Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin10.7%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin7.3%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt5.5 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$936M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$2.1B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book3.01x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
B
Free Cash Flow$2.8B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income23.4%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$1.2B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Workday, Inc.
Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; perform financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contract management, build and execute sourcing events, such as requests for proposals, and manage indirect spend; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; Workday Extend for customers and their developers to build custom applications. The company serves the professional and business services, financial services, healthcare, manufacturing, media, education, government, technology, media, retail, and hospitality industries. It sells its solutions through its direct sales organization. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.
Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; perform financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contract management, build and execute sourcing events, such as requests for proposals, and manage indirect spend; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; Workday Extend for customers and their developers to build custom applications. The company serves the professional and business services, financial services, healthcare, manufacturing, media, education, government, technology, media, retail, and hospitality industries. It sells its solutions through its direct sales organization. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Workday, Inc. at $116.93.
The business passes only 1 of 7 of Graham's defensive criteria — well below his required standard.
At $116.93, the stock trades at a 146% premium to its Graham Number of $47.57. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
2026
2025
2024
2023
Gross Profit %
75.7%▲
75.5%▼
75.6%▲
72.5%
Operating Margin %
10.7%▲
5.9%▲
2.5%▲
-2.9%
Net Income %
7.3%▲
6.2%▼
19.0%▲
-5.9%
Diluted EPS
2.59▲
1.95▼
5.21▲
-1.44
Balance Sheet Highlights
Metric
2026
2025
2024
2023
2022
Total Assets
$18.1B
$18.0B
$16.5B
$13.5B
N/A
Total Debt
$3.8B▲
$3.4B▲
$3.3B▲
$3.2B•
N/A
Working Capital
$2.1B▼
$5.0B▲
$4.9B▲
$3.5B•
N/A
Years to Pay Debt
5.51
6.39
2.39
-8.85
N/A
Cash Flow Highlights
Metric
2026
2025
2024
2023
2022
Free Cash Flow
$2.8B▲
$2.2B▲
$1.9B▲
$1.3B•
N/A
Owner Earnings
$1.2B
$1.1B
$1.9B
$362M
N/A
CapEx % of Net Income
23.4%
51.7%
17.5%
N/A
N/A
Income Statement
2026
2025
2024
2023
Tax Effect Of Unusual Items
-94,839
-14,746
0
-8,400
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
1,773,000
1,162,000
752,000
246,000
Total Unusual Items
-303,000
-84,000
0
-40,000
Total Unusual Items Excluding Goodwill
-303,000
-84,000
0
-40,000
Net Income From Continuing Operation Net Minority Interest
693,000
526,000
1,381,000
-367,000
Reconciled Depreciation
347,000
326,000
282,000
364,000
Reconciled Cost Of Revenue
2,321,000
2,069,000
1,771,000
1,710,000
EBITDA
1,470,000
1,078,000
752,000
206,000
EBIT
1,123,000
752,000
470,000
-158,000
Net Interest Income
204,000
236,000
187,000
-5,000
Interest Expense
114,000
114,000
114,000
102,000
Interest Income
318,000
350,000
301,000
97,000
Normalized Income
901,161
595,254
1,381,000
-335,400
Net Income From Continuing And Discontinued Operation
693,000
526,000
1,381,000
-367,000
Total Expenses
8,528,000
7,947,000
7,076,000
6,398,000
Total Operating Income As Reported
721,000
415,000
183,000
-222,000
Diluted Average Shares
268,117
269,205
265,285
254,819
Basic Average Shares
265,097
265,257
261,344
254,819
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
693,000
526,000
1,381,000
-367,000
Net Income Common Stockholders
693,000
526,000
1,381,000
-367,000
Net Income
693,000
526,000
1,381,000
-367,000
