UPWORK INC (UPWK) Stock Fundamental Analysis
NASDAQ:UPWK - Nasdaq - US91688F1049 - Common Stock - Currency: USD
UPWK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 80 industry peers in the Professional Services industry. While UPWK has a great health rating, its profitability is only average at the moment. UPWK scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes UPWK very considerable for value investing!
1. Profitability
1.1 Basic Checks
UPWK had positive earnings in the past year.
In the past year UPWK had a positive cash flow from operations.
In multiple years UPWK reported negative net income over the last 5 years.
Each year in the past 5 years UPWK had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 18.94%, UPWK belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
UPWK's Return On Equity of 39.52% is amongst the best of the industry. UPWK outperforms 88.75% of its industry peers.
With a Return On Invested Capital value of 7.43%, UPWK perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.94% | ||
| ROE | 39.52% | ||
| ROIC | 7.43% |
ROA(3y)4.66%
ROA(5y)0.89%
ROE(3y)4.55%
ROE(5y)-3.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 30.46%, UPWK belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
With a decent Operating Margin value of 11.78%, UPWK is doing good in the industry, outperforming 76.25% of the companies in the same industry.
The Gross Margin of UPWK (77.73%) is better than 90.00% of its industry peers.
UPWK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.78% | ||
| PM (TTM) | 30.46% | ||
| GM | 77.73% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.93%
GM growth 5Y1.83%
2. Health
2.1 Basic Checks
UPWK 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, UPWK has less shares outstanding
Compared to 5 years ago, UPWK has more shares outstanding
UPWK has a better debt/assets ratio than last year.
2.2 Solvency
UPWK has an Altman-Z score of 3.07. This indicates that UPWK is financially healthy and has little risk of bankruptcy at the moment.
UPWK has a Altman-Z score of 3.07. This is comparable to the rest of the industry: UPWK outperforms 57.50% of its industry peers.
The Debt to FCF ratio of UPWK is 2.15, which is a good value as it means it would take UPWK, 2.15 years of fcf income to pay off all of its debts.
UPWK has a better Debt to FCF ratio (2.15) than 70.00% of its industry peers.
UPWK has a Debt/Equity ratio of 0.60. This is a neutral value indicating UPWK is somewhat dependend on debt financing.
The Debt to Equity ratio of UPWK (0.60) is comparable to the rest of the industry.
Although UPWK does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 3.07 |
ROIC/WACC1
WACC7.47%
2.3 Liquidity
UPWK has a Current Ratio of 3.41. This indicates that UPWK is financially healthy and has no problem in meeting its short term obligations.
UPWK's Current ratio of 3.41 is amongst the best of the industry. UPWK outperforms 90.00% of its industry peers.
A Quick Ratio of 3.41 indicates that UPWK has no problem at all paying its short term obligations.
The Quick ratio of UPWK (3.41) is better than 91.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 3.41 |
3. Growth
3.1 Past
UPWK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.82%, which is quite impressive.
UPWK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.64%.
Measured over the past years, UPWK shows a very strong growth in Revenue. The Revenue has been growing by 20.68% on average per year.
EPS 1Y (TTM)43.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%34.62%
Revenue 1Y (TTM)11.64%
Revenue growth 3Y15.23%
Revenue growth 5Y20.68%
Sales Q2Q%0.94%
3.2 Future
UPWK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.52% yearly.
UPWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.22% yearly.
EPS Next Y10.61%
EPS Next 2Y11.52%
EPS Next 3Y12.44%
EPS Next 5Y10.52%
Revenue Next Year-0.41%
Revenue Next 2Y2.76%
Revenue Next 3Y5.32%
Revenue Next 5Y5.22%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.56, which indicates a very decent valuation of UPWK.
Based on the Price/Earnings ratio, UPWK is valued cheaper than 88.75% of the companies in the same industry.
UPWK is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
UPWK is valuated reasonably with a Price/Forward Earnings ratio of 10.16.
Based on the Price/Forward Earnings ratio, UPWK is valued cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UPWK to the average of the S&P500 Index (34.09), we can say UPWK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
UPWK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UPWK is cheaper than 70.00% of the companies in the same industry.
