UBER TECHNOLOGIES INC (NYSE:UBER) - A 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 this category.

Growth Prospects

UBER’s growth metrics stand out, earning a Growth Rating of 7/10. Key highlights include:

• Revenue Growth: Over the past year, revenue increased by 17.6%, with an average annual growth of 27.6% in recent years.
• Earnings Expansion: EPS surged by 333.33% in the last year, reflecting improving profitability.
• Future Expectations: Analysts project EPS growth of 42% annually, signaling strong momentum.

Valuation Assessment

Despite its growth, UBER is not excessively priced, scoring a Valuation Rating of 5/10:

• P/E Ratio: At 33.78, it is slightly above the S&P 500 average but in line with industry peers.
• Forward P/E: More favorable at 25.83, below the broader market average.
• Price/Free Cash Flow: Better than 85% of industry competitors, indicating efficient cash generation.

Financial Health & Profitability

UBER maintains a balanced financial position:

• Health Rating (6/10): Solid solvency metrics, including a strong Altman-Z score (4.35) and manageable debt levels.
• Profitability (5/10): High return metrics (ROA 23.26%, ROE 55.91%) but mixed margins, with gross margin lagging behind peers.

For a deeper look, review the full fundamental analysis of UBER.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.