Freshworks Inc. (FRSH) — Stock Score Summary

Freshworks Inc. (FRSH) has a MoatMap StockRank of 58/100 based on Quality (64/100), Value (54/100), and Momentum (22/100) factor scores. The current signal is HOLD. Freshworks Inc. is a high-quality (Q:68) SaaS provider of customer engagement and IT service management software, directly benefiting from the secular tailwind of automation and AI for efficiency gains. The market (very low M:16, fair V:50) likely undervalues its ability to drive productivity improvements and cost reductions for businesses, especially SMBs, in an inflationary environment, positioning it as a powerful disinflationary force. This creates an asymmetric opportunity as the structural need for efficient digital operations remains strong regardless of broader tech sentiment.

Freshworks Inc. provides a suite of cloud-based software-as-a-service (SaaS) solutions for customer engagement, IT service management, and sales automation, primarily targeting small to medium-sized businesses (SMBs). Its competitive edge lies in offering user-friendly, affordable, and integrated solutions that simplify complex business processes, leading to quick adoption and high customer satisfaction. Freshworks is a rapidly growing player in the SMB SaaS market, known for its comprehensive and accessible platform.

Key Financial Metrics

Price$8.96
Market Cap$2.5B
P/E (TTM)14.11
P/E (Forward)10.84
Price/Book2.36
Return on Equity17.3%
Return on Invested Capital1.2%
Debt/Equity3.81
Gross Margin85.0%
Operating Margin-3.5%
Revenue Growth16.5%
Free Cash Flow$264M

Freshworks Inc. operates in the Software - Application industry, part of the Technology sector (United States).

Frequently Asked Questions

What is Freshworks Inc.’s (FRSH) StockRank?
MoatMap’s StockRank for Freshworks Inc. (FRSH) is 58/100, with a Hold signal. It is a composite of Quality (64), Value (54), and Momentum (22) factor ranks across MoatMap’s 15,000+ stock universe.
Does Freshworks Inc. have an economic moat?
Freshworks Inc. (FRSH) has a Quality factor score of 64/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Freshworks Inc. a buy, hold, or sell?
MoatMap’s current signal for Freshworks Inc. (FRSH) is Hold, based on a StockRank of 58/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Freshworks Inc. in?
Freshworks Inc. (FRSH) operates in the Technology sector, specifically the Software - Application industry (United States).