UBER TECHNOLOGIES INC (NYSE:UBER) - A Strong Growth Stock With Reasonable Valuation

UBER TECHNOLOGIES INC (NYSE:UBER) was identified as an affordable growth stock by our stock screener. The company shows strong growth potential while maintaining reasonable valuation metrics, along with decent financial health and profitability. Below, we examine why UBER fits the criteria for growth investors seeking reasonably priced opportunities.

Growth Prospects

UBER stands out with a Growth Rating of 7/10, supported by:

• Revenue Growth: Revenue increased by 17.6% over the past year, with an average annual growth of 27.6% over the past several years.
• Earnings Expansion: EPS surged by 333.33% in the last year, and analysts expect continued growth of 42.29% annually.
• Future Outlook: Revenue is projected to grow by 13% yearly, indicating sustained expansion.

Valuation Assessment

With a Valuation Rating of 5/10, UBER trades at levels that balance growth potential and price:

• P/E Ratio: At 30.83, it is slightly above the S&P 500 average but in line with industry peers.
• Forward P/E: 23.41 suggests a modest premium, justified by expected earnings growth.
• Price/Free Cash Flow: UBER is cheaper than 87% of its industry peers, indicating good cash flow efficiency.

Financial Health & Profitability

• Health Rating (6/10): UBER maintains solid solvency with a Debt-to-Equity ratio of 0.38 and a strong Altman-Z score of 4.03, reducing bankruptcy risk.
• Profitability (5/10): The company has improved margins, with a Profit Margin of 27.07% (outperforming 92% of peers) and a Return on Equity of 55.91%.

While UBER has shown past volatility in profitability, recent improvements suggest a stronger financial footing.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.
For a deeper dive, review the full fundamental report on UBER.

Disclaimer

This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.