Workday: Newly Profitable, Stock Not Cheap Enough
Portfolio Pulse from
Workday has recently become GAAP profitable and has been free cash flow positive since 2016. Despite strong fundamentals and targeting Fortune 500 clients, the stock is considered overvalued, suggesting investors should watch rather than buy.
February 28, 2025 | 1:00 am
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Workday has achieved GAAP profitability and has been free cash flow positive since 2016. The company targets Fortune 500 clients with a sticky product, but its current high valuation suggests it may not be the right time to buy.
Workday's recent profitability and strong fundamentals are positive indicators. However, the high valuation of the stock suggests that it may not be an ideal time to purchase, leading to a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100