Workiva (WK, Financial) witnessed a notable downturn, with a 13.27% drop in its stock price, contrasting with the upward movement in broader indices like the S&P 500 and Nasdaq Composite. This decline stems from reports indicating potential adjustments to the EU's sustainability reporting standards by Germany and France, which are crucial to Workiva's growth prospects.
The EU's Corporate Sustainability Reporting Directive (CSRD), effective from January 2023, requires companies to monitor and report on various non-financial metrics. Workiva's platform plays a pivotal role in facilitating this data submission process. Any modifications to these standards could influence Workiva’s sales and earnings trajectory, raising concerns among investors.
Analyzing Workiva's (WK, Financial) financials, the company currently trades at $98.91. Despite its recent drop, the stock is described as "Modestly Undervalued" with a GF Value of $112.04. You can find more details about Workiva's GF Value here. However, Workiva presents some financial warning signs with an Altman Z-score of 2.92, suggesting financial stress.
On the valuation front, Workiva's PS Ratio is close to a 1-year high, pegged at 8.9. Meanwhile, insiders have sold 33,655 shares in the past three months. Despite these challenges, Workiva's expanding operating margin is a positive indicator of improving profitability.
As Workiva prepares to release its fourth-quarter earnings on February 25, investors are eager for updates regarding its performance outlook, especially concerning potential changes to the CSRD, which could substantially impact its business model.