Net Income Including Noncontrolling Interests
693,000
526,000
1,381,000
-367,000
Net Income Continuous Operations
693,000
526,000
1,381,000
-367,000
Tax Provision
316,000
112,000
-1,025,000
107,000
Pretax Income
1,009,000
638,000
356,000
-260,000
Other Income Expense
-219,000
-97,000
-14,000
-73,000
Other Non Operating Income Expenses
84,000
-13,000
-14,000
-33,000
Special Income Charges
-303,000
-84,000
0
-40,000
Restructuring And Mergern Acquisition
303,000
84,000
0
40,000
Net Non Operating Interest Income Expense
204,000
236,000
187,000
-5,000
Interest Expense Non Operating
114,000
114,000
114,000
102,000
Interest Income Non Operating
318,000
350,000
301,000
97,000
Operating Income
1,024,000
499,000
183,000
-182,000
Operating Expense
6,207,000
5,878,000
5,305,000
4,688,000
Research And Development
2,679,000
2,626,000
2,464,000
2,247,000
Selling General And Administration
3,528,000
3,252,000
2,841,000
2,441,000
Selling And Marketing Expense
2,616,000
2,432,000
2,139,000
1,842,000
General And Administrative Expense
912,000
820,000
702,000
599,000
Other Gand A
912,000
820,000
702,000
599,000
Gross Profit
7,231,000
6,377,000
5,488,000
4,506,000
Cost Of Revenue
2,321,000
2,069,000
1,771,000
1,710,000
Total Revenue
9,552,000
8,446,000
7,259,000
6,216,000
Operating Revenue
9,552,000
8,446,000
7,259,000
6,216,000
Balance Sheet
2026
2025
2024
2023
2022
Treasury Shares Number
18,688
5,916
3,002
100
Ordinary Shares Number
259,131
266,352
263,862
263,862
Share Issued
277,819
272,268
266,864
263,862
Net Debt
1,486,000
1,441,000
968,000
1,090,000
Total Debt
3,821,000
3,362,000
3,296,000
3,249,000
Tangible Book Value
1,874,000
5,170,000
4,977,000
2,418,000
Invested Capital
10,792,000
12,018,000
11,062,000
8,561,000
Working Capital
2,051,000
4,997,000
4,884,000
3,480,000
Net Tangible Assets
1,874,000
5,170,000
4,977,000
2,418,000
Capital Lease Obligations
834,000
378,000
316,000
273,000
Common Stock Equity
7,805,000
9,034,000
8,082,000
5,585,000
Total Capitalization
10,792,000
12,018,000
11,062,000
8,561,000
Total Equity Gross Minority Interest
7,805,000
9,034,000
8,082,000
5,585,000
Stockholders Equity
7,805,000
9,034,000
8,082,000
5,585,000
Gains Losses Not Affecting Retained Earnings
-136,000
84,000
21,000
53,000
Other Equity Adjustments
-136,000
84,000
21,000
53,000
Treasury Stock
4,220,000
1,308,000
608,000
185,000
Retained Earnings
-512,000
-1,205,000
-1,731,000
-3,112,000
Additional Paid In Capital
12,673,000
11,463,000
10,400,000
8,829,000
Total Liabilities Net Minority Interest
10,269,000
8,943,000
8,370,000
7,901,000
Total Non Current Liabilities Net Minority Interest
3,891,000
3,395,000
3,315,000
3,273,000
Other Non Current Liabilities
129,000
52,000
38,000
40,000
Non Current Deferred Liabilities
71,000
80,000
70,000
75,000
Non Current Deferred Revenue
71,000
80,000
70,000
75,000
Long Term Debt And Capital Lease Obligation
3,691,000
3,263,000
3,207,000
3,158,000
Long Term Capital Lease Obligation
704,000
279,000
227,000
182,000
Long Term Debt
2,987,000
2,984,000
2,980,000
2,976,000
Current Liabilities
6,378,000
5,548,000
5,055,000
4,628,000
Current Deferred Liabilities
5,010,000
4,467,000
4,057,000
3,559,000
Current Deferred Revenue
5,010,000
4,467,000
4,057,000
3,559,000
Current Debt And Capital Lease Obligation
130,000
99,000
89,000
91,000
Current Capital Lease Obligation
130,000
99,000
89,000
91,000
Current Debt
1,222,443
Other Current Borrowings
1,222,443
Pensionand Other Post Retirement Benefit Plans Current
642,000
578,000
544,000
564,000
Payables And Accrued Expenses
596,000
404,000
365,000
414,000
Current Accrued Expenses
454,000
296,000
287,000
260,000
Payables
142,000
108,000
78,000
154,000
Accounts Payable
142,000
108,000
78,000
154,000
Total Assets
18,074,000
17,977,000
16,452,000
13,486,000
Total Non Current Assets
9,645,000
7,432,000
6,513,000
5,378,000
Other Non Current Assets
67,000
24,000
6,000
13,000
Non Current Prepaid Assets
78,000
26,000
22,000
29,000
Non Current Deferred Assets
1,463,000
1,600,000
1,574,000
434,000
Non Current Deferred Taxes Assets
829,000
1,039,000
1,065,000
13,000
Non Current Accounts Receivable
59,000
44,000
21,000
Financial Assets
2,000
52,000
14,000
22,000
Investments And Advances
