Workday, Inc. (WDAY) stock analysis
Close on Nov 12, 2026Market cap $45.94BP/E 38.7Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed13 of 30 checks passed
Workday passes 13 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 3/6
- Past performance
- 4/6
- Financial health
- 4/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 21.1%, above the 10% that usually covers the cost of capital.
Revenue growing 10%+ a year
Revenue grew 15.4% a year over the last three fiscal years.
Interest well covered
Operating income covers interest expense 9.8 times.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 103% of total debt.
What to watch
Margin of safety under 20%
The price is 25.5% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $191.16 is above our fair value estimate of $152.27.
Return on equity under 15%
Return on equity was 16.0% over the last twelve months and averaged 5.6% over five years; we look for 15% on both.
High debt
Debt is 46.3% of shareholders' equity, above the 40% we consider low.
Valuation2/6
P/E below its 5-year median
Workday's P/E of 38.8 is below its own 5-year median of 49.5.
P/E above the industry
Workday's P/E of 38.8 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
Workday's EV/EBITDA of 42.1 is below its 5-year median of 140.2.
P/B above the industry
Workday's price-to-book of 7.13 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $191.16 is above our fair value estimate of $152.27.
Margin of safety under 20%
The price is 25.5% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 15.4% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 13.3% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance raised
Workday raised its fiscal 2027 full year ending January 31, 2027 Subscription revenues outlook on Aug 27, 2026.
Gross margin trend
This company does not report gross profit.
Past performance4/6
Return on equity under 15%
Return on equity was 16.0% over the last twelve months and averaged 5.6% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 21.1%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Workday's return on equity of 16.0% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 12.3% over the last twelve months, against a 5-year average of 5.4%.
Net margin above the industry
Workday's net margin of 12.3% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health4/6
High debt
Debt is 46.3% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 54.8% five years ago to 46.3%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 103% of total debt.
Interest well covered
Operating income covers interest expense 9.8 times.
Short-term assets don't cover short-term debts
Current assets are 0.91 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.79; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Workday has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$152.27
The share price is 26% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 38.6× | 49.5× | 27.6× | $190.34 | 40% |
| EV/EBITDA | 30.0× | 140.2× | 18.8× | $136.66 | 35% |
| P/B | 5.7× | 8.0× | 3.3× | $152.82 | 10% |
| Earnings power | 11.0% cost of equity | – | – | $86.84 | 15% |
| Fair value | $152.27 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 49.5
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $429.62M
- Value traded per 1% price move
- $284.15M
Downside
High risk
- Typical loss in a bad month
- 27.4%
- Volatility (annualized)
- 54%
- Sharpe ratio, 1 year
- -0.38
- Beta to the S&P 500 (5Y)
- 1.22
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2010 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +13.1% | +15.4% | +17.2% | +23.5% | |
| Operating income | +73.7% | – | – | – | |
| Net income | +31.7% | – | – | – | |
| EPS, diluted | +32.8% | – | – | – | |
| Free cash flow | +26.7% | +29.0% | – | +36.4% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | -30.7% | -9.8% | 8.2% | |
| Return on assets | -12.8% | -3.6% | 3.8% | |
| Current ratio | 1.96 | 1.12 | 1.32 | |
| Debt to equity | – | 0.55 | 0.38 | |
| Interest coverage | -11.7× | -3.6× | 6.3× | |
| Capex to revenue | 7.7% | – | 1.7% | |
| Diluted shares | 198M | 237M | 268M |
Cash use needs five years of cash flow figures
Workday does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 7.3% | 0.53× | 2.14× | 8.2% |
| FY2025 | 6.2% | 0.49× | 2.01× | 6.1% |
| FY2024 | 19.0% | 0.48× | 2.19× | 20.2% |
| FY2023 | -5.9% | 0.52× | 2.37× | -7.3% |
| FY2022 | 0.6% | 0.53× | 2.46× | 0.7% |
| FY2021 | -6.5% | 0.56× | 2.69× | -9.8% |
| FY2020 | -13.3% | 0.59× | 2.78× | -21.6% |
| FY2019 | -14.8% | 0.54× | 2.96× | -23.6% |
| FY2018 | -15.0% | 0.52× | 2.88× | -22.5% |
| FY2017 | -24.4% | 0.52× | 2.40× | -30.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$693.00M
- Cash generatingOperating cash flow above zero$2.94B
- Return on assets improvedROA up on the prior year3.2% → 3.9%
- Earnings backed by cashOperating cash flow above net income$2.94B vs $693.00M
- Less leverageLong-term debt to assets fell16.6% → 16.5%
- Better liquidityCurrent ratio rose1.90 → 1.32
- No dilutionShare count did not rise269M → 268M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.51 → 0.53
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