UBER TECHNOLOGIES INC (NYSE:UBER) - A Strong Growth Stock Trading at Reasonable Valuations

UBER TECHNOLOGIES INC (NYSE:UBER) was recently flagged by our Affordable Growth stock screener, which identifies companies with solid growth potential, reasonable valuations, and stable financials. UBER stands out with strong revenue and earnings expansion while maintaining a balanced valuation. Below, we examine why this stock fits the criteria.

Growth Prospects

UBER has demonstrated impressive growth, with key highlights from its fundamental report:

• Revenue Growth: Over the past year, revenue increased by 17.6%, and the five-year annualized growth stands at 27.6%.
• Earnings Expansion: EPS surged 333.33% in the last year, reflecting improved profitability.
• Future Expectations: Analysts project EPS growth of 41.96% annually, supported by an estimated 13.2% yearly revenue increase.

Valuation Assessment

Despite strong growth, UBER remains reasonably priced:

• P/E Ratio: At 31.22, it is slightly above the S&P 500 average but in line with industry peers.
• Forward P/E: A more attractive 24.16 suggests earnings growth could justify the valuation.
• Price/Free Cash Flow: UBER trades cheaper than 87.5% of its industry, indicating good cash flow efficiency.

Financial Health & Profitability

While UBER excels in growth, its financial stability and profitability are solid but not exceptional:

• Health Score (6/10): The company has manageable debt (Debt/Equity of 0.38) and a healthy Altman-Z score (4.07), reducing bankruptcy risk.
• Profitability (5/10): Margins are mixed—strong 27.07% net margin but a lower 33.59% gross margin compared to peers.

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. Always conduct your own research before making investment decisions.