UPWORK INC (UPWK)
US91688F1049 - Common Stock
We assign a fundamental rating of 6 out of 10 to UPWK. UPWK was compared to 81 industry peers in the Professional Services industry. Both the profitability and the financial health of UPWK get a neutral evaluation. Nothing too spectacular is happening here. UPWK is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes UPWK very considerable for growth investing!
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
The Return On Assets of UPWK (8.07%) is better than 75.32% of its industry peers.
The Return On Equity of UPWK (20.87%) is better than 71.43% 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 46.75% 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 85.71% of its industry peers.
With a decent Operating Margin value of 7.88%, UPWK is doing good in the industry, outperforming 63.64% of the companies in the same industry.
The Gross Margin of UPWK (76.72%) is better than 87.01% 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
UPWK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for UPWK has been increased compared to 1 year ago.
UPWK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UPWK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.20 indicates that UPWK is not in any danger for bankruptcy at the moment.
UPWK has a Altman-Z score (3.20) which is in line with its industry peers.
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.
The Debt to FCF ratio of UPWK (2.92) is better than 67.53% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that UPWK is somewhat dependend on debt financing.
UPWK has a Debt to Equity ratio of 0.87. This is in the lower half of the industry: UPWK underperforms 67.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.79
WACC7.72%
2.3 Liquidity
A Current Ratio of 3.18 indicates that UPWK has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.18, UPWK belongs to the best of the industry, outperforming 88.31% of the companies in the same industry.
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 has a Quick ratio of 3.18. This is amongst the best in the industry. UPWK outperforms 88.31% 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.
UPWK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.28%.
The Revenue has been growing by 22.15% on average over the past years. This is a very strong growth!
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
UPWK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.99% yearly.
Based on estimates for the next years, UPWK will show a quite strong growth in Revenue. The Revenue will grow by 12.28% on average per year.
EPS Next Y101.38%
EPS Next 2Y54.1%
EPS Next 3Y40.27%
EPS Next 5Y33.99%
Revenue Next Year10.69%
Revenue Next 2Y7.09%
Revenue Next 3Y7.65%
Revenue Next 5Y12.28%
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
With a Price/Earnings ratio of 16.52, UPWK is valued correctly.
Based on the Price/Earnings ratio, UPWK is valued a bit cheaper than the industry average as 77.92% of the companies are valued more expensively.
UPWK is valuated rather cheaply when we compare the Price/Earnings ratio to 29.20, which is the current average of the S&P500 Index.
UPWK is valuated correctly with a Price/Forward Earnings ratio of 13.49.
79.22% of the companies in the same industry are more expensive than UPWK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of UPWK to the average of the S&P500 Index (24.00), we can say UPWK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UPWK.
UPWK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UPWK is cheaper than 79.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.47 | ||
| EV/EBITDA | 20.18 |
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.
UPWK's earnings are expected to grow with 40.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y54.1%
EPS Next 3Y40.27%
5. Dividend
5.1 Amount
UPWK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UPWORK INC
NASDAQ:UPWK (11/22/2024, 8:10:41 PM)
After market: 16.28 +0.26 (+1.62%)16.02
+0.64 (+4.16%)
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 Cap2.14B
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)
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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)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 13.49 | ||
| 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)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.07% | ||
| ROE | 20.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.88% | ||
| PM (TTM) | 11.26% | ||
| GM | 76.72% | ||
| 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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.18 | ||
| Quick Ratio | 3.18 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)185.29%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y101.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.28%
Revenue growth 3Y22.64%
Revenue growth 5Y
Sales 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