UPLD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. Both the profitability and financial health of UPLD have multiple concerns. UPLD has a bad growth rate and is valued cheaply.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

UPLD had positive earnings in the past year.
UPLD had a positive operating cash flow in the past year.
UPLD had negative earnings in each of the past 5 years.
In the past 5 years UPLD always reported a positive cash flow from operatings.

1.2 Ratios

UPLD has a worse Return On Assets (-12.03%) than 66.55% of its industry peers.
UPLD has a worse Return On Equity (-61.25%) than 72.30% of its industry peers.
UPLD's Return On Invested Capital of 1.74% is fine compared to the rest of the industry. UPLD outperforms 65.83% of its industry peers.

		Industry Rank	Sector Rank
ROA	-12.03%
ROE	-61.25%
ROIC	1.74%

ROA(3y)-16.65%

ROA(5y)-12.13%

ROE(3y)-68.46%

ROE(5y)-48.1%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

UPLD's Operating Margin of 3.05% is fine compared to the rest of the industry. UPLD outperforms 65.47% of its industry peers.
The Gross Margin of UPLD (73.25%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of UPLD has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	3.05%
PM (TTM)	N/A
GM	73.25%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.66%

GM growth 5Y0.44%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UPLD is destroying value.
The number of shares outstanding for UPLD has been reduced compared to 1 year ago.
The number of shares outstanding for UPLD has been increased compared to 5 years ago.
Compared to 1 year ago, UPLD has about the same debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of -1.54, we must say that UPLD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of UPLD (-1.54) is worse than 78.42% of its industry peers.
UPLD has a debt to FCF ratio of 8.91. This is a slightly negative value and a sign of low solvency as UPLD would need 8.91 years to pay back of all of its debts.
The Debt to FCF ratio of UPLD (8.91) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.85 is on the high side and indicates that UPLD has dependencies on debt financing.
With a Debt to Equity ratio value of 2.85, UPLD is not doing good in the industry: 84.53% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	2.85
Debt/FCF	8.91
Altman-Z	-1.54

ROIC/WACC0.25

WACC6.92%

2.3 Liquidity

A Current Ratio of 0.78 indicates that UPLD may have some problems paying its short term obligations.
UPLD has a worse Current ratio (0.78) than 85.25% of its industry peers.
UPLD has a Quick Ratio of 0.78. This is a bad value and indicates that UPLD is not financially healthy enough and could expect problems in meeting its short term obligations.
UPLD has a worse Quick ratio (0.78) than 84.89% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.78
Quick Ratio	0.78

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

UPLD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.96%, which is quite good.
Measured over the past years, UPLD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.37% on average per year.
Looking at the last year, UPLD shows a very negative growth in Revenue. The Revenue has decreased by -15.54% in the last year.
Measured over the past years, UPLD shows a small growth in Revenue. The Revenue has been growing by 4.30% on average per year.

EPS 1Y (TTM)15.96%

EPS 3Y-17.82%

EPS 5Y-13.37%

EPS Q2Q%-28.57%

Revenue 1Y (TTM)-15.54%

Revenue growth 3Y-3.1%

Revenue growth 5Y4.3%

Sales Q2Q%-24.24%

3.2 Future

UPLD is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.94% yearly.
UPLD is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.13% yearly.

EPS Next Y-25.86%

EPS Next 2Y-20.2%

EPS Next 3Y-11.94%

EPS Next 5YN/A

Revenue Next Year-20.66%

Revenue Next 2Y-13.68%

Revenue Next 3Y-10.13%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 1.32, the valuation of UPLD can be described as very cheap.
Based on the Price/Earnings ratio, UPLD is valued cheaply inside the industry as 98.20% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UPLD to the average of the S&P500 Index (28.82), we can say UPLD is valued rather cheaply.
UPLD is valuated cheaply with a Price/Forward Earnings ratio of 1.87.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UPLD indicates a rather cheap valuation: UPLD is cheaper than 98.20% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.95. UPLD is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	1.32
Fwd PE	1.87

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UPLD indicates a rather cheap valuation: UPLD is cheaper than 94.96% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UPLD indicates a rather cheap valuation: UPLD is cheaper than 99.64% of the companies listed in the same industry.