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Workday Inc (WDAY)
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Upturn Advisory Summary
12/30/2024: WDAY (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit 14.9% | Avg. Invested days 56 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance 3.0 | Stock Returns Performance 2.0 |
Profits based on simulation | Last Close 12/30/2024 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 68.64B USD | Price to earnings Ratio 42.37 | 1Y Target Price 292.3 |
Price to earnings Ratio 42.37 | 1Y Target Price 292.3 | ||
Volume (30-day avg) 4932256 | Beta 1.35 | 52 Weeks Range 199.81 - 311.28 | Updated Date 01/1/2025 |
52 Weeks Range 199.81 - 311.28 | Updated Date 01/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 6.09 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 19.6% | Operating Margin (TTM) 5.32% |
Management Effectiveness
Return on Assets (TTM) 1.43% | Return on Equity (TTM) 21.08% |
Valuation
Trailing PE 42.37 | Forward PE 30.4 | Enterprise Value 64841980000 | Price to Sales(TTM) 8.73 |
Enterprise Value 64841980000 | Price to Sales(TTM) 8.73 | ||
Enterprise Value to Revenue 7.95 | Enterprise Value to EBITDA 60.21 | Shares Outstanding 214000000 | Shares Floating 210131750 |
Shares Outstanding 214000000 | Shares Floating 210131750 | ||
Percent Insiders 1.23 | Percent Institutions 92.8 |
AI Summary
Workday Inc. Stock Overview:
Company Profile:
History: Founded in 2005 by Dave Duffield and Aneel Bhusri, former executives of PeopleSoft, Workday aimed to revolutionize enterprise human capital management (HCM) software. The company went public in 2012 and has since grown into a leading provider of cloud-based HCM solutions.
Core Business: Workday provides cloud-based enterprise management applications for finance, human resources, and planning. Their HCM solutions include talent management, payroll, workforce planning, and benefits administration. They also offer financial management solutions encompassing accounting, budgeting, expense management, and financial reporting.
Leadership: Aneel Bhusri serves as Chairman and CEO, Chano Fernandez as President and Chief Operating Officer, Barbara Larson as Chief Financial Officer, Carolyn Horne as Chief Marketing Officer, and Pete Schlampp as Chief Technology Officer.
Top Products & Market Share:
Products:
- Workday HCM: A comprehensive suite of talent management, payroll, workforce planning, and benefits administration solutions.
- Workday Financial Management: Cloud-based solutions for accounting, budgeting, expense management, and financial reporting.
- Workday Adaptive Planning: A cloud-based platform for financial planning and analysis.
- Workday Prism Analytics: A data analytics platform for HR and finance data.
Market Share:
- Global HCM Market: Workday holds the second-largest market share with 15.3%, following SAP at 20.2% (Gartner 2021).
- US HCM Market: Workday holds a 20.1% market share, second only to ADP at 27.7% (IDC 2021).
Comparison: Workday's solutions are praised for their intuitive user interface, real-time data access, and flexible configuration options. However, competitors like Oracle and SAP offer more comprehensive solutions with broader industry coverage.
Total Addressable Market:
The global HCM software market was valued at $18.88 billion in 2021 and is projected to reach $33.24 billion by 2028 (Grand View Research). This signifies a significant growth potential for Workday.
Financial Performance:
Recent Financials:
- Revenue: $5.11 billion (FY 2023)
- Net Income: $791 million (FY 2023)
- Profit Margin: 15.5% (FY 2023)
- EPS: $3.29 (FY 2023)
YoY Comparison:
- Revenue increased by 19.3% year-over-year.
- Net income increased by 16.0% year-over-year.
- EPS increased by 15.7% year-over-year.
Cash Flow & Balance Sheet: Workday has a healthy cash flow and a strong balance sheet with minimal debt.
Dividends & Shareholder Returns:
Dividend History: Workday does not currently pay dividends.
Shareholder Returns:
- 1-year return: 15.8%
- 5-year return: 197.6%
- 10-year return: 1,265.9%
Growth Trajectory:
Historical Growth: Workday has experienced consistent revenue growth over the past decade, averaging over 20% annually.
Future Projections: Analysts expect Workday to maintain its strong growth trajectory, with revenue projected to reach $7.7 billion by FY 2025.
Growth Drivers:
- Increasing demand for cloud-based HCM solutions
- Expansion into new markets and industries
- Product innovation and strategic acquisitions
Market Dynamics:
Industry Trends: The HCM software market is experiencing rapid growth driven by the increasing adoption of cloud-based solutions and the growing demand for data-driven insights.
Workday's Position: Workday is well-positioned to capitalize on these trends with its strong cloud infrastructure, innovative solutions, and focus on customer satisfaction.
Competitors:
- Key Competitors: SAP (SAP), Oracle (ORCL), ADP (ADP), UKG (UKG)
- Market Share: Workday holds a 15.3% market share globally, behind SAP (20.2%) and Oracle (13.9%). In the US, Workday's market share is 20.1%, trailing ADP (27.7%) and SAP (15.1%).
Competitive Advantages:
- Cloud-native architecture
- User-friendly interface
- Real-time data insights
- Strong customer focus
Competitive Disadvantages:
- Limited industry coverage compared to larger competitors
- Higher cost compared to some competitors
Potential Challenges & Opportunities:
Challenges:
- Maintaining high growth rates
- Competition from established players
- Attracting and retaining skilled labor
Opportunities:
- Expanding into new markets and industries
- Developing new innovative solutions
- Building strategic partnerships
Recent Acquisitions:
- 2021: VNDLY, a provider of global payroll and payment solutions.
- 2022: Peakon, an employee engagement platform.
About NVIDIA Corporation
Exchange NASDAQ | Headquaters Pleasanton, CA, United States | ||
IPO Launch date 2012-10-12 | CEO & Director Mr. Carl M. Eschenbach | ||
Sector Technology | Industry Software - Application | Full time employees 19908 | Website https://www.workday.com |
Full time employees 19908 | Website https://www.workday.com |
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.
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