233,000
247,000
248,000
263,000
Long Term Equity Investment
233,000
247,000
248,000
263,000
Goodwill And Other Intangible Assets
5,931,000
3,864,000
3,105,000
3,167,000
Other Intangible Assets
702,000
386,000
259,000
327,000
Goodwill
5,229,000
3,478,000
2,846,000
2,840,000
Net PPE
1,812,000
1,575,000
1,523,000
1,450,000
Accumulated Depreciation
-1,402,000
-1,324,000
-1,272,000
-1,179,000
Gross PPE
3,214,000
2,899,000
2,795,000
2,629,000
Leases
334,000
252,000
213,000
202,000
Other Properties
719,000
336,000
289,000
249,000
Machinery Furniture Equipment
1,397,000
1,478,000
1,486,000
1,377,000
Buildings And Improvements
690,000
752,000
726,000
720,000
Land And Improvements
74,000
81,000
81,000
81,000
Current Assets
8,429,000
10,545,000
9,939,000
8,108,000
Other Current Assets
348,000
311,000
255,000
226,000
Current Deferred Assets
306,000
267,000
232,000
191,000
Prepaid Assets
174,402
Receivables
2,332,000
1,950,000
1,639,000
1,570,000
Accounts Receivable
2,332,000
1,950,000
1,639,000
1,570,000
Allowance For Doubtful Accounts Receivable
-16,000
-10,000
-11,000
-9,000
Gross Accounts Receivable
2,348,000
1,960,000
1,650,000
1,579,000
Cash Cash Equivalents And Short Term Investments
5,443,000
8,017,000
7,813,000
6,121,000
Other Short Term Investments
3,942,000
6,474,000
5,801,000
4,235,000
Cash And Cash Equivalents
1,501,000
1,543,000
2,012,000
1,886,000
Cash Flow
2026
2025
2024
2023
2022
Free Cash Flow
2,777,000
2,189,000
1,907,000
1,292,000
Repurchase Of Capital Stock
-2,895,000
-700,000
-423,000
-75,000
Repayment Of Debt
0
0
-1,844,000
-38,000
Issuance Of Debt
0
0
2,978,000
0
Capital Expenditure
-162,000
-272,000
-242,000
-365,000
Interest Paid Supplemental Data
110,000
110,000
110,000
60,000
Income Tax Paid Supplemental Data
65,000
39,000
89,000
13,000
End Cash Position
1,509,000
1,554,000
2,024,000
1,895,000
Beginning Cash Position
1,554,000
2,024,000
1,895,000
1,541,000
Effect Of Exchange Rate Changes
2,000
0
-1,000
-1,000
Changes In Cash
-47,000
-470,000
130,000
355,000
Financing Cash Flow
-3,319,000
-1,150,000
-268,000
1,204,000
Cash Flow From Continuing Financing Activities
-3,319,000
-1,150,000
-268,000
1,204,000
Net Other Financing Charges
-616,000
-636,000
-22,000
-7,000
Proceeds From Stock Option Exercised
192,000
186,000
177,000
152,000
Net Common Stock Issuance
-2,895,000
-700,000
-423,000
-75,000
Common Stock Payments
-2,895,000
-700,000
-423,000
-75,000
Net Issuance Payments Of Debt
0
0
1,134,000
-38,000
Net Long Term Debt Issuance
0
0
1,134,000
-38,000
Long Term Debt Payments
0
0
-1,844,000
-38,000
Long Term Debt Issuance
0
0
2,978,000
0
Investing Cash Flow
333,000
-1,781,000
-1,751,000
-2,506,000
Cash Flow From Continuing Investing Activities
333,000
-1,781,000
-1,751,000
-2,506,000
Net Other Investing Changes
21,000
Net Investment Purchase And Sale
2,553,000
-684,000
-1,501,000
-2,141,000
Sale Of Investment
5,295,000
4,124,000
4,665,000
5,065,000
Purchase Of Investment
-2,742,000
-4,808,000
-6,166,000
-7,206,000
Net Investment Properties Purchase And Sale
-4,000
-4,236
-171,000
Purchase Of Investment Properties
-4,000
-4,236
-171,000
Net Business Purchase And Sale
-2,079,000
-825,000
-8,000
0
Purchase Of Business
-2,079,000
-825,000
-8,000
0
Net Intangibles Purchase And Sale
0
-3,000
-10,000
-1,000
Purchase Of Intangibles
0
-3,000
-10,000
-1,000
Capital Expenditure Reported
-162,000
-269,000
-232,000
-364,000
Operating Cash Flow
2,939,000
2,461,000
2,149,000
1,657,000
Cash Flow From Continuing Operating Activities
2,939,000
2,461,000
2,149,000
1,657,000
Change In Working Capital
-329,000
-218,000
-34,000
48,000
Change In Other Working Capital
65,000
61,000
151,000
159,000
Change In Payables And Accrued Expense
-20,000
-16,000
-167,000
222,000
Change In Accrued Expense
-26,000
-41,000
-95,000
136,000
Change In Payable
6,000
25,000
-72,000
86,000
Change In Account Payable
6,000
25,000
-72,000
86,000
Change In Prepaid Assets
-14,000
50,000
69,000
-14,000
Change In Receivables
-360,000
-313,000
-87,000
-319,000
Other Non Cash Items
415,000
353,000
292,000
324,000
Stock Based Compensation
1,626,000
1,519,000
1,416,000
1,295,000
Asset Impairment Charge
117,000
19,000
0
Amortization Of Securities
