Workiva Inc. Fundamental Analysis (NYSE: WK)
Workiva Inc. (NYSE: WK) shows weak financial fundamentals with a PE ratio of 91.48, profit margin of 4.87%, and ROE of -1.24%. The company generates $0.9B in annual revenue with strong year-over-year growth of 19.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WK's fundamental strength across five key dimensions:
Efficiency Score
WeakWK struggles to generate sufficient returns from assets.
Valuation Score
ModerateWK shows balanced valuation metrics.
Growth Score
ExcellentWK delivers strong and consistent growth momentum.
Financial Health Score
ExcellentWK maintains a strong and stable balance sheet.
Profitability Score
WeakWK struggles to sustain strong margins.
Key Financial Metrics
Is WK Expensive or Cheap?
P/E Ratio
WK trades at 91.48 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WK's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Workiva Inc. at -43.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 49.64 times EBITDA. This signals the market has high growth expectations.
How Well Does WK Make Money?
Net Profit Margin
For every $100 in sales, Workiva Inc. keeps $4.87 as profit after all expenses.
Operating Margin
Core operations generate 3.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.24 in profit for every $100 of shareholder equity.
ROA
Workiva Inc. generates $3.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Workiva Inc. produces operating cash flow of $197.47M, showing steady but balanced cash generation.
Free Cash Flow
Workiva Inc. generates strong free cash flow of $196.07M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.60 in free cash annually.
FCF Yield
WK converts 4.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
91.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
-43.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-8.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.24
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How WK Stacks Against Its Sector Peers
| Metric | WK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 91.48 | 34.20 | Worse (Expensive) |
| ROE | -123.75% | 715.00% | Weak |
| Net Margin | 4.87% | -3125.00% (disorted) | Weak |
| Debt/Equity | -8.06 | 0.22 | Strong (Low Leverage) |
| Current Ratio | 1.47 | 5.99 | Neutral |
| ROA | 3.42% | 246.00% | Weak |
WK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Workiva Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
116.61%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
53.45%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
262.76%
Industry Style: Growth, Innovation, High Beta
High Growth