UPWORK INC (UPWK)
US91688F1049 - Common Stock
Taking everything into account, UPWK scores 5 out of 10 in our fundamental rating. UPWK was compared to 81 industry peers in the Professional Services industry. UPWK has only an average score on both its financial health and profitability. UPWK has a decent growth rate and is not valued too expensively.
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.
UPWK had negative earnings in 4 of the past 5 years.
Each year in the past 5 years UPWK had a positive operating cash flow.
1.2 Ratios
UPWK has a better Return On Assets (8.07%) than 74.36% of its industry peers.
The Return On Equity of UPWK (20.87%) is better than 71.79% of its industry peers.
UPWK has a Return On Invested Capital of 6.10%. This is comparable to the rest of the industry: UPWK outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.07% | ||
| ROE | 20.87% | ||
| ROIC | 6.1% |
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
UPWK has a better Profit Margin (11.26%) than 84.62% of its industry peers.
Looking at the Operating Margin, with a value of 7.88%, UPWK is in the better half of the industry, outperforming 62.82% of the companies in the same industry.
UPWK's Gross Margin of 76.72% is amongst the best of the industry. UPWK outperforms 87.18% of its industry peers.
UPWK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.88% | ||
| PM (TTM) | 11.26% | ||
| GM | 76.72% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UPWK is destroying value.
Compared to 1 year ago, UPWK has more shares outstanding
The number of shares outstanding for UPWK has been increased compared to 5 years ago.
UPWK has a better debt/assets ratio than last year.
2.2 Solvency
UPWK has an Altman-Z score of 3.37. This indicates that UPWK is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UPWK (3.37) is comparable to the rest of the industry.
UPWK has a debt to FCF ratio of 2.92. This is a good value and a sign of high solvency as UPWK would need 2.92 years to pay back of all of its debts.
UPWK has a Debt to FCF ratio of 2.92. This is in the better half of the industry: UPWK outperforms 64.10% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that UPWK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, UPWK is doing worse than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.71
WACC8.59%
2.3 Liquidity
UPWK has a Current Ratio of 3.18. This indicates that UPWK is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of UPWK (3.18) is better than 91.03% of its industry peers.
UPWK has a Quick Ratio of 3.18. This indicates that UPWK is financially healthy and has no problem in meeting its short term obligations.
UPWK's Quick ratio of 3.18 is amongst the best of the industry. UPWK outperforms 91.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 3.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 185.29% over the past year.
The Revenue has grown by 14.28% in the past year. This is quite good.
UPWK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.15% yearly.
EPS 1Y (TTM)185.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%38.1%
Revenue 1Y (TTM)14.28%
Revenue growth 3Y22.64%
Revenue growth 5Y22.15%
Sales Q2Q%10.27%
3.2 Future
The Earnings Per Share is expected to grow by 27.78% on average over the next years. This is a very strong growth
Based on estimates for the next years, UPWK will show a quite strong growth in Revenue. The Revenue will grow by 8.48% on average per year.
EPS Next Y105.22%
EPS Next 2Y56.49%
EPS Next 3Y40.43%
EPS Next 5Y27.78%
Revenue Next Year11.07%
Revenue Next 2Y6.9%
Revenue Next 3Y7.34%
Revenue Next 5Y8.48%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.26, which indicates a rather expensive current valuation of UPWK.
Based on the Price/Earnings ratio, UPWK is valued a bit cheaper than 65.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.54, UPWK is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.67, UPWK is valued correctly.
Based on the Price/Forward Earnings ratio, UPWK is valued a bit cheaper than the industry average as 75.64% of the companies are valued more expensively.
UPWK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 13.67 |
4.2 Price Multiples
65.38% of the companies in the same industry are cheaper than UPWK, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UPWK indicates a somewhat cheap valuation: UPWK is cheaper than 67.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.26 | ||
| EV/EBITDA | 22.63 |
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.
