Workday WDAY
Workday is a cloud software company offering financial management and human capital management (HCM) applications to large enterprises, with a recurring subscription-based business model. Workday combines solid growth (revenue +12.8%, earnings +206%) with exceptional quality (75.8% gross margin, 192% FCF conversion), though its demanding valuation (P/E 38.9) and the high-rate environment limit near-term appeal.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Workday is a cloud software company offering financial management and human capital management (HCM) applications to large enterprises, with a recurring subscription-based business model. Workday combines solid growth (revenue +12.8%, earnings +206%) with exceptional quality (75.8% gross margin, 192% FCF conversion), though its demanding valuation (P/E 38.9) and the high-rate environment limit near-term appeal.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.1 |
| Quality / Moat | 7.8 |
| Valuation | 6.3 |
| Growth | 8.6 |
| Dividend | 1.5 |
| Momentum | 3.6 |
| Risk & Context | 5.4 |
OVERALL SCORE: 6.5/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and AI doubts pressure high-duration tech stocks. With a P/E of 38.9 and 12.8% revenue growth, Workday is rate-sensitive, though its healthy balance sheet (ND/EBITDA 0.23) limits the impact.
News considered in the analysis
- Workday (WDAY) Could Be 65% Undervalued As Q2 Beat And Payroll Deals Land — El Q2 superó expectativas y los acuerdos de nóminas (incluido el de Block) refuerzan la tesis de crecimiento, aunque parte del optimismo ya está en el precio.
- Block Expands Square and Cash App's Reach With Apple & Workday Deals — La expansión de la alianza con Block amplía el mercado direccionable de Workday en el segmento de nóminas para pymes, un avance comercial positivo.
- Does Workday’s New AI Benefits Hub and Partner Network Reshape The Bull Case For Workday (WDAY)? — El hub de beneficios con IA y la red de socios son innovaciones de producto que podrían mejorar la retención y el valor por cliente, aunque su impacto en ingresos aún no está cuantificado.
- Can WDAY's Introduction of Total Benefits Boost Its Growth Prospects? — La expansión de la oferta de beneficios totales es una mejora incremental del producto que puede apuntalar el crecimiento de suscripciones.
- Insperity (NSP) Expands HRScale With Workday, Is The Stock Still Cheap? — Noticia sobre la valoración de Insperity, no de Workday; sin información nueva material para WDAY.
Verdict: Hold; business strength and recent partnerships justify the premium, but the high multiple and rate sensitivity suggest waiting for a better entry point.
Main risk: Multiple compression from the high-rate environment (10-year Treasury at 5.17%) is the biggest risk for a stock with a P/E of 38.9, despite its clean balance sheet.
Other Technology companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →