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 81 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make UPWK a good candidate 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.
In the past 5 years UPWK always reported a positive cash flow from operatings.
1.2 Ratios
UPWK has a better Return On Assets (18.94%) than 93.90% of its industry peers.
The Return On Equity of UPWK (39.52%) is better than 87.80% of its industry peers.
UPWK's Return On Invested Capital of 7.43% is in line compared to the rest of the industry. UPWK outperforms 53.66% of its industry peers.
| 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
UPWK has a better Profit Margin (30.46%) than 96.34% of its industry peers.
UPWK's Operating Margin of 11.78% is amongst the best of the industry. UPWK outperforms 81.71% of its industry peers.
The Gross Margin of UPWK (77.73%) is better than 89.02% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UPWK 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
An Altman-Z score of 3.15 indicates that UPWK is not in any danger for bankruptcy at the moment.
UPWK's Altman-Z score of 3.15 is fine compared to the rest of the industry. UPWK outperforms 60.98% 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.
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.
Looking at the Debt to Equity ratio, with a value of 0.60, UPWK is in line with its industry, outperforming 41.46% 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 | 0.6 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.96
WACC7.77%
2.3 Liquidity
A Current Ratio of 3.41 indicates that UPWK has no problem at all paying its short term obligations.
UPWK has a Current ratio of 3.41. This is amongst the best in the industry. UPWK outperforms 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 has a better Quick ratio (3.41) than 91.46% 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.
The Revenue has been growing slightly by 7.22% 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)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
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.
The Revenue is expected to grow by 5.22% on average over the next years.
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
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 11.62, the valuation of UPWK can be described as very reasonable.
82.93% of the companies in the same industry are more expensive than UPWK, based on the Price/Earnings ratio.
UPWK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.32.
The Price/Forward Earnings ratio is 10.39, which indicates a very decent valuation of UPWK.
UPWK's Price/Forward Earnings ratio is rather cheap when compared to the industry. UPWK is cheaper than 80.49% of the companies in the same industry.
UPWK is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UPWK is valued a bit cheaper than 68.29% of the companies in the same industry.
80.49% 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 | 10.9 | ||
| EV/EBITDA | 11.54 |
4.3 Compensation for Growth
UPWK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of UPWK 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)1.1
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 |
13.83
-0.64 (-4.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.66%
Inst Owner Change7.18%
Ins Owners5.15%
Ins Owner Change1.35%
Market Cap1.82B
Analysts76.47
Price Target19.48 (40.85%)
Short Float %8.93%
Short Ratio5.37
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)-0.52%
PT rev (3m)-1.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.32%
EPS NY rev (1m)0%
EPS NY rev (3m)4.63%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.39 | ||
| P/S | 2.36 | ||
| P/FCF | 10.9 | ||
| P/OCF | 9.84 | ||
| P/B | 3.06 | ||
| P/tB | 3.94 | ||
| EV/EBITDA | 11.54 |
EPS(TTM)1.19
EY8.6%
EPS(NY)1.33
Fwd EY9.62%
FCF(TTM)1.27
FCFY9.17%
OCF(TTM)1.4
OCFY10.16%
SpS5.86
BVpS4.52
TBVpS3.51
PEG (NY)1.1
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 | 3.15 |
F-Score7
WACC7.77%
ROIC/WACC0.96
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 5Y10.52%
Revenue 1Y (TTM)7.22%
Revenue growth 3Y15.23%
Revenue growth 5Y20.68%
Sales Q2Q%0.93%
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 Year35.76%
EBIT Next 3Y21.11%
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%