UIPATH INC - CLASS A (PATH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PATH - US90364P1057 - Common Stock
14.11 USD
-0.25 (-1.74%)
14.1799 USD
+0.07 (+0.5%)
Taking everything into account, PATH scores 6 out of 10 in our fundamental rating. PATH was compared to 278 industry peers in the Software industry. PATH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. PATH is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- In the past year PATH was profitable.
- PATH had a positive operating cash flow in the past year.
- PATH had negative earnings in each of the past 5 years.
- The reported operating cash flow has been mixed in the past 5 years: PATH reported negative operating cash flow in multiple years.
1.2 Ratios
- PATH's Return On Assets of 7.93% is fine compared to the rest of the industry. PATH outperforms 79.86% of its industry peers.
- Looking at the Return On Equity, with a value of 11.93%, PATH is in the better half of the industry, outperforming 75.18% of the companies in the same industry.
- PATH's Return On Invested Capital of 0.88% is fine compared to the rest of the industry. PATH outperforms 61.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 11.93% | ||
| ROIC | 0.88% |
ROA(3y)-5.87%
ROA(5y)-9.74%
ROE(3y)-8.52%
ROE(5y)-15%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a decent Profit Margin value of 14.79%, PATH is doing good in the industry, outperforming 77.34% of the companies in the same industry.
- With a decent Operating Margin value of 1.52%, PATH is doing good in the industry, outperforming 61.87% of the companies in the same industry.
- The Gross Margin of PATH (83.35%) is better than 89.21% of its industry peers.
- In the last couple of years the Gross Margin of PATH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.52% | ||
| PM (TTM) | 14.79% | ||
| GM | 83.35% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.76%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
- PATH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, PATH has less shares outstanding
- The number of shares outstanding for PATH has been increased compared to 5 years ago.
- There is no outstanding debt for PATH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- PATH has an Altman-Z score of 4.94. This indicates that PATH is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.94, PATH is doing good in the industry, outperforming 72.66% of the companies in the same industry.
- There is no outstanding debt for PATH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.94 |
ROIC/WACC0.08
WACC11.1%
2.3 Liquidity
- PATH has a Current Ratio of 2.65. This indicates that PATH is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.65, PATH is in the better half of the industry, outperforming 71.22% of the companies in the same industry.
- A Quick Ratio of 2.65 indicates that PATH has no problem at all paying its short term obligations.
- PATH has a better Quick ratio (2.65) than 71.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.65 |
3. Growth
3.1 Past
- PATH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.00%, which is quite impressive.
- The Earnings Per Share has been growing by 88.99% on average over the past years. This is a very strong growth
- PATH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.05%.
- PATH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.58% yearly.
EPS 1Y (TTM)36%
EPS 3Y88.99%
EPS 5YN/A
EPS Q2Q%45.45%
Revenue 1Y (TTM)10.05%
Revenue growth 3Y17.01%
Revenue growth 5Y33.58%
Sales Q2Q%15.92%
3.2 Future
- PATH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.84% yearly.
- The Revenue is expected to grow by 11.61% on average over the next years. This is quite good.
EPS Next Y26.57%
EPS Next 2Y19.73%
EPS Next 3Y15.7%
EPS Next 5Y1.84%
Revenue Next Year11.23%
Revenue Next 2Y10.39%
Revenue Next 3Y9.81%
Revenue Next 5Y11.61%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 20.75, which indicates a rather expensive current valuation of PATH.
- PATH's Price/Earnings ratio is a bit cheaper when compared to the industry. PATH is cheaper than 73.02% of the companies in the same industry.
- When comparing the Price/Earnings ratio of PATH to the average of the S&P500 Index (28.60), we can say PATH is valued slightly cheaper.
- The Price/Forward Earnings ratio is 18.23, which indicates a rather expensive current valuation of PATH.
- 74.46% of the companies in the same industry are more expensive than PATH, based on the Price/Forward Earnings ratio.
- PATH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.75 | ||
| Fwd PE | 18.23 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as PATH.
- 74.10% of the companies in the same industry are more expensive than PATH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.05 | ||
| EV/EBITDA | 143.72 |
4.3 Compensation for Growth
- PATH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as PATH's earnings are expected to grow with 15.70% in the coming years.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y19.73%
EPS Next 3Y15.7%
5. Dividend
5.1 Amount
- No dividends for PATH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
UIPATH INC - CLASS A / PATH FAQ
What is the fundamental rating for PATH stock?
ChartMill assigns a fundamental rating of 6 / 10 to PATH.
What is the valuation status of UIPATH INC - CLASS A (PATH) stock?
ChartMill assigns a valuation rating of 5 / 10 to UIPATH INC - CLASS A (PATH). This can be considered as Fairly Valued.
What is the profitability of PATH stock?
UIPATH INC - CLASS A (PATH) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for PATH stock?
The Price/Earnings (PE) ratio for UIPATH INC - CLASS A (PATH) is 20.75 and the Price/Book (PB) ratio is 3.89.
What is the earnings growth outlook for UIPATH INC - CLASS A?
The Earnings per Share (EPS) of UIPATH INC - CLASS A (PATH) is expected to grow by 26.57% in the next year.