Is the business good?
How good a business is WDAY?
Workday, Inc. earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
15%
Return on invested capital · cost of capital 9.0% · 6.1 points above what the capital costs: growth creates value
- Operating margin
- 10%
Operating margin · Software - Application median 8.2% · 12 months to Q1 2027
- Cash conversion
- 3.51×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −5.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | −5.8% |
| FY2022 | −2.3% |
| FY2023 | −3.6% |
| FY2024 | 2.5% |
| FY2025 | 4.9% |
| FY2026 | 7.5% |
Details›
- Operating margin12 months to Q1 2027
- 10%
- Net margin12 months to Q1 2027
- 8.6%
- Free cash flow margin
- 30%
- R&D as % of revenue
- 28%
- Revenue, trailing twelve months
- $9.85B
- Free cash flow, trailing twelve months
- $2.97B
- Net income, trailing twelve months
- $847M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #58 of 90 by Smart Score