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UDEMY INC (UDMY) Stock Fundamental Analysis

NASDAQ:UDMY - Nasdaq - US9026851066 - Common Stock - Currency: USD

7.055  -0.5 (-6.56%)

Fundamental Rating

4

Overall UDMY gets a fundamental rating of 4 out of 10. We evaluated UDMY against 72 industry peers in the Diversified Consumer Services industry. The financial health of UDMY is average, but there are quite some concerns on its profitability. UDMY has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year UDMY was profitable.
In the past year UDMY had a positive cash flow from operations.
UDMY had negative earnings in each of the past 5 years.
In multiple years UDMY reported negative operating cash flow during the last 5 years.
UDMY Yearly Net Income VS EBIT VS OCF VS FCFUDMY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 50M -50M -100M -150M

1.2 Ratios

UDMY has a Return On Assets (-4.76%) which is comparable to the rest of the industry.
UDMY's Return On Equity of -13.13% is in line compared to the rest of the industry. UDMY outperforms 47.22% of its industry peers.
Industry RankSector Rank
ROA -4.76%
ROE -13.13%
ROIC N/A
ROA(3y)-16.47%
ROA(5y)-17.55%
ROE(3y)-39.54%
ROE(5y)-143.65%
ROIC(3y)N/A
ROIC(5y)N/A
UDMY Yearly ROA, ROE, ROICUDMY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 -200 -400

1.3 Margins

Looking at the Gross Margin, with a value of 64.33%, UDMY is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
UDMY's Gross Margin has improved in the last couple of years.
UDMY does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 64.33%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.88%
GM growth 5Y5.41%
UDMY Yearly Profit, Operating, Gross MarginsUDMY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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6

2. Health

2.1 Basic Checks

UDMY does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for UDMY has been reduced compared to 1 year ago.
UDMY has more shares outstanding than it did 5 years ago.
There is no outstanding debt for UDMY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
UDMY Yearly Shares OutstandingUDMY Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 50M 100M 150M
UDMY Yearly Total Debt VS Total AssetsUDMY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.2 Solvency

Based on the Altman-Z score of 1.29, we must say that UDMY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.29, UDMY is in line with its industry, outperforming 56.94% of the companies in the same industry.
UDMY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 1.29
ROIC/WACCN/A
WACC8.86%
UDMY Yearly LT Debt VS Equity VS FCFUDMY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 1.36 indicates that UDMY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, UDMY perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
UDMY has a Quick Ratio of 1.36. This is a normal value and indicates that UDMY is financially healthy and should not expect problems in meeting its short term obligations.
UDMY has a Quick ratio (1.36) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.36
UDMY Yearly Current Assets VS Current LiabilitesUDMY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 200M 400M 600M

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5

3. Growth

3.1 Past

UDMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 650.00%, which is quite impressive.
The Revenue has been growing slightly by 3.93% in the past year.
UDMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.27% yearly.
EPS 1Y (TTM)650%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%500%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y15.11%
Revenue growth 5Y23.27%
Sales Q2Q%2.84%

3.2 Future

UDMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 53.29% yearly.
The Revenue is expected to grow by 5.87% on average over the next years.
EPS Next Y176.96%
EPS Next 2Y89.69%
EPS Next 3Y53.29%
EPS Next 5YN/A
Revenue Next Year0.7%
Revenue Next 2Y2.43%
Revenue Next 3Y4.32%
Revenue Next 5Y5.87%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
UDMY Yearly Revenue VS EstimatesUDMY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 200M 400M 600M 800M 1B
UDMY Yearly EPS VS EstimatesUDMY Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0 0.2 -0.2 0.4 -0.4

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.68, UDMY is valued correctly.
Based on the Price/Earnings ratio, UDMY is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of UDMY to the average of the S&P500 Index (26.99), we can say UDMY is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.25, the valuation of UDMY can be described as correct.
Based on the Price/Forward Earnings ratio, UDMY is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
UDMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.36, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.68
Fwd PE 12.25
UDMY Price Earnings VS Forward Price EarningsUDMY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

UDMY's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, UDMY is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 24.94
EV/EBITDA 279.3
UDMY Per share dataUDMY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

The 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 UDMY's earnings are expected to grow with 53.29% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y89.69%
EPS Next 3Y53.29%

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0

5. Dividend

5.1 Amount

No dividends for UDMY!.
Industry RankSector Rank
Dividend Yield N/A

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UDEMY INC

NASDAQ:UDMY (8/7/2025, 2:25:59 PM)

7.055

-0.5 (-6.56%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)07-30 2025-07-30/amc
Earnings (Next)N/A N/A
Inst Owners83.75%
Inst Owner Change-1.15%
Ins Owners3.65%
Ins Owner Change17.83%
Market Cap1.05B
Analysts77.65
Price Target10.6 (50.25%)
Short Float %2.58%
Short Ratio3.08
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.84%
Min EPS beat(2)18.97%
Max EPS beat(2)30.72%
EPS beat(4)4
Avg EPS beat(4)146.45%
Min EPS beat(4)18.97%
Max EPS beat(4)486.56%
EPS beat(8)7
Avg EPS beat(8)153.68%
EPS beat(12)11
Avg EPS beat(12)118.38%
EPS beat(16)14
Avg EPS beat(16)94.17%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)-0.38%
Revenue beat(4)1
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)0.69%
Revenue beat(8)2
Avg Revenue beat(8)-0.27%
Revenue beat(12)4
Avg Revenue beat(12)-0.24%
Revenue beat(16)8
Avg Revenue beat(16)0.01%
PT rev (1m)0%
PT rev (3m)-3.68%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)28.58%
EPS NY rev (1m)0%
EPS NY rev (3m)5.11%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.91%
Valuation
Industry RankSector Rank
PE 15.68
Fwd PE 12.25
P/S 1.32
P/FCF 24.94
P/OCF 17.52
P/B 4.5
P/tB 5.58
EV/EBITDA 279.3
EPS(TTM)0.45
EY6.38%
EPS(NY)0.58
Fwd EY8.16%
FCF(TTM)0.28
FCFY4.01%
OCF(TTM)0.4
OCFY5.71%
SpS5.35
BVpS1.57
TBVpS1.26
PEG (NY)0.09
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.76%
ROE -13.13%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 64.33%
FCFM 5.29%
ROA(3y)-16.47%
ROA(5y)-17.55%
ROE(3y)-39.54%
ROE(5y)-143.65%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.88%
GM growth 5Y5.41%
F-Score7
Asset Turnover1.24
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 70.19%
Cap/Sales 2.24%
Interest Coverage N/A
Cash Conversion 2938.91%
Profit Quality N/A
Current Ratio 1.36
Quick Ratio 1.36
Altman-Z 1.29
F-Score7
WACC8.86%
ROIC/WACCN/A
Cap/Depr(3y)61.78%
Cap/Depr(5y)87.15%
Cap/Sales(3y)2.06%
Cap/Sales(5y)2.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)650%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%500%
EPS Next Y176.96%
EPS Next 2Y89.69%
EPS Next 3Y53.29%
EPS Next 5YN/A
Revenue 1Y (TTM)3.93%
Revenue growth 3Y15.11%
Revenue growth 5Y23.27%
Sales Q2Q%2.84%
Revenue Next Year0.7%
Revenue Next 2Y2.43%
Revenue Next 3Y4.32%
Revenue Next 5Y5.87%
EBIT growth 1Y75.53%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year600.44%
EBIT Next 3Y127.12%
EBIT Next 5Y80.2%
FCF growth 1Y163.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y217.63%
OCF growth 3YN/A
OCF growth 5YN/A