UPWK's earnings are expected to grow with 40.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y56.49%
EPS Next 3Y40.43%
5. Dividend
5.1 Amount
No dividends for UPWK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UPWORK INC
NASDAQ:UPWK (12/24/2024, 7:43:18 PM)
After market: 16.75 +0.01 (+0.06%)16.74
+0.18 (+1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners79.77%
Inst Owner Change0.41%
Ins Owners7.16%
Ins Owner Change3.9%
Market Cap2.24B
Analysts80
Price Target18.73 (11.89%)
Short Float %9.33%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)10.19%
Min EPS beat(2)8.83%
Max EPS beat(2)11.55%
EPS beat(4)4
Avg EPS beat(4)12.34%
Min EPS beat(4)8.83%
Max EPS beat(4)16.14%
EPS beat(8)8
Avg EPS beat(8)333.2%
EPS beat(12)11
Avg EPS beat(12)237.89%
EPS beat(16)14
Avg EPS beat(16)201.38%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)2.22%
Revenue beat(4)3
Avg Revenue beat(4)0.56%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)2.22%
Revenue beat(8)5
Avg Revenue beat(8)0.61%
Revenue beat(12)8
Avg Revenue beat(12)0.94%
Revenue beat(16)11
Avg Revenue beat(16)1.76%
PT rev (1m)32.03%
PT rev (3m)30.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)1.91%
EPS NY rev (3m)8.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.36%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 13.67 | ||
| P/S | 2.94 | ||
| P/FCF | 18.26 | ||
| P/OCF | 16.01 | ||
| P/B | 5.44 | ||
| P/tB | 7.69 | ||
| EV/EBITDA | 22.63 |
EPS(TTM)0.97
EY5.79%
EPS(NY)1.22
Fwd EY7.31%
FCF(TTM)0.92
FCFY5.48%
OCF(TTM)1.05
OCFY6.24%
SpS5.7
BVpS3.08
TBVpS2.18
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.07% | ||
| ROE | 20.87% | ||
| ROCE | 7.72% | ||
| ROIC | 6.1% | ||
| ROICexc | 26.8% | ||
| ROICexgc | 83.29% | ||
| OM | 7.88% | ||
| PM (TTM) | 11.26% | ||
| GM | 76.72% | ||
| FCFM | 16.09% |
ROA(3y)-3%
ROA(5y)-3.41%
ROE(3y)-15.16%
ROE(5y)-11.91%
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 3Y1.44%
GM growth 5Y2.1%
F-Score8
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 2.92 | ||
| Debt/EBITDA | 4.81 | ||
| Cap/Depr | 120.62% | ||
| Cap/Sales | 2.26% | ||
| Interest Coverage | 64.5 | ||
| Cash Conversion | 188.06% | ||
| Profit Quality | 142.84% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 3.18 | ||
| Altman-Z | 3.37 |
F-Score8
WACC8.59%
ROIC/WACC0.71
Cap/Depr(3y)113.73%
Cap/Depr(5y)146.47%
Cap/Sales(3y)1.67%
Cap/Sales(5y)2.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)185.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%38.1%
EPS Next Y105.22%
EPS Next 2Y56.49%
EPS Next 3Y40.43%
EPS Next 5Y27.78%
Revenue 1Y (TTM)14.28%
Revenue growth 3Y22.64%
Revenue growth 5Y22.15%
Sales Q2Q%10.27%
Revenue Next Year11.07%
Revenue Next 2Y6.9%
Revenue Next 3Y7.34%
Revenue Next 5Y8.48%
EBIT growth 1Y249.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year149.86%
EBIT Next 3Y52.32%
EBIT Next 5Y36.98%
FCF growth 1Y663.68%
FCF growth 3Y10.76%
FCF growth 5Y9.52%
OCF growth 1Y1074.44%
OCF growth 3Y6.76%
OCF growth 5Y14.65%