Resources

WDAY – Market expectations are for Uniform ROA to reach new highs, and management is confident about Peakon, customer additions, and sales process

February 3, 2022

  • Workday (WDAY) currently trades well above corporate and historical averages relative to Uniform earnings, with a 155.3x Uniform P/E (Fwd. V/E’).
  • At these levels, markets are pricing in expectations for Uniform ROA to reach new highs of 31%, accompanied by 12% Uniform asset growth.
  • Meanwhile, analysts expect Uniform ROA to remain at 5% levels through 2023, accompanied by 13% Uniform asset growth.
  • If sustained going forward, these levels would imply a stock price closer to $31, representing significant equity downside for the firm.
  • However, the firm’s most recent earnings call suggests management is confident about their Peakon acquisition, customer additions, and sales process.

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email client.relations@valens-research.com.

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683