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Uber Technologies Inc UBER

Morningstar Rating
$57.97 −0.66 (1.13%)
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Company Report

Uber Earnings: The Platform Is More Easily Attracting Demand and Supply; Shares Remain Undervalued

Demand for Uber’s mobility and delivery remained high as indicated by third-quarter results, which showed GAAP profitability for the second consecutive quarter. While the numbers continue to display the firm’s network effect moat source, we were more impressed with Uber’s ability to gain traction in more markets and increase adoption of more non-UberX products like Uber for Business, taxi platform, and shared rides, further driving growth. We are maintaining our $68 fair value estimate and still view the shares of narrow-moat Uber as attractive.

Price vs Fair Value

UBER is trading at a 14% discount.
Price
$58.63
Fair Value
$83.00
Uncertainty
Very High
1-Star Price
$417.00
5-Star Price
$29.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Uber’s position in the autonomous vehicle race could equalize gross and net revenue, after no longer needing to pay drivers.

Bears

The development of autonomous vehicles, and especially Google’s Waymo, could eliminate the need for all existing ride-share platforms, driving Uber and Lyft out of business.

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News

Trading Information

Previous Close Price
$58.63
Day Range
$57.7058.66
52-Week Range
$23.9060.92
Bid/Ask
$57.93 / $57.96
Market Cap
$119.29 Bil
Volume/Avg
38.9 Mil / 21.2 Mil

Key Statistics

Price/Earnings (Normalized)
440.98
Price/Sales
3.36
Dividend Yield
Dividend Yield (Forward)
Total Yield

Company Profile

Uber Technologies is a technology provider that matches riders with drivers, hungry people with restaurants and food delivery service providers, and shippers with carriers. The firm's on-demand technology platform could eventually be used for additional products and services, such as autonomous vehicles, delivery via drones, and Uber Elevate, which, as the firm refers to it, provides "aerial ride-sharing." Uber Technologies is headquartered in San Francisco and operates in over 63 countries with over 131 million users that order rides or food at least once a month. Approximately 44% of its gross revenue comes from ridesharing and 34% from food delivery.
Sector
Technology
Industry
Software - Application
Stock Style Box
Large Growth
Total Number of Employees
32,000

Competitors

Valuation

Metric
UBER
LYFT
GOOGL
Price/Earnings (Normalized)
440.9840.4023.86
Price/Book Value
12.8710.625.93
Price/Sales
3.361.105.57
Price/Cash Flow
44.9516.59
Price/Earnings
UBER
LYFT
GOOGL

Financial Strength

Metric
UBER
LYFT
GOOGL
Quick Ratio
0.940.571.87
Current Ratio
1.140.852.04
Interest Coverage
1.91−43.64229.08
Quick Ratio
UBER
LYFT
GOOGL

Profitability

Metric
UBER
LYFT
GOOGL
Return on Assets (Normalized)
5.79%−10.15%23.46%
Return on Equity (Normalized)
24.51%−95.94%33.51%
Return on Invested Capital (Normalized)
10.48%−35.72%29.26%
Return on Assets
UBER
LYFT
GOOGL

Software - Application Industry Comparables

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Morningstar Rating for Stocks
Economic Moat
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CDNS
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WDAY
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DASTY
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SNOW
Snowflake Inc Ordinary Shares - Class ALtxkx$61.9 Bil