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Workday Inc. Shows Strong Ratings Based on Growth Model

Workday Inc. earns a 66% rating on the P/B Growth Investor model, signaling positive investor sentiment. The company's fundamentals indicate potential for future growth, despite some weaknesses in cash flow.

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AI Rating:   6
WORKDAY INC Analysis
The report indicates that Workday Inc. (WDAY) has received a rating of 66% based on the P/B Growth Investor model. This score suggests a moderately positive view on the stock's potential for growth in the future. The criteria evaluated include several important financial metrics.

**Key Metrics**:
- **BOOK/MARKET RATIO:** Pass. This indicates that the stock's book value compared to its market value is favorable, thereby suggesting potential for appreciation.
- **RETURN ON ASSETS:** Pass. A positive return on assets indicates that the company is effective in generating profit from its assets.
- **CASH FLOW FROM OPERATIONS TO ASSETS:** Fail. This failure may indicate inefficiencies in converting assets to cash flow, which could be a concern for investors.
- **CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS:** Pass. This suggests that while cash flow from operations is weak, its relationship to returns on assets is still acceptable.
- **RETURN ON ASSETS VARIANCE:** Pass. Consistency in returns is generally favorable.
- **SALES VARIANCE:** Pass. This indicates strong sales performance, potentially leading to revenue growth.
- **ADVERTISING TO ASSETS:** Fail. This may show limited investment in advertising, which could hinder brand growth.
- **CAPITAL EXPENDITURES TO ASSETS:** Fail. A fail here suggests insufficient reinvestment in core areas.
- **RESEARCH AND DEVELOPMENT TO ASSETS:** Pass. This is a positive indicator, revealing that the company invests in future growth through R&D.

Overall, Workday does display potential strengths such as a solid book-to-market ratio and a strong return on assets. However, weaknesses in cash flow metrics and capital expenditure pose risks to the upside. Investors should weigh these factors carefully when considering WDAY as a part of their portfolio.
Stocks:  WDAY