80.00% of the companies in the same industry are more expensive than UPWK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.65 | ||
| EV/EBITDA | 10.73 |
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.
The decent profitability rating of UPWK may justify a higher PE ratio.
UPWK's earnings are expected to grow with 12.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y11.52%
EPS Next 3Y12.44%
5. Dividend
5.1 Amount
No dividends for UPWK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:UPWK (8/11/2025, 2:56:07 PM)
13.515
+0.35 (+2.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.58%
Inst Owner Change-0.12%
Ins Owners5.29%
Ins Owner Change3.96%
Market Cap1.78B
Analysts76.47
Price Target19.48 (44.14%)
Short Float %9.83%
Short Ratio5.27
Dividend
| Industry Rank | Sector 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)25.4%
Min EPS beat(2)22.1%
Max EPS beat(2)28.7%
EPS beat(4)4
Avg EPS beat(4)17.8%
Min EPS beat(4)8.83%
Max EPS beat(4)28.7%
EPS beat(8)8
Avg EPS beat(8)298.09%
EPS beat(12)12
Avg EPS beat(12)235.89%
EPS beat(16)15
Avg EPS beat(16)200.02%
Revenue beat(2)2
Avg Revenue beat(2)2.04%
Min Revenue beat(2)0.32%
Max Revenue beat(2)3.76%
Revenue beat(4)3
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)3.76%
Revenue beat(8)7
Avg Revenue beat(8)1.3%
Revenue beat(12)8
Avg Revenue beat(12)0.99%
Revenue beat(16)11
Avg Revenue beat(16)1.24%
PT rev (1m)0%
PT rev (3m)-0.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.32%
EPS NY rev (1m)0%
EPS NY rev (3m)8.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 10.16 | ||
| P/S | 2.31 | ||
| P/FCF | 10.65 | ||
| P/OCF | 9.62 | ||
| P/B | 2.99 | ||
| P/tB | 3.85 | ||
| EV/EBITDA | 10.73 |
EPS(TTM)1.28
EY9.47%
EPS(NY)1.33
Fwd EY9.85%
FCF(TTM)1.27
FCFY9.39%
OCF(TTM)1.4
OCFY10.4%
SpS5.86
BVpS4.52
TBVpS3.51
PEG (NY)1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.94% | ||
| ROE | 39.52% | ||
| ROCE | 9.41% | ||
| ROIC | 7.43% | ||
| ROICexc | 20.91% | ||
| ROICexgc | 34% | ||
| OM | 11.78% | ||
| PM (TTM) | 30.46% | ||
| GM | 77.73% | ||
| FCFM | 21.65% |
ROA(3y)4.66%
ROA(5y)0.89%
ROE(3y)4.55%
ROE(5y)-3.13%
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 3Y1.93%
GM growth 5Y1.83%
F-Score7
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 3.34 | ||
| Cap/Depr | 108.63% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 99.5 | ||
| Cash Conversion | 172.17% | ||
| Profit Quality | 71.07% | ||
| Current Ratio | 3.41 | ||
| Quick Ratio | 3.41 | ||
| Altman-Z | 3.07 |
F-Score7
WACC7.47%
ROIC/WACC1
Cap/Depr(3y)126.29%
Cap/Depr(5y)116%
Cap/Sales(3y)1.89%
Cap/Sales(5y)2.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%34.62%
EPS Next Y10.61%
EPS Next 2Y11.52%
EPS Next 3Y12.44%
EPS Next 5Y10.52%
Revenue 1Y (TTM)11.64%
Revenue growth 3Y15.23%
Revenue growth 5Y20.68%
Sales Q2Q%0.94%
Revenue Next Year-0.41%
Revenue Next 2Y2.76%
Revenue Next 3Y5.32%
Revenue Next 5Y5.22%
EBIT growth 1Y238.01%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.84%
EBIT Next 3Y21.18%
EBIT Next 5Y16.22%
FCF growth 1Y20455.9%
FCF growth 3Y209.34%
FCF growth 5YN/A
OCF growth 1Y1879.36%
OCF growth 3Y141.97%
OCF growth 5Y170.52%