Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Workday (NASDAQ:WDAY) in comparison to its major competitors within the Software industry. By analyzing crucial financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
Workday Background Workday is a software company that offers human capital management, or HCM, financial management, and business planning solutions. Known for being a cloud-only software provider, Workday is headquartered in Pleasanton, California. Founded in 2005, Workday now employs over 18,000 employees.
| Workday Inc | 37.87 | 6.91 | 7.51 | 1.32% | $0.23 | $1.5 | 18.17% |
| Adobe Inc | 46.69 | 15.66 | 11.59 | 10.38% | $2.19 | $4.71 | 2.45% |
| Salesforce Inc | 41.45 | 3.74 | 6.34 | 2.57% | $2.6 | $6.97 | 10.74% |
| SAP SE | 87.74 | 4.80 | 6.58 | -1.92% | $-0.42 | $5.76 | 8.06% |
| Intuit Inc | 55.69 | 8.98 | 10.81 | 13.4% | $3.34 | $5.67 | 11.95% |
| Synopsys Inc | 66.82 | 13.12 | 15.09 | 4.23% | $0.41 | $1.15 | 15.2% |
| Cadence Design Systems Inc | 83.88 | 24.59 | 21.55 | 7.1% | $0.36 | $0.88 | -1.23% |
| Roper Technologies Inc | 40.65 | 3.33 | 9.33 | 2.17% | $0.73 | $1.18 | 14.36% |
| Palantir Technologies Inc | 208.50 | 14.76 | 25.12 | 2.91% | $0.09 | $0.52 | 20.78% |
| Autodesk Inc | 52.28 | 23.99 | 9.21 | 12.55% | $0.34 | $1.28 | 11.66% |
| Datadog Inc | 344.62 | 17.80 | 18.65 | 2.02% | $0.06 | $0.5 | 26.89% |
| Ansys Inc | 65.71 | 5.28 | 12.85 | 0.64% | $0.09 | $0.4 | -8.41% |
| AppLovin Corp | 47.27 | 33.96 | 7.71 | 23.28% | $0.45 | $0.76 | 47.9% |
| PTC Inc | 72.25 | 7.03 | 9.25 | 3.98% | $0.21 | $0.49 | 11.23% |
| Tyler Technologies Inc | 105.96 | 6.56 | 10.07 | 1.82% | $0.11 | $0.22 | 8.58% |
| Zoom Video Communications Inc | 21.01 | 2.12 | 3.89 | 2.65% | $0.23 | $0.87 | 3.25% |
| Bentley Systems Inc | 47.47 | 16.50 | 13.64 | 7.74% | $0.12 | $0.28 | 7.43% |
| Manhattan Associates Inc | 76.06 | 59.81 | 15.13 | 20.78% | $0.06 | $0.14 | 15.18% |
| Dynatrace Inc | 87.33 | 6.70 | 9.50 | 1.93% | $0.04 | $0.31 | 21.11% |
| Average | 86.19 | 14.93 | 12.02 | 6.57% | $0.61 | $1.78 | 12.62% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } Through a detailed examination of Workday, we can deduce the following trends:
- A Price to Earnings ratio of 37.87 significantly below the industry average by 0.44x suggests undervaluation. This can make the stock appealing for those seeking growth.
- The current Price to Book ratio of 6.91, which is 0.46x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
- The Price to Sales ratio is 7.51, which is 0.62x the industry average. This suggests a possible undervaluation based on sales performance.
- With a Return on Equity (ROE) of 1.32% that is 5.25% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
- The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $230 Million is 0.38x below the industry average, suggesting potential lower profitability or financial challenges.
- With lower gross profit of $1.5 Billion, which indicates 0.84x below the industry average, the company may experience lower revenue after accounting for production costs.
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With a revenue growth of 18.17%, which surpasses the industry average of 12.62%, the company is demonstrating robust sales expansion and gaining market share.
The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
By evaluating Workday against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:
- When considering the debt-to-equity ratio, Workday exhibits a stronger financial position compared to its top 4 peers.
- This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.41, which can be perceived as a positive aspect by investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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