Stock (Symbol) |
Workday (WDAY) |
Stock Price |
$109 |
Sector |
| Technology |
Data is as of |
| October 22, 2017 |
Expected to Report |
| Nov 29 |
Company Description |
 Workday, Inc. is a provider of enterprise cloud applications for finance and human resources. The Company delivers financial management, human capital management and analytics applications designed for various companies, educational institutions and government agencies. As part of its applications, the Company provides embedded analytics that capture the content and context of everyday business events, facilitating informed decision-making from wherever users are working. Source: Thomson Financial |
Sharek’s Take |
 Workday (WDAY) software unifies company’s human resources and financial data into one program on the cloud so management can see what regions or line of business money is coming in from, click to see which salesmen are delivering the most sales, then jump to view the payroll section. The software is on the cloud, so all this can be done from multiple offices, on the road, or even a coffee shop. Workday claims some heavy hitters as clients such as Netflix, Amazon, Bank of America, Adobe, and AirBnb. These companies built revolutionary software themselves, so they know their stuff. And last qtr the company added Humana, Qualcomm and Nordstrom to its client list. But Workday isn’t making much in profits as it spends heavily to grow. Last year the company spent 43% of sales on research and development, but sales have climbed from $3 million in 2013 to $1.2 billion in 2016 so these investments are paying off. WDAY’s Estimated Long Term Growth Rate of 81% is one of the best in the stock market, but the P/E of 131 is quite high. WDAY is expected to have a surge in profits this year. Analysts expect 2017 profits of $0.83 a share, way above the $0.12 made last year — the first year the company made a profit as a public company. Wall Street respects Workday software (some of them even utilize it) and I feel this stock is one to buy now in anticipation of much higher profits in the future. This company has what I believe to be the best HR platform for large corporations. |
One Year Chart |
 WDAY delivered 700% profit growth last qtr, which sounds great because the company lost money last year. Still, profits could go from almost nothing last year to maybe $1 this year. The company has beaten the street handily in each of the last four qtrs and that should keep momentum in the stock high. Estimates are for 400%, 114%, 0% and 17% profit growth the next 4 qtrs, with tougher comparisons coming next year as profits have been great the past two qtrs. |
Fair Value |
 My Fair Value is really just a guestimate as profits are just starting to roll in this year. It’s tough to get a feel for what the stock is worth as it spends heavily to grow right now. So this Fair Value isn’t to be relied upon. |
Bottom Line |
 Workday an exceptional software because some of the more technologically advanced companies in the world use it. This company is a young up-and-comer that’s gotten entrenched into corporate America. I think the stock has good growth opportunity, but the limited profitability make it hard for me to judge where the stock will be in the future. WDAY ranks 9th in the Growth Portfolio and Aggressive Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
9 of 34Aggressive Growth Portfolio 9 of 13Conservative Stock Portfolio N/A |
