UPWORK INC (UPWK)
US91688F1049 - Common Stock
UPWK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. UPWK has only an average score on both its financial health and profitability. UPWK is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
In the past 5 years UPWK reported 4 times negative net income.
Each year in the past 5 years UPWK had a positive operating cash flow.
1.2 Ratios
UPWK has a Return On Assets (4.52%) which is comparable to the rest of the industry.
UPWK has a Return On Equity of 12.30%. This is in the better half of the industry: UPWK outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.52% | ||
| ROE | 12.3% | ||
| ROIC | N/A |
ROA(3y)-3%
ROA(5y)-3.41%
ROE(3y)-15.16%
ROE(5y)-11.91%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.80%, UPWK is in the better half of the industry, outperforming 78.75% of the companies in the same industry.
UPWK has a Gross Margin of 75.26%. This is amongst the best in the industry. UPWK outperforms 88.75% of its industry peers.
In the last couple of years the Gross Margin of UPWK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 6.8% | ||
| GM | 75.26% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.44%
GM growth 5Y2.1%
2. Health
2.1 Basic Checks
UPWK does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, UPWK has more shares outstanding
UPWK has more shares outstanding than it did 5 years ago.
UPWK has a better debt/assets ratio than last year.
2.2 Solvency
UPWK has an Altman-Z score of 2.38. This is not the best score and indicates that UPWK is in the grey zone with still only limited risk for bankruptcy at the moment.
UPWK has a Altman-Z score (2.38) which is in line with its industry peers.
UPWK has a debt to FCF ratio of 32.76. This is a negative value and a sign of low solvency as UPWK would need 32.76 years to pay back of all of its debts.
UPWK has a Debt to FCF ratio of 32.76. This is in the lower half of the industry: UPWK underperforms 72.50% of its industry peers.
UPWK has a Debt/Equity ratio of 0.93. This is a neutral value indicating UPWK is somewhat dependend on debt financing.
UPWK has a worse Debt to Equity ratio (0.93) than 72.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 32.76 | ||
| Altman-Z | 2.38 |
ROIC/WACCN/A
WACC7.35%
2.3 Liquidity
UPWK has a Current Ratio of 3.01. This indicates that UPWK is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.01, UPWK belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
A Quick Ratio of 3.01 indicates that UPWK has no problem at all paying its short term obligations.
UPWK has a Quick ratio of 3.01. This is amongst the best in the industry. UPWK outperforms 92.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.01 | ||
| Quick Ratio | 3.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 933.33% over the past year.
UPWK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.47%.
UPWK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.15% yearly.
EPS 1Y (TTM)933.33%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q400%
Revenue 1Y (TTM)11.47%
Revenue growth 3Y22.64%
Revenue growth 5Y22.15%
Revenue growth Q2Q13.96%
3.2 Future
The Earnings Per Share is expected to grow by 31.59% on average over the next years. This is a very strong growth
UPWK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.11% yearly.
EPS Next Y62.62%
EPS Next 2Y39.94%
EPS Next 3Y27.67%
EPS Next 5Y31.59%
Revenue Next Year13.09%
Revenue Next 2Y12.76%
Revenue Next 3Y12.49%
Revenue Next 5Y15.11%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.92 indicates a rather expensive valuation of UPWK.
UPWK's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 24.55. UPWK is around the same levels.
The Price/Forward Earnings ratio is 14.71, which indicates a correct valuation of UPWK.
Based on the Price/Forward Earnings ratio, UPWK is valued a bit cheaper than 76.25% of the companies in the same industry.
UPWK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
UPWK's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. UPWK is more expensive than 71.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 151.17 | ||
| EV/EBITDA | N/A |
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 UPWK's earnings are expected to grow with 27.67% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y39.94%
EPS Next 3Y27.67%
5. Dividend
5.1 Amount
UPWK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UPWORK INC
NASDAQ:UPWK (5/1/2024, 7:27:53 PM)
After market: 12.5 +0.54 (+4.52%)11.96
+0.26 (+2.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 14.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.52% | ||
| ROE | 12.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 6.8% | ||
| GM | 75.26% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.01 | ||
| Quick Ratio | 3.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)933.33%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y62.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.47%
Revenue growth 3Y22.64%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y