From Seekingalpha · The Market Auditor · · 50s
Workiva Stock Surpasses Margin Targets
Workiva's margins could hit 2027 targets a year early, but stock lags peers.
In brief
Workiva's margins could hit 2027 targets a year early, but stock lags peers. Workiva's 2027 operating margins may be achieved a year ahead of schedule, yet the stock trades at a discount to similar software companies. Originally reported by Seekingalpha.
Workiva Margin Expansion
Workiva's full-year non-GAAP operating margin guidance increased to ~18% with free cash flow margin at 21%.
2027 Margin Targets
Workiva is on track to reach 2027 margin targets a year early despite similar growth rates to peers.
Stock Discount to Peers
WK trades at 19x 2027E EPS, a discount to peers like Dynatrace despite similar growth rates.
Price Target
The author sets a price target of $93 (23x 2027E EPS) with plans to initiate a position around Q3 earnings.
What it means
Workiva's 2027 operating margins may be achieved a year ahead of schedule, yet the stock trades at a discount to similar software companies.
