Workiva Inc. Class A Common Stock (WK)

FairStock Score: 34/100 — RISKY

Key Financials

Strengths

• Generates $155 million in annual free cash flow (5.3% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 19.5% demonstrates strong top-line momentum

Concerns

• Elevated P/E of 197.5x prices in substantial future growth that may not materialize
• Altman Z-Score of 1.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Workiva Inc. Class A Common Stock is a small-cap technology company valued at $2.9 billion. The business generates $926 million in annual revenue with a 1.3% net margin and $155 million in free cash flow. From a quality standpoint, Workiva shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.0 warrants caution. On valuation, the stock is commanding a steep 197.5x multiple, with PEG of 0.84 indicates fair growth pricing. Growth dynamics show revenue growing at 19.5% and profit growth of 234.0%. Our composite FairStock Score of 34/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Workiva's 20% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $155 million in annual free cash flow (5.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 198x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer