WDAY - Embedded Expectations Analysis - 2020 05 28
Workday, Inc. (WDAY:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 59.9x Uniform P/E. However, even at these levels, market expectations are for profitability to cease recent expansion, but management is excited about their vertical strategy, and confident about their Business Planning Cloud growth rate and HCM customersSpecifically, management generated an excitement marker when saying their vertical strategy better aligns them with their partner go-to-market strategy. Additionally, they are confident they now have 45% of the Fortune 500 as HCM customers and that customers will continue to measure project success based on the value they receive. Moreover, they are confident Business Planning Cloud growth rate is significantly higher than the rest of Workday and that they have a unique value proposition within health care driven by inventory management
Workday is a provider of enterprise cloud applications for finance and human resources. The company's products include: Workday Financial Management, an application with financial capabilities, analytics and metrics, and auditable process management; and Workday Human Capital Management, which includes global human resources management (workforce lifecycle management, organization management, compensation, absence, and employee benefits administration) and global talent management (goal management, performance management, succession planning, and career and development planning). The company's other solutions include Adaptive Insights Business Planning Cloud, as well as Workday Data-as-a-Service.
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