For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Workday (
WDAY Quick Quote WDAY - Free Report) ten years ago? It may not have been easy to hold on to WDAY for all that time, but if you did, how much would your investment be worth today? Workday's Business In-Depth
With that in mind, let's take a look at Workday's main business drivers.
Founded in 2005 and headquartered in Pleasanton, CA, Workday Inc. (
WDAY Quick Quote WDAY - Free Report) is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support. Notably, organizations ranging from medium-sized businesses to Fortune 50 enterprises have opted for Workday solutions. The company also offers open, standards-based web-services application programming interfaces and pre-built packaged integrations and connectors. In fiscal 2022, the company reported revenues of $5.14 billion. Subscription revenues accounted for 88.5% of total revenues, while professional revenues made up the rest. Apart from Financial Management and Human Capital Management (HCM) solutions, the company offers applications related to Payroll, Time Tracking, Recruiting, Learning, Planning, Professional Services Automation and Student. The company offers Adaptive Insights Business Planning Cloud solutions, Workday Prism Analytics, Workday Data-as-a-Service (DaaS) and Workday Marketplace. Workday Prism Analytics helps in business planning and collaborative approach. Workday Prism Analytics helps customers to bring Workday data and data from any outside source together in order to make better business decisions. Workday DaaS is a cloud service that provides important data to customers which in turn help in decision-making. The company serves technology, financial services, business services, healthcare and life sciences, manufacturing, and consumer and retail industries, as well as education and government industries. Workday ended fiscal 2022 with more than 50% of the Fortune 500 customers. Its peers in HCM market include SAP SE, Oracle Corporation, Automated Data Processing, and Ceridian, among others. Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Workday ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in February 2013 would be worth $3,533.95, or a 253.39% gain, as of February 7, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 171.88% and gold's return of 7.40% over the same time frame.
Looking ahead, analysts are expecting more upside for WDAY.
Workday’s margin continues to be affected by higher operating and SG&A expenses, primarily due to an increase in headcount and marketing spending. The coronavirus-induced layoffs are also expected to impact contract renewals. The ongoing trend to invest more in cloud solutions exposes Workday to the risk of losing existing “on-premise customers”, likely impacting top-line performance. High investments to expand market are further likely to affect profitability. However, revenue growth continues to be driven by high demand for its Human Capital Management (HCM) and financial management solutions. The company’s cloud-based business model and expanding product portfolio have been the primary growth drivers. It expects the healthy order momentum to continue in fiscal 2023 despite short-term challenges.
Shares have gained 12.77% over the past four weeks and there have been 10 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.