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 Margin13.3%
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 Margin8.7%
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
D
Years to Pay Off Debt17.1 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-$1.9B
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$57M
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-Book3.52x
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$616M
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 Income36.0%
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$394M
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 6 of Graham's defensive criteria — well below his required standard.
At $116.93, the stock trades at a 358% premium to its Graham Number of $25.51. 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
Q2 2026
Q4 2025
Gross Profit %
76.2%▲
75.7%
Operating Margin %
13.3%▲
10.9%
Net Income %
8.7%▼
10.4%
Diluted EPS
0.87▼
0.94
Balance Sheet Highlights
Metric
Q2 2026
Q4 2025
Total Assets
$16.1B
$17.8B
Total Debt
$3.8B▲
$3.8B
Working Capital
$57M▼
$4.2B
Years to Pay Debt
17.14
15.05
Cash Flow Highlights
Metric
Q2 2026
Q4 2025
Q4 2024
Free Cash Flow
$616M▲
$550M•
N/A
Owner Earnings
$394M
$375M
N/A
CapEx % of Net Income
36.0%
15.1%
N/A
Income Statement
2026
2025
Tax Effect Of Unusual Items
0
-1,272
Tax Rate For Calcs
0
0
Normalized EBITDA
473,000
457,000
Total Unusual Items
0
-5,000
Total Unusual Items Excluding Goodwill
0
-5,000
Net Income From Continuing Operation Net Minority Interest
222,000
252,000
Reconciled Depreciation
92,000
85,000
Reconciled Cost Of Revenue
604,000
591,000
EBITDA
473,000
452,000
EBIT
381,000
367,000
Net Interest Income
26,000
55,000
Interest Expense
26,000
29,000
Interest Income
52,000
84,000
Normalized Income
222,000
255,728
Net Income From Continuing And Discontinued Operation
222,000
252,000
Total Expenses
2,204,000
2,168,000
Total Operating Income As Reported
338,000
259,000
Diluted Average Shares
254,313
268,629
Basic Average Shares
253,891
265,870
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
222,000
252,000
Net Income Common Stockholders
222,000
252,000
Net Income
222,000
252,000
Net Income Including Noncontrolling Interests
222,000
252,000
Net Income Continuous Operations
222,000
252,000
Tax Provision
133,000
86,000
Pretax Income
355,000
338,000
Other Income Expense
-9,000
19,000
Other Non Operating Income Expenses
-9,000
24,000
Special Income Charges
0
-5,000
Impairment Of Capital Assets
Restructuring And Mergern Acquisition
0
5,000
Net Non Operating Interest Income Expense
26,000
55,000
Interest Expense Non Operating
26,000
29,000
Interest Income Non Operating
52,000
84,000
Operating Income
338,000
264,000
Operating Expense
1,600,000
1,577,000
Research And Development
705,000
666,000
Selling General And Administration
895,000
911,000
Selling And Marketing Expense
679,000
677,000
General And Administrative Expense
216,000
234,000
Other Gand A
216,000
234,000
Gross Profit
1,938,000
1,841,000
Cost Of Revenue
604,000
591,000
Total Revenue
2,542,000
2,432,000
Operating Revenue
2,542,000
2,432,000
Balance Sheet
2026
2025
Treasury Shares Number
18,688
5,916
Ordinary Shares Number
248,973
264,000
Share Issued
267,661
269,916
Net Debt
2,429,000
377,000
Total Debt
3,805,000
3,793,000
Tangible Book Value
790,000
4,043,000
Invested Capital
9,671,000
11,865,000
Working Capital
57,000
4,158,000
Net Tangible Assets
790,000
4,043,000
Capital Lease Obligations
817,000
807,000
Common Stock Equity
6,683,000
8,879,000
Total Capitalization
8,673,000
11,865,000
Total Equity Gross Minority Interest
6,683,000
8,879,000
Stockholders Equity
6,683,000
8,879,000
Gains Losses Not Affecting Retained Earnings
-125,000
-69,000
Other Equity Adjustments
-125,000
-69,000
Treasury Stock
5,834,000
2,706,000
Retained Earnings
-290,000
-657,000
Additional Paid In Capital
12,932,000
12,311,000
Total Liabilities Net Minority Interest
9,408,000
8,872,000
Total Non Current Liabilities Net Minority Interest
2,873,000
3,855,000
Other Non Current Liabilities
127,000
109,000
Non Current Deferred Liabilities
70,000
70,000
Non Current Deferred Revenue
70,000
70,000
Long Term Debt And Capital Lease Obligation
2,676,000
3,676,000
Long Term Capital Lease Obligation
686,000
690,000
Long Term Debt
1,990,000
2,986,000
Current Liabilities
6,535,000
5,017,000
Current Deferred Liabilities
4,325,000
3,871,000
Current Deferred Revenue
4,325,000
3,871,000
Current Debt And Capital Lease Obligation
1,129,000
117,000
Current Capital Lease Obligation
131,000
117,000
Current Debt
998,000
Other Current Borrowings
998,000
Pensionand Other Post Retirement Benefit Plans Current
508,000
574,000
Payables And Accrued Expenses
573,000
455,000
Current Accrued Expenses
457,000
352,000
Payables
116,000
103,000
Accounts Payable
116,000
103,000
Total Assets
16,091,000
17,751,000
Total Non Current Assets
9,499,000
8,576,000
Other Non Current Assets
57,000
60,000
Non Current Prepaid Assets
61,000
44,000
Non Current Deferred Assets
1,364,000
1,478,000
Non Current Deferred Taxes Assets
745,000
905,000
Non Current Accounts Receivable
