UPWORK INC (UPWK) Stock Fundamental Analysis
NASDAQ:UPWK - US91688F1049 - Common Stock
15.96 USD
+0.57 (+3.7%)
15.99 USD
+0.03 (+0.19%)
We assign a fundamental rating of 6 out of 10 to UPWK. UPWK was compared to 83 industry peers in the Professional Services industry. UPWK has an excellent financial health rating, but there are some minor concerns on its profitability. UPWK is valued quite cheap, while showing a decent growth score. This is a good combination! This makes UPWK very considerable for value investing!
1. Profitability
1.1 Basic Checks
UPWK had positive earnings in the past year.
UPWK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: UPWK reported negative net income in multiple years.
UPWK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.45%, UPWK belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
UPWK's Return On Equity of 40.32% is amongst the best of the industry. UPWK outperforms 91.57% of its industry peers.
UPWK has a Return On Invested Capital of 8.50%. This is comparable to the rest of the industry: UPWK outperforms 57.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.45% | ||
| ROE | 40.32% | ||
| ROIC | 8.5% |
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
UPWK's Profit Margin of 31.75% is amongst the best of the industry. UPWK outperforms 98.80% of its industry peers.
Looking at the Operating Margin, with a value of 13.67%, UPWK belongs to the top of the industry, outperforming 80.72% of the companies in the same industry.
UPWK has a Gross Margin of 77.84%. This is amongst the best in the industry. UPWK outperforms 89.16% of its industry peers.
In the last couple of years the Gross Margin of UPWK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.67% | ||
| PM (TTM) | 31.75% | ||
| GM | 77.84% |
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 just above the Cost of Capital (WACC), so UPWK is still creating some value.
Compared to 1 year ago, UPWK has less shares outstanding
UPWK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UPWK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.38 indicates that UPWK is not in any danger for bankruptcy at the moment.
UPWK has a better Altman-Z score (3.38) than 62.65% of its industry peers.
The Debt to FCF ratio of UPWK is 1.80, which is an excellent value as it means it would take UPWK, only 1.80 years of fcf income to pay off all of its debts.
UPWK has a Debt to FCF ratio of 1.80. This is in the better half of the industry: UPWK outperforms 68.67% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that UPWK is somewhat dependend on debt financing.
UPWK has a Debt to Equity ratio (0.59) which is in line with its industry peers.
Even though the debt/equity ratio score it not favorable for UPWK, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.12
WACC7.62%
2.3 Liquidity
UPWK has a Current Ratio of 3.36. This indicates that UPWK is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of UPWK (3.36) is better than 89.16% of its industry peers.
UPWK has a Quick Ratio of 3.36. This indicates that UPWK is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.36, UPWK belongs to the top of the industry, outperforming 90.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.36 | ||
| Quick Ratio | 3.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.82% over the past year.
The Revenue has been growing slightly by 3.93% in the past year.
The Revenue has been growing by 20.68% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)43.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%34.62%
Revenue 1Y (TTM)3.93%
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 10.39% yearly.
UPWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.28% yearly.
EPS Next Y15.59%
EPS Next 2Y10.08%
EPS Next 3Y10.82%
EPS Next 5Y10.39%
Revenue Next Year1.84%
Revenue Next 2Y3.59%
Revenue Next 3Y5.05%
Revenue Next 5Y5.28%
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
A Price/Earnings ratio of 12.47 indicates a correct valuation of UPWK.
85.54% of the companies in the same industry are more expensive than UPWK, based on the Price/Earnings ratio.
UPWK is valuated cheaply when we compare the Price/Earnings ratio to 26.90, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.31 indicates a correct valuation of UPWK.
Based on the Price/Forward Earnings ratio, UPWK is valued a bit cheaper than 78.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, UPWK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 12.31 |
4.2 Price Multiples
69.88% of the companies in the same industry are more expensive than UPWK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UPWK is valued cheaper than 81.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.64 | ||
| EV/EBITDA | 11.43 |
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.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y10.08%
EPS Next 3Y10.82%
5. Dividend
5.1 Amount
No dividends for UPWK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.96
+0.57 (+3.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.58%
Inst Owner Change1.05%
Ins Owners5.29%
Ins Owner Change0.84%
Market Cap2.12B
Analysts76.47
Price Target19.07 (19.49%)
Short Float %9.9%
Short Ratio4.04
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)26.47%
Min EPS beat(2)24.25%
Max EPS beat(2)28.7%
EPS beat(4)4
Avg EPS beat(4)20.97%
Min EPS beat(4)8.83%
Max EPS beat(4)28.7%
EPS beat(8)8
Avg EPS beat(8)27.96%
EPS beat(12)12
Avg EPS beat(12)233.6%
EPS beat(16)15
Avg EPS beat(16)193.2%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.32%
Max Revenue beat(2)1.83%
Revenue beat(4)4
Avg Revenue beat(4)2.03%
Min Revenue beat(4)0.32%
Max Revenue beat(4)3.76%
Revenue beat(8)7
Avg Revenue beat(8)1.32%
Revenue beat(12)8
Avg Revenue beat(12)0.8%
Revenue beat(16)11
Avg Revenue beat(16)1.02%
PT rev (1m)-2.09%
PT rev (3m)-2.6%
EPS NQ rev (1m)5.42%
EPS NQ rev (3m)2.96%
EPS NY rev (1m)4.5%
EPS NY rev (3m)4.5%
Revenue NQ rev (1m)2.85%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)2.26%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 12.31 | ||
| P/S | 2.74 | ||
| P/FCF | 10.64 | ||
| P/OCF | 9.62 | ||
| P/B | 3.48 | ||
| P/tB | 4.62 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)1.28
EY8.02%
EPS(NY)1.3
Fwd EY8.12%
FCF(TTM)1.5
FCFY9.4%
OCF(TTM)1.66
OCFY10.4%
SpS5.83
BVpS4.59
TBVpS3.45
PEG (NY)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.45% | ||
| ROE | 40.32% | ||
| ROCE | 10.76% | ||
| ROIC | 8.5% | ||
| ROICexc | 24.01% | ||
| ROICexgc | 42.46% | ||
| OM | 13.67% | ||
| PM (TTM) | 31.75% | ||
| GM | 77.84% | ||
| FCFM | 25.75% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 112.34% | ||
| Cap/Sales | 2.73% | ||
| Interest Coverage | 116.33 | ||
| Cash Conversion | 176.91% | ||
| Profit Quality | 81.1% | ||
| Current Ratio | 3.36 | ||
| Quick Ratio | 3.36 | ||
| Altman-Z | 3.38 |
F-Score7
WACC7.62%
ROIC/WACC1.12
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 Y15.59%
EPS Next 2Y10.08%
EPS Next 3Y10.82%
EPS Next 5Y10.39%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y15.23%
Revenue growth 5Y20.68%
Sales Q2Q%0.94%
Revenue Next Year1.84%
Revenue Next 2Y3.59%
Revenue Next 3Y5.05%
Revenue Next 5Y5.28%
EBIT growth 1Y108.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.84%
EBIT Next 3Y21.18%
EBIT Next 5Y16.58%
FCF growth 1Y7613.22%
FCF growth 3Y209.34%
FCF growth 5YN/A
OCF growth 1Y1462.07%
OCF growth 3Y141.97%
OCF growth 5Y170.52%