UiPath Inc. Fundamental Analysis
UiPath Inc. (PATH) shows moderate financial fundamentals with a PE ratio of 18.85, profit margin of 19.58%, and ROE of 17.29%. The company generates $1.7B in annual revenue with strong year-over-year growth of 12.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PATH's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPATH demonstrates superior asset utilization.
Valuation Score
ExcellentPATH trades at attractive valuation levels.
Growth Score
ModeratePATH shows steady but slowing expansion.
Financial Health Score
ExcellentPATH maintains a strong and stable balance sheet.
Profitability Score
ExcellentPATH achieves industry-leading margins.
Key Financial Metrics
Is PATH Expensive or Cheap?
P/E Ratio
PATH trades at 18.85 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PATH's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values UiPath Inc. at 3.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 54.24 times EBITDA. This signals the market has high growth expectations.
How Well Does PATH Make Money?
Net Profit Margin
For every $100 in sales, UiPath Inc. keeps $19.58 as profit after all expenses.
Operating Margin
Core operations generate 6.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.29 in profit for every $100 of shareholder equity.
ROA
UiPath Inc. generates $11.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
UiPath Inc. produces operating cash flow of $390.24M, showing steady but balanced cash generation.
Free Cash Flow
UiPath Inc. generates strong free cash flow of $381.20M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.72 in free cash annually.
FCF Yield
PATH converts 6.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How PATH Stacks Against Its Sector Peers
| Metric | PATH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.85 | 37.32 | Better (Cheaper) |
| ROE | 17.29% | 993.00% | Weak |
| Net Margin | 19.58% | 5975589423.00% | Weak |
| Debt/Equity | 0.04 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 2.20 | 116.24 | Strong Liquidity |
| ROA | 11.27% | -297552.00% (disorted) | Strong |
PATH outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews UiPath Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
155.71%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
394.80%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
1127.41%
Industry Style: Growth, Innovation, High Beta
High Growth