Last Updated: 14 Sep 2024
Executive Summary
Workday Inc. (WDAY) is a leading provider of cloud-based business applications. The company has a strong financial position with a market capitalization of $66.26 billion and an EBITDA of $636 million. Workday's stock is currently trading at $250.05, within its 52-week range of $199.81 to $311.28. Analysts have a positive outlook on Workday, with 7 strong buy ratings, 20 buy ratings, and 9 hold ratings. The company's strong fundamentals and positive analyst sentiment suggest that Workday is a good investment for both short-term and long-term investors.
Company Overview
Workday, Inc. provides business applications in the cloud worldwide. The company's applications include financial management, human capital management, and planning and analytics. Workday's customers include large enterprises, mid-sized businesses, and government agencies. The company has a global presence with offices in North America, Europe, Asia, and Australia.
Fundamental Analysis
Workday's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 20% over the past five years. Workday's profitability has also improved in recent years, with the company's net income margin increasing from 5.3% in 2017 to 19.6% in 2023. Workday's strong financial performance is expected to continue in the future, with analysts forecasting revenue growth of 17% and earnings growth of 20% in 2024.
Workday's valuation is reasonable compared to its peers. The company's trailing price-to-earnings (P/E) ratio of 43.11 is in line with the average P/E ratio of 42.54 for the software industry. Workday's forward P/E ratio of 36.36 is also in line with the industry average of 35.72.
Technical Analysis
Workday's stock price has been trending higher in recent months. The stock broke out of a resistance level at $240 in August 2023 and has since reached a high of $255.85. The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish sign. The relative strength index (RSI) is also above 50, which indicates that the stock is not overbought.
Short Term Outlook
Workday's stock is expected to continue to trend higher in the short term. The stock is trading above its key moving averages and the RSI is above 50. The company's strong fundamentals and positive analyst sentiment also support a bullish outlook for the stock.
Long Term Outlook
Workday's long-term outlook is also positive. The company is a leader in the cloud-based business applications market, and the demand for these applications is expected to continue to grow in the future. Workday's strong financial position and positive analyst sentiment also suggest that the company is well-positioned for long-term growth.
Analyst Recommendations
Analysts have a positive outlook on Workday. The consensus analyst rating for the stock is "buy," with a price target of $290.41. Seven analysts have a strong buy rating on the stock, 20 analysts have a buy rating, and 9 analysts have a hold rating. Only one analyst has a sell rating on the stock.
