WORKDAY INC Earns High Ratings from Investment Strategies

A recent report highlights that WORKDAY INC (WDAY) scores impressively with an 88% rating based on guru strategies, indicating strong future growth potential and solid fundamentals, despite a noted failure in advertising to assets.

Date: 22-12-2024

AI Rating: 7

According to the report, WORKDAY INC (WDAY) stands out as a large-cap growth stock in the Software & Programming sector, achieving an impressive rating of 88% based on the P/B Growth Investor model developed by Partha Mohanram. This score suggests that WDAY exhibits characteristics aligned with sustained future growth potential.

Analyzing specific criteria from the strategy, the following pass/fail metrics were noted:

Book/Market Ratio: PASS
Return on Assets: PASS
Cash Flow from Operations to Assets: PASS
Cash Flow from Operations to Assets vs. Return on Assets: PASS
Return on Assets Variance: PASS
Sales Variance: PASS
Advertising to Assets: FAIL
Capital Expenditures to Assets: PASS
Research and Development to Assets: PASS

The failure in the advertising to assets ratio could indicate that the company's marketing efforts may not be efficiently contributing to asset growth, which is a point of concern. However, the numerous passes suggest that the overall fundamental health of WDAY is robust, reflecting strong returns on assets and efficient cash flows.

Investors may take the high score of 88% as a signal of potential stock price appreciation, considering the company’s fundamentals are strong despite the concern in advertising spending. This might lead to a positive sentiment in the market about WDAY’s future earnings performance.

Stocks: WDAY