CAPS Rating: 3 out of 5

WDAY News and Commentary


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205 Outperform
55 Underperform

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44 Outperform
12 Underperform

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8 Outperform
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Top WDAY Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

asdfk123 (73.32)
Submitted July 25, 2017

Workday is a native software-as-a-service enterprise resource planning company. Workday also offers professional services as part of on boarding new customers to their software.Even though Workday is not profitable, we see top line revenue growing… More

murphydevani (< 20)
Submitted August 27, 2015

Target $69 - $66


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Recent Community Commentary

Read the most recent pitches from players about WDAY.


Member Avatar ATrain (53.45) Submitted: 9/27/2017 7:52:42 AM : Outperform Start Price: $108.02 WDAY Score: -9.14

Listed in top companies to work for. Good work environment draws the best employees. Company approach has been to target large companies, and increasing revenues show they have something worthwhile. They have some moat from high switching costs. They also have a significant share of the cloud-space in their product, and management software in the cloud will go up.


Member Avatar optioncoach (97.35) Submitted: 8/24/2017 10:25:22 PM : Outperform Start Price: $105.40 WDAY Score: -11.70

Keeps moving up in a down market. Earnings are completed nv and shouldn't disappoint.


Member Avatar asdfk123 (73.32) Submitted: 7/24/2017 11:14:22 PM : Outperform Start Price: $102.75 WDAY Score: -8.35

Workday is a native software-as-a-service enterprise resource planning company. Workday also offers professional services as part of on boarding new customers to their software.

Even though Workday is not profitable, we see top line revenue growing fast, and the gap narrowing on bottom line losses. Workday has also been narrowing the price to sales ratio from 43.89 in 2011 to 8.88 today. We also find it promising the stock price has been growing significantly slower than top-line revenue.

Workday is not profitable by GAAP measures, but it is important to note the firm has been producing positive free cash flow since January 2016 fiscal year end. Workday provides non-GAAP operating expenses, which exclude share-based compensation expenses in its annual report. This provides a more accurate picture of the prospects for the firm, and we have taken this into consideration during our discounted cash flow forecast.

When comparing Workday against another major cloud player (Salesforce), we are impressed with how close Workday comes in terms of cost of sales. Workday also spends significantly less as a percentage of sales on selling/general/admin expenses. When considering the age of Salesforce, we believe Workday benchmarks favorably.

Overall, we see Workday firm risk as low. The two largest risks we’ve identified are IT System Interruption and the Market for Cloud Computing. Our largest concern is the market for cloud computing. If the market for cloud computing erodes, we would probably sell our shares. Workdays native software-as-a-service cloud computing delivery model is dependent on the continued adoption of cloud technology in the enterprise. A reduction in adoption will materially adversely impact the firm.

When comparing the competitive forces that shape strategy, we see Workday needing to compete with slightly less intensity and basis versus broadly established industry players such as Oracle and SAP. This is due to the fact the cloud computing delivery model is growing much faster than the traditional on-premise installation model. Even though Oracle and SAP offer alternatives, their core systems were originally developed for on premise installations, which forces them to compete with more intensity due to accumulated technology debt built into their ecosystems. When comparing Workday against the industry, we see the firm as having lower negotiating leverage with customers. We see incumbents with significantly more negotiating leverage due to the high switching costs associated with enterprise resource planning software.

After performing a discounted cash flow analysis on Workday, we find the firms present value of company operations at $21.3 billion. With approximately 204 million shares outstanding, this places Workday fair value at or around $104.54 based on its prevent value of future operations. Our analysis has a lot of uncertainty due to the lack of historical operating results for Workday. We assume top line growth of 18%-20% through 2027 with the firm achieving positive GAAP EBIT by 2022.

Even though Workday is not cheap, we believe the firm is priced fairly given its prospects for the future. Workday will be an exciting company to watch over the next 5-10 years.


Find the members with the highest scoring picks in WDAY.

Score Leader


ronmcpeek (27.51) Score: +142.81

The Score Leader is the player with the highest score across all their picks in WDAY.

Member Name Member
Call Time
Score Commentary
sa3roman < 20 2/9/2016 Outperform 5Y $48.36 +111.93% +45.50% +66.44 0 Comment
griderX 98.00 2/28/2014 Underperform 3Y $109.99 -6.82% +42.68% +49.50 0 Comment
acabral 41.28 12/22/2016 Outperform 3Y $66.81 +53.41% +18.46% +34.95 0 Comment
brandstudere 78.67 12/15/2016 Outperform 5Y $68.92 +48.71% +17.96% +30.75 0 Comment
goodwitchellen 40.22 12/15/2016 Outperform 5Y $69.40 +47.68% +17.61% +30.07 0 Comment
vonwao 29.68 1/10/2014 Underperform 5Y $88.56 +15.73% +45.38% +29.65 0 Comment
sgirardin < 20 12/2/2016 Outperform 5Y $68.11 +50.48% +21.52% +28.96 0 Comment
CoreAndExplore 77.08 9/23/2013 Underperform 3Y $79.53 +28.87% +56.48% +27.61 0 Comment
Windsurfing1 73.47 11/12/2012 Outperform 5Y $47.47 +115.90% +92.50% +23.41 1 Comment
barrywstone 30.29 7/2/2014 Underperform NS $90.73 +12.97% +35.31% +22.34 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Call Time
Score End Date Commentary
tracknorthlandca < 20 10/13/2014 Outperform NS $79.64 +28.69% +40.07% -11.38 0 Comment
TrackCanaccord < 20 8/28/2014 Outperform NS $87.25 +17.47% +33.66% -16.20 0 Comment
TrackFBRCapitalM 88.32 2/28/2014 Outperform NS $115.93 -11.59% +43.59% -55.19 0 Comment
TrackUBS 91.96 1/7/2014 Outperform NS $86.64 +18.29% +45.71% -27.42 0 Comment
TrackOppenheimer 47.30 5/10/2013 Outperform NS $65.66 +56.09% +63.68% -7.59 0 Comment
TrackJimCramer 85.09 5/1/2013 Outperform 3W $61.62 +66.33% +68.55% -2.22 0 Comment
TrackBMOCapital < 20 4/25/2013 Outperform NS $58.94 +73.89% +68.49% +5.40 0 Comment
TrackWedbush 87.11 4/17/2013 Outperform NS $60.00 +70.82% +70.70% +0.12 0 Comment
TrackUltraLong < 20 10/25/2012 Underperform NS $53.33 +92.18% +87.85% -4.33 1 Comment
TrackPoisedTo < 20 10/15/2012 Underperform 5Y $52.44 +95.44% +85.75% -9.69 0 Comment

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