27 | 2014-04-30 | -0.15 | -0.13 | 0.02 | 13 | ||
2016-02-29 | 2016-01-31 | -0.04 | -0.01 | 0.03 | 75 | ||
2015-11-19 | 2015-10-31 | -0.04 | -0.01 | 0.03 | 75 | ||
2014-08-27 | 2014-07-31 | -0.14 | -0.11 | 0.03 | 21 | ||
2014-02-26 | 2014-01-31 | -0.16 | -0.13 | 0.03 | 18 | ||
2013-05-22 | 2013-04-30 | -0.18 | -0.15 | 0.03 | 16 | ||
2018-09-04 | 2018-07-31 | 0.26 | 0.31 | 0.05 | 19 |
Workday Target Price Consensus
Workday target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Workday's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 39 | Strong Buy |
Most Workday analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Workday stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Workday, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationWorkday Target Price Projection
Workday's current and average target prices are 255.22 and 295.94, respectively. The current price of Workday is the price at which Workday is currently trading. On the other hand, Workday's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Workday Market Quote on 26th of February 2025
Target Price
Analyst Consensus On Workday Target Price
Workday Analyst Ratings
Workday's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Workday stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Workday's financials, market performance, and future outlook by experienced professionals. Workday's historical ratings below, therefore, can serve as a valuable tool for investors.Know Workday's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Workday is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Workday backward and forwards among themselves. Workday's institutional investor refers to the entity that pools money to purchase Workday's 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 | Meritage Group Lp | 2024-12-31 | 1.3 M |
Workday's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 67.89 B.Market Cap |
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Workday's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.61) | (0.58) | |
| Return On Capital Employed | (1.92) | (1.82) | |
| Return On Assets | (0.56) | (0.53) | |
| Return On Equity | 0.58 | 0.60 |
Determining Workday's profitability involves analyzing its financial statements and using various financial metrics to determine if Workday is a good buy. For example, gross profit margin measures Workday's 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 Workday's profitability and make more informed investment decisions.
Workday's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Workday's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Workday. Check Workday's Beneish M Score to see the likelihood of Workday's management manipulating its earnings.
Evaluate Workday's management efficiency
Workday has return on total asset (ROA) of 0.0173 % which means that it generated a profit of $0.0173 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.2125 %, meaning that it created $0.2125 on every $100 dollars invested by stockholders. Workday's management efficiency ratios could be used to measure how well Workday manages its routine affairs as well as how well it operates its assets and liabilities. Return On Equity is likely to rise to 0.60 in 2025, despite the fact that Return On Tangible Assets are likely to grow to (0.58). At this time, Workday's Total Assets are fairly stable compared to the past year. Other Assets is likely to rise to about 601.3 M in 2025, whereas Intangible Assets are likely to drop slightly above 153 M in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (0.43) | (0.41) | |
| Tangible Book Value Per Share | (0.47) | (0.45) | |
| Enterprise Value Over EBITDA | (229.64) | (218.15) | |
| Price Book Value Ratio | (119.24) | (113.28) | |
| Enterprise Value Multiple | (229.64) | (218.15) | |
| Price Fair Value | (119.24) | (113.28) | |
| Enterprise Value | 42.8 B | 24.1 B |
Evaluating the management effectiveness of Workday allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Workday Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 1.347 |
Basic technical analysis of Workday Stock
As of the 26th of February, Workday maintains the Standard Deviation of 2.1, mean deviation of 1.58, and Market Risk Adjusted Performance of (0.02). Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Workday, as well as the relationship between them.Workday's 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 Workday insiders, such as employees or executives, is commonly permitted as long as it does not rely on Workday's 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 Workday 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.
Workday's Outstanding Corporate Bonds
Workday 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. Workday 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 Workday bonds can be classified according to their maturity, which is the date when Workday 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.
| WDAY 38 01 APR 32 Corp BondUS98138HAJ05 | View | |
| WDAY 37 01 APR 29 Corp BondUS98138HAH49 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View |
Understand Workday's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Workday's 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 | 0.0056 | |||
| Market Risk Adjusted Performance | (0.02) | |||
| Mean Deviation | 1.58 | |||
| Coefficient Of Variation | (78,040) | |||
| Standard Deviation | 2.1 | |||
| Variance | 4.42 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.01) | |||
| Total Risk Alpha | (0.03) | |||
| Treynor Ratio | (0.03) | |||
| Maximum Drawdown | 9.54 | |||
| Value At Risk | (2.80) | |||
| Potential Upside | 3.33 | |||
| Skewness | 0.2865 | |||
| Kurtosis | 1.3 |
| Risk Adjusted Performance | 0.0056 | |||
| Market Risk Adjusted Performance | (0.02) | |||
| Mean Deviation | 1.58 | |||
| Coefficient Of Variation | (78,040) | |||
| Standard Deviation | 2.1 | |||
| Variance | 4.42 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.01) | |||
| Total Risk Alpha | (0.03) | |||
| Treynor Ratio | (0.03) | |||
| Maximum Drawdown | 9.54 | |||
| Value At Risk | (2.80) | |||
| Potential Upside | 3.33 | |||
| Skewness | 0.2865 | |||
| Kurtosis | 1.3 |
Consider Workday's intraday indicators
Workday 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 Workday 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.
| Accumulation Distribution | 118624.0 | |||
| Daily Balance Of Power | (0.96) | |||
| Rate Of Daily Change | 0.97 | |||
| Day Median Price | 256.1 | |||
| Day Typical Price | 255.81 | |||
| Price Action Indicator | (4.18) | |||
| Period Momentum Indicator | (6.59) | |||
| Relative Strength Index | 56.43 |
Workday Corporate Filings
8K | 25th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 21st of February 2025 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
| 12th of February 2025 Other Reports | ViewVerify | |
F4 | 6th of February 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 |
Workday Stock media impact
Far too much social signal, news, headlines, and media speculation about Workday that are available to investors today. That information is available publicly through Workday media outlets and privately through word of mouth or via Workday internal channels. However, regardless of the origin, that massive amount of Workday 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 Workday 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 Workday 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 Workday's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Workday alpha.
Workday Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Workday 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.
Workday Historical Investor Sentiment
Investor biases related to Workday's public news can be used to forecast risks associated with an investment in Workday. The trend in average sentiment can be used to explain how an investor holding Workday can time the market purely based on public headlines and social activities around Workday. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Workday's 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 Workday 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 Workday news discussions. The higher the estimate score, the more favorable the investor's outlook on Workday.
Workday Maximum Pain Price Across April 17th 2025 Option Contracts
Workday's 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 Workday 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 Workday's options.
Workday Corporate Management
| Mark Garfield | Chief Officer | Profile | |
| Jeff Gelfuso | Chief Officer | Profile | |
| Robynne Sisco | CoPres | Profile | |
| Josh DeFigueiredo | Chief Officer | Profile | |
| Jim Stratton | Chief Officer | Profile |
Already Invested in Workday?
The danger of trading Workday is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Workday is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Workday. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Workday is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Workday Stock Analysis
When running Workday's price analysis, check to measure Workday's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Workday is operating at the current time. Most of Workday's value examination focuses on studying past and present price action to predict the probability of Workday's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Workday's price. Additionally, you may evaluate how the addition of Workday to your portfolios can decrease your overall portfolio volatility.