UPWORK INC (UPWK) Stock Fundamental Analysis
USA - NASDAQ:UPWK - US91688F1049 - Common Stock
17.45 USD
+1.3 (+8.05%)
17.5999 USD
+0.15 (+0.86%)
UPWK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 87 industry peers in the Professional Services industry. While UPWK has a great health rating, its profitability is only average at the moment. A decent growth rate in combination with a cheap valuation! Better keep an eye on UPWK. These ratings would make UPWK suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year UPWK was profitable.
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.
Each year in the past 5 years UPWK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.45%, UPWK belongs to the top of the industry, outperforming 95.40% of the companies in the same industry.
UPWK has a Return On Equity of 40.32%. This is amongst the best in the industry. UPWK outperforms 90.80% of its industry peers.
With a Return On Invested Capital value of 8.50%, UPWK perfoms like the industry average, outperforming 59.77% of the companies in the same industry.
| 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 has a better Profit Margin (31.75%) than 100.00% of its industry peers.
UPWK has a Operating Margin of 13.67%. This is amongst the best in the industry. UPWK outperforms 80.46% of its industry peers.
UPWK has a Gross Margin of 77.84%. This is amongst the best in the industry. UPWK outperforms 89.66% 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
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 3.47. This indicates that UPWK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.47, UPWK is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
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 better Debt to FCF ratio (1.80) than 70.11% of its industry peers.
UPWK has a Debt/Equity ratio of 0.59. This is a neutral value indicating UPWK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, UPWK is in line with its industry, outperforming 44.83% of the companies in the same industry.
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 | 3.47 |
ROIC/WACC1.12
WACC7.61%
2.3 Liquidity
A Current Ratio of 3.36 indicates that UPWK has no problem at all paying its short term obligations.
UPWK's Current ratio of 3.36 is amongst the best of the industry. UPWK outperforms 91.95% of its industry peers.
A Quick Ratio of 3.36 indicates that UPWK has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.36, UPWK belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.36 | ||
| Quick Ratio | 3.36 |
3. Growth
3.1 Past
UPWK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.71%, 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)23.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-27.59%
Revenue 1Y (TTM)11.64%
Revenue growth 3Y15.23%
Revenue growth 5Y20.68%
Sales Q2Q%4.1%
3.2 Future
The Earnings Per Share is expected to grow by 10.39% 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 5.28% on average per year.
EPS Next Y18.66%
EPS Next 2Y11.84%
EPS Next 3Y11.38%
EPS Next 5Y10.39%
Revenue Next Year1.91%
Revenue Next 2Y3.62%
Revenue Next 3Y5.28%
Revenue Next 5Y5.28%
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
With a Price/Earnings ratio of 14.54, UPWK is valued correctly.
UPWK's Price/Earnings ratio is a bit cheaper when compared to the industry. UPWK is cheaper than 75.86% of the companies in the same industry.
UPWK is valuated rather cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.04 indicates a correct valuation of UPWK.
Based on the Price/Forward Earnings ratio, UPWK is valued a bit cheaper than the industry average as 73.56% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of UPWK to the average of the S&P500 Index (32.68), we can say UPWK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UPWK indicates a somewhat cheap valuation: UPWK is cheaper than 68.97% of the companies listed in the same industry.
UPWK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UPWK is cheaper than 80.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.63 | ||
| EV/EBITDA | 12.24 |
4.3 Compensation for Growth
UPWK's 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)0.78
PEG (5Y)N/A
EPS Next 2Y11.84%
EPS Next 3Y11.38%
5. Dividend
5.1 Amount
No dividends for UPWK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.45
+1.3 (+8.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.12%
Inst Owner Change-0.9%
Ins Owners5.24%
Ins Owner Change1.56%
Market Cap2.31B
Revenue(TTM)769.33M
Net Income(TTM)245.38M
Analysts77.65
Price Target20.5 (17.48%)
Short Float %9.43%
Short Ratio4.14
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)7.49%
PT rev (3m)5.24%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)6.82%
EPS NY rev (1m)0.1%
EPS NY rev (3m)7.17%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)2.98%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 13.04 | ||
| P/S | 2.99 | ||
| P/FCF | 11.63 | ||
| P/OCF | 10.51 | ||
| P/B | 3.8 | ||
| P/tB | 5.06 | ||
| EV/EBITDA | 12.24 |
EPS(TTM)1.2
EY6.88%
EPS(NY)1.34
Fwd EY7.67%
FCF(TTM)1.5
FCFY8.6%
OCF(TTM)1.66
OCFY9.51%
SpS5.83
BVpS4.59
TBVpS3.45
PEG (NY)0.78
PEG (5Y)N/A
Graham Number11.13
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
ROICexgc growth 3YN/A
ROICexgc 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 | 3.47 |
F-Score7
WACC7.61%
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)23.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-27.59%
EPS Next Y18.66%
EPS Next 2Y11.84%
EPS Next 3Y11.38%
EPS Next 5Y10.39%
Revenue 1Y (TTM)11.64%
Revenue growth 3Y15.23%
Revenue growth 5Y20.68%
Sales Q2Q%4.1%
Revenue Next Year1.91%
Revenue Next 2Y3.62%
Revenue Next 3Y5.28%
Revenue Next 5Y5.28%
EBIT growth 1Y108.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year47.08%
EBIT Next 3Y21.98%
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%
UPWORK INC / UPWK FAQ
What is the ChartMill fundamental rating of UPWORK INC (UPWK) stock?
ChartMill assigns a fundamental rating of 6 / 10 to UPWK.
Can you provide the valuation status for UPWORK INC?
ChartMill assigns a valuation rating of 7 / 10 to UPWORK INC (UPWK). This can be considered as Undervalued.
How profitable is UPWORK INC (UPWK) stock?
UPWORK INC (UPWK) has a profitability rating of 6 / 10.
What are the PE and PB ratios of UPWORK INC (UPWK) stock?
The Price/Earnings (PE) ratio for UPWORK INC (UPWK) is 14.54 and the Price/Book (PB) ratio is 3.8.
What is the earnings growth outlook for UPWORK INC?
The Earnings per Share (EPS) of UPWORK INC (UPWK) is expected to grow by 18.66% in the next year.