Upwork Inc.
Upwork Inc. Fundamental Analysis
Upwork Inc. (UPWK) shows moderate financial fundamentals with a PE ratio of 9.86, profit margin of 13.81%, and ROE of 17.92%. The company generates $0.8B in annual revenue with weak year-over-year growth of 2.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze UPWK's fundamental strength across five key dimensions:
Efficiency Score
WeakUPWK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentUPWK trades at attractive valuation levels.
Growth Score
WeakUPWK faces weak or negative growth trends.
Financial Health Score
ExcellentUPWK maintains a strong and stable balance sheet.
Profitability Score
ModerateUPWK maintains healthy but balanced margins.
Key Financial Metrics
Is UPWK Expensive or Cheap?
P/E Ratio
UPWK trades at 9.86 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, UPWK's PEG of -0.19 indicates potential undervaluation.
Price to Book
The market values Upwork Inc. at 1.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.12 times EBITDA. This is generally considered low.
How Well Does UPWK Make Money?
Net Profit Margin
For every $100 in sales, Upwork Inc. keeps $13.81 as profit after all expenses.
Operating Margin
Core operations generate 15.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.92 in profit for every $100 of shareholder equity.
ROA
Upwork Inc. generates $8.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Upwork Inc. generates strong operating cash flow of $225.93M, reflecting robust business health.
Free Cash Flow
Upwork Inc. generates strong free cash flow of $216.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.75 in free cash annually.
FCF Yield
UPWK converts 21.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How UPWK Stacks Against Its Sector Peers
| Metric | UPWK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.86 | 26.37 | Better (Cheaper) |
| ROE | 17.92% | 1265.00% | Weak |
| Net Margin | 13.81% | -29674.00% (disorted) | Strong |
| Debt/Equity | 0.66 | 0.73 | Neutral |
| Current Ratio | 1.36 | 8.96 | Neutral |
| ROA | 8.79% | -1492180.00% (disorted) | Weak |
UPWK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Upwork Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
91.61%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
558.70%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
908.73%
Industry Style: Cyclical, Value, Infrastructure
High Growth