Stock MarketROI
Open
FRSH

FRSH

Technology · Software - Application

$9.45-0.68%
Mkt Cap: $2.61B

Performance

FRSH (FRSH) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

FRSH (FRSH) operates in the Software - Application space within the Technology sector. With a market cap of $2.6B, it qualifies as a small-cap company. The company is growing revenue strongly while maintaining healthy profitability — a combination that investors typically reward with a premium valuation.

Bull Case4
  • Forward P/E (11.8×) is lower than trailing P/E (15.5×) — analysts expect earnings to improve
  • Revenue growth of 17% YoY shows solid business momentum
  • Exceptional profit margin of 20.7% — the business retains a large share of each dollar earned
  • ROE of 17.3% shows management efficiently converts equity into profit
Bear Case2
  • High debt-to-equity of 3.81× increases financial risk, especially with elevated interest rates
  • No dividend history — total return depends entirely on price appreciation

Verdict

Buy / Hold

More positives than negatives. Fundamentals support holding while monitoring key risks.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

Related Articles

Revenue & Results

Dividends

This stock does not pay dividends.

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Jul 28, 2026

42

days

EPS (TTM)

$0.61

P/E (TTM)

15.5

Fwd P/E

11.8

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$2.61B
P/E Ratio15.48
Forward P/E11.82
P/B Ratio
PEG Ratio0.51
EPS (TTM)$0.61

Trading

Open
Day High
Day Low
52W High$15.54
52W Low$6.79
Volume
Avg Volume (3M)10,068,573
Beta0.89

Dividends

Dividend Yield
Annual Rate
Ex-Div Date
Payout Ratio0.00%

Profitability

Profit Margin20.69%
Operating Margin-3.52%
ROE17.32%
ROA0.62%
Revenue Growth16.50%
Earnings Growth

Balance Sheet

Total Revenue$871.17M
Total Debt$38.80M
Debt / Equity3.81
Current Ratio1.94
Free Cash Flow$263.74M

Fair Value Estimates

Current price: $9.45

Graham Number

√(22.5 × EPS × Book Value)

$7.08

-25.0% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

N/A

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

5/10

71% score

Pays dividends

No dividend history found

Dividend consistency (5Y+)

Uninterrupted dividend payments for at least 5 years

ROE above 10%

17.3%

Return on equity — measures how efficiently capital is used

Positive profit margin

20.7%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

+16.5%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

3.81×

Low financial leverage reduces risk of distress

Current ratio above 1

1.94×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$95M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

Stock must distribute income to shareholders

Related Assets

Technology

About FRSH

Freshworks Inc., a software development company, provides software-as-a-service products in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company's software-as-a-service solutions includes Customer Experience (CX) and Employee Experience (EX). Its Customer Experience products include Freshdesk Omni, an AI-powered omnichannel customer service solution that unifies customer interactions, support operations, and empowers agents to deliver exceptional experiences; Freshdesk, a ticketing and case management solution; Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels; Freshcaller, a cloud-based contact center solution for scalable voice operations; Freshsales, a sales CRM for pipeline management and deal closure solution; and Freshmarketer, a marketing automation platform designed to help businesses to attract, nurture, convert, and retain customers. The company's Employee Experience products include Freshservice, an IT and enterprise service management platform to AI agents to help employees resolve issues, make requests, and access information through conversational interfaces without requiring direct interaction with the service desk; Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data; Device42 which provides IT discovery and dependency mapping solutions; and FireHydrant, a modern incident management platform that enables engineering and operations teams to manage the full incident lifecycle. In addition, it provides Freshworks platform, an AI-powered, enterprise-grade foundation that unifies customer experience and employee experience product lines. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.

Sector

Technology

Industry

Software - Application

Location

San Mateo, United States

Employees

4,500