-61,000
-113,000
-149,000
-42,000
Deferred Tax
218,000
33,000
-1,058,000
4,000
Deferred Income Tax
218,000
33,000
-1,058,000
4,000
Depreciation Amortization Depletion
347,000
326,000
282,000
364,000
Depreciation And Amortization
347,000
326,000
282,000
364,000
Operating Gains Losses
-87,000
16,000
19,000
31,000
Gain Loss On Investment Securities
-87,000
16,000
19,000
31,000
Net Income From Continuing Operations
693,000
526,000
1,381,000
-367,000
1/7
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
$47.57
Margin of Safety
0%
Market Cap / Net Assets
3.0x
Net Assets: $7.8B
Warren's Owner Earnings
$1.2B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
1/7 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$9.6B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.32x
vs Current Ratio > 2.0x
❌
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
1 loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $5.21 to $2.59 over 2 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
-50.3% EPS growth
vs > 33% EPS growth
❌
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
36.4x
vs P/E ≤ 15.0x
❌
Moderate Price-to-Book
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
3.01x P/B (P/E×P/B: 109.7)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $9.6Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.32xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 1 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $5.21 to $2.59 over 2 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
❌ Moderate P/E Ratio — 36.4xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what Workday, Inc. is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
$-9.15
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$56.61
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
6.9%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2026
2025
2024
2023
2022
Capital Expenditure % of Net Income
23.4%
51.7%
17.5%
N/A
N/A
Repurchase of Capital Stock
-$2.9B
-$700M
-$423M
-$75M
N/A
Free Cash Flow
$2.8B▲
$2.2B▲
$1.9B▲
$1.3B•
N/A•
Warren's Owner Earnings
$1.2B
$1.1B
$1.9B
$362M
N/A
Peers & Industry
No auto-detected peers for Software - Application. You can manually compare WDAY against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
2.14%
Low — management has little skin in the game
Return on Equity (ROE)
8.9%
Adequate — returns are moderate
Return on Assets (ROA)
3.8%
Fair — average asset utilization
Share Buybacks (Latest Year)
$2.9B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+13.7% YoY
Debt is growing — management is leveraging up
Leadership Team
Aneel Bhusri
Co-Founder, CEO & Executive Chairman of the Board
Age 59
Pay: $3,909,259
0.564% of net income
Zane Rowe
Chief Financial Officer
Age 54
Pay: $1,187,790
0.171% of net income
Gerrit Kazmaier
President of Product & Technology
Pay: $1,525,077
0.220% of net income
Robert Enslin
President & Chief Commercial Officer
Age 62
Pay: $633,236
0.091% of net income
David Albert Duffield
Co-Founder & CEO Emeritus
Age 84
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
12.79%
20,080,016
Vanguard Capital Management LLC
8.81%
13,833,094
Vanguard Portfolio Management LLC
7.41%
11,637,749
Hotchkis & Wiley Capital Management, LLC
6.79%
10,655,733
State Street Corporation
6.07%
9,536,720
Eagle Capital Management LLC
5.55%
8,707,006
First Eagle Investment Management, LLC
4.85%
7,608,713
Geode Capital Management, LLC
3.29%
5,162,786
Risk Analysis
Beta (Market Risk)
1.08
Moderate volatility — moves slightly more than market
Short Interest
15.4% of float
Heavy short selling — market has significant bearish bets
Debt-to-Equity
0.57x
Conservative balance sheet — low financial risk
Current Ratio
1.01x
Adequate liquidity
52-Week Price Range
Low: $110.36Current: $116.93High: $249.85
Currently at 5% of 52-week range
Workday, Inc. (WDAY) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $47.57. Margin of safety: 0%. Gross profit margin: 75.7%. Operating margin: 10.7%. Net margin: 7.3%. Market cap: $28.9B. Sector: Technology. Industry: Software - Application. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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