UPWORK INC (UPWK) Stock Fundamental Analysis
NASDAQ:UPWK - Nasdaq - US91688F1049 - Common Stock - Currency: USD
Taking everything into account, UPWK scores 6 out of 10 in our fundamental rating. UPWK was compared to 82 industry peers in the Professional Services industry. UPWK is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. UPWK has a correct valuation and a medium growth rate.
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.
The reported net income has been mixed in the past 5 years: UPWK reported negative net income in multiple years.
In the past 5 years UPWK always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 18.94%, UPWK belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
The Return On Equity of UPWK (39.52%) is better than 86.59% of its industry peers.
UPWK has a Return On Invested Capital (7.43%) which is comparable to the rest of the 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 96.34% of the companies in the same industry.
UPWK has a Operating Margin of 11.78%. This is amongst the best in the industry. UPWK outperforms 80.49% of its industry peers.
UPWK has a better Gross Margin (77.73%) than 87.80% of its industry peers.
In the last couple of years the Gross Margin of UPWK has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UPWK is destroying value.
UPWK has less shares outstanding than it did 1 year ago.
UPWK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UPWK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.46 indicates that UPWK is not in any danger for bankruptcy at the moment.
The Altman-Z score of UPWK (3.46) is better than 65.85% of its industry peers.
UPWK has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as UPWK would need 2.15 years to pay back of all of its debts.
The Debt to FCF ratio of UPWK (2.15) is better than 70.73% 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.
UPWK has a Debt to Equity ratio of 0.60. This is comparable to the rest of the industry: UPWK outperforms 41.46% of its industry peers.
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 | 3.46 |
ROIC/WACC0.91
WACC8.2%
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.
The Current ratio of UPWK (3.41) is better than 90.24% of its industry peers.
UPWK has a Quick Ratio of 3.41. This indicates that UPWK is financially healthy and has no problem in meeting its short term obligations.
UPWK's Quick ratio of 3.41 is amongst the best of the industry. UPWK outperforms 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 3.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.01% over the past year.
Looking at the last year, UPWK shows a small growth in Revenue. The Revenue has grown by 7.22% in the last year.
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)63.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%54.55%
Revenue 1Y (TTM)7.22%
Revenue growth 3Y15.23%
Revenue growth 5Y20.68%
Sales Q2Q%0.93%
3.2 Future
The Earnings Per Share is expected to grow by 10.27% on average over the next years. This is quite good.
Based on estimates for the next years, UPWK will show a small growth in Revenue. The Revenue will grow by 5.25% on average per year.
EPS Next Y10.61%
EPS Next 2Y11.52%
EPS Next 3Y12.44%
EPS Next 5Y10.27%
Revenue Next Year-0.34%
Revenue Next 2Y2.66%
Revenue Next 3Y5.09%
Revenue Next 5Y5.25%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.63, which indicates a correct valuation of UPWK.
Compared to the rest of the industry, the Price/Earnings ratio of UPWK indicates a somewhat cheap valuation: UPWK is cheaper than 74.39% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. UPWK is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.19 indicates a correct valuation of UPWK.
Based on the Price/Forward Earnings ratio, UPWK is valued a bit cheaper than the industry average as 79.27% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, UPWK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
UPWK's Enterprise Value to EBITDA is on the same level as the industry average.
UPWK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UPWK is cheaper than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.93 | ||
| EV/EBITDA | 14.68 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
UPWK has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as UPWK's earnings are expected to grow with 12.44% in the coming years.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y11.52%
EPS Next 3Y12.44%
5. Dividend
5.1 Amount
UPWK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.22
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners82.56%
Inst Owner Change6.83%
Ins Owners7.39%
Ins Owner Change-1.16%
Market Cap2.16B
Analysts76.47
Price Target19.58 (20.72%)
Short Float %9.55%
Short Ratio5.51
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)0.09%
PT rev (3m)2.03%
EPS NQ rev (1m)2.94%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)8.42%
EPS NY rev (3m)3.16%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 12.19 | ||
| P/S | 2.8 | ||
| P/FCF | 12.93 | ||
| P/OCF | 11.67 | ||
| P/B | 3.63 | ||
| P/tB | 4.67 | ||
| EV/EBITDA | 14.68 |
EPS(TTM)1.19
EY7.34%
EPS(NY)1.33
Fwd EY8.2%
FCF(TTM)1.25
FCFY7.73%
OCF(TTM)1.39
OCFY8.57%
SpS5.8
BVpS4.47
TBVpS3.47
PEG (NY)1.28
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 | 3.46 |
F-Score7
WACC8.2%
ROIC/WACC0.91
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)63.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%54.55%
EPS Next Y10.61%
EPS Next 2Y11.52%
EPS Next 3Y12.44%
EPS Next 5Y10.27%
Revenue 1Y (TTM)7.22%
Revenue growth 3Y15.23%
Revenue growth 5Y20.68%
Sales Q2Q%0.93%
Revenue Next Year-0.34%
Revenue Next 2Y2.66%
Revenue Next 3Y5.09%
Revenue Next 5Y5.25%
EBIT growth 1Y238.01%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28.42%
EBIT Next 3Y20.19%
EBIT Next 5Y16.29%
FCF growth 1Y20455.9%
FCF growth 3Y209.34%
FCF growth 5YN/A
OCF growth 1Y1879.36%
OCF growth 3Y141.97%
OCF growth 5Y170.52%