65,000
54,000
Financial Assets
9,000
12,000
Investments And Advances
223,000
239,000
Long Term Equity Investment
223,000
239,000
Goodwill And Other Intangible Assets
5,893,000
4,836,000
Other Intangible Assets
665,000
573,000
Goodwill
5,228,000
4,263,000
Net PPE
1,827,000
1,853,000
Accumulated Depreciation
-1,426,000
-1,356,000
Gross PPE
3,253,000
3,209,000
Leases
385,000
282,000
Other Properties
706,000
721,000
Machinery Furniture Equipment
1,390,000
1,427,000
Buildings And Improvements
698,000
702,000
Land And Improvements
74,000
77,000
Current Assets
6,592,000
9,175,000
Other Current Assets
357,000
296,000
Current Deferred Assets
307,000
286,000
Receivables
1,575,000
1,750,000
Accounts Receivable
1,575,000
1,750,000
Allowance For Doubtful Accounts Receivable
Gross Accounts Receivable
Cash Cash Equivalents And Short Term Investments
4,353,000
6,843,000
Other Short Term Investments
3,794,000
4,234,000
Cash And Cash Equivalents
559,000
2,609,000
Cash Flow
2026
2025
2024
Free Cash Flow
616,000
550,000
Repurchase Of Capital Stock
-1,587,000
-802,000
Capital Expenditure
-80,000
-38,000
Interest Paid Supplemental Data
52,000
55,000
Income Tax Paid Supplemental Data
15,000
14,000
End Cash Position
568,000
2,618,000
Beginning Cash Position
1,509,000
1,269,000
Effect Of Exchange Rate Changes
-1,000
-1,000
Changes In Cash
-940,000
1,350,000
Financing Cash Flow
-1,733,000
-925,000
Cash Flow From Continuing Financing Activities
-1,733,000
-925,000
Net Other Financing Charges
-146,000
-123,000
Proceeds From Stock Option Exercised
0
0
Net Common Stock Issuance
-1,587,000
-802,000
Common Stock Payments
-1,587,000
-802,000
Investing Cash Flow
97,000
1,687,000
Cash Flow From Continuing Investing Activities
97,000
1,687,000
Net Other Investing Changes
9,000
Net Investment Purchase And Sale
168,000
2,699,000
Sale Of Investment
368,000
2,940,000
Purchase Of Investment
-200,000
-241,000
Net Business Purchase And Sale
-974,000
Purchase Of Business
-974,000
Net Intangibles Purchase And Sale
-2,000
Purchase Of Intangibles
-2,000
Capital Expenditure Reported
-80,000
-38,000
Operating Cash Flow
696,000
588,000
Cash Flow From Continuing Operating Activities
696,000
588,000
Change In Working Capital
-235,000
-256,000
Change In Other Working Capital
-750,000
-125,000
Change In Payables And Accrued Expense
-201,000
-32,000
Change In Accrued Expense
-200,000
-25,000
Change In Payable
-1,000
-15,000
Change In Account Payable
-1,000
-7,000
Change In Prepaid Assets
-31,000
27,000
Change In Receivables
747,000
-126,000
Other Non Cash Items
116,000
110,000
Stock Based Compensation
409,000
376,000
Asset Impairment Charge
0
Amortization Of Securities
-9,000
-14,000
Deferred Tax
93,000
61,000
Deferred Income Tax
93,000
61,000
Depreciation Amortization Depletion
92,000
85,000
Depreciation And Amortization
92,000
85,000
Amortization Cash Flow
36,000
20,000
Amortization Of Intangibles
36,000
20,000
Depreciation
55,000
60,000
Operating Gains Losses
8,000
-26,000
Gain Loss On Investment Securities
8,000
-26,000
Net Income From Continuing Operations
222,000
252,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $2.2B▲ $2.5B+13.5%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 76.0%▲ 76.2%+0.2pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 15.1%▲ 13.3%-1.8pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 3.0%▲ 8.7%+5.7pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$2.5B/qtr (≈$10.2B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.01x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$616M
vs Positive
Operating Cash Flow
$696M
Latest quarter · Buffett's cash reality check
ROIC
2.8%
Based on latest annual operating income
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.
Market Cap / Net Assets
3.5x
Net Assets: $6.7B
Asset Context — Software - Application
Software companies store most of their value in code, IP, recurring revenue, and customer relationships — none of which appear on the balance sheet under GAAP. Book value and Net Assets are poor proxies for intrinsic value here. Focus on ROIC, gross margin trajectory, and free cash flow instead.
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)
3.3%
Weak — poor returns on equity
Return on Assets (ROA)
1.4%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$2.9B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-0.4% YoY
Debt is declining — management is deleveraging
Leadership Team
Aneel Bhusri
Co-Founder, CEO & Executive Chairman of the Board
Age 59
Pay: $3,909,259
1.761% of net income
Zane Rowe
Chief Financial Officer
Age 54
Pay: $1,187,790
0.535% of net income
Gerrit Kazmaier
President of Product & Technology
Pay: $1,525,077
0.687% of net income
Robert Enslin
President & Chief Commercial Officer
Age 62
Pay: $633,236
0.285% 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 D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $25.51. Margin of safety: 0%. Gross profit margin: 76.2%. Operating margin: 13.3%. Net margin: 8.7%. 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.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.