Freshworks Inc.
$10.16
-11%Freshworks Inc., a software development company, provides modern software-as-a-service products worldwide. Freshworks Inc. was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. The company was incorporated in 2010 and is headquartered in San Mateo, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 19.4).
Valuation inputs: P/E 19.4, earnings yield +5.2%, momentum -10.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +17.8%, ROIC +1.2%).
Profitability stack: net margin +21.9%, ROE +17.8%, ROIC +1.2%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +35.6%, momentum -10.6%, net margin +21.9%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Freshworks Inc. Market vs Earnings Trajectory
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Freshworks Inc. Fair Value Envelope
Freshworks Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Freshworks Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Freshworks Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Freshworks Inc. Street Expectations Map
Wall Street analysts project that FRSH stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 11.63, with estimates ranging from a low of 8.00 to a high of 15.00.
The consensus 1-year price target stands at 11.63, with estimates ranging from a low of 8.00 to a high of 15.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
Asymmetric upside: Strong return potential with favorable risk-reward profile. The limited downside relative to upside makes this an attractive risk-adjusted opportunity for growth-oriented portfolios.
Freshworks Inc. Insider Positioning
During the last 12 months, insiders have purchased $4.98M and sold $3.94M worth of FRSH shares, resulting in $1.04M of net buying activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
125.0K
993.75K
48.4K
479.31K
+514K
+$514K
6-9 Months
347.7K
3.99M
14.6K
181.35K
+3.8M
+$3.80M
9-12 Months
0
0.00
214.2K
3.28M
-3.3M
-$3.28M
Top Buyers
Woodside Dennis
Director, Officer: Ceo & President
$2.99M
Sloat Tyler
Officer: Chief Financial & Oper Officer
$1.99M
Top Sellers
Mathrubootham Rathnagirish
Director, Officer: Executive Chairman
$2.08M
Yamamoto Mika
Officer: Chief Integr Cust Growth Offcr
$684K
Taylor Jennifer H
Director
$375K
Nelson Zachary
Director
$345K
Flower Johanna
Director
$179K
Insider Activity Analysis
Net Insider Sentiment
Moderately bullish with $1.04M net buying. Insiders show cautious optimism through measured share purchases.
Buy/Sell Ratio
Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.
Insider Participation
5 insider sellers vs. 2 buyers. Widespread selling across multiple insiders may signal concerns.
No Dividend Yield Data
FRSH has not reported any dividend yield values in the available annual periods.
frsh Dividend History
Learning Layer
Related Guides
Build conviction on FRSH by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.