Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cloud-based HR software maker Workday (WDAY -1.34%) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Workday's business and see what CAPS investors are saying about the stock right now.

Workday facts

Headquarters (founded)

Pleasanton, Calif. (2005)

Market Cap

$8.4 billion

Industry

Application software

Trailing-12-Month Revenue

$199.1 million

Management

Co-Founder/Chairman/Co-CEO Aneel Bhusri
Co-Founder/Co-CEO David Duffield

Trailing-12-Month Operating Margin

(44.6%)

Cash/Debt

$122.7 million / $16.1 million

Competitors

Automatic Data Processing (NASDAQ: ADP)
Concur Technologies (NASDAQ: CNQR)
Oracle (NASDAQ: ORCL)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 79% of the 33 members who have rated Workday believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star starz188, wrote that the Workday bear case all boiled down to price:

I think the market is overpricing just about everything that has to do with [Software-as-a-Service]. Yes, these are the business solutions of the present/future. But the valuations need to be in line with revenue.

I'm getting a little concerned about (what I see as) a growing bubble around the SaaS space. [Workday] appears to have benefited from this positivity in the market, and that's great for the original founders and investors.

I'll be curious to see how David Duffield and Aneel Bhusri manage their growth. There's some legacy success with PeopleSoft that I find intriguing. ...

The [70% IPO pop] worries me, and I think in the long run, we'll see some corrections in the SaaS valuations. This includes [Workday].

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.