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48

FRSH

💻 Technology

Freshworks Inc.

Conservative #581Aggressive #621Moderate RiskMixed 56
$7.28+1.68%
Day High$7.37
Day Low$6.96
Volume4.5M
Mkt Cap$2.1B
52W Low $752W High $18
Market Cap
$2.2B
P/E Ratio
11.5
Sector avg: 87.8
Rev Growth
16.4%
Sector avg: 14.8%
Earnings Growth
292.6%
Profit Margin
21.9%
Sector avg: -110.0%
Debt/Equity
0.06

Why This Score

FRSH scores 49.4 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Strong profitability: ROE of 18.7% exceeds the 15% quality threshold.
  • High net margin of 21.9%, indicating pricing power and operational efficiency.
  • Attractively valued at 11.5x earnings, below the market average.
  • Minimal leverage (D/E 0.06) provides financial flexibility and downside protection.
Risk Factors
  • Above-average volatility (11.4%) may not suit conservative risk tolerance.

Minor adjustments (-0.1 points) applied. FRSH's rank of #581 primarily reflects its factor profile relative to the conservative weight vector.

Score Breakdown

Overall Score49.4
Fundamental Score48.7
ML Score33.0

Score by Horizon

3 Month
73.2
6 Month
81.8
Primary
1 Year
86.1

Quality Assessment

F
Earnings Grade
Weak fundamentals or significant quality concerns

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
33
Negative
Analyst (6.4%)
63
Favorable
Tradability (post-hoc)
91
Grade A
Base
45.5
SHAP
+2.5
Factors
+1.4
Divergence
-0.1
Final
49.4
Positive adjustment
Negative adjustment
Base blend
Final score

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)70.0
Technical (Momentum, Weinstein, Volatility)26.0
External (Sentiment, Analyst, Macro)61.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage89%

Growth Estimates

Short-term
+9.3% to +15.4%
Medium-term
+13.6% to +22.6%
Long-term
+19.7% to +32.1%

ML Model Core Features100 trained inputs → ML Score: 33

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score62.5/100
Target Upside+0.0%
Coverage18 analysts
Market Sentiment
Sentiment Score32.5/100
News Volume0 articles
Technical Stage
Weinstein Stage4 — Declining
12M Momentum-0.6%
6M Momentum-0.5%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration-11.3%
Momentum ConsistencyStrong (0.80)
Relative Strength vs Sector-61.2%
Trend Strength (ADX Proxy)Strong (5.0)
Momentum Quality-0.273
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
21%
Moderate — watch growth
Sector RevGr Rank
P65
Revenue growth vs Technology peers
Sector PE Rank
P70
Valuation vs Technology peers
Sector FCF Rank
P88
Free cash flow vs Technology peers
Growth Deviation
+0.1σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 75 relative to sector peers75/100
Machine learning model ranks this stock at the 87th percentileP87
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +3.0pt (features align with model priorities)
Blend: 91% fund (75.2) + 9% ML (87.1) + SHAP(+3.0) = 79.3
Factor quality: +1.7pt (multi-factor composite)
Risk assessment: moderate. Annualized volatility 11.4%. Max drawdown 53% (-12.0 pts). Price momentum -58% (-10.0 pts)Moderate
Market cap adjustment: -4.0 points ($2.2B market cap)-4.0 pts
Risk Factors
Earnings quality grade F: assessed. Score adjusted by -30 pointsGrade F
Quality concern: Non-operating gain: net margin (21.9%) exceeds operating margin (1.6%) by 20pp — likely one-time item; Earnings growth (293%) far exceeds revenue growth (16.4%) — margin expansion may not be sustainable; High accrual ratio (-41.2%) — earnings quality concernFlag

Sector Peer Comparison(Technology — Rank #139 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
FRSH49.411.516.4%21.9%$2.2B
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%

Market Sentimentvia FMP

Analyst Consensus
Buy18 analysts
Buy: 9Hold: 9
Price Target
$11consensus
Low $8Median $11High $15
+57.0% to consensus target

Company Overviewvia FMP

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.

CEO
Dennis Woodside
Employees
4,400
Beta
0.89
Industry
Software - Application
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
26.8
Oversold
Trend
Bearish
10-day vs 50-day MA
From 52W High
-58.8%
High: $17.69
From 52W Low
+7.2%
Low: $6.79
Moving Averages
10-Day
$7.30
Below
20-Day
$8.50
Below
50-Day
$10.60
Below
200-Day
$12.60
Below
60-Day Support
$6.79
60-Day Resistance
$13.61
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 — DecliningScore: 1/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Price vs 200 SMA
-42.2%
200 SMA Slope (60d)
-8.63%
Falling
Volume Ratio
1.64x
10d avg vs 50d avg
Days in Stage
100
Confidence: 90%
Recent Gap Down

Financial Statementslast 4 quarters via FMP

MetricQ4 2025Q3 2025Q2 2025Q1 2025
Revenue$223M$215M$205M$196M
Gross Profit$191M$182M$174M$166M
Operating Income$40M$-7M$-9M$-10M
Net Income$191M$-5M$-2M$-1M
EPS (Diluted)$0.67$-0.02$-0.01$-0.00
Gross Margin85.6%84.7%84.8%84.8%
Operating Margin17.8%-3.5%-4.2%-5.3%
Net Margin86.0%-2.2%-0.8%-0.7%

Why This Stock

TechnologyP/E ratio of 11.5Revenue growth 16.4%Profit margin 21.9%

Tradability FilterGrade A — 91/100Score impact: -1.5pt

Volume
100
4.9M avg/day
Dollar Vol
89
$34M/day
Float
100
224M shares
Mkt Cap
60
$2.2B
Range
100
161% spread
Composite Liquidity Score91/100
FDCBA

Multi-Year Range Analysis

Sideways: 0/100
YearLowHighRangeStatus
2022$10.51$26.8187.4%Wide
2023$12.22$24.9868.6%Wide
2024$10.81$23.9375.5%Wide
2025$10.51$19.7761.2%Wide
3-Year Range
81.5%
Narrow Years
0 / 4
Sideways Penalty
None

Growth Projection Adjustment

0.7x dampening
weinstein basing

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
76.7%
Outstanding Shares
291M
Bid-Ask Spread
161.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.