Here's How Much a $1000 Investment in Workday Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Workday (WDAY) ten years ago? It may not have been easy to hold on to WDAY for all that time, but if you did, how much would your investment be worth today?
Workday's Business In-Depth
With that in mind, let's take a look at Workday's main business drivers.
Founded in 2005 and headquartered in Pleasanton, CA, Workday Inc. (WDAY) is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
Notably, organizations ranging from medium-sized businesses to Fortune 50 enterprises have opted for Workday solutions. The company also offers open, standards-based web-services application programming interfaces and pre-built packaged integrations and connectors.
In fiscal 2023, the company reported revenues of $6.2 billion. Subscription revenues accounted for 90.8% of total revenues, while professional revenues made up the rest.
Apart from Financial Management and Human Capital Management (HCM) solutions, the company offers applications related to Payroll, Time Tracking, Recruiting, Learning, Planning, Professional Services Automation and Student.
The company offers Adaptive Insights Business Planning Cloud solutions, Workday Prism Analytics, Workday Data-as-a-Service (DaaS) and Workday Marketplace. Workday Prism Analytics helps in business planning and collaborative approach.
Workday Prism Analytics helps customers to bring Workday data and data from any outside source together in order to make better business decisions. Workday DaaS is a cloud service that provides important data to customers which in turn help in decision-making.
The company serves technology, financial services, business services, healthcare and life sciences, manufacturing, and consumer and retail industries, as well as education and government industries.
Workday ended fiscal 2023 with more than 50% of the Fortune 500 customers. Its peers in HCM market include SAP SE, Oracle Corporation, Automated Data Processing, and Ceridian, among others.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Workday a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in March 2013 would be worth $3,216.78, or a gain of 221.68%, as of March 30, 2023, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 156.68% and gold's return of 18.17% over the same time frame.
Analysts are anticipating more upside for WDAY.
Workday’s margin continues to be affected by higher operating and SG&A expenses, primarily due to an increase in headcount and marketing spending. The coronavirus-induced layoffs are also expected to impact contract renewals. The ongoing trend to invest more in cloud solutions exposes Workday to the risk of losing existing “on-premise customers”, likely impacting top-line performance. High investments to expand market are further likely to affect profitability. However, revenue growth continues to be driven by high demand for its Human Capital Management (HCM) and financial management solutions. The company’s cloud-based business model and expanding product portfolio have been the primary growth drivers. It expects the healthy order momentum to continue in fiscal 2024 despite short-term challenges.
Shares have gained 7.67% over the past four weeks and there have been 2 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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