UPWORK INC (UPWK) Stock Fundamental Analysis
NASDAQ:UPWK - Nasdaq - US91688F1049 - Common Stock - Currency: USD
UPWK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make UPWK suitable 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.
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
UPWK has a better Return On Assets (18.94%) than 93.90% of its industry peers.
UPWK has a better Return On Equity (39.52%) than 87.80% of its industry peers.
UPWK has a Return On Invested Capital (7.43%) which is in line with 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
Looking at the Profit Margin, with a value of 30.46%, UPWK belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
With an excellent Operating Margin value of 11.78%, UPWK belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
Looking at the Gross Margin, with a value of 77.73%, UPWK belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
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.
The number of shares outstanding for UPWK has been reduced compared to 1 year ago.
The number of shares outstanding for UPWK has been increased compared to 5 years ago.
Compared to 1 year ago, UPWK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.08 indicates that UPWK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.08, UPWK is in line with its industry, outperforming 58.54% of the companies in the same industry.
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.
UPWK has a better Debt to FCF ratio (2.15) than 71.95% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that UPWK is somewhat dependend on debt financing.
UPWK has a Debt to Equity ratio (0.60) which is in line with 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 | 3.08 |
ROIC/WACC0.98
WACC7.62%
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.
A Quick Ratio of 3.41 indicates that UPWK has no problem at all paying its short term obligations.
UPWK has a Quick ratio of 3.41. This is amongst the best in the industry. UPWK outperforms 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.
Looking at the last year, UPWK shows a small growth in Revenue. The Revenue has grown by 7.22% in the last 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
The Earnings Per Share is expected to grow by 10.52% on average over the next years. This is quite good.
UPWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.22% yearly.
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
The Price/Earnings ratio is 11.12, which indicates a very decent valuation of UPWK.
UPWK's Price/Earnings ratio is rather cheap when compared to the industry. UPWK is cheaper than 87.80% of the companies in the same industry.
When comparing the Price/Earnings ratio of UPWK to the average of the S&P500 Index (27.54), we can say UPWK is valued rather cheaply.
The Price/Forward Earnings ratio is 9.94, 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.
The average S&P500 Price/Forward Earnings ratio is at 36.44. UPWK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UPWK is valued a bit cheaper than 71.95% of the companies in the same industry.
82.93% 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 | 10.43 | ||
| EV/EBITDA | 10.8 |
4.3 Compensation for Growth
The 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)1.05
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 |
13.23
-0.17 (-1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.66%
Inst Owner Change0.15%
Ins Owners5.15%
Ins Owner Change2.76%
Market Cap1.74B
Analysts76.47
Price Target19.48 (47.24%)
Short Float %9.11%
Short Ratio4.53
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%
PT rev (3m)-0.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.94%
EPS NY rev (1m)0%
EPS NY rev (3m)8.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 9.94 | ||
| P/S | 2.26 | ||
| P/FCF | 10.43 | ||
| P/OCF | 9.42 | ||
| P/B | 2.93 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)1.19
EY8.99%
EPS(NY)1.33
Fwd EY10.06%
FCF(TTM)1.27
FCFY9.59%
OCF(TTM)1.4
OCFY10.62%
SpS5.86
BVpS4.52
TBVpS3.51
PEG (NY)1.05
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 | 3.08 |
F-Score7
WACC7.62%
ROIC/WACC0.98
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%