Is WDAY a high-quality business?

AlphaMadera's AlphaQuality grade scores Workday, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how WDAY compares to a Buffett-style quality bar.

What is Workday, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to WDAY based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes WDAY a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

WDAY - Workday, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $183.82 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

High-Growth Software

AlphaQuality — archetype-weighted quantitative grade

B+ 75.2 / 100 composite

Composite Grade

Composite of six pillars weighted for high-growth software businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C- 45.7

5yr Avg ROIC 2.5% 22/100
Operating Margin Trend +3.44 pp/yr 100/100

Capital Efficiency

Weight: 15%

D+ 41.7

5yr Avg ROE 5.8% 39/100
5yr Share-Count CAGR 0.9% 47/100

Growth Quality

Weight: 35%

A+ 97.3

5yr Revenue CAGR 16.8% 94/100
5yr EPS CAGR 115.3% 100/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

A- 81.9

5yr FCF Margin 25.8% 96/100
5yr FCF/NI Conversion 14.27x 65/100

Balance Sheet

Weight: 10%

A 89.2

Net Debt / EBITDA -1.20x 100/100
Interest Coverage (EBIT/Int) 8.85x 80/100
Altman Z-Score 3.03 80/100

Stability

Weight: 5%

C 54.3

EPS Volatility (σ/μ) 0.85 6/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 0/5 100/100

3 of 5 gurus held; 3 added; 2 full exits.

Holders: 3 -2
Avg Δ position: +909.8%
New buys: 0
Full exits: 2

Coleman sold -100%
Dalio sold -100%
Greenblatt increased +1632%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